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Agro-Food Enterprises: Discussion

Agro-food Enterprises

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Contact:
FoodAfrica Secretariat
Natural Resources Institute
The University of Greenwich at Medway
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Chatham Maritime
Kent ME4 4TB
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Email: Keith Tomlins
Tel: +44 (0)1634 883360
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Web: www.nri.org

 

Introduction to discussion
Agro-food enterprises fall in the value chain between agricultural production and the consumer of food. The Research and Development focus in the food chain has for many years been on agricultural production. A lack of successful agribusiness results in the export of raw materials and the import of processed products. The results of this are that the financial and developmental benefits arising from the production of the crop are enjoyed away from the rural agricultural community.

However, in looking at all these beautiful concepts the bottom line is very simple – the Agro-Food Enterprise must make a product that it can sell to consumers at a level that ensures that income is higher than the cost.

Agro-Food Enterprises: adding value and meeting consumer demand (Dave Harcourt)
Introduction paper

Agro-food enterprises can be an effective method for improving food utilisation, food safety and nutritional content. Issues, however, remain, especially for Africa. How effectively do agro-food enterprises meet consumer expectations? Is the consumer involved in this process and, if so, which consumers and what are the lines of communication? What is the driving force behind new product development in Africa? How can government policies be more supportive of agro-food enterprises, communication strategies and marketing systems?

What are the driving forces - Introduction paper (Trust Beta) Introduction paper

Summaries by the moderator Download as
Moderators Summary - Agro-Enterprises on 6th April 2003, By dave Harcourt
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Moderators Summary – Agro-Enterprises on 7th April 2003 - By Dave Harcourt

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Moderators Summary – Agro-Enterprises on 9th April 2003 - A PROPOSED FOCUS - By Dave Harcourt Word

Moderators Summary – Agro-Enterprises on 14th April 2003 - Summary - By Dave Harcourt

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Discussion internet Forum Download as
Internet Forum - Discussion
Agro-Food-Enterprises – 2nd to 6th April 2003
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Internet Forum - Discussion
Agro-Food-Enterprises – 7th April 2003

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Internet Forum - Discussion
Agro-Food-Enterprises – 8th April 2003
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Internet Forum - Discussion
Agro-Food-Enterprises – 9-11th April 2003
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Moderators Dave Harcourt trained as a Chemical Engineer at the University of Natal. After a few years in SASOL, the heart of the Chemical industry in South Africa, he obtained an MSc in Biological Engineering from University of Birmingham and began working in Research & Development for the South African Traditional Beer Industry. This covered a range of activities and posts from unit operations research, process development, techno economics studies, plant design, process management, information processing, new product development and research management. Twelve years ago he started R&D in the small food processing enterprise sector, in response to the changes introduced into South Africa with the election of the first Democratic government. This has lead to a number of activities, including managing the Strengthening African Food Processing Project (SAFPP), ECA consultation groups on food security and indigenous foods, implementation of rural bakeries, agribusiness opportunity surveys in Strategic Development Initiatives (SDI) and local governmant, development of enterprise modeling spreadsheets and small business restructuring.

Dr Trust Beta received her BSC from the University of Zimbabwe and joined the Department of Research and Specialist Services, Ministry of Agriculture. She gained experience in the analysis of agricultural materials. She trained as food scientist at MSC and PHD levels at Texas A&M University and the University of Pretoria, respectively. She became involved in agricultural research aimed at improving household food security in rural communities of Southern Africa through the SADC/ICRISAT Sorghum and Millet Improvement Programme. She joined the University of Zimbabwe as lecturer in 1995. She has been working to address postharvest issues in collaboration with many institutions including UP, TAMU, University of Wisconsin, University of Hong Kong, and Iowa State University on grain quality and processing of cereal crops, sensory properties of sorghum flours (Natural Resources Institute). She is currently based at the University of Manitoba

Moderators Summary – Agro-Enterprises on 14th April 2003 - By Dave Harcourt

While we are still summarizing the last batch of inputs and before we make an overall summary, the things in my mind that have come out of the Forum are, that the Agro-Food Enterprise sector can and must:

• increase supply to food insecure areas from the excess producing areas
• reduce the current losses of food
• create income to supplement own production
• ensure the right equipment and training is available
• ensure nutritious, safe and quality food

creating jobs and economic development

## question ## – what do you think I have left out of this list?

Ojijo Olang'o from Western Kenya gave feedback on entrepreneurs who started a peanut processing service which has been operating for some time producing a local traditionally prepared product. He also noted that maybe with more support they could diversify the product line and grow.

Dr Honore Tabuna, from Congo Brazzaville but now living in France, made a long submission on the opportunity offered by to Africa by the Ethnic Food Market. He identifies the trends and opportunities in Ethnic markets, but identifies that the market for African Foods is limited to the Diaspora at present and seems to say this is through special outlets. The main point he made was that exporting would be a serious undertaking, we need to develop a food system that would be able to slot into the European, but would have real opportunities for enterprise in Africa.

On a personal note I have already emailed Dr Tabuna to take up this potential with him, after all he is right in the business end of the opportunity we talk about – if you want to be part of our exchanges please email me, we could form a small forum I would be happy to manage.

Gyebi Duodu speaks of an actual experience where he visited a farm where papaya, that was below visual standards, was wasted and wondered if the farm could not eliminate these losses by making juice. There is of course no difficulty except that
of being able to sell the juice at a cost that covers all the production costs, including machinery that will only run for a few months a tear.

He also noted the growing urban need for instant and easy to use Traditional Foods – noting that he had seen these in Botswana and South Africa.

## question ## – are convenience traditional foods a nice to have or is it a real potential market? what is your experience as a consumer?


Godswill Makombe calls for shifts in the existing paradigm towards two levels of rural activity in addition to farming. He sees pre-processing as being the way to link to the processors in the urban areas and complete processing for local markets. This supply of local markets requires that the links between urban centers is improved – at present he sees systems that focus on feeding from the rural area to the towns and cities.

## question ## – is there any reason why we should not focus on shifting processing from the rural areas, especially for the final products anyway consumed in those areas. Don’t we at the moment transport raw material (along with their waste) to the urban areas and transport the finished product back, leaving the wastes which could go back on the lands in the citiy’s dumps.

Joseph Mpagalile asks those who have experience to provide feedback on Food Processing Incubators as the Technology/Business incubator seems to be a good mechanism to develop businesses.

He then gives detailed information on “processing shops” in Tanzania. Rice, maize and oil are all processed, however, the areas where this occur are different, presumably as a result of the local farming activities.



Brief notes on other postings

safety
R. Kapinga noted that experience in Tanzania was that although people are well informed on the need for the correct processing of cassava, they often ignore the danger of incorrect processing in times of famine.

food security
Celia Ehrhart recognised the need for the improved distribution of food, the role small enterprise could play in this and the need to understand the food chains involved. She then added a call for better use of Africa’s crop resources.

Asia Kapande introduced a new “bottom up” concept for the development of processing equipment – he proposed the researchers build the prototype equipment and the farmers are involved in the testing and development. It’s a bit like farming Systems Research and gets the researcher out with the technology user.

## question ## – do you think there is merit in this? – maybe if the scientists pay is tied to the level his prototype responds to the enterprises needs it would help avoid the “we’ve got lots of technology on the shelf but the entrepreneurs (stupid aren’t they?) don’t come and take it!” Yes I’ve been told that!


D A HARCOURT
12/04/2003