Public- Private- Partnership

in creating Social Business

for Nutrition Improvement - Ghana Nutrition Improvement Project -

June 9, 2015 : for Univ. of Tokyo

Yasuhiko Toride, Ph.D.

Group Executive Professional

Director of Nutrition Improvement Projects

Ajinomoto Co., Inc.

Today’s Presentation

1. Introduction 1. Self-introduction

2. Roles of Protein / Amino Acid in Nutrition Improvement

2. Ghana Nutrition Improvement Project

3. Future Prospect

Self-introduction

• Joined Ajinomoto at Central Research Laboratory in 1981

• Experiences of working in

– Thailand (1986 – 1992)

– France (2005 – 2009)

• Started “Nutrition Improvement Project” in 2009 as a director of the project

• Current interest is creating new business model for nutrition improvement thorough multi-sector partnership.

4

Why Nutrition Improvement Project

by Ajinomoto Group?

“Eat Well, Live Well”

Food Science Amino Acid Nutrition

Evolution of Ajinomoto Group’s Business

An expanding commitment to the betterment of life

Bakery Products Frozen Foods

Other Foods

Beverages

Edible Oils

Mayonnaise and

Mayonnaise-type

Dressings

Soups

Coffee

Products

Gift Packs

Seasonings

Cereals

FOOD

PRODUCT

S

AMINO

ACIDS PHARMA-

CEUTICAL

S

HEALTH &

NUTRITION

Electronic

Materials

Functional

Foods

Sweeteners

Specialty

Chemicals

Feed-use Amino

Acids

Amino Acids for

Pharmaceuticals and

Foods, Pharmaceutical

Fine Chemicals

Pharmaceutical

s

Fundamenta

l Foods

AJI-NO-MOTOⓇ

Introduced in 1909

Ajinomoto Group’s business has

been diversified starting from

Ajinomoto, Umami-taste seasoning

with monosodium gluatamate .

The diversification is based on the

application of “Food Technology”

and “Amino Acid Technology”.

6

“Social Business” for Nutrition Improvement

現地生産

開発

販売

利益の再投資

目的を共有する国際機関、政府機関、NGOと

のCollaboration

貧困からの脱出 栄養・健康改善

（当社にとって）新しいマーケット創出・Our definition of “Social Business” Sustainable business which aims

for solving social problems in

developing countries such as

“Malnutrition”

・Partnership Collaboration with various social

sectors such as academia, UN,

NGO, government, which share the

same goal of solving social

problems

K．F．S．Key Factor for

Success

Creation of New Market

Nutrition

Improvement

Income

Generation

R&D

Sales

Production

Re-Investment

Collaboration

with various

social sectors

7

Nutrition Improvement Project in Ghana

• Republic of Ghana

• Area: 238,537 sq km

• Population: 23 million

• Capital: Accra

•Independence: March 1957

Why the project in Ghana?

• Ghana is a center of the

activities in West Africa for

various social sectors, such as

UN agencies, International

NGOs etc.

• It is an ideal place to create

“Social Business” model.

A joint project among 3 parties (University of Ghana, Nevin Scrimshaw International Nutrition Foundation and

Ajinomoto) was launched in December 2009

Kick off

Technical Symposium

at University of Ghana

Target: Nutritional Supplement for

Traditional Complementary food made from

fermented corn dough, called “KOKO”

Preparation of

“KOKO”

Complementary foods

for infant aged 6 – 24 months

as the “Window of Opportunity”

for nutrition improvement

Data by Ghana Health Service

Nutritional status of children

0

5

10

15

20

25

30

35

40

45

Impact of Better Nutrition for children

• Follow-up study of Nutritional Intervention of Children conducted during 1969 – 1977 in Guatemala

• Atole: Protein containing supplement Fresco: No protein supplement

• Comparison of Economic Data between 2002 and 2004

• Better Nutrition during up to 3 years old resulted in better higher income/hours

Differences in income between atole vs fresco supplemented at different ages

0-24m

0-36m

36-72m

Age range

of supp

Hoddinott J, et al

Lancet 2008; 371: 411–6

No Differences in income between atole vs fresco in those supplemented after 36 months

Home Fortification

(Point of Use Fortification)

13

“KOKO Plus”

Complete nutrition

supplement that

can be added to

KOKO

Ingredients: soybean flour, palm

oil, sugar, Lysine,

Micronutrient mixture

Improvement of the nutritional value of KOKO

by the addition of the nutrient KOKO Plus

Energy

(kcal)

Protein

(g)

Lysine

score

PDCAAS Utilizable

Protein

(g)

PE

ratio

Recommend

ation

260 -

270

1 > 0.75

or .80

4 – 6.5 6 - 10

KOKO

(Maize +

Sugar)

277 3.77 0.46 0.39 1.47 2.12

KOKO +

KOKO Plus

231 6.91 1 0.85 5.90 10.2

Acceptability test for “KOKO Plus”

by University of Ghana

Project Schedule

16

2009 - 2011 2011 - 2014 2015 -

Phase 1 Phase 3

Phase 2

Market study

Product

Development

Ｓｃａｌｅ ｕｐ Production

& Sales

Ｌｏｃａｌ Ｐｒｏｄｕｃｔｉｏｎ Ｅｆｆｉｃａｃｙ Ｓｔｕｄｙ Ｄｉｓｔｒｉｂｕｔｉｏｎ Ｓｔｕｄｙ

Efficacy trial

1. Micronutrient only

2. Koko plus

3. Education only

- One group 301 children

- 6-18 months(12 months)

Effectiveness trial -1 Using Network of Women “Village and Savings and Loans Association”

Effectiveness trial -2 Using conventional market channel with Social Marketing

Production & Pilot Studies

Production

Local partner: Yedent Ltd.

Co-creation and technical

transfer

Innovation & Partnership necessary for establishing

“Social Business”

• Product affordability

acceptability

• Delivery System

Partnership Innovation

International

NGO

Local government

Academia

Aid Agencies

Private Companies

Setting up Production Facility

in collaboration with local food producer

Local Partner

Yedent Agro Group

of Companies Ltd.

Production Facility

Co-Creation

& Technology Transfer

Monthly health check at GHS health post

Public-Private-Partnership

- Collaboration with Ghana Health Service (GHS)

Child & Maternal

Health Record

Concluded MOU in April 2011

on the collaboration in conducting the studies

JICA Japan International

Cooperation Agency

A New P-P-P scheme:

•“Preparatory Survey for

BOP business

promotion”

USAID US Agency for

International Development

•GDA (Global Development Alliances)

Public-Private-Partnership

US-Japan Collaboration Scheme

Concluded MOU among USAID- JICA- Ajinomoto in May, 2012

Establish Delivery Model

With Social Marketing Financial support of the overall project

UG INF

•Protocol development

•Study management

GHS

UG Plan &

local NGO

Management of Nutritional Efficacy Study

Financial support

•Technical advice

•Providing education

materials

JICA

AJICO

UCC

•Study management

•Data collection

(anthropometric,

questionnaire etc.)

•Blood samples for

amino acid

measurement

AJICO

Implementation

Management

•Blood sample

collection

•Biomarker analysis

•Community

mobilization

•Nutritional education

•Supplement delivery

Yedent ・Production

UG ・Technical Support

・Product Owner

DSM ・Supply Premix

Supplement

Production

Nutritional Efficacy Study

Nutrition Education to Mothers Blood sampling

Measuring Height

Preliminary Result of the Efficacy Study

1. Tendency of Preventing Stunting in KOKO Plus group

2. Higher Hemoglobin Level in KOKO Plus group

than other groups

Further analysis of the experimental data

to demonstrate the efficacy of KOKO Plus

Implication on the importance of “Protein Quality”

in achieving the better growth of children

CARE and UG

GHS

Financial support

・Providing education

materials

GAIN M&E

200K USD

AJICO 1st Delivery

Implementation

Management

•Delivery model development

•Set up VSLA＆Hubｓ

•Demand Creation

-Nutrition Education

-Cooking demonstration

USAID 2nd Delivery

600K USD

CARE

GAIN-CARE-UG-INF-

AJINOMOTO

M&E (Monitoring & Evaluation）

Management

GAIN

Implementation

Delivery

UG

Implementation

Management

ESM

USAID-AJINOMOTO

M&E (Monitoring & Evaluation)

Management

GAIN

Implementation

Delivery

•Social activities

•Branding

•Use Local Distributor -Kiosk

-Chemical seller

Management of Delivery ModeStudy

26

Study site of the Distribution Model Study with

CARE - Northern Region -

27

VSLA is composed of 25 – 30

women in the community.

VSLA meeting is organized

every week.

1- 2 members in VSLA are

appointed as the sales ladies

Village Savings and Loan Association (VSLA)

as a platform for the distribution of KOKO Plus

28

Each member deposit money at

the meeting

Activity of VSLA

Deposited money is recorded.

Members borrow money from the

pooled money to do small business

(Distributing agricultural produces,

Selling salts etc. bought at a market).

29

Nutrition Education in collaboration with GHS

Body Building Food （Protein）

Energy Food（Carbohydrate & Fat）

Protective Food （Vitamin and Minerals)

3 major Nutrient

Meats, eggs and beans

Maize , Cassava, and Koko

Vegetables

Micro nutrient powder

30

Nutrition Education

- Playing Drama by community members -

CARE and UG

GHS

Financial support

・Providing education

materials

GAIN M&E

200K USD

AJICO 1st Delivery

Implementation

Management

•Delivery model development

•Set up VSLA＆Hubｓ

•Demand Creation

-Nutrition Education

-Cooking demonstration

USAID 2nd Delivery

600K USD

CARE

GAIN-CARE-UG-INF-

AJINOMOTO

M&E (Monitoring & Evaluation）

Management

GAIN

Implementation

Delivery

UG

Implementation

Management

ESM

USAID-AJINOMOTO

M&E (Monitoring & Evaluation)

Management

GAIN

Implementation

Delivery

•Social activities

•Branding

•Use Local Distributor -Kiosk

-Chemical seller

Management of Delivery ModeStudy

32

Demand Creation by Social Marketing

Playing dramas, cooking demonstration and sales in the market

Presence of Community leaders（Chief, Queen Mother) is important for the success of the event

Community Based Distribution Model

Factory

Distribution

hub

Distribution

hub

VBE

VBE

VBE

VBE

Community

Community

Community

Community

VBE: Village Based Entrepreneur

Monitoring and evaluation approach

Program monitoring

Survey 1

Survey 2

Survey 3

Survey 4

July

2014

February

2014

August

2013 February

2013

Koko Plus coverage by quarterly survey

36

Comparison of 2 Delivery Systems

1. NGO based

VBE approach

2. Conventional Channel

with Social Marketing

Effectiveness in Behavior

Change, Demand Creation

Very High Medium

Cost of the activities /

Sales

High Medium

Social Impact Nutrition

Improvement

Creating income,

Poverty Reduction

Nutrition Improvement in larger

population

Can we create sustainable

business?

Difficult Probably yes.

Possible strategy in

Scaling Phase

Hybrid of Financial

Aid & Market

mechanism

NGO Consortium

To reach a scale for

sustainability quickly in

collaboration with Aid agencies,

local government

School Nutrition

Pregnant

Mothers Lactating

Mothers

Weaning

6-24 mo

Pre-School

2-5 years

School children

5‐12 years

First 1000 days

GIZ-DSM

Maternal Nutrition

“KOKO Plus”

for Infant & Young

children

Japanese Government

WFP‐Ajinomoto

Future Prospect Achieving Nutrition Improvement for Important Life Stages

38

Multi-WIN by Social Business

for Nutrition Improvement

Local People in

Developing

Countries

Better Nutrition

More employment

More income

Aid Agencies

More

effective

development

Multinational

Private

Companies

Business

Opportunities

International

NGO, NPOs

More

effective

development

Local

academia,

companies

Capacity

Building

39

Challenges in Scaling up

“Social Business” for Nutrition Improvement

1. Can we quickly reach a scale to achieve

the sustainable business? → New Public- Private Partnership, collaboration

necessary for the scaling up phase

2. Can we deliver the product at an affordable price

in the high poverty area? → A Hybrid system combining financial aid and market mechanism?

3. Further Innovation to achieve sustainability necessary eg. innovation for cost reduction,

innovative environmentally friendly package etc.

→ Seeking further “Open Innovation”

4. Securing local raw materials with competitive cost

while assuring quality

→ Improving Soybean Value Chain