06 - 07 ANNUAL REPORT INNOVATION IN NUTRITION
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Global Alliance for Improved Nutrition
GAIN ďŹ ghts malnutrition to make people and economies healthier and more productive. GAIN stimulates public-private partnerships and provides ďŹ nancial and technical support to get healthier foods and supplements to those people most at risk from malnutrition. www.gainhealth.org
Global Alliance for Improved Nutrition
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GAIN is currently supporting 19 large-scale, market-based projects in 18 countries and developing a range of innovative partnership projects to improve the nutrition and health of 1 billion people. 4
Global Alliance for Improved Nutrition
CONTENT ©Thevenon Vincent
WELCOME
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INNOVATION
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HIGHLIGHTS OF THE YEAR 2007
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HIGHLIGHTS OF THE YEAR 2006
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01 FIGHTING MALNUTRITION
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MEASURING OUR PERFORMANCE
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02 BUILDING PARTNERSHIPS
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MOBILIZING NEW PARTNERS AND INNOVATIONS
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03 ENABLING INNOVATION
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04 IMPROVE NUTRITION
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LARGE-SCALE FORTIFICATION PROGRAMS
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05 FINANCIAL STATEMENT
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INCOME STATEMENT AS AT 30 JUNE 2007
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BALANCE SHEET AS AT 30 JUNE 2007
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GAIN BOARD OF DIRECTORS
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GAIN MANAGEMENT
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REUTERS / RaďŹ quar Rahman and GAIN
WELCOME
We are midpoint in the global undertaking to achieve the Millennium Development Goals by 2015. While many countries show progress, others will surely fail if they do not change their trajectory radically. The challenge is to ensure that we get back on track. It should shock us all to learn that every year 3.5 million children die from causes related to under-nutrition. Moreover, eighty per cent of the burden of disease is concentrated in twenty countries in South Asia and Sub-Saharan Africa - many of which grapple with poverty, related socio-economic, as well as political challenges. We must stop mothers and children dying of preventable diseases and hunger. That is our mission. Fighting hunger and fulfilling the right to good nutrition must become a global campaign that mobilizes all stakeholders. Interventions must be sustainable and address the failures of institutions and markets that still expose a third of humanity to the disastrous impact of malnutrition. We must build linkages to the challenges of infant mortality, maternal deaths, HIV and AIDS, food security and rising food prices. Over the past year, my work for GAIN has given me the privilege to interact with people from all over the world and see scores of examples of effective work in the fight against malnutrition - action that gives dignity and hope to millions of people. GAIN, as an alliance and a catalyst for action, has taken important steps to put malnutrition on the global agenda. It is building partnerships with governments, the UN system, regional institutions and civil society towards scalingup successful interventions. It is implementing new programs with the New Partnership for Africa’s Development and with a range of companies who are delivering affordable and healthy products to millions of people. I wish to thank the Board for its unstinting participation and leadership, and in particular Marc Van Ameringen and his team for the passion and dedication with which they have pursued GAIN’s objectives. Over the coming year, let us be guided by the African saying: ‘Sekunjalo ke Nako’, which means ‘Now is the Time’. The time to act is now.
Jay Naidoo - Chair, Board of Directors
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INNOVATION To date, GAIN has provided more than US$ 40 million in funding and technical support, including US$ 28 million in grants to 19 fortification projects in 18 countries, to improve the nutrition of millions of people. We are also implementing new programs and approaches to reach many millions more. For instance, we are bringing our ability to mobilize partnerships and find large-scale solutions that improve nutrition to a new push for worldwide salt iodization, and to a new program of work to enhance the quality of food given to infants and young children. I am grateful for the continued support of our partners in these efforts, especially of the Bill & Melinda Gates Foundation, the Canadian International Development Agency, and the United States Agency for International Development. This annual report is first and foremost a review of these activities and the improvements we bring to the health of our target populations. I hope you will share my conclusion from this report that GAIN is making a difference. But there is more : under our dedication to fighting malnutrition and delivering measurable impacts lies our ingrained drive for innovation to find and apply new solutions to what remains a daunting challenge. I hope you will also see in this report our growing ability to involve new stakeholders, to find novel ways to fight malnutrition, to demonstrate the effectiveness and efficiency of our methods, and thereby justify the trust our partners and supporters bestow on us. That is the solid foundation on which GAIN operates, and which will allow us to do even more in future.
Marc Van Ameringen - Executive Director
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REUTERS / Jason Lee and GAIN
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2007 HIGHLIGHTS OF THE YEAR June 2007
April 2007
The total of GAIN funding support to 19 large-scale
GAIN is selected by the Fast Company as one
food fortification projects in 18 countries reaches
of the 50 most entrepreneurial and imaginative
US$ 5.2 million for the year.
innovations to change the state of the planet.
The governments of eight West African countries join forces for the fortification of cooking oil with
March 2007
vitamin A. The aim of this program, supported by
The first GAIN Business Alliance Global Forum,
HKI, MI, USAID and GAIN, is to reach at least 70%
held in India, brings together 130 business and
of the population by 2010.
government leaders from fifteen countries to explore new partnerships to fight malnutrition.
May 2007 The Naandi Foundation and GAIN start the
January 2007
distribution of fortified meals to school children in
UNICEF in the Indian state of Rajasthan receives
the Indian states of Andhra Pradesh, Rajasthan and
a US$ 198,480 GAIN grant for the fortification of
Madhya Pradesh. In Hyderabad, Britannia Industries
home-made complementary foods with a mix of
adds fortified biscuits for 120,000 children.
vitamins and minerals aimed at 120,000 children aged between six and 36 months.
30 Swiss business leaders pledge to fight malnutrition at the GAIN Business Alliance event in
GAIN provides US$ 195,252 to Bangladesh’s
Lausanne, Switzerland.
Social Marketing Company to promote the use of Sprinkles, a food fortification mixture to be used in the home, for the benefit of under-fives.
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2006 HIGHLIGHTS OF THE YEAR December 2006
October 2006
GAIN supports the fortification of wheat flour in the
GAIN signs a three year grant for US$ 1,199,000
Chinese provinces of Gansu and Shaanxi, and helps
with the Georgian National Fortification Alliance
draft a nation-wide standard.
and a national NGO to provide micro-feeders to 18 large and medium-sized flour mills to add nutrients to the flour.
November 2006 The GAIN Board approves support to wheat flour fortification in Egypt, oil fortification in Bangladesh
September 2006
and wheat, oil and maize flour fortification in
A project to provide nutrient-dense blended food to
Uganda.
people living with HIV/AIDS in Tamil Nadu, India with the World Food Programme and the Tamil Nadu
Football star Zinedine Zidane opens a small-scale
State Aids Control Society kicks off.
factory in Bangladesh that produces 3,000 tons of fortified yoghurt per year in Bangladesh, a
GAIN supports the fortification of 10,000 metric
partnership between Danone and Grameen Bank,
tons of blended food to reach 400,000 children
and GAIN as the nutrition expert.
aged between six and 36 months in the Indian state of Gujarat.
Leading US companies pledge to fight malnutrition at the GAIN Business Alliance Forum in Seattle. GAIN initiates a US$ 1.8 million project in Ghana to fortify flour with eight micronutrients and vegetable oil with vitamin A.
Thinkstock
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01 FIGHTING MALNUTRITION
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Global Alliance for Improved Nutrition
Naandi Foundation / Rajendra Shaw
GAIN makes millions of people healthier and more productive through the large-scale and sustainable improvement of their nutrition.
Malnutrition reduces the health and productivity of at least 2 billion people worldwide. The Lancet this year estimated it kills 3.5 million children and leaves 178 million permanently damaged. It is an ongoing tragedy that can be prevented. We have the ability to end malnutrition in our lifetime if we apply proven strategies on a large scale. GAIN’s programs and projects around the world are improving the nutrition and health of vulnerable groups, especially women and young children. We currently support 19 large-scale food fortification projects in 18 countries as diverse as Ghana and Georgia. These initiatives put affordable, high-quality products on the market. They are already improving the nutrition of an estimated 160 million individuals and will reach over 600 million people within the next five years. The Chinese Center for Disease Control reported reductions in anemia in project areas in the order of 30% following the introduction of fortified soy sauce in China. In four provinces of South Africa, spina bifida in newborn babies decreased by 40% following the addition of folic acid to wheat flour and maize meal. Such large-scale and sustainable improvements to nutrition can only be accomplished by partnerships between governments, the private sector and civil society. Using the unique know-how and resources of each stakeholder, we can deliver new and innovative solutions that complement the strategies of public health. GAIN mobilizes such partnerships and provides the technical and financial support to enable innovation. Our efforts to fortify widely-used staple foods and condiments are demonstrating their first return on investment, as listed on the next pages. But we are also exploring new partnerships and approaches to deliver on the promise to reach one billion people with improved nutrition.
In the field of fighting malnutrition, GAIN has always been an organization that seeks the most effective and innovative solution - addressing the key issues and at the same time showing a lot of sensitivity by discussing the various topics with all key stakeholders involved.
Bruno Kistner - DSM Nutritional Products Ltd.
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MEASURING OUR PERFORMANCE TARGET 1: COST PER DALY GAINED : LESS THAN US$ 15 Our primary target is to reduce the number of years that are lost in a population because of death and illness caused by malnutrition – this is a measure known as ‘Disability Adjusted Life Year’ or DALY. We aim to add one healthy year to a person’s life at a cost lower than US$ 15, but our current estimates are that it will be between US$ 19.50 and US$ 37 when our current projects are at full-scale. This means we need to work harder and better to find novel cost-effective ways to tackle malnutrition in those places where it is most widespread; we have already started new initiatives to do just that.
TARGET 2: REDUCTION IN DEFICIENCY PREVALENCE: MORE THAN 30% Data from two nearly-completed projects demonstrate that we are on track to decrease the prevalence of deficiencies by 30% or more. Sentinel site data in China show a 1/3 decrease in anemia in areas where iron-fortified soy sauce has been introduced, whilst spina bifida decreased by 40% in four provinces of South Africa following the introduction of folic acid fortification.
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TARGET 3: REACH * : 1 BILLION PEOPLE; TARGET 4: COVERAGE * OF TARGET GROUPS : MORE THAN 500 MILLION PEOPLE Our current data projects that, when all our programs are at full scale, we will reach 612 million individuals, 335 million of whom are our target groups, especially children and young women who are most vulnerable to malnutrition. To achieve our goals to positively affect one billion people and 500 million people in vulnerable groups, we are working on new projects to reach the remaining 388 million individuals and 165 million vulnerable people over the next two years. We are, for instance, designing innovative large-scale projects in Kazakhstan and India; preparing a series of new initiatives aimed at infants and young children; and planning to strengthen salt iodization in 13 priority countries.
TARGET 5: COST PER TARGET INDIVIDUAL : LESS THAN US$ 0.25 We currently estimate that, on average, our current fortification efforts cost GAIN US$ 0.30 per person. This figure is expected to drop to US$ 0.16 and US$ 0.13, respectively three and five years after the inception of individual projects.
TARGET 6: RAISE MORE THAN US$ 50 MILLION FROM DONOR AGENCIES AND LEVERAGE MORE THAN US$ 700 MILLION IN PRIVATE SECTOR INVESTMENT Our target to capture additional investments from donor agencies of US$ 50 million has already been achieved: by this year, they have invested US$ 70.5 million. The commitment of the private sector stands at US$ 360 million, which we hope to increase for instance through our work to improve infant and young child nutrition in partnership with the private sector.
* Reach: the number of individuals consuming fortified foods * Coverage: the number of individuals in target groups most at-risk of vitamin and mineral deficiencies (e.g. women of reproductive age and children) who are consuming fortified foods
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02 BUILDING PARTNERSHIPS
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GAIN / Miklos Fejes
GAIN builds partnerships, and especially engages the private sector, to the beneďŹ t of all involved.
GAIN, itself an alliance of different sectors, believes that partnerships are essential in the fight against malnutrition. Therefore, we build and stimulate connections between stakeholders at the national and international level. With governments, the private sector and civil society, for instance, we change legal frameworks to allow salt iodization, supply specific nutrients to schoolchildren and people living with HIV/AIDS, develop new social businesses that meet the needs of low-income consumers, and find ways to deliver public goods through private channels. Our specific strength is mobilizing the private sector to encourage contributions to our common fight to end vitamin and mineral deficiencies through innovations, new products, distribution mechanisms and marketing methods. Good business also thrives from delivering healthy foods to those in need. Our partnerships are diverse and include : Improving emergency rations As the number of refugees and displaced people grows every day, we are investigating the distribution of food aid and options to fortify emergency rations together with the World Food Programme. Food aid all too often consists of basic packages, so that fortifying emergency food or providing vitamin and mineral powders have a huge potential to improve the health of an already vulnerable group. Stimulating healthy growth We worked with private and public partners on a new program to improve the health of infants and young children. It resulted in a new partnership program, which aims to promote exclusive breastfeeding up until six months of age, and to promote the use of low cost, high quality fortified complementary foods and supplements for children older than six months. Fortifying local growth We are working with Grameen Danone Foods Ltd. on a novel business model in Bangladesh. Local producers supply milk for a small-scale factory, which turns it into a yoghurt with essential nutrients - Shoktidoi. Women vendors earn a living by selling it at an affordable price. GAIN works with the Johns Hopkins University to study the impact on the health of children.
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Iodizing salt Salt iodization still does not reach everyone. In partnership with UNICEF, GAIN aims to increase salt iodization in 13 priority countries to bring the percentage of households that use iodized salt globally from 70 to 85%. This means protecting an additional 790 million people, including 20 million infants, from iodine deficiency. Reaching consumers GAIN is working with leading multinational Cargill since November 2006. Cargill is making some of its expertise and know-how available to GAIN to make access to quality premix easier for the fortification of products in developing countries. Establishing sectoral collaboration GAIN has set up a nutrition network of international partners in China, including UNICEF, the Asian Development Bank, the United States Centers for Disease Control, the Program for Appropriate Technology in Health, the World Food Programme, the World Health Organization and the Food and Agriculture Organization of the United Nations. The group met for the first time in 2007 and is now working to help China more effectively address malnutrition.
While we make money, we can also do good. That is what social business is all about, and you can use your creative energies to get involved in social business that improves nutrition. GAIN can help in that effort.
Prof. Mohammad Yunus - Nobel Laureate
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Global Alliance for Improved Nutrition
REUTERS / Enrique de la Osa
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MOBILIZING NEW PARTNERS AND INNOVATIONS In April 2007, the Fast Company, a group and magazine that uncovers best and “next” practices, recognized GAIN as one of the 50 most entrepreneurial and imaginative innovations to change the state of the planet. This is because GAIN acknowledges that ending malnutrition requires, in addition to government and NGO interventions, the new thinking, models and technical and financial resources that are applied by the business community. Over the past couple of years, GAIN has conducted a multitude of face-to-face meetings with companies worldwide, convened ten business conferences and engaged with more than 200 companies. These efforts have resulted in the inception, last year alone, of ten new partnership projects to tackle malnutrition. Today, providing healthy food to poor and vulnerable communities makes good business sense. It strengthens a company’s brand and reputation, and ultimately contributes to a profit-driven business strategy. Our efforts to build public-private partnerships included : Defining new services The world-wide growth of the GAIN Business Alliance called for a fresh look at what these networks do and how they do it, and how GAIN can best support their actions. Through consultation, we defined the services that will add value and promote collaborative actions : The GAIN Global Forum as the global platform for networking and partnership building; Partnership Assistance to help companies find suitable non-profit partners; a Knowledge Bank with the World Bank Institute and leading business schools such as IMD and Harvard to provide expert knowledge and case studies; and the GAIN Marketplace where companies, governments, NGOs and investors can meet to “do business”.
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Building networks Last year we expanded the range of our Business Alliance and welcomed leading companies to our events in India and Switzerland. There, we encourage learning on new business models and demonstrate successful models to inspire increased private sector involvement in the fight against malnutrition : one of the first concrete outcomes in India was the launch of iron-fortified biscuits by Britannia Industries Limited, to be distributed in schools. Stimulating global action The first global meeting of the GAIN Business Alliance in India, held in March 2007, saw business and government leaders showcase innovative business approaches and foster new partnerships. Delegates demonstrated that companies are increasingly providing nutritious food to vulnerable people at affordable prices. They shared innovations, built new partnerships and established several new initiatives. Focusing on China’s rural poor The second meeting of the GAIN Business Alliance in China, in December 2006, built bridges between 70 representatives from government agencies, international organizations, large retail chains, media outlets and the business community. Participants proposed action plans and identified the next steps in applying business solutions to reduce malnutrition throughout the country.
Britannia is delighted to be partnering with GAIN in a first-of-its-kind public private partnership in the school feeding program in Hyderabad wherein we make and supply specially fortified biscuits to some of the most disadvantaged children. We are grateful to GAIN for supporting our work.
Vinita Bali - Managing Director Britannia Industries Ltd, India
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03 ENABLING INNOVATION
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REUTERS / Simon Kwong
GAIN enables partnerships to innovate through grants and know-how.
Innovation is one of our defining characteristics. We work with others to develop and test new approaches and new business models that make markets work for vulnerable groups. In doing this, we create benefits for those who are malnourished as well as for our partners from the public and private sectors. Our financial and technical support then enables partnerships to apply these innovations at a large scale, ensuring that impacts and return on investments are accurately measured. Last year, the following specific initiatives demonstrated our drive for innovation : Supporting the fight against HIV/AIDS In India, we are looking at the relationship between nutrition and HIV/AIDS together with the World Food Programme and the Tamil Nadu State Aids Control Society. While we already know that people respond better to treatment when they are well-nourished, we are trying to discover the best way to integrate nutrition as part of care, support and treatment. The provision of nutrient-dense meals in Tamil Nadu to 13,000 patients is the most visible part. The program in Tamil Nadu is currently being extended to cover 25,000 people. Making infants stronger and healthier Much work over the year went into the preparation of a major new initiative to improve the nutrition of infants and young children, because the first two years of life are vital to everyone’s future. The lack of affordable fortified complementary foods and food supplements, for use after infants reach six months of age, remains a major reason why children fall ill and suffer later in life. The initiative aims: to support sound practices, such as exclusive breastfeeding during the first six months of life and continued breastfeeding up to and beyond two years; to encourage companies and partnerships to develop and market high-quality foods for low-income families at a large scale; and to create a sound environment for good feeding practices. Sprinkling against deficiencies The Indian state of Rajasthan, with support from GAIN, started pioneering the fortification of home-cooked dishes on a large scale in January 2007. Today, some 120,000 children between six and 36 months of age from the most disadvantaged groups are receiving a small sachet of vitamin and mineral powder on top of their homemade meals. In neighboring Bangladesh, we enabled the Social Marketing Company to raise demand for the product. Both projects aim to demonstrate the health impacts of fortification and catalyze the wider distribution of Sprinkles.
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Removing obstacles to fortification Another new endeavor, launched at a meeting of the Clinton Global Initiative in September 2007, is the GAIN Premix Fund. The Fund aims to enable programs that currently have difficulty purchasing and sourcing quality supplies to easily access fortificants. The Fund provides loans and grants, brings producers and users together, and offers technical assistance. With DSM Nutritional Products, Cargill, Akzo Nobel and Procter and Gamble having pledged their support, this revolving fund will remove a major obstacle to fortification. Reducing vitamin and mineral deficiencies by 2015 A good strategy is the first building block in attaining the vision of the entire nutrition sector working together to drastically reduce vitamin and mineral deficiencies by 2015. This past year, a reference group and eight working groups, made up of high level participants from the micronutrient sector, identified priority areas for action and mechanisms for coordination. The result of their work will be presented for final validation in 2008 and the strategy subsequently implemented.
Developing viable business models which can impact malnutrition on a large scale and contribute to reducing poverty is a new approach for both the private and non-profit sectors. It is a difficult challenge and an immense opportunity to match competencies and co-create innovative solutions. The close cooperation between Danone and GAIN in Bangladesh illustrates how joining forces can be efficient.
Bernard Giraud - Vice-President Sustainable Development and Social Responsibility Group DANONE
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REUTERS / Paul Hackett
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04 IMPROVE NUTRITION
GAIN delivers results: it makes people healthier, stronger and more productive.
Global Alliance for Improved Nutrition
Dinodia
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GAIN is actively supporting 19 projects in 18 countries that bring fortified staple foods and condiments to people in need, and is involved in a range of other targeted partnership projects. They are making a tangible difference to people’s lives around the globe. While not all monitoring and evaluation data is yet available, progress achieved to date on our targets and on our ultimate aim of improving the nutrition of one billion people is significant. We continuously improve the tools at our disposal to measure and better our performance. Our partners now use a new semi-annual reporting tool and will receive training in how to better measure results with a peer-reviewed toolkit. All data are fed into an organization-wide results database. On the ground, we continue to work with our partners to directly measure baseline and mid-term data from our projects in Ghana, Côte d’Ivoire, China and South Africa. Finally, looking to the future, we have undertaken a costing study to identify the countries and food vehicles where fortification can have the largest impact over the coming ten years. The first results of our evidence-gathering are encouraging. We are on track to reach 612 million people when our projects are at full scale, 335 million of whom are in vulnerable groups such as women and children. Here are a few examples of how we tangibly improve nutrition on a large scale and thereby enhance people’s lives on a daily basis.
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Georgia Georgia has adjusted maternal mortality rates that are nearly three times those of industrialized countries, and the probability of a child dying before the age of five is about eight times higher. GAIN supports the Georgian National Fortification Alliance and Georgian NGO ACTS to install micro-feeders and premix inclusion machines at 18 large and medium-sized flour mills. Millers are trained in production, quality control and assurance. The project aims to produce 280,000 metric tons of fortified wheat flour that will benefit some 2.3 million consumers, including 1 million of the most vulnerable women and children. Ghana In Ghana, 65% of pregnant women, 76% of preschoolers and 41% of women of child bearing age are anemic, and this contributes to 20% of maternal deaths. Our project supports the introduction of mandatory flour fortification with eight micronutrients and vegetable oil fortification with vitamin A, and upgrades quality control in the public and private sector. After three years, 100% of all commercially milled wheat flour, as well as manufactured and imported vegetable oil, will be fortified. This equates to 481,000 metric tons of wheat and 40,000 metric tons of vegetable oil per year. This initiative will cover 80% of the population, including the 4.4 million individuals most at risk. China Since December 2006, GAIN has been working on a nation-wide policy for wheat fortification. The National Standard for Fortified Wheat Flour has been approved by National Standards Standing Committee. Iron-fortified soy sauce now reaches an estimated 33 million people at risk of iron deficiency. Over the past year, four more large companies obtained accreditation to fortify soy sauce, bringing the total to 20 producers.
Through its convening power and innovative mindset, GAIN is helping address hunger and undernutrition effectively and sustainably. GAIN is creating a new partnership paradigm that combines the respective strengths of the private and public sectors, producing both social and economic value for all stakeholders and in particular the poor.
Paulus Verschuren - Unilever
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Francophone West Africa GAIN and others have supported the Economic and Monetary Union of West Africa to organize a public-private dialogue on oil fortification with the governments of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Guinea Bissau, Senegal and Togo. In March 2007, the Union and other partners joined forces to promote the mandatory fortification of cooking oil with vitamin A for at least 70% of the population by 2010. These efforts build on GAINsupported oil fortification programs in Côte d’Ivoire and Mali. India Many children in the Indian state of Gujarat are nutrient-deficient. In September 2006, GAIN initiated a food fortification project where 10,000 metric tons of fortified blended food, procured by the government through the Integrated Child Development Services system, reaches 400,000 children aged between six and 36 months. This project brought in additional resources and is now being scaled up to reach a million children. The Government of Gujarat revised its norms and will now only procure fortified blended food for the system.
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LARGE-SCALE FORTIFICATION PROGRAMS 3. 1. 4. 5. 6.
2.
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7.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Dominican Republic
Bolivia
Morocco
Mali
Côte d’Ivoire
Ghana
Nigeria
South Africa
Zambia
Uganda
Product Wheat flour Fortificant Iron vitamin B
Product Wheat flour Fortificant Iron vitamin B
Product Wheat flour Fortificant Iron vitamin B
Product Vegetable oil Fortificant vitamin A
Product Wheat flour Fortificant Iron folic acid
Product Wheat flour Fortificant Iron, Zinc vitamin A, B
Product Sugar Fortificant vitamin A
Product Vegetable oil Fortificant vitamin A
Product Vegetable oil Fortificant vitamin A, D
Product Wheat flour Fortificant Iron vitamin A Zinc vitamin B
Product Wheat flour Fortificant Iron vitamin A Zinc vitamin B
Product Maize flour Fortificant Iron vitamin A Zinc vitamin B
Product Wheat flour Fortificant Iron vitamin A Zinc vitamin B
Product Palm and cottonseed oil
Fortificant vitamin A
Product Milk Fortificant Iron, Zinc vitamin A C, D & E
Product Vegetable oil Fortificant vitamin A
Product Vegetable oil Fortificant vitamin A Product Sugar Fortificant vitamin A
Product Maize flour Fortificant vitamin A, B Iron Zinc
Product Maize flour Fortificant Iron vitamin A Zinc vitamin B
Product Vegetable oil Fortificant vitamin A
19. 12.
14. 13. 17.
15. 16.
11.
18. 10. 9.
8. 11.
12.
13.
14.
15.
16.
17.
18.
19.
Egypt
Georgia
Uzbekistan
Kazakhstan
Pakistan
Bangladesh
China
Vietnam
China (Gansu and Shaanxi province)
Product Wheat flour Fortificant Iron folic acid
Product Wheat flour Fortificant Iron folic acid
Product Wheat flour Fortificant Iron Zinc vitamin B
Product Wheat flour Fortificant Iron Zinc vitamin B
Product Wheat flour Fortificant Iron folic acid
Product Vegetable oil Fortificant vitamin A
Product Soy Sauce Fortificant Iron
Product Fish sauce Fortificant Iron
Product Wheat flour Fortificant Iron Zinc vitamin B
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* footnote: vitamin B here denotes the B vitamins for ease of reading; the actual use of B vitamins varies slightly between projects
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05 FINANCIAL STATEMENT
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REUTERS / Jorge Silva
GAIN is in sound ďŹ nancial shape.
Steady growth Since the financial year 2005/2006, GAIN’s total expenditures have been expanding. This growth is primarily due to the growth in new programs, such as our work on infant and young child nutrition. For the financial year 2007/2008, we are currently forecasting total expenditures of US$ 22.5 million. GAIN keeps accurate track of its income and expenditure, and applies strict policies and procedures to ensure transparency and accountability towards its supporters and partners. The result is that our auditors, Deloitte, have given our accounting a clean bill of health. While our Income Statement and Balance Sheet from that report are presented in the pages that follow, we invite you to read the complete auditors report and financial statements, which can be found at www.gainhealth.org.
TOTAL EXPENDITURES
Total Expenditures by Financial Year
$20,000 $ 20,000 $15,000 $15,000 $10,000 $ 10,000 $5,000 $5,000 2005 20 05/6 /6 2005/6 20 /7 2006/7 2007/8 20 8 figures in thousands; estimated figure for 2007/8
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Investing in nutrition Financial and technical support to food fortification in 2006/2007 took the largest share of expenditures at almost 54 per cent, whereas our efforts to create new partnerships and work on innovative projects received 17 per cent of our operating budget. One per cent was invested in the development of our new program of work on infant and young child nutrition. Our expenditures on corporate and administrative services reached nearly 16 per cent, only slightly higher than our goal to keep overheads below 15 per cent. It means monitoring and cutting costs remain as important as ever. Further, the projected increase in program expenditures in the coming fiscal year will also allow us to meet this efficiency target.
Financial Year 2006-2007 Expenditures by Program
1%
Food Fortification
17%
Infant & Young Child Nutrition Investments & Partnership
54%
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5% 5% 2% 16%
Corporate Administrative Sevices Performance Measurement & Research Communication & Advocacy Special Programs
INCOME STATEMENT AS AT 30 JUNE 2007 2006 / 2007
2005 / 2006
Donations received
$
42,781,128
$
7,053,713
Bank interest
$
1,828,900
$
554,490
$
77
INCOME
Sundry income TOTAL INCOME
$
44,610,028
$
7,608,280
Project grant expenditures
$
5,232,368
$
6,148,260
Project supervision fees
$
25,000
$
25,000
$
5,257,368
$
6,173,260
Staff related expenses
$
3,709,441
$
3,994,828
Office rental
$
199,741
$
177,367
Secretariat operational expenses
$
594,047
$
390,502
Professional, technical and legal fees
$
2,101,949
$
1,699,343
Travel and meeting expenses
$
1,318,577
$
953,540
Depreciation
$
100,568
$
72,938
Other miscellaneous
$
17,658
$
42,465
Bank charges
$
39,876
$
35,936
Exchange difference, net
$
42,151
$
29,054
$
8,124,008
$
7,395,973
TOTAL EXPENDITURE
$
13,381,376
$
13,569,233
Surplus of income over expenditure
$
31,228,652
$
(5,960,953)
Surplus, beginning of the year
$
954,246
$
6,915,199
SURPLUS, END YEAR *
$
32,182,898
$
954,246
EXPENDITURE Project related costs
General administration expenses
All figures in USD, figures for 2005/2006 as comparison Global Alliance for Improved Nutrition
* These funds are already committed to multi-year grant agreements for food fortification, the program on infant and young child nutrition, and project supervision contracts.
35
BALANCE SHEET AS AT 30 JUNE 2007 2006 / 2007
2005 / 2006
Cash at bank
$
41,230,415
$
10,580,590
Advances to UNDP and UNOPS
$
111,223
$
311,223
Other receivables
$
791,071
$
236,108
Prepaid expenses
$
147,553
$
62,626
Total current assets
$
42,280,262
$
11,190,547
Fixed assets, net
$
211,836
$
189,131
TOTAL ASSETS
$
42,492,098
$
11,379,678
Bank overdraft
$
1,349,818
$
47,859
Accounts payable
$
313,124
$
240,120
Other creditors
$
35,998
$
21,150
Accrued expenses
$
426,140
$
608,802
Grants payable
$
3,541,144
$
6,797,524
Project supervision fee
$
228,896
$
328,793
Total current liabilities
$
5,895,119
$
8,044,248
$
4,377,894
$
2,344,997
Foundation capital
$
36,187
$
36,187
Surplus
$
32,182,898
$
954,246
Total capital and reserves
$
32,219,085
$
990,433
TOTAL LIABILITIES
$
42,492,098
$
11,379,678
ASSETS CURRENT ASSETS
LIABILITIES CURRENT LIABILITIES
LONG TERM LIABILITIES Grants payable after one year CAPITAL AND RESERVES
36
Global Alliance for Improved Nutrition
All figures in USD, figures for 2005/2006 as comparison
REUTERS / Issei Kato
Global Alliance for Improved Nutrition
37
GAIN BOARD OF DIRECTORS Jay Naidoo, Chair
Kul Gautam *
Chairman, Development Bank of Southern Africa;
Deputy Executive Director, UNICEF, USA.
Chairman, J&J Group, South Africa. Olivier Kayser Jaime Sepulveda, Vice Chair
Vice President, Ashoka, UK.
Director, Integrated Health Solutions Development Program, Bill & Melinda Gates Foundation, USA.
Ernest Loevinsohn Director General, Health and Nutrition Directorate,
Chunming Chen
Canadian International Development Agency, Canada.
Senior Advisor, Chinese Center for Disease Control and Prevention; Director, International Life Science
Franck Riboud
Institute, China.
Président Directeur Général, Groupe Danone, Paris, France.
Frances Davidson Health Science Specialist, Office of Health and
Anji Reddy
Nutrition, Bureau for Global Programs, U.S. Agency
Executive Chairman, Dr Reddy’s Laboratories Ltd,
for International Development, USA.
India.
Christopher Elias
Paulus M. Verschuren
President, PATH, USA.
Senior Director, Partnership Development, Unilever, the Netherlands.
Pierre Henchoz Partner, Lombard Odier Darier Hentsch & Co,
Julian Schweitzer, Ex Officio
Switzerland.
Director of Health, Nutrition and Population, Human Development Network, World Bank, USA.
Richard Hurrell Professor, Institute of Food Science and Nutrition,
Marc Van Ameringen, Ex Officio
Swiss Federal Institute of Technology, Switzerland.
Executive Director, GAIN, Switzerland.
Catherine Le Galès-Camus * Assistant Director General, Noncommunicable
38
* Retired from their positions at the time of publication
Diseases and Mental Health, World Health
of this report; their replacements are expected to join the
Organization, Switzerland.
GAIN Board in 2007/2008.
Global Alliance for Improved Nutrition
GAIN MANAGEMENT Marc Van Ameringen
Edward Atkinson
Executive Director
Chief Financial Officer
Regina Moench-Pfanner
Craig Courtney
Senior Manager, Food Fortification
Manager, Investments and Partnerships
Dominic Schofield
Vanessa Ng
Manager, Infant & Young Child Nutrition
Legal Manager
as of 1 May 2008
Bérangère Magarinos
Rajan Sankar
Senior Manager, Investments and Partnerships
Senior Manager and Regional Representative, South Asia
Barbara Macdonald Senior Manager, Performance Measurement
Larry Umunna
and Research
Regional Representative, Africa
Elroy Bos
Bing Liu
Senior Manager, Communications and Advocacy
Regional Representative, South East Asia
Global Alliance for Improved Nutrition
39
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