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SAVE FOOD Mango Project

How the Initiative plans to reduce mango losses in Kenya SAVE FOOD World conference Marc-Peter Zander, Partner & CEO, XCOM Africa GmbH 8th of May 2014

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Africa as seen by Europeans

Africa has got a bad reputation worldwide driven by prejudices…

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Africa as seen by Europeans

Africa has got a bad reputation worldwide driven by prejudices…

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The big opportunity

…however Africa offers huge opportunities which are beneath the surface!

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Opportunity

View on Africa

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Project outline

Our local research concentrated on key areas within the

Kenyan mango value chain.

Cultivation Processing Sales & Marketing

• Growing areas • Varieties • Farmer’s challenges • Logistics • Seasons for cultivation

• Product specific technologies • Capacities • Existing key players • Investment needed • Business case

• Definition of end product • Sales channels • Pricing • Future trends • USP

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Agriculture

61% of the world’s potentially available cropland is in Sub-Saharan Africa.

Available cropland in 2013 in millions of hectares

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2013 Latin America

Rest of the world

Africa

590

300

80

61%

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Mango production worldwide

India is by large the biggest producer of mangos worldwide…

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16337

2551 1784 1633 1314 1189 826 554

India Thailand Pakistan Mexico Indonesia Brazil Philippines Kenya

Production of mangos (thousand MT in 2010)

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Mango yield opportunity

…however Kenya´s mango yield is 153 % higher than

India and offers many opportunities for reduction of food loss.

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Production of mangos Yield of mangos

Yiel

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153 %

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0

100.000

200.000

300.000

400.000

500.000

600.000

Mango production Loss of mangos

Challenge

Approximately 64% of all mangos in Kenya are lost every

year.

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Production of mangos by small scale farmer (MT of mangos, 2014)

64 %

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Reasons for mango food loss

Almost 45% of all mango food loss can be tackled within

the SAVE FOOD initiative.

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Total Loss from seasonality and

unattractive varieties

Loss from birds, disease and weather

Loss due to poor harvest handling

Loss from transportation due to overloading and

packaging

Loss due to overstock

Production marketed and sold

45%

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THE BIG MANGO OPPORTUNITY

Reduce food loss by

30.000 t for mangos in Kenya

The big opportunity

Reduction of food loss by 30.000 t for mangos.

by setting up a profitable business model to process mangos in Kenya and increase the local value chain

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Change vision

Africa is still in need for simple solutions also recognized by the

leaders of Africa.

J. Kikwete, President of Tanzania

‘We need to complete the full value added chain‘ … ‘Look at mango for instance … We produce so much of that fruit, export it for processing and at the same time import mango juice. Why can‘t we produce the juice our self and then export it?‘

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93 % Domestic

market

2 % Export

2013

Mango sales channels

Currently approximately 93 % of all mangos are sold as fresh

fruits in the local market; only 7 % are exported or processed.

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5% Processing

• Low quality

• Domination of local varieties

• High costs for locally grown-exotics

• Poor post-harvest handling

• High transaction costs for local

intermediaries

Reasons:

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Use strong partnerships within

SAVE FOOD to set up local production

THE MANGO CHANGE VISION

The change vision

The vision of the project is to reduce the food loss in the mango

supply chain by 30.000 t.

and sell competitive products for local and export markets

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SAVE FOOD change vision

Critical success factor is the exchange of knowledge and experience

between local and international partners.

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Sales & Marketing

Semi-processed mango pulp and purée offer the best chances on the

local market; whereas the export markets demand dried mangos.

• Changing lifestyles • Rising health consciousness • Convenient portability • Quick and easy snack

• Increasing demand for fresh fruits and juice • Price sensitive market • Distrust regarding new products

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Projected mango consumption 2012 - 2017

International demand for new products

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Value Chain – Example of mango stripes The difference from a buying price in Kenya to a sales price in

Germany is 1233 %.

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Sales price farm Production costs Packaging/Logistics Margin Sales price at shop

2,59 € / 100g

0,021 € / 100g

1233 %

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Key players in the Kenyan mango market

Within the 7% export and processing there are various success stories in

the mango sector.

“We are far away from saying that we are done. On the contrary, we are keen to extend and diversify our facilities”

“Our export business to the Middle East is great. Why should we care about the import regulations in Europe?”

“We started in 2010 as a very small company. Today our products can be found in every supermarket and health store in Kenya.”

Richard Kimani Rugendo Managing Director of Kevian Kenya Ltd.

Isaac Mwangi Director of KEITT Exporters Ltd.

Eva Nyawira Director of Azuri Health Ltd.

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Sample project outline: Mango pulp / purée

Producer Business Groups

Manu facturers

The implementation of an own processing plant will require an invest-

ment of approx. 90.000 EUR and handle 1.000 t of mangos per year.

Sorting & Washing

Peelingy

Heating

Slicing

BRIX & Acidity Adjustment

Pulping

Cooling Packaging Storing

2,5 t/ hour fresh mangos

600 kg/ hour pulp/ puree

Production Processing Clients

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Sample project outline: Dried mango

A set-up for dried-mangos will require a professional processing and

packaging as well as an excellent sales and marketing concept.

Growers Processing, packaging and

distribution

Local, regional and

international markets

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Project steps

The 1st mango will be saved beginning of 2015 !

April 2013 2013

May 2014 Sept 2014 2015

Timeline

Key activities

Today

•Conclude investor and partner discussion

• Local kick off in

Kenya

1st mango saved!

•Commitment by more than 25 partners

•Project development

•Product definittion

•Marketing channels

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Potential Africa

The potential in Africa is enormous…

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BE PART OF THE MANGO PROJECT

Be part of the opportunity

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SAVE FOOD Mango Project

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