Esteval - Senegal

Meet the Entrepreneurs

ESTEVAL

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Agribusiness Entrepreneurship

CONTACT INFORMATION

esteval

Dakar, Sénégal

Using locally produced fruit to market high-quality juices

+221 77 640 44 94

valndiaye6@yahoo.???

Valérie Quenum Ndiaye, Co-Founder, Dakar, Sénégal

THE BUSINESS Esteval is a private company that was created in 2008 and is owned by its two cofounders, a nutritionist and an agronomist.

The company specializes in the transformation of Senegalese fruits into juices, nectars, and syrups to offer a healthy, locally produced alternative in a market dominated by imports.

The company started on a small scale, with Mrs. Quenum Ndiaye producing and packing the juice herself in her kitchen. Slowly but surely, the company evolved, first by selling to family and friends, and as initial sales generated revenue, she gradually started investing in equipment and staff.

Since then, Esteval has expanded and diversified, and now offers over 10 juice flavors including ginger, tamarind, baobab, lemon, and grapefruit, all of which are sourced from within Senegal. They are pasteurized to ensure optimal conservation, but do not include any chemical additives. Additionally, Esteval also produces syrups, which are packed in plastic or glass bottles and do not require cold storage. Esteval now owns a production facility where the fruits are processed and packed, as well as a cold chamber to store all fruits and juices. The business also owns a sales truck for distribution and commercialization.

Esteval has made a relevant impact in the community since it was launched. All of the fruit processed by Esteval is sourced from over 150 small local farms around the country, ensuring them a much needed regular customer for their produce and contributing to a raised income level. Once the fruit has been sourced, it is then stored and processed on Esteval’s premises and put on the market. After five years of being in business, the company has created ten full-time jobs and calls regularly upon temporary labor for the production facility in high season. Of the ten full-time jobs, eight are for production and two are for sales. The juices, nectars, and syrups are sold through three main channels: wholesalers, supermarket groups, and small retailers in Dakar and five neighboring districts.

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ECONOMIC IMPACT 2

founding partners

10 full time employees Regular seasonal workers

Supplies from over 150 farmers in Senegal

Fourfold increase of turnover between 2009 and 2013

THE MARKET OPPORTUNITY Senegal enjoys a comparative advantage in the horticulture sector because of its favorable climatic and water conditions.

Locally produced fruits include ginger, tamarind, baobab, lemon, watermelon, guava, mango, and papaya, among others. However, only about five percent of the fruits and vegetables grown in Senegal are processed, while the majority of them are exported as raw materials. Many small fruit producers in Senegal are struggling to make ends meet in order to produce locally sourced quality fruit juices at competitive prices.

The fruit juice market has grown steadily over the past few years and the penetration of juices has increased in the country stores. The variety of juices is also changing, with more flavors and different packaging available to customers. However, the overwhelming majority of fruit juices currently sold are produced abroad and imported into the country as only a few local companies in the country can really compete with imported goods.

Esteval currently realizes 70% of its sales in the supermarkets and shops of the Dakar region, and the remaining 30% in five other districts around Dakar. The demand for these products has so far been overwhelming. Turnover has quadrupled since the company was established, which indicates a high potential for growth if adequate support is found. Investments in the company reached USD100,000 and were financed primarily by personal investments, as external financing could not be secured. According to Mrs. Quenum Ndiaye, with the necessary support, the business could see tremendous growth by first expanding sales to other regions in Senegal, and afterwards internationally.

THE CHALLENGES ACCESS TO CUSTOMERS

70% of sales are currently realized in the supermarkets and small shops of the Dakar region, and the remaining 30% in five other districts around Dakar. There is a huge market potential for juices produced

by Esteval outside of this region, but due to the company’s lack of market knowledge and adequate resources, prospecting is currently limited to key areas.

ACCESS TO FINANCE

Since its founding, Esteval has continually faced financial issues; as the company was unable to secure a commercial bank loan in the beginning, virtually all investments came from personal funds. Further financial support would enable the company to invest in better packaging, higher performing machinery, increase the sales force, and as a result, drastically increase sales. However, to this day, loans from commercial banks have not been a viable option, due to their high interest rates and the company’s lack of collateral.

ACCESS TO NETWORKS

Mrs. Quenum is convinced that if she had access to other processors of local agriculture products, they could team up and reduce costs by co-sourcing raw materials and packaging. Additionally, she could attend trade fairs at a reasonable cost, increasing awareness about products and in turn, expand the target market by increasing outreach and distribution in stores and supermarkets across the country.

POTENTIAL BENEFITS OF AN AIC In Mrs. Quenum’s opinion, establishing an AIC in Dakar would have great added value not only for her, but for many local agro-processing companies, as most face the same challenges. The main reason behind this is the lack of local support currently available, as well as the complexity faced by entrepreneurs on a daily basis, even when their idea could potentially have high social impact and great success in the market.

MORE SPECIFICALLY, MRS. QUENUM BELIEVES AN AIC WOULD BE MOST BENEFICIAL IN TERMS OF TECHNICAL ASSISTANCE AND MARKETING IN THE FIRST YEARS OF THE COMPANY TO: Obtain technical expertise from knowledgeable professionals to improve product quality and packaging Receive assistance for implementing a market study and increase domestic sales Have specific support notably in terms of financial management advice for a more professional business management Create a stronger network throughout the juice industry and other similar businesses in order to align operation activities. Thanks to economies of scale, this measure could gain cost advantages in packaging, warehousing, transport, and purchasing Have a better understanding of the financial options currently available in Senegal

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