EXPANDING PRODUCTION OF FORTIFIED AND ... - USAID

28 October 2009 This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc.

EXPANDING PRODUCTION OF FORTIFIED AND THERAPEUTIC FOODS IN EASTERN AFRICA KENYA, UGANDA, RWANDA, AND ETHIOPIA

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

EXPANDING THE PRODUCTION OF FORTIFIED AND THERAPEUTIC FOODS IN EAST AFRICA iii

CONTENTS Executive Summary ............................................................................................................1 Section I: Introduction ........................................................................................................3 Section II: Background .......................................................................................................4 Section III: Methodology ....................................................................................................6 Section IV: Findings .................................................................................................................... 7

General Observations for Fortified Foods ..............................................................7 Kenya ....................................................................................................................10 Uganda ..................................................................................................................14 Rwanda .................................................................................................................15 Ethiopia .................................................................................................................17

Section V: Livestock Products ..........................................................................................20 Section VI: Discussion ......................................................................................................22 The Need versus Production Capacity ..................................................................22 Potential Manufacturers ........................................................................................24 Quality Issues ........................................................................................................26 Section VII: Recommendations ........................................................................................28 Appendices ........................................................................................................................32

EXPANDING THE PRODUCTION OF FORTIFIED AND THERAPEUTIC FOODS IN EAST AFRICA 1

EXECUTIVE SUMMARY

The purpose of the East Africa Competitiveness and Trade Expansion (COMPETE) program is to enhance economic growth and food security in Eastern and Central Africa by stimulating increased trade and competitiveness in both regional and global markets. Under the Staple Food component, COMPETE aims to provide enabling environment for the increased production, processing and marketing of value added staple foods. This report outlines findings of an assessment to determine to what extent a value chain approach can improve competitiveness of small and medium processing industry in the region. Target countries were Kenya, Uganda, Rwanda and Ethiopia. Various meetings were held with relief agencies namely USAID, WFP and UNICEF and production plants in the four countries. The international bodies helped to identify priority foods distributed for relief and the suppliers in region. Manufacturers provided information on capacity to supply to and identified issues that may need to be addressed to expand production. It was noted that fortified Corn Soya Blend (CSB) and a fortified peanut paste referred to as Ready to use therapeutic Food (RUTF) are the most used. The RUTF is fortified with of minerals and vitamin under license from Nutriset of France who developed the product. Nutriset supplies to the region directly or through its regional partners in Ethiopia and Malawi. Valid International is based in Ireland is the other research organization promoting the production of RUTF. It operates in countries through a non-profit organization called Valid Nutrition which partners with local producers to produce and market the product. At present it operates in Malawi and Ethiopia. There are various version of RUTF under development such as RUSF (a supplementary food), RUCF (a complementary food) and RUTF-H (a therapeutic food targeting people with HIV/AIDS). RUSF is targeted for commercialization for use by the general population. At present most of the RUTF and CSB is imported. Keys issues from manufacturers relate to lack extrusion equipment, mechanical cleaning and drying equipment for raw materials, limited milling and packaging capacity and a lack of electrical generators to ensure continuous production when power is disrupted as often happens. Most manufacturers will require improvements to achieve HACCP certification which is vital for pre-qualification to supply to UNICEF and WFP. Supply of soybean and maize from local sources in Kenya, Uganda, Rwanda and Ethiopia vary from country to country but may be sourced from neighboring countries of Tanzania, Malawi and Sudan. In terms of livestock products, production of UHT and powdered milk is below capacity due to low milk volumes transported to processing plants. Only 14-18% of 4 billion liters collected each year in Kenya every year is processed. Uganda processes similar percentages of its 2 million liters collected per year due to poor cold chain and poor quality of milk. The processing of tinned/canned meat is also not maximized due to limitations with slaughter houses which are located far from the pastoral areas. The use of satellite abattoirs and mobile slaughtering houses needs to be seriously considered to


provide tinned meat that can be stored in strategic food reserves and used in times of need. Relief agencies rarely use such foods unless they are donated. The assessment noted that there is great potential for local producers of CSB and RUTF to expand and adequately satisfy local needs if the current bottlenecks are addressed through training and capital investments. The technology is relatively simple and available in all countries. The benefits to the region will realized through expanded production and increased use of local raw materials to produce high value food products of international quality that can be expected within the region and globally.


SECTION I: INTRODUCTION The Competitiveness and Trade Expansion (COMPETE) Program intends to promote economic growth and food security in Eastern and Central Africa. This is to be achieved through rendering supporting increasing regional and international trade of chosen manufacturers in the region. It aims at achieving this through provision of appropriate assistance to local manufactures to produce food items that are of nutritious, of high quality and acceptable for sale to relief organizations within the region and beyond. Specifically, COMPETE will promote the production of quality fortified and therapeutic foods which can be accessed by the international community for relief work with the region. This report discusses findings of a study to assess the products used for relief work in the regions and the potential for local manufacturers to produce the fortified foods from locally sourced cereals and legumes and livestock products.


SECTION II: BACKGROUND

The East and Central Africa region has been a recipient of various relief food items from a number of donor organizations over the years. These foods are distributed as part of health, education and emergency programs being conducted in the region. The World Food Programme (WFP) provides blended fortified foods during emergencies and in support of programs such as national School Feeding Programs. In Kenya and Uganda it provides food to support education of vulnerable pre-primary school children and populations affected by HIV/AIDS as well as internally displaced persons (IDPs). In Ethiopia, it supports emergency and child based food for education programs whereas in Rwanda it supports relief work and provides food rations to returnees. UNICEF also provides nutrition support to malnourished children and mothers. It also provides nutrition supplementations for children diagnosed with HIV/AIDS.

The food items are either provided as cereals, pulses, oil and fortified or therapeutic foods. The decision to source locally or internationally depends on the sources of funds, the urgency of the problem or any conditions attached to the funding. However, of later there has been a deliberate move to procure locally so as to cut down on transport costs, respond rapidly to emergencies and provide foods that are of local content and likely to be more palatable. More importantly for the nutrition support programs, buying local also encourages local appreciation of the malnutrition problem in the areas and the understanding that local foods are part of the solutions to such problems. Figure 1 shows that except for oil and blended foods, WFP has been sourcing most of its requirements in terms of maize and maize meal from the continent.

Figure 1: Total Purchases made by WFP compared to purchases made in Africa1

For some time now, a significant amount of fortified foods and therapeutic foods consumed in the region has been imported from outside the region for various reasons. This is despite the relatively simple technology that is used to produce the foods and the availability of most of the raw materials required for such foods. For example, fortified Corn Soy Blend (CSB) is made from roasted maize and soy flour to which minerals and

1 WFP Supply Division 2008 Data; www.wfp.org


vitamins have been added and these two foods are readily available in the region. This product is currently being made in the region but poor quality of production plants and low production capacity has seen the region losing out tenders for supply of such food to other providers outside the region such as South Africa who top the list of suppliers for WFP relief food worldwide2.

Donor organizations cannot run the risk of providing substandard relief food to vulnerable populations and so they would rather purchase outside the region and pay extra freight. It has been reported3 impact of landed costs of relief food by sea freight contributes 4% to the cost of RUTF whereas airfreight contributes as much as 39% of the cost of relief food such as flying in RUTF from Nutriset France. Buying outside the region has however been at the expense of delivery times and extra strain on funding for relief within the region. It should be noted that due to various factors in producing countries, such as economies of scale and cost of raw materials. At times the costs of importing is cheaper than buying locally and so in order to maximize volumes based on available funding, agencies have opted to forego local suppliers.

It is beneficial to source supplies from local producers but this can only be achieved if the local suppliers attain the quality specifications and capacity that will allow them to win tenders competitively within the region. Relief agencies buy locally but the producers that are prequalified for supply provide insignificant volumes in comparison to the total needs of the region. It is therefore important to determine to what extent the local producers can upgrade production capacity and quality so as to take up the challenge. It is important to determine inputs that are required to enable them to supply adequately in the region for relief programs and during emergencies and beyond. In 2008 WFP bought 108,121 tons of oil of which only 6,722 (6%) was sourced from Africa at a value of US$12.7 million. Stimulating competiveness of local industries in order to enter international markets for products such as theses will have a ripple effect of benefitting producers of cereals and legumes such as maize, groundnuts, soya and chick pea among others.

2 As in Ref 1

3 RUTF Case Study: Production Flow; www.globalhealthtechnologyaccess.org


SECTION III: METHODOLOGY

This task of assessing capacity and potential for producing fortified foods was conducted over a period of 21 days with Nairobi as the centre of operations. The consultant, who was based at the COMPETE Offices in Nairobi, organized meetings with donor agencies in the countries and industries that are currently producing fortified foods and those that have potential to produce. The donor organizations targeted during this time were USAID, WFP and UNICEF because of their key role in the sourcing of fortified corn soy blend (CSB) and Ready-to-Use-Therapeutic Food (RUTF). There are however many other organizations that work in the region but act as implementers of programs supported by these three organizations. The organizations provided information on the industries that are pre-qualified in the countries as well as the food items that they buy and the programs for which they are intended. A complete list of organizations visited in the countries is provided in Appendix 1.

Visits were also made to manufacturing plants as shown in Appendix 1 in order to assess their production capacities and discuss any issues that hinder them from trading with the international donors. The visits were conducted within the three week period according to the following schedule:

Country Dates in August 2009

Kenya 10-14

Uganda 17-19 Rwanda 20-21 Ethiopia 24-26 Kenya 27-28

The information gathered and documents collected were studied and used in compiling this report. However, further information was collected from literature search just to complement the information collected from the various meetings. The trip to Ethiopia was conducted together with Mr. Steven Humphreys who heads the Staple Foods Component of COMPETE.


SECTION IV: FINDINGS General Observations for Fortified Foods: Foods Purchased

The countries of the region receive food items for the treatment of severe acute malnutrition (SAM), for supplementing the diet of vulnerable people, supporting school feeding programs (SFP). Some food assistance is also provided to people living with HIV/AIDS, people receiving treatment for TB, food relief during emergencies. The type of food is dependent on the need to be addressed but two main food items top of this list. These are Ready- to-Use-Therapeutic Food (RUTF) and fortified corn soya blended (CSB). WFP and UNICEF have protocols for determining the suitable recipients who quality and the type of food supplements they should receive and for how long. For example, malnourished children would receive 10-15 kg. of RUTF over a period of 6-8 weeks depending on their body weight and their response to treatment over the period. This product costs between $4000 and $6000 per metric ton. RUTF is mainly purchased by UNICEF for undernourished children and in 2007 UNICEF bought 14,000 MT of the 18,000 MT that were produced worldwide, of which 16,000 MT were made by Nutriset4. Other reports5 put the purchase by UNICEF at 9,200 MT in 2008. CSB is mainly purchased by WFP for their school feeding programs and is distributed at a rate of 5 kg. per child per week.

Figure 2: Sachet of RUTF Manufactured by Valid Nutrition

Other foods that are distributed are fortified vegetable oil, beans, maize meal, and a high energy biscuit product called BP-100. Therapeutic milk products namely F100 and F75

are equivalent to RUTF but contain no peanut butter6. This therapeutic milk is used for Moderate Acute Malnutrition (MAM) and for Pregnant and Lactating women. Ready-to-

4 Zeilani Mamane, Nutriset Action Plan (2007), presented at International Workshop on Integrating

CMAM, Washington DC, March 2008

5 UNICEF Report on Supply Chain Analysis of Ready-to-use Therapeutic Foods for the

Horn of Africa (May 2009) 6 Manary, Mark J, Food and Nutrition Bulletin, vol 27, no.3 (supplement), 2006


Use Complimentary Food (RUCF) is used for the prevention and treatment of stunting and growth faltering whereas RUTF-H is for treatment and prevention of malnutrition associated with HIV/AIDS. There has been a growing interest in using RUTF especially with the introduction of community based treatment for severe acute malnutrition because it requires no further preparation and is easy to store as it requires no refrigeration. RUFT needs have risen sharply in comparison to F100 and F75 as shown in Figure 3 below as a result of its convenience and similar nutrient and energy provision.

Figure 3: Increasing orders for RUTF at country level in comparison to F75 and F1007

RUTF is replacing other forms of therapeutic foods as a result of the increased need for

community based treatment which removes the need for keep beneficiaries in hospital

environment as they are rehabilitated. As can be seen in the table below, RUTF and the

therapeutic milk (F-100) have similar amounts of most key nutrients for addressing

common micronutrients deficiencies namely vitamin A, folate, iron, zinc and iodine.

Micronutrient Amount per 100 g

of F100

Amount per

100 g of F75

Amount per 100 g

of finished product

RUTF

Vitamin A 900 mcg 1500 mcg 950 mcg

Vitamin D 16 mcg 30 mcg 17.5 mcg

Vitamin E 20 mg 22 mg 20 mcg

Vitamin C 53 mg 100 mg 50 mcg

Vitamin B1 0.6 mg 0.7 mg 0.5 mg

Vitamin B2 1.7 mg 2 mg 1.6 mg

Niacin 5.3 mg 10 mg 5 mg


Folic Acid 210 mcg 350 mg 200 mg

7 Adapted from a UNICEF Report on Supply Chain Analysis of Ready-to-use Therapeutic

Foods for the Horn of Africa (May 2009)


Pathothenic Acid Vitamin B5

3.1 mg 3 mg 3 mg

Iron - <0.3 mg 11.53 mg

Zinc 11.8 mg 20.5 mg 14 mg

Iodine 80m cg 77 mcg 110 mcg

Table 1: Key Micronutrients in Corn Soy Blend and RUTF8

The complete list of nutrients is provided in Appendix 2. General Observations for Fortified Foods: Sources of the Fortified and Therapeutic Foods Corn Soy Blend (CSB): This product is procured by country and regional offices mainly from local producers who have been certified and pre-qualified as appropriate suppliers. The product is mainly a blend of roasted maize and soya flour to which a vitamin and mineral mixture has been added. The addition of nutrients is done according to special formulas and the common one being UNIMIX which is a vitamin/mineral mix of choice for fortified corn soy blend purchased by WFP. CSB can has been provided in the past as a gift from donor countries such as the USA and has been procured from other countries such South Africa which happens to be one of the largest commodity suppliers to WFP in Africa9. There are local producers of CSB in Kenya, Uganda, Ethiopia and Rwanda although capacity levels and quality of product units vary greatly. CSB is a pre-cooked product achieved through roasting or extrusion although the latter is preferred as it ensures adequate cooking for easy digestion by the beneficiaries. The following are producers of CSB in the region who are already pre-qualified and are discussed in the elaborations for each country below.

Country Manufacturer

Kenya Insta Products (EPZ) Ltd, Nutro (EPZ) Ltd, Soy Africa, Procter and Allen

Uganda Biyinzika Enterprise Ltd, Sunrise Ltd, ND Agro of Mukono, WFP Mill

Rwanda SOPAR, Duhamic /SOSOMA

Ethiopia Health Care Foods Manufacturers, Seka Business Group, FAFFA Food Share PLC, East Africa Group, Norish Business Group PLC, GUTS ( in Awassa), Abbay International PLC

Table 2: Pre-qualified Manufacturers of Corn Soya Blend for Relief WFP and UNICEF

8 Complete details of standard in Appendix 2

9 WFP Website, Supply Division(2008)


Ready to Use Therapeutic Foods (RUTF): RUTF is produced worldwide by two main institutions namely Nutriset from France (Malaunay) and Valid Nutrition which was established in Ireland in 2005. As presented in Appendix 5, all RUTF produced by Valid Nutrition is produced in developing countries with whom it partners. This product is a peanut paste to which vitamins and minerals are added and it is packed in sachets or bottles. All the producers in the East Africa region currently have some affiliation to either Nutriset or Valid Nutrition. The original recipe was developed by Nutriset in 1996 and all other manufacturers produce RUTF under some license agreement from Nutriset. It should be noted that Valid Nutrition is a non-profit organization and so in its agreements it mandates all producers not sell their products above a certain profit margin. Producers of RUTF are working on preparing different versions of Ready to Use Foods (RUFs) for therapeutic use and commercialization. Nutriset and Valid Nutrition signed an agreement in 200710 allowing the latter to manufacture the product and market it under its name. Vegetable Oil: Fortified oil is mostly sourced from Malaysia since the product from that area is deemed cheaper than locally made fortified oil. Some oil has also come to the region from donor countries such as the USA through grants to the recipient nations. Cereals: These are bought locally or from international sources depending on various parameters such as price, local availability and ability to provide high volumes of good quality products over a given period. As shown in Figure 1, most of the WFP needs for maize or maize meal are met with supplies from Africa. F100, F75 and BP100: These are products that are sourced from the Supply Division of UNICEF in Copenhagen. No current producers of these products were identified from within the East African region but Valsek in Ethiopia produces fortified biscuits. Figure 2 above shows that F75 and F100 volumes have remained constant since 2005 when RUTF orders have increased sharply due to increased community based treatment. Kenya

Products and Standards: The main therapeutic food products used for relief programs in Kenya are RUTF and Corn Soy Blend. There are a number of oil producers in the country who can fortify their oil but currently it is only BIDCO Industries that fortifies one of its Golden Fry brands of oil with vitamin A.

The standard used for the fortification of CSB is based on the internationally accepted UNIMIX formula and contains minerals and vitamins as specified in Appendix 2. If relief organizations are to buy the product, the producer needs to follow standards set up by Codex Alimentarius such as International Code of Practice for Powdered Infant Formula and the Code of Practice for Prevention and Reduction of Aflatoxin Contaminations and General Principles of Food Hygiene.

10

Field Exchange (www.fex.ennonline.net/32/nutriset.aspx)


The RUTF is produced according to the specification designed by Nutriset for vitamin and Minerals. A typical RUTF is made up of peanut butter (25%), full fat milk (30%), sugar (28%), vegetable oil (15%) and mineral and vitamin mix (1.6%). The mineral composition is presented in Appendix 2. There are a number of products that are currently under review so as to act as alternatives for RUTF for specific vulnerable groups and the general population. In terms of CSB, fortification premix is bought from international vitamin suppliers such as DSM or BASF. In producing both products, there is a need to follow appropriate Quality Management Systems, personal hygiene and equipment handling, production quality control as well as documentation. Processors: The following table shows the processors available in Kenya for the production of fortified and therapeutic foods. These are producers that are currently pre-qualified by UNICEF and WFP. As part of the bidding process, the plants are visited by inspectors who certify their readiness to supply food items to the organization on a regular basis

Country CSB RUTF Other fortified

foods

Kenya Insta Products (EPZ) Ltd

Nutro (EPZ) Ltd Soy Africa

Procter and Allen

Insta Products (EPZ) Ltd

Fortified Maize Meal from Unga

Limited Fortified Cooking Oil from BIDCO

Table 3: Processors of fortified foods in Kenya

CSB Production: There are four major producers of CSB namely Insta Products (EPZ) Ltd in the Export Promotion Zone (EPZ) production unit, Nutro Foods in EPZ, Procter and Allen and Soy Africa who have been approved by UNICEF and WFP. However during this assessment it was learnt that Procter and Allen was not being utilized due to some suboptimal conditions at the plant. Insta Products (EPZ) has installed capacity of 2,000 MT of blended foods month and intends to increase that to 3000 MT to help meet demand. The main customers for Insta are UNICEF, World Food Program, the Government of Kenya, Feed the Children, Medecins san Frontiers, Action Against Hunger, Christian Children Foundation, World Vision International, USAID and many other non-government organizations.

RUTF Production: Insta Products Ltd was identified as the only producer of RUTF in Kenya under license from Valid Nutrition. Insta however does not produce its own peanut paste and relies on paste delivered to the plant by suppliers such Jetlak in Thika. Other peanut paste suppliers such as Energy Foods of Embakasi also produce peanut paste and as Insta is considering them as potential suppliers as production is expanded. The plant has been working on production of RUSF, RUCF and RUTF-H. The RUTF produced by Insta is also exported to countries such as Uganda, Tanzania, Democratic Republic of Congo, Rwanda, Burundi, Southern Sudan, Eritrea, Madagascar and the Comoros.


Maize Meal Production: Only one producer, Unga Millers Ltd, fortifies one of its brands with vitamins and minerals whereas other maize meals in the country are not fortified. Maize meal is also referred to as Maize flour in some countries. The Ministry of Health is however working on a program to promote the fortification of fortified maize flour in Kenya with support from the Global Alliance of Improved Nutrition (GAIN) which is also funded by USAID among a group of funding organizations. The Bill and Melinda Gates is the largest donor.

HAACP: The two plants that were visited (Insta and BIDCO) have HAACP system requirements in place which qualifies them to produce on behalf of the two relief organizations. There is however a great challenge with other industries where HACCP requirements are difficult to attain. This is mainly because of in adequate enforcement appropriate standards such as ISO 22000.

Raw Material Supply: Raw materials for CSB are mainly sourced from local farmers and the produce is brought to the factory through middlemen who buy from various farmers. The price of soya on the local market went up by 40%11 in June/July affected by shortage on the international market. The adequacy of maize and soya in Kenya is affected by drought incidences and by the poor quality of the raw materials from farmers which fail to satisfy the standard requirements. It becomes important for the buyer to test for aflatoxin levels to ensure that the levels are acceptable and that the final product will contain acceptable levels. Aflatoxin is a problem for peanuts used for peanut paste and maize as well as soybean used for CSB manufacture. Discussions with the suppliers of peanut paste indicate the need to ensure that the nuts are well taken care of at the farm level and tested for aflatoxin before purchase. The standard for RUTF requires a maximum of 5 parts per billion (ppb) in the finished product. The Codex standard for aflatoxin in nuts that are to be used for processing is 15ppb.This means the peanut paste cannot be used if the aflatoxin level is above 20ppb since the paste is to be dilute four times during production. Insta fortunately has capacity to test for aflatoxin and suppliers whose products are not acceptable are sent back. Insta peanut butter is provided by Jetlak Industries and consideration has been given for sourcing it from other suppliers such Energy Foods in order to increase production. Both peanut butter suppliers expressed concern over the aflatoxin levels in ground nuts delivered to them but the situation has not been quantified yet. However, on one of days in August 2009, two batches delivered to Energy Foods in Embakasi by from two different suppliers, showed levels of 4ppb for one and over 40ppm for the second batch. It is difficult to quantify the problem in light of the inconsistent testing procedures but the problem is believed to be significant. Right now the groundnuts are sourced from many sources which include Dodoma in Tanzania and some from Uganda mainly because they are abundant in those areas and sold at a cheaper price in Nairobi.

11

Business Daily, 9 July 2009, www.allafrica.com


Uganda produced 165,000 MT in 200712 of which only 20% goes into the formal trade mainly coming from the north. The rest is harvested and consumed at local levels. A study commissioned by USAID on the extent of informal trade between Kenya and Uganda shows that there is significant informal trade between the countries that cannot be neglected as it contributes to food security. This report13 of 1997 showed that 13,000 MT of food items were imported into Kenya from Uganda in informal trade values at $5 million dollars. Key items were sim sim, choroko, millet, groundnuts and rice. On the other hand Kenya exported 16,000 MT of cereals comprising mainly of wheat flour valued at $8 million dollars. Informal trade across the border increased export earnings to $316.9 million dollars in April 2009 according to the Uganda Central Bank14.

Provision of local materials in the region is adequate but the quality in terms of moisture and aflatoxin levels needs to be improved so that the peanut are delivered with levels lower than 15ppb as recommended in the Codex standards15. If local farmers are to benefit from supply to this initiative all the nuts that are need to comply with this specification so as to allow producers of RUTF to meet the WFP standard of less than 10ppb16. In Uganda, approximately 20% goes into the formal trade and the rest is utilized by informal processes that make sauces and peanut butter. There is more local processing which if harnessed into formal business of different RUFs would benefit the farmers greatly but providing stable market and decent pries. According FAO17, Uganda has the highest production of soya followed by Ethiopia in the region as shown in Figure 3. However data also shows that except for Uganda, most the other countries are not good producers of soybeans and groundnuts. Large producers of groundnuts are neighboring countries of Tanzania, Malawi and Sudan with Malawi coming second to Uganda in production of soybean of the countries listed. This data is also tabulated in Appendix 4.

12

FAOSTAT(2007)

13 Unrecorded Cross-border Trade between Kenya and Uganda by Chris-Ackello-Ogutu, Technoserve,

University of Nairobi(July 1997)

14 New Vision(Uganda Paper), 28 June 2009

15 Codex Standard CX/FAC01/21

16 Insta Products (EPZ) Ltd: Technical card for RUTF (2009)

17 FAOSTAT(2007)


Figure 4: Production of groundnuts and Soya in countries of interest and surrounding countries

Uganda

Products and standards: The relief foods used in Uganda are mainly CSB and RUTF as is the case for Kenya. The two products are also manufactured according to international standards from premises that are certified by UNICEF and WFP inspectors. There is currently a program by WFP to fortify maize meal produced for relief work in the country and this product will be fortified according to the Uganda Standard US509:2006 for fortified milled products.

Processors:

CSB: WFP has four registered supplies namely Biyinzika, Sunrise Ltd, ND Agro of Mukono and Export Trading. The table below summarizes the current and potential processors with capacity to supply to relief programs and utilize local raw materials.

COUNTRY CSB RUTF OTHER FORTIFIED

FOODS

Uganda Biyinzika Enterprise Ltd Sunrise Ltd ND Agro of Mukono WFP Mill Mukwano & Export Trading (Upcoming)

RECO18 (Kensol)19

Maize Meal from Unga Millers Oil from BIDCO Oil from MUKWANO

18

Plant to start running towards the end of 2009

19 Only makes peanut butter but could consider fortifying the butter to make RUTF


At times there are imports from Kenya and South Africa when there are emergencies requiring large volumes of CSB that cannot be provided by the local processors in time. WFP, in partnership with a MOH food fortification program, intends to fortify all maize meal that it provides to its recipients. In this vain it has identified 11 mills that it wants to work with in this program. The mills have a combined capacity of 53,000MT per year. The total daily capacity is 270MT but with the idle time indicated, there is room for increased output.

RUTF: The production of RUTF in Uganda is mainly in its infant stages. Currently, UNICEF procures all its supplies from Nutriset in France. There are developments however to set up local production to provide RUTF to USAID/NULIFE program. RECO Industries have been identified and they are currently preparing for certification in order to supply to the program. The company claims to have over 5000 out-growers who produce the groundnuts for use in their production. Another producer of peanut butter (Kensol) is also considering getting into the business of producing RUTF. In Uganda a program for Peanut Collaborative Research Support (CRSP)20 works with people at community level to help reduce on level of aflatoxin. This will translate into safe products for consumption, improved income for the rural people. The program achieves its goals through training to help reduce health problems related to consuming aflatoxin infested groundnuts. The CRSP program is run by Makerere University in Uganda in collaboration with Virginia Tech and the University of Georgia. Funding for this program is provided by USAID. The Uganda Industrial Research Institute (UIRI) has set up a peanut butter factory in the Northern part of Uganda and initial production is expected to be 3.2 MT per day. The plant that has been set up is wholly owned by UIRI and but it will be run by identified business people.

HAACP: RECO industry is currently working on its production to obtain certification required by UNICEF and WFP to act as a supplier of the product to WFP and UNICEF. Rwanda

Products and standards: Rwanda WFP and UNICEF provide CSB, RUTF and fortified oil to vulnerable sectors of the population which includes returnees. These products are imported or made locally according to international specifications. The products are produced according to WFP UNIMIX standard in Appendix 2.

Processors: CSB is made locally by two major institutions SOPAR and DUHAMIC under relatively sub optimal conditions. SOPAR (Societe Production Aliment Rubilizi)

20

Coordinators are Dr Archileo Khaya (Makerere Department of Food Science) And Dr Maria Elisa Christie

(Virginia Tech)


operates as SOPAR Agro-Industries. Rwanda needs 4000 MT per year of CSB and SOPAR has handled orders of 300 MT per month whereas DUHAMIC has recently provided to WFP 180MT in one month. None of the producers have extrusion machines that could allow them to produce extruded products. DUHAMIC produces fortified foods with the brand name SOSOMA which comes from the fact that they blend Maize, Soya and Sorghum. SOSOMA 1 is not fortified whereas SOSOMA 2 is fortified with vitamins and minerals. The plant manufactures a number of products most of which are sold in the supermarkets in the country.

Figure 5: Some products for SOSOMA sold in supermarkets, SOSOMA 2 is fortified.

The industries are working with a Boston based NGO (Project Health Children) to find ways of improving quality of production of CSB to support a local USAID Ibyiringiro Project. There are indications that expanded local production is possible but it will require significant amount of time and resources. There is no manufacturer currently working on producing RUTF in Rwanda.

HAACP at SOPAR: The two factories are regularly visited by the Rwanda Bureau of Standards (RBS) as part of their surveillance. However they will require renovation in order to make them suitable for manufacture of such food in line with Codex recommendations. The CSB product is subjected to roasting but it is not clear how this is controlled to ensure uniformity in the batches. The buildings have open access making environmental contamination a possibility. The quality of incoming raw materials is not strictly monitored in terms of microorganisms and sampling is mainly done on final product. They test for moisture and visually assess the quality and test for aflatoxin from time to time. A recent assessment provided recommendations to the two industries and the two producers are in the process of seeking finance to attend to them. Rwanda Bureau of Standards has been to visit them and made recommendations but more work is yet to be done. Despite these production issues that they have to work on, they already supplying CSB to local organizations such as WFP, Ministry of Health and Partners in Health who distribute to Health centers. There is need for proper guidelines to document for raw material purchase, quality of final product and other hygiene procedures to be followed.

HAACP at DUHAMIC: The Plant needs to be renovated or re-equipped. Process is essentially manual from cleaning to packaging and there is no control of roaster


temperatures. Packaging is done in open rooms; the buildings are in bad condition with floors that are difficult to clean. Some procedures are in place but not well managed such as the use of masks in the packaging area when the product is exposed to the outside during production. The buildings are not airtight to keep away contamination.

Raw Materials: The Country has a national Crop Intensification Program (CIP) which aims to increase the production of priority foods. The foods of interest are maize, soya, rice, beans, Irish potatoes and cassava. As a result of CIP implementation, the Agricultural sector has grown by 15%. This increase in production is likely to benefit the food security and nutrition for people living with HIV/AIDS. The need for local production of fortified foods becomes opportune at this point when the government has banned importation of relief food and the fact that 20% of the people are generally food insecure. Ethiopia

Products and Standards: The two main products produced in Ethiopia are CSB which is locally known as FAMIX and RUTF. CSB is referred to as FAMIX because the first major producer of this UNIMIX product was a company called FAFFA. As a result all CSB made in the country is referred to as FAMIX or FAFFA irrespective of producers and it is produced using the UNIMIX standard. A significant amount of RUTF is also made in the country based by HILINA based on Nutriset formula. Plans are underway to produce RUSF which is a supplementary food. No fortified oil is currently produced in the country. A company called Health Care Foods Manufacturers (HCFM) has designed a number of fortified foods based on maize soya and wheat. Berta is semi-cooked product for babies whereas Tena Mix is a dietary supplement. The products have been pretested among consumers and are awaiting expansion of the current plant so that the new products can be commercialized. They also produce soybean oil which they intend to fortify with vitamin A. Their current production capacity is 2500 liters per day but Management is considering expanding to 5000 liters per day.

Processors: The following processors were visited during this time and all produce fortified items for relief organizations


COUNTRY CSB RUTF OTHER

FORTIFIED FOODS

Ethiopia Health Care Foods Manufacturers Seka Business Group (FAFFA)21 (East Africa Group) (Norish Business Group PLC) (GUTS ( in Awassa)) (Abbay International PLC)

HILINA Foods SEKA22 Foods

HAACP: Both HILINA and Health Care Food Manufactures are certified by ISO 22000:2005 and have Southern Africa Bureau of Standards (SABS) Certificate of Registration. The producers are supervised by inspectors from the Quality and Standards Authority of Ethiopia (Bureau of Standards of Ethiopia). This certification is an ongoing process and the industries require further assessment to determine requirements for processing fortified foods for children as required. There is great reliance on laboratories from outside Ethiopia despite the fact that the country has a strong Department of Chemistry and a Department Food Science at the University of Addis Ababa. Samples are sent for testing to a private laboratory Kenya when the country boasts of local trainers for quality management systems including ISO 17025 for laboratories. It is possible to build local capacity easily with minimal resources by equipping laboratories or supplementing other laboratory facilities to build capacity to test for most parameters.

Raw Material Supply: According to FAO23 figures and discussion with producers, the country has adequate soybean and maize to supply the industry and it is one of the countries with a well established Cooperatives System where raw materials of good quality can be sourced. Under the WFP P4P program, there are at least 15 cooperatives benefitting about 400,000 people. A number of donor agencies are already working in the field country in expansion of production of oils and pulses These include USAID/ATEP24, Sasacawa, VOCA, SNV from Netherlands, World Vision International, Ministry of Agriculture, SIDA, Save the Children UK, Self Help Development RUFIP World bank and many others…

21

Those in parentheses were not visited during this visit. Names provided by WFP Ethiopia as producers

from whom they source CSB

22 Production expected to last quarter of 2009.

23 FAOSTAT production figures (2007)

24 ATEP stands for Agribusiness and Trade Expansion Activity


All industries already have some form of collaboration with the farmers to ensure that quality raw materials are produced for processing. The production of groundnuts in Ethiopia was 51,080 MT for the year 200725. This adequate to meet current needs of 6,000 MT of RUTF this would be adequate for local production and be able to cater for increased capacity. There are plans by HILINA to increase capacity to 1,200 MT per month for export market and regional requirements that are estimated at 40,000 MT and rising. The expanded capacity will cover a significant amount by supplying approximately 40% of the estimated need in the four countries. The estimated need for the region for 2009 is presented in Figure 5, based on information gathered during the visits.

Figure 6: Estimated needs and production capacity from Kenya, Ethiopia, Rwanda and

Uganda

It should be pointed out that the figures for need are conservative and representing the minimum requirement. A number of other implementers, who may buy directly from producers, were not included in this estimate. What is clear however is the fact that Kenya is likely to contribute more to the RUTF supplies and Uganda and Ethiopia would be significant suppliers of corn soya blend. As shown in Figure 3, Uganda is a producer of soya and groundnuts and it stands to benefit if it expanded its production of RUTF and become a leading exporter of RUTF within the region.

25

FAOSTAT production figures (2007)


SECTION V: LIVESTOCK PRODUCTS Products and Standards In the area of relief foods, powdered milk would be of great importance for provision to vulnerable people. A number of milk based products are used by WFP, UNICEF and other donor agencies such as RUTF and other version of the product. Therapeutic milk such as F75 and F100 are nutrient rich milk formulations used by UNICEF for severely malnourished children. For all RUTF that is produced, 26% of the raw material used is powdered milk. Provision of meat products is minimal in emergencies but tinned/canned meat and other processed meats could be used if readily available within the region. Production in the Region Kenya leads in the production of milk in the region with a production of 3.8 billion liters per year of which 2.2 billion is marketed. However only 14-18% of the milk is processed through pasteurization and marketed unlike South Africa where 95% of the milk is pasteurized. Kenya has capacity to process 2.9 million litres and only the top 3 dairies have HAACP certification. Brookside and KCC which process 400,000 liters per day in each plant are certified and so is Kithengine which processes 180,000 liters per day. Certification of other smaller dairies should be a priority in maximizing milk processing in the country. Kenya has an estimated 3 million dairy cows for milk whereas Uganda has 0.5 m producing an average of 4 litres per day. This translates to 2 million liters per year for Uganda. Sameer Agriculture and Livestock Ltd has capacity for processing 300,000 liters of fresh milk but currently only processes 10,000-15,000 liters per day when the local demand is 80,000 to 100,000 litres a day. Sameer markets 45-60% of its products as liquid milk and 30% is marketed as UHT Milk which is sold locally and exported to Sudan, Congo, Rwanda and United Nations military missions in the region. Rwanda has 10,000-12,000 dairy cattle with a milk production of 3 litres per day. One of the main challenges in the target countries is the issue of low milk production of 2 to 3 liters per cow per day. This is mainly as a result of the available breeds in most parts of the countries. Improved dairy breeding programs will address this in the long term. There are organizations such as Heifer International working to improve breeding stock for dairy and beef. ABS Total Quality Management Ltd of Nairobi has worked with ICRAF, ILRI and Heifer International to provide artificial insemination services to introduce breeds with milk capacities that are high yielding reaching 18-20 liters per cow per day. Sameer of Uganda also indicated that insemination facilities are currently poor and it is not properly done. There is need to improve in this area and expand to many areas of Uganda. Apart from this, Uganda lack good bulking facilities to improve on the cold chain and provide quality milk to plants for processing. Production of processed meat such as tinned meat can be increased if facilities for slaughteriuing and processing the meat are easily accessible. Setting up of satellite


abattoirs has the benefit of allowing pastoralists to sell near their homes, reduce transport costs and onsite job description. Cows in Kenya are very mobile and considerations have been made for mobile slaughter houses. Mobile slaughter houses have the potential of benefitting the farmers by reducing wasted productivity during transportation of cows to slaughter houses, they help reduce loss quality and weight during transportation, incidence of disease and help increase the amount of meat that is processed. Slaughter houses would have facilities for deboning, steam cooking and packaging. The cost of a typical mobile slaughter house is about 1 million dollars with a capacity to process up to 120 cows per day but smaller units can also be used. Typical features are diesel electrical generators, butchery, canning Unit and handling services. Mobile slaughter houses are cost effective, hygienic and easy to develop and redeploy. There have been discussion in the country to seriously consider addition of canned meat to list of items for the strategic food reserve26. Currently, Kenya Meat Corporation processes tinned/canned for adding to the Strategic Food Reserve. In terms of marketing, mobile slaughter houses provide fair and stable prices and general integration of the pastoralists into the market economy. As mentioned earlier, the quality issues such as HAACP, GAP, GHP and GMP need to be addressed so that products can be of acceptable quality and succeed in international trade. In the area of milk and meat production, the current challenge is the provision of adequate milk bulking facilities so that more milk is delivered to processing plants. Countries in the region such as Kenya and Uganda have a power supply problem and so provision of generators to ensure uninterrupted processing is required to ensure maximum production.

26

Proceedings of meeting of Ministry Of Livestock Development officials with donors held on

23/6/2008 at the Intercontinental Hotel, Nairobi


SECTION VI: DISCUSSION

The Need versus Production Capacity The challenge with estimating the required needs for CSB and RUTF has been acknowledged27 and a number of recommendations have been made to find best ways of determining the needs of the country, region and continent. Demand for relief products is uneven and not consistent for private sector planning. Proper estimates are required so as to plan appropriately for production capacity. The problem stems from the fact that these products are used for relief and emergency work cannot easily be projected. Supply Chain Management is a challenge in East Africa as it includes global manufacturers, global transporters and uncertainty in demand and supply. Furthermore the use of CSB and RUTF keeps expanding to include various vulnerable groups such as malnourished communities, people on treatment for various illnesses such as HIV/AIDS and those on TB treatment. The HIV/AIDS group may be quantified but the provision of support is dependent on the protocol for provision and more especially the amount of funding available for such programs. These programs are ongoing and donor agencies are only able to provide assistance based on funds available to the programs. The unpredictable nature of funds does not only affect the amount of food bought but also affects the delivery time and source of the commodity. If funds for a large volume of food for an emergency are delayed, local suppliers, who have low capacity, are not be able to cope with demand forcing the relief agencies to import and lose some money in the process. Another factor is the fact that provision of nutrition support in countries is provided by various organizations who may not always share information on their requirements so as to determine total need. For example, in Uganda UNICEF is able to provide information on the needs for severely malnourished children whereas another organization working with HIV/AIDS patients (Clinton Foundation) has its own requirements which are not shared. If the local industry is to accurately determine the need for organizations at regional or national level, there is need for sharing information. Different estimates generated for the East Central and South Africa UNICEF regional office (ESARO) emphasize the challenges associated with accurately determining the need of the countries and the region. There is a pattern which shows that the need for RUTF has been rising by 30% every year and at that rate, ESARO needs will hit 18000 MT in 2010 from 11000 MT in 2007. On the other hand, the estimate28 in 2007 was that

27 UNICEF Report on Supply Chain Analysis of Ready-to-use Therapeutic Foods for the

Horn of Africa (May 2009)

28 Steve Jarrett ( UNICEF), Presentation at PIH/TUFTS Conference on RUTF, October 12, 2009


by 2011 Africa will need between 90,000 and 140,000 MT to supply. Nutriset29 has estimated that its production will reach 63,800 MT by 2010. It is estimated that a child will need 10-15 kg of RUTF to consume over a period of 6-8 weeks30 and that 6.2 million31 children in Africa have severe acute malnutrition. In answering the problems of the supply chain related to poor estimating of supplies, a tool kit has been developed to assist countries to estimate their needs in terms of supplies32 in a more appropriate manner. Having said this, estimates need to be generated from various sources of information to give indicative information for planning purposes. The table below presents figures that are subject to review but provide minimum information of the magnitude of need and production capacity

KENYA ETHIOPIA RWANDA UGANDA TOTAL

CSB NEED 24000 74362 4000 40750 143112 CSB

PRODN 14000 51840 3960 38430 108230

RUTF NEED 30000 6000 382 36382 RUTF

PRODN 15000 3600 0 200 18800

Table 4: Estimated Need Compared to Production Estimates (Metric tons)

The table above highlights the shortfall between minimum future requirements against current production. RUTF and CSB are increasingly becoming food products of choice for relief and emergency program. The estimated data here shows that there is a deficit in terms of local production for all the products in all the countries. The deficit percentage ranges from 40% to 50% for RUTF and 2% to 40% for CSB. When the figures from various sources are reconciled and taken into account it shows that the number of Community Therapeutic Care (CTC) programs are on the rise, and the figures for the actual need and the shortfall are likely to increase.

29

Zeilani Mamane, Nutriset Action Plan (2007), presented at International Workshop on Integrating

CMAM, Washington DC, March 2008

30 UNICEF, Community Based Management of Severe Acute Malnutrition, Joint Statement by

WHO,WFP,UNSCN, UNICEF, May 2007

31 Ref 22

32 Ref 10.


A report33 prepared by Duke University on the supply chain for RUTF in the Horn of Africa highlighted the need to have buffer stocks in the regions as this would assist the challenges resulting from problems with estimating needs for producers. Buffer products remove the rush in meeting demand when a crisis arises. On the other hand, due to expected delays in emergency times, organization usually would place larger than required orders so as to build buffer reserves. This unfortunately results in further delaying delivery of supplies during emergencies. The shelf life from handing over of RUTF and use is 18 months and so buffer management should take this into account. Potential Manufacturers

The two major products of CSB and RUTF (and other alternative ready to use foods) require local millers who have capacity for roasting or extruding soya to form blended flours to which minerals are added. All countries have industries that have some capacity for roasting and milling. In the case of Rwanda, the plants were set up for producing animal feed from maize and soya and later converted to produce CSB for human consumption. The requirements for an animal feed plant and plant for infant formula are different. The production of food for human consumption requires proper handling during processing which is different from animal feed. Mentoring and training to change the mindset among the producers is a key input to the current initiative if quality procedures are to be maintained. WFP and UNICEF are very keen to use local suppliers and that is why they continue to work with local suppliers to put in place quality standards so that they can be on the list of prequalified suppliers. However WFP, as a customer, can only suggest what needs to be changed in order for them to qualify for sale. The necessary changes need to be paid for by the industry some of whom are operating on a tight cash flow and unable to access loans for working capital. Coupled with this is the fact the WFP only pays after products have been delivered and so capital for development is locked up in business for periods of 3 to 4 months. The following industries listed in Appendix 6 are potential producers for this expansion program.

33

, UNICEF, A Supply Chain Analysis of Ready To Use Therapeutic Foods: For Horn of Africa,

http://globalhealthtechnologyaccess.org


CSB RUTF

• Biyinzika (Uganda)

• Sunrise Ltd (Uganda)

• SOPAR ( Rwanda)

• DUHAMIC (Rwanda)

• Health Food Manufacturers

(Ethiopia)

• FAFFA Food Share Ltd

(Ethiopia)

• ND Agro(Uganda)

• Soy Africa (Kenya)

• Procter and Allen (Kenya)

• Insta Products (EPZ)

Ltd (Kenya)

• Hilina Foods

(Ethiopia)

• RECO Industries

(Uganda)

• Valseka Industries

(Ethiopia)

In order for the industries to produce more efficiently and yield decent returns, they would have to invest in 5 main areas, namely:

• provision of better storage facilities,

• provision of better cleaning facilities,

• provision of roasting facilities,

• provision of improved milling capacity, and

• provision of testing capacity for raw materials and product after

production

This laboratory testing part may be sub-contracted where deemed feasible although it is beneficial to make sure that each and every country program has some facility where testing can be conducted. The roasting stage if not mechanized is a limiting factor to the production of large volumes. Hence capital for improving roasting capacity and milling capacity will translate into high throughput of the product and ability to sell more in the region. High intake of raw materials from the farmers results into better income from farmers within the region. It is important to build on industries that WFP and UNICEF have already pre-qualified and support others where necessary.


Quality Issues

Strengthening Local Surveillance: There is a general lack of surveillance in monitoring the quality food based on national and international standards. As much as inspections do take place in countries, it is geared more towards certification for national bureaus than for quality monitoring. In general, the level and extent of monitoring is inadequate. More importantly there seems to be a disconnect between the results and relevant actions that need to be taken. The general perception is that quality of foods is a problem area in many countries and needs to be addressed with urgency and not specifically for fortified foods. The situation results in products on the market that are not packaged labeled according to the standard but are carrying the standardization mark. In such events one cannot imagine the adherence to the label information. With a well accepted view that bureau of standards tests results take time, are expensive and at times unreliable, it becomes difficult to determine whether quality is adhered to unless data is available over a period of time to historic records. The only way quality of food will be maintained is when the stringent review process for relief foods are also applied to foods for commercial purposes. Ensuring quality should be the norm and not only for relief food. Bureau of standards should be part of the program not only in terms of equipment for testing but spearheading surveillance plans both at production and during distribution. A number of producers use private laboratories such SGS in Nairobi, Cotecna in Nairobi, and Chemiphar in Uganda. Chemiphar laboratory in Uganda, which has been in operation since 1998, provides its services to clients in Rwanda, Uganda, and Ethiopia. Apart from provision of testing facilities it can source equipment and provide training to laboratories personnel within the region.

Improving Sample Testing for Relief Food: The current strategy of pre-qualifying supplies before production with minimal surveillance during distribution to beneficiaries allows for abuse of the system which may result in substandard products being distributed to vulnerable beneficiaries. The issue of sample testing for large volumes needs to be revisited to involve more frequent tests instead of the current sampling system where testing is done for every 250 MT. In the case of RUTF, all batches are quarantined until laboratory results show that the food that has been produced satisfies specification. This practice should be maintained. Upgrading Production Facilities: There is a lack of cleaning and drying facilities in most of the plants. Some producers are unable to buy from farmers because the product is brought with high levels of moisture and in the absence of drying facilities it is returned for drying which can slow down production. Biyinzika in Uganda has drying facilities for 300 MT per day and cleaning capacity of 50 MT per day. Plans are underway to source 70 MT per day cleaning system and increase on the drying capacity. RECO from Uganda wants to invest in automation of its cleaning, hulling, sorting and roasting equipment. The estimated cost of such a venture is USD 500,000. Kensol which also produces peanut butter would like to automate its process because manual dehulling results in losses of 10%.


To counter the use of sub-standard raw materials a number of production units have embarked on programs to work with farmers to improve the quality of the cereals and nuts delivered for their use. In Ethiopia, Hilina and Seka industries confirmed being involved in programs with cooperatives to improve product quality. In Uganda, RECO Industries which is working to produce RUTF for USAID/NULIFE program has 5,000 out growers with whom they work in clearing fields and sourcing of good seeds for planting.

Quality Adherence Should be Universal: All production units should adhere to Codex recommendations and guidance from WFP/UNICEF inspectors whether they are producing for donor agencies or not. The problem is that due to stringent policing by relief organizations products for such organization are handled with extra care for fear of losing the market. Producers of food items on the market are unlikely to be asked to provide evidence of good manufacturing practices and they get away with it due to inadequate policing.

Lack of Action to Address Aflatoxin Problem: It should be mentioned here that in all countries there is an understanding among the scientific communities as to what needs to be done. However the work of these institutions remains largely academic and it does not filter down to the level of food inspection and food safety organizations for action. For example, the issue of high levels of aflatoxin is accepted by producers and academic institutions. However, there appears to be no system in place, as part of food quality control, to monitor and address the infiltration of such products on the market. Most efforts currently are in reaction to incidences where, at a minimum, there should be surveillance data to confirm levels on the market. Such information is not easily available and the situation is typically attributed to lack of equipment in the laboratories to test samples and lack of adequate personnel to conduct surveillance work.

Facilitating Provision of Local Capacity to Test Aflatoxin: The lack of capacity to test aflatoxin in a country should be of concern to all health officials especially those in countries where cereals and legumes form a major part of the diet. The cost of setting up testing facilities such as ELISA tests is insignificant in comparison to the health related costs that society has to bear as a result of consuming high levels of aflatoxin. It should be justified to have adequate facilities in countries where maize and groundnuts are a major part of the common diet. It is proposed here that at least every bureau of standards in the target countries should have facilities for efficiently testing aflatoxin consistently and rapidly. Currently the bureaus have some capacity but this should be well established and the methods certified. The tradition of reacting to incidences of food poisoning should not be the norm.

Poor Packaging Materials in Uganda and Rwanda: Another issue that came up during the visits to Uganda and Rwanda is the poor quality of packaging materials. It has been observed that much as the countries have their own local suppliers of packaging materials for products such as peanut butter, the quality is not adequate. Most good quality


packaging materials are primarily sourced from Kenyan manufacturers which affect the cost of production.

SECTION VII: RECOMMENDATIONS RECONCILE NATIONAL AND REGIONAL NEEDS Estimating the needs in a country or the region poses a great challenge to the production of fortified foods. There is need to have a plan for compiling the total needs and estimate projected requirements for emergencies as reasonably as possible. There has been a policy drive by donor organizations to buy from local sources and the latest figures from WFP indicate34 that 78% of its food items were sourced from developing countries as this lowers transport costs, speeds up delivery time and promoted economic development within the region.

ADVOCATE FOR OTHER USES TO INCREASE DEMAND

The humanitarian and local institution requirements for fortified foods are viable entry points of local industries. However, engaging the private sector in the production of RUTF would require extending treatment to all malnourished people since the humanitarian sector is small and funds for supporting the program are limited. The product will have to come at a low cost as the market is being developed35. More importantly, is the need to educate the population on the importance of managing micronutrients through consumption of fortified foods. This awareness is not supposed to be a WFP/UNICEF obligation but should emanate from the Ministry of Health as part of provision of health services to its people. RUSF and other forms of RUFs should be marketed as commercial items for managing malnutrition. The planned programs for production of RUSF by current RUTF producers are timely and they would provide a sustainable base of consumers when this retail product is accepted by the population.

PROVIDE APPROPRIATE FINANCIAL SUPPORT TO BOOST CAPACITY Producers in the region have failed to supply significantly to donor organizations because of a number of factors. These are mainly undercapitalization which has been noted in most of the plants in the countries visited. Capital to put in place good facilities that are efficient is not available and producers have to do with what they have at a cost to the expansion of their business. There is need to have capital to support raw material purchase, capital purchase drying and storage equipment so as to increase intake of raw materials and be able to handle them properly and produce high quality foods.

34

WFP Supply Division (2008)

35 Steve Collins, Valid Nutrition, Improving Access to RUF.


EMPHASIZE QUALITY DURING PRODUCTION

There is need to mentor of management so that they can understand the quality requirements of a baby food production plants. With no adequate training and assimilation of the techniques, there may be no lasting improvements as the skills are not based on deep understanding of the processes. All the steps recommended for quality assurance and quality control are for a good reason and if production is done according procedures that are not standardized; the resulting products may be rejected at a high cost to the producers. All steps to be followed by producers need to be adhered to by making sure that standard operating procedures (SOPs) are adequate and available for inspection when requested.

EXPAND PRODUCTION OF MANUFACTURERS THAT ARE ALREADY PRE-QUALIFIED

There is need to work with current successful ventures and elevate their production capacity to cope with regional demands. Much as small scale industries benefit the local people directly, investing in very small scale entities for such specialized work is not recommended. Production of RUTF and CSB requires techniques, capacities and capabilities that are difficult to achieve at small scale level. More importantly the volume of raw materials bought in the area would be of minimal effect on farming incomes and improve the economic status of the population. Small scale production of RUTF is not a viable mechanism for scaling up supply36 unless capitalization is significant enough to set up new facilities where administrative skills and interest is available but funding is the stumbling block. A good example of such a venture is the Good Shepherd Orphanage Peanut Butter Production Unit in Kigali. The production unit uses groundnuts grown in a church field (13 hectares) nearby to produce the butter in a cottage set up. The production unit follows very strict hygiene practices but the small scale non-mechanized level of the plant has very low output (12kg per day) and it would not achieve the quantities that would qualify them to provide to relief organizations. It is also important to work with the current producers to achieve their goals and to promote the idea of stimulating competitiveness. In their current status of underfunding, mediocre equipment and non-mechanized way of producing their food stuffs, they cannot provide quality goods and services to their clients in a consistent manner. As a result, they will forever fail to “compete” nationally and internationally since their current state of their business output does not allow for any major expansion. The locals will forever be overtaken by international suppliers at a high cost to the international relief organizations and at a loss to the local farming communities and national economies.

36

Steve Collins, Valid Nutrition, Improving Access to RUF.


ENSURE DELIVERY OF SUPPORT TO DESERVING INSTITUTIONS

It was evident from the visits that the industries have in the past been in a similar position where their needs are assessed by potential donor agencies but little is done to support them in real terms. This does not imply wholesale support to any requests. However, it was clear from the visits that their main drawback was a source funding which they are willing to pay back as long as the lending conditions are not as stringent as local banks. In Ethiopia, one such grant agreement was between a producer and UNICEF where UNICEF procured a generator at a cost of $300,000 and the producer was able to pay back to UNICEF in the form of fortified food for distribution at a later stage. ENSURE REGULATIONS ARE ACCOMMODATING NEEDS OF OTHER COUNTRIES

Efforts to increase production for local and region trade can be hampered if regulations are not synchronized to allow for easy movement of goods. There have been some cases where unrealistic standards have been imposed on imported goods and this had created some form of Non trade barriers. One such example is the case where the protein requirement in a standard is set so high that it cannot be met based on the raw materials used during production. Related to this is the recognition of certification from other countries where a product that is certified by the Kenya Bureau of Standards (KEBS) should be recognized by the Tanzania and Uganda Bureau of Standards. Non-trade barriers can slow down industries forcing them to operate at low capacity and in the process hurting the farming community who are supposed to benefit. ENSURE BUREAU OF STANDARDS LABORATORIES CAN TEST RAW MATERIALS AS PART OF A FOOD SAFETY PLAN

The capacity to test raw materials should be assured at local level and a culture of collecting data on quality of raw materials and finished products should be enforced. At present, one finds that Ethiopia manufactures send samples for analysis to Kenya and those from Rwanda send samples to Uganda. All countries have laboratory personnel who, with minimal assistance towards equipping their laboratories, can provide valuable service to local producers. All countries have qualified inspectors at their bureau of standards offices but the certification and equipping of laboratories has not been a high priority in national planning and institutional funding. The consumer places trust in the producers and in the inspection bodies in the countries to ensure that the final product is of acceptable quality for human consumption over and above the enhanced nutrient quality. Despite the large amounts of dollars spent by relief organizations to provide fortified foods to vulnerable populations, minimal investment has been made in the countries to provide facilities for ensuring quality at all times. As a result samples are sent outside the country which is costly and time consuming. Local relief organizations should find it cost effective to invest in local testing facilities as part of the quality control scheme of their relief products. At a regional level established laboratories such as Chemiphar of Uganda can play a leading role in ensuring provision of quality services in the region though constant training of laboratory personnel.


STRENGTHEN FARMER SKILLS TO MANAGE AFLATOXIN

There is need to create strong policies and awareness to minimize the introduction of aflatoxin into the food chain. Aflatoxin is one of the many mycotoxins. The agricultural sector should therefore be encouraged to prevent contamination of soil with poor quality seeds and implement post harvest principles that prevent exposure of harvested products.

CONSIDER INVESTING IN MILK BULKING AND QUALITY CONTROL

The issue of low volume milk production needs to be addressed. This is especially important if UHT milk and powdered milk production is to be maximized. It is beneficial to support quality control in the farming areas and cold chain systems to ensure that good quality milk gets to processing plants for production of UHT Milk and powdered milk.

CONSIDER THE USE OF MOBILE SLAUGHTER HOUSES FOR TINNED BEEF

Much as the notion of mobile slaughter house technology is new to the region, the appropriateness in solving the problems in the region cannot be questioned. Recent events in Kenya where cattle were bought to slaughter houses in Nairobi and died before slaughtering took place are unfortunate and cold be managed with such mobile slaughter houses.


APPENDIX 1: INDUSTRIES VISITED

UGANDA KENYA

Visited Other Key

Producers

Visited Other Key

Producers

WFP Public Sector Foundation of Uganda (PSFU), Kampala Sameer Agricultural and Livestock Ltd, Kampala Mukwano Industries, Kampala Chemiphar Laboratories, Kampala Uganda Industrial Research Institute, Kampala Biyinzika (Farmers) Enterprise Ltd, Kampala Makerere University, Department of Food Science, Kampala Reco Industries, Kampala Kensol Industries, Kampala UNICEF

Sunrise Millers Pamwa VECO Uganda

Insta Products (EPZ) Ltd Land O Lakes WFP Kenya USAID/East Africa UNICEF Kenya ABS TCM Ltd, Nairobi Unga Limited, Nairobi Energy Foods Limited, Embakasi - Nairobi Jetlak Industries, Thika - Nairobi Kenya Bureau of Standards - Nairobi JKUAT, Department of Food Science, Thika - Nairobi

KMC KIRDI Soy Africa

Rwanda Other Key

Producers

Ethiopia Other Key

Producers

Rwanda Bureau of Standards SOPAR Kigali Institute of Science & Tech (KIST) Good Shepherd Industries USAID DUHAMIC WFP & UNICEF Rwanda

Minimex Millers Pembe Millers

Agribusiness and Trade Expansion Program, Addis Ababa WFP Ethiopia, Addis Ababa World Ethiopia, Addis Ababa Hilina Foods, Addis Ababa ValSeka Foods, Addis Ababa Health Care Foods

UNICEF


APPENDIX 2: PRODUCT SPECIFICATION OF CSB FORTIFIED WITH UNIMIX PREMIX

Micronutrient Amount per 100 g of

F100

Amount per 100 g of

F75

Amount per 100 g of

finished product RUTF37

Vitamin A 900 mcg 1500 mcg 950 mcg

Vitamin D 16 mcg 30 mcg 17.5 mcg

Vitamin E 20 mg 22 mg 20 mcg

Vitamin C 53 mg 100 mg 50 mcg


Vitamin B2 1.7 mg 2 mg 1.6 mg

Niacin 5.3 mg 10 mg 5 mg


Folic Acid 210 mcg 350 mg 200 mg

Pantothenic acid 3.1 mg 3 mg 3 mg

Iron - <0.3 mg 12 mg

Zinc 11.8 mg 20.5 mg 12.5 mg

Iodine 80 mcg 77 mcg 105 mcg

Other Nutrients Vit B12(1.8mcg), Biotin (65mcg),

Pantothenic Acid(3.1mg), Vit

K(21mcg), Sodium(240mg), Calcium (480mg),

Phosphorus(400mg), Magnesium(80mg),

Zinc(11.8mg), Potassium(1100mg),

Copper(1.4mg) Selenium(25mcg)

Vit B12(1mcg), Biotin (100mcg), Pantothenic

Acid(3mg), Vit K(40mcg), Sodium(<130mg), Calcium (320mg),

Phosphorus(240mg), Magnesium(105mg),

Zinc(25.5mg), Potassium(1570mg),


Vit B12(1.8mcg), Biotin (65mcg), Pantothenic

Acid(3.1mg), Vit K(21mcg), Sodium(290mg), Calcium

(450mg), Phosphorus(450mg), Magnesium(110mg),

Zinc(14mg), Potassium(1250mg),


37

Insta Products (EPZ) Ltd, Kenya: Technical Card for Ready-to Use Therapeutic Food – Peanut Formula

(2009)


APPENDIX 4: PRODUCTION FIGURES FOR SOYBEAN, MAIZE AND GROUNDNUTS38

PRODUCTION FIGURES IN 2007 (Metric Tons)

COUNTRY/ FOOD SOYBEAN MAIZE GROUNDNUTS

Ethiopia 5,844 3,336,795 51,080

Kenya 2,100 2,928,793 21,000

Rwanda 25,000 90,000 10,000

Uganda 176,000 1,262,000 165,,000

Tanzania 1,900 3,590,000 300,000

Malawi 680,0039 3,226,418 261,810

Sudan 70,000 564,000

APPENDIX 5: PRODUCERS OF RUTF40

Producer Country of Production

Production in Developed Country

Production in Developed Country

NUTRISET, France

France Niger, Malawi, Ethiopia Democratic Republic of Congo

COMPACT India (started last quarter of 2007)

VALID NUTRITION, UK

Bangladesh, Ethiopia, Malawi and Zambia

CIPLA, India India (2008)

38

FAOSTAT production figures (2007)

39 Estimated from 68000 hectares production from IITA Research for Development figures

40 Steve Jarrett ( UNICEF), Presentation at PIH/TUFTS Conference on RUTF, October 12, 2009


APPENDIX 6: NEEDS AS EXPRESSED BY PRODUCERS

KENYA

PRODUCER PRODUCT(S) REQUEST APPROXIMATE

COST

Insta RUTF Packaging Machine $100,000

Energy Foods

Peanut Butter/RUTF

ELISA Testing Equipment for Aflatoxin Support with farmer education for postharvest handling

Jetlak Peanut Butter/RUTF

ELISA Testing Equipment for Aflatoxin

JKUAT Laboratory ELISA Testing Equipment for Aflatoxin/ Fluorimeter

ABS TCM Ltd

Tinned Meat Suggest Use of Mobile Slaughter House ( up to 130 cows per day)

US$ 1.0 Million

UGANDA


COST

Reco Industries

RUTF Capacity to produce beyond the 1MT which is currently installed

Kensol Industries

Peanut Butter/RUTF

Drying/De-hulling Equipment Roasting Equipment

Biyinzika (Farmers) Ltd

CSB Need a drier to supplement the 300MT/hr already installed Money to purchase maize and soya from farmers (US$5 million for 15000MT). Funds to increase available cash for processing of orders. Would require storage to accommodate 20000-30000MT. Current capacity is 4000MT

Sameer Agricultural and Livestock Ltd

46 Bulk Coolers (3000-5000L) 35 Generators 6 Milk Tankers

US$1.2 million


RWANDA


COST

SOPAR CSB Need to install extruder for 750-1000kg per hour and increase CSB production to 3-5 MT per hour

US$1.5 Million

DUHAMIC CSB Need to Increase capacity from 350MT per month and storage capacity from 250 MT

Rwanda Bureau of Standards

Laboratory ELISA equipment for aflatoxin and reagents & Fluorimeter Test

Kigali Institute of Science and Technology

Laboratory ELISA equipment for aflatoxin and reagents

Good Shepherd Peanut Butter Production Unit

Installation41 of medium scale plant for peanut butter/RUTF.

41

Production estimates are US$1 million per new line of 350MT per year. It is estimated $3000 will pay for

installation of a 1MT per year plant.


ETHIOPIA


COST

Hilina RUTF Production Line and Storage facilities for expansion to 1200MT per month

ValSeka (Valid Nutrition/Seka Food)

RUTF & CSB Transport ($150,000); Irrigation ($200000); Power Generator ($100,000)

$450,000

Health Care Food Manufactures (HCFM)

CSB , Blended Fortified Flours

To double milling capacity from 100MT to 200MT per day. Power Generator ($80,000); 1 Boiler for Steam ($82000); Silo ($445000); Expand production of Oil and fortify($500,000)

$1,107,000


CONTACTS

ETHIOPIA

Hilina Enriched Foods Processing Center PLC

Belete Beyene

Managing Director

Legetafo-Dessie Rd

251-911207722 [email protected]

Hilina Enriched Foods Processing Center PLC

Belete Hilina Dep. General Manager

Legetafo-Dessie Rd


Valid Nutrition

Ademe Yeshowas

RUTF Manager Tefera Business Ctr, 509


USAID/ATEP

Chesterman Ian

Horticulture Sector Manager

Ki-Ab Building 4th Floor


World Food Program

Wickerman Sonali

Head Programs Kifle Ketea Kirkos

251-115515188

World Food Program

Diab Mohamed

Representative/Country Director

Kifle Ketea Kirkos


Health Care Food Manufacturers PLC

Limenih Abate

Policy Res. & Devt Manager

Box 80313, Addis


Health Care Food Manufacturers PLC

Negassa Yacob

Distribution and PR Mngr

Box 80313, Addis


USAID/ATEP

Redda Teka Oilseeds and Pulses Sector Manager

Box 70696, Addis


WFP Ethiopia

Tesfaye Mesfin

Procurement Addis Office 251-91-1235698

[email protected]


UGANDA

Kendo Mills Nkurukenzire Charles

Box 4255 Kampala

0772404458 [email protected]

WFP Uganda

Ayikiboa Joel

Procurement Assistant/Quality Control

Kampala Office


WFP Uganda

Kakuba Albertina

Procurement Assistant/Quality Control

Kampala Office

[email protected]

Makerere University

Kaaya Archilleo

Senior Lecturer Dept of Food Science and Technology

Makerere University


UNICEF Uganda

Kaijuka Brenda

Nutrition

Sameer Agriculture and Livestock Ltd

Sharma Rajesh

Plant Manager Box 7078 Kampala


Private Sector Foundation Uganda

Musoke Ruth Biyinzika Ruth

Director Member Services

Box 7683 Kampala


Reco Industries Ltd

Rwabwogo Brain

Technical Director

Box 257, Kampala


Uganda Industrial Research Institute(UIRI)

Rubalema Joseph

Ag Director Product Development

Box 7086 Kampala


Kensol Products Ltd

Owner 256-772 196154

Chemiphar Laboratory

Kateu Kepher K

Operational Manager

Box 25525 Kampala


Chemiphar Laboratory

Uytterhaegen Annick

Managing Director

Box 25525 Kampala


Biyinzika Enterprises Limited

Muwanguzi Samuel M

Managing Director

Box 5618 Kampala


Mukwano Industries

Mr Prakash GM Manufacturing

Kampala Office


RWANDA

UNICEF Kougbeadjo Ayih

Supply and Logistics Specialist

Kigali 250-592700 [email protected]

WFP Zakaria Ahmed

Country Representative

Kigali 250-252587611

[email protected]

WFP Mashayo Emmanuela

Coordinator P4P Kigala 250-252587611

[email protected]

WFP Mupenzi Denis

Procurement Kigali 250-252587612

[email protected]

USAID Safali Venant Food Aid Manager

Kigali 250-252596800

[email protected]


Mugisha Peter

Technician Kigali 250-788462984

[email protected]


Dr Hilda Vasanthakaalan

Head, Food Science

Kigali 250-788530367

[email protected]

SOPAR Agro-Industries Rubirizi

Rubagumya Sam

Managing Director

Kigali 250-510-0416 [email protected]

DUHAMIC SOSOMA

Musabyimana Thadde

General Director Kigali 250-8304189 [email protected] & [email protected]

Rwanda Bureau of Stds

Mwajabu Kamikazi

Standards Officer

Kicukiro Center Kigali



Bajeneza JP Head Market Surveillance

Kigali 250-788742317


Mukunzi Antoine

Chemist Kigali 250-788777431

[email protected]

Good Shepherd

Ntibankundiye Cyprien (Father)

Administrator Kigali 250-783070930

[email protected]


KENYA

INSTA Products (EPZ)Ltd

Allison Stuart Managing Director

Box 1231-00606 Nairobi

254-733643075

[email protected]


Campbell Rolf

Dep Managing Director


254-738338413

[email protected]


Faraay Francis

Project Manager(RUTF)


254-721244047

[email protected]

Unga Limited

Felistas Mutambi

Quality Manager Commercial Str.

254-203933000

USAID East Africa

Knausenberger Walter

CTO Regional (RELPA)

US Embassy, Gigiri

254-714606524

[email protected]

USAID East Africa

Ewell Peter Regional Agricultural Advisor

US Embassy, Gigiri

254-733634933

[email protected]

USAID/Africa Bureau OSD

Maurer Jennifer

Agriculture and Food Security Team

1325 G Str. NW, Washington DC


ABS TCM Ltd

Makoni Nathaniel

Director

Ndama Place, Kabarnet Road

254-722700355

[email protected]

East Africa Dairy Devt Project

Makoni Nathaniel

Team Leader

Ndama Place, Kabarnet Road

254-722700355

[email protected]

WFP Kenya

Mbati Zippy Program Officer P4P

Box 44482-00100, Nairobi

254-733686863

[email protected]

UNICEF Kenya

Prendiville Noreen

Chief Nutrition Section

Box 44145-00100


Land O Lakes

Sayers Paul Regional Marketing Advisor

Peponi Plaza B

254-203748685

[email protected]

Jetlak Foods Ltd

Bid Raju Head of Operations

Box 461, Ruiri

254-722754181

[email protected]

Jetlak Foods Ltd

Bid Anup Managing Director

Box 461, Ruiri

254-722754181

[email protected]

Solid Solutions

Mutwiri Faith Consultant ISO/HAACP

AACC Building Waiyaki Way, Westlands

254-722794322

[email protected]


OTHER IMPORTANT CONTACTS - NOT MET

Uganda NULIFE Margaret Kenkya

256-772384411

Uganda Ministry of Agriculture

Muhwezi Deus Ag. Commissioner Agribusiness

Uganda Mukwano Gadahokoe Tony General Manager 256-312313203

Uganda National Drug Authority

Annete Secunda 256-772459862

Uganda Sameer Senkasi Henry Field Officer 256-712949835

Uganda Sunrise Milling

Vincent 256-755900718

Uganda ND Afro Milling

Miiro 256-772504135

Ethiopia WFP P4P Pausilli Enricho P4P

Ethiopia UNICEF Bohlin Rolf Nutrition 251-911254129

Ethiopia UNICEF Chamois Silvey Nutrition

EXPANDING PRODUCTION OF FORTIFIED AND ... - USAID

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