Non-Profit Cereal Processing Plant Explained
Current Situation
Food Processors play a decisive role in global supply chains serving poor children ready-to-eat meals through feeding schemes. This is the part where meal recipes are created. Decisions to include or exclude raw materials in recipes are largely driven by costs, scalability, shelf life and profitability.
To increase nutritional value of ready-to-eat meals offered to poor children and reduce stunting rates, current recipes require drastic improvement. Recipes can only be improved if we design recipes for a different purpose than private companies aiming to create monetary wealth. It is innovative and not difficult to bring non-profit processing into the supply chain.
If you want a low-cost meal – you will use cheap staples as ingredients (maize meal, soya and sugar). Nutrient-poor staples taste like bark. Add enough sugar, and the poor child will finish the bowl.
Large food companies compete by innovating towards designing low-cost meals while able to claim basic nutritional values. In almost all cases nutrient-poor, sugar-rich cereals are still sold as “highly nutritious” to feeding scheme operators.
Often bold claims are made around micronutrient contents (vitamins and minerals). These claims might seem impressive to the average man. The truth is that vitamin and mineral fortification costs almost nothing. Micronutrients can never correct for insufficient macronutrients (proteins and fats).
If you include better ingredients, the cost will go up accordingly. With higher costs and higher profits, budgets become too stretched. Make sense doesn’t it?
Hybrid Social Enterprise
To turn the situation around in the industry, business model innovation is desperately needed. Processing food with a structured Hybrid-Social Enterprise creates the desired positive outcomes.
The primary focus shifts from only making a profit to creating social value to the beneficiaries or consumers of the meals. The transparent business nature of social enterprises is extremely appealing to large donor organisations paying for the meals.
The use of available technology to achieve nutritional outcomes
Single-screw extrusion cooking
Can process only single grains
Can process only flours
Products is highly refined
Large volumes per hour
VS
Twin-screw extrusion cooking
Can process whole grains
Can process multi-grains at once
Can process grains & legumes together
Lower volumes per hour
By using twin-screw extrusion technology, we can achieve dietary variety via
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Including multiple whole grains in the recipes
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Including multiple whole legumes in the recipes
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Including the germs & husks, the actual natural nutrients are available.
Basic Strategy
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Trade with the open market at market prices
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Scale advantages allow trading with the feeding schemes market at “cost-plus” pricing formulas
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The strategy promises the enterprise to be self-sustainable with a strong financial future.
Key principles of a non-profit processing plant
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The operating entity is a Pty (Ltd), a fully registered taxpayer with SARS
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100% of the shares owned by the INANI Start Well Foundation Non-profit Company (NPC)
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The products produced are sold to current feeding scheme institutions and organizations
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Products priced to ensure the sustainable future of the processing plant
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No need to pay dividends to shareholders
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No need to create shareholder wealth in the company
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Scale advantages will ensure that managers are paid and incentivised market-related.
Positive outcomes
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Meals and recipes are designed and processed for their nutritional value, not their profitability
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We can now include the best possible raw ingredients
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The non-profit structure allows for total financial transparency to all stakeholders
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Feeding scheme institutions and organizations trust that costs drivers are the nutritional contents
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Donors and funders assured that most value ends up with the targeted beneficiaries
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Feeding scheme operators now have access to super quality ready-to-eat meals as an alternative to their current options.
Already Successful Pilot
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To better understand total costs and processing, the proof of concept was confirmed through contract manufacturing since August 2018
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For the past 18 months, 2000 children are successfully receiving a daily contract processed StartWell Nutrient-dense morning meal
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The project is ready for commercialisation and scaling.
Innovative Partnerships
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100% Non-profit Company (B-BBEE Level 1)
Conscious Capitalism
“Making money to fuel the reason for existence”
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All shareholders subscribe to the principle of conscious capitalism
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Bringing a superior quality meal to the feeding scheme market at lessor rates than the current nutrient-poor Corn-Soy-Sugar Blends.