Introduction November 2020
What is DNA
How DNA works
Dairy Nourishes Africa (DNA) is a 15-20 year public-private partnership leveraging the collective strength of the Global Dairy Platform and a wide array of industry, community, and governmental stakeholders to drive the accelerated transformation of African dairy industries
DNA takes a market-led, systems approach, where farmer-allied dairy processors are the linchpin for accelerating transformation, working to drive optimal outcomes from farms to consumers and across the operating environment
Why dairy
Why DNA
Where will DNA start
Who is supporting DNA
Dairy is an effective way to enhance the nutrition of rural and urban populations, while supporting livelihoods across the value chain - especially as a regular income source for millions of smallholder farmers
There is a pressing need to transform food systems to be more resilient, inclusive, and environmentally sustainable. DNA will work across the value chain to increase farmer incomes, enhance processor capabilities, and increase the accessibility of nutritious, affordable, high-quality dairy products.
DNA will start in Tanzania with expansion into East African countries where there is potential for catalytic impact
Founded by the Global Dairy Platform—providing critical technical dairy capabilities, Land O’Lakes Venture37— driving inclusive dairy development and Bain & Company—accelerating the ability of critical dairy enterprises to grow and increase their impact.
Need
A significant change is needed to enable Africa to feed and employ its young, fast growing population
There is a need to feed and employ Africa’s growing population… African Population Growth (Billion) 2.5
2.5 billion
people in Africa by 2050
$1 trillion
food market by 2030
Age >24
2.0
60%
of Africa’s population is under the age of 25
33%
rate stunting for population under age 5 in Sub-Saharan Africa vs 21% globally
1.5
Age 0-24
1.0 0.5 0.0 2000
2050
21%
Source: UN Population Division; Nairametrics, World Bank, African Development Bank
of Sub-Saharan Africa’s population is undernourished
…agriculture can help meet this need
but significant change is required Agriculture is the largest segment of the economy in many Sub-Saharan African countries, accounting for: 30-70% of employment
20-40% of GDP
Food imports have increased 4X over the past 20 years to ~$35B a year due to insufficient productivity African countries capture less than half of the full economic value of the agricultural products they produce
In many countries, over 90% of milk consumed is not processed
Opportunity
Investment in the dairy sector can…
…improve nutrition and food security
by providing access to affordable, safe, and nutritious dairy products and developing more resilient food systems
…spur economic growth
through enhanced industrialization of dairy industries by growing dairy enterprises, increasing value-add from farm to fork and creating jobs
…generate societal benefits
15-20 year
by improving farmer incomes, reducing poverty, and improving gender and youth equality and inclusivity
…ensure environmental sustainability
by increasing efficiency and reducing waste, while preserving biodiversity and implementing climate-smart practices
leveraging the collective strength of the Global Dairy Platform and local stakeholders to drive the accelerated transformation of African dairy industries
DNA Strategic Framework, Principles, and Ambition Aligned with Government Priorities and Policy Drive Enterprises to full potential
Grow Consumer Demand
Increase Farmer Farmer Production Production Increase
Katie: can we please show arrows as staggering (see reference page)
Deliver behavior change strategies and consumption and nutrition campaigns
Equip farmers to enhance on-farm productivity and economics
Incubate innovative distribution models
Accelerate and incubate dairy enterprise growth by optimizing operations for scale
Implement and scale business models that increase access to appropriate inputs, services and technologies
Support school milk programs
Implement and scale sustainable business models for inclusive, farmer-allied operations
Strengthen aggregation models that link commercially-oriented farmers to markets
Strengthen Operating Environment Increase food safety and quality
DNA Principles
Increase access to capital
Demand-led
Environmentally sustainable
Improve industry data and accessibility
Agile and adaptive
Gender and youth inclusive
Transform African dairy industries by creating vibrant ecosystems of farmer-allied and environmentally sustainable enterprises that improve nutrition, enhance livelihoods, and stimulate economic growth.
Enhance industry advocacy
Data-driven DNA Supports the Sustainable Development Goals
Key elements of our
Strong emphasis on growing demand
Anchored by FarmerAllied enterprises
Activities ensure an increase in consumer demand for safe, nutritious, and affordable dairy products to stimulate increased activity in the entire dairy chain, generating a pull effect from consumer to farmer
DNA works with, and through, businesses that are committed to strengthening the capacity of farmers and treating them fairly, understanding this is key to a successful business model and long-term prosperity in the communities they operate in and source from
Securing the right support
Taking a climate smart approach
Driving gender and youth inclusivity
Working in a datadriven, agile manner
DNA will not only focus on securing grants, but also the required debt, equity and in-kind support that is critical to helping enterprises grow
DNA drives sustainability throughout the value chain – advancing climate smart farm management, efficiency of enterprises, and use of environmentally friendly solutions to reach consumers, thereby reducing dairy’s footprint and building more resilient local food systems
DNA focuses on increasing the employment and empowerment of women and youth across the dairy value chain – as critical actors in the production of dairy products and target consumers
DNA will rapidly test, learn from and scale proven approaches and quickly stop approaches that do not work, with a strong focus on data-driven decision making
DNA participants will receive advice and expertise from leading global companies including members of the Global Dairy Platform and Bain & Company
DNA priority countries
DNA started in Tanzania and will expand into East African countries where there is potential for catalytic impact
East Africa is an ideal focus for DNA Ethiopia
High production potential with a large cattle herd of ~120M
Kenya Rwanda Tanzania
Starting in
Favorable climatic conditions for dairy production
High developmental need which is recognized by local stakeholders and has prompted numerous development projects
Demand
60M people; ~32% stunting for under 5s 47L of milk consumed per person per year 25% of WHO recommendation of 200L per year
Processing
760K liters / day processing capacity 25% average capacity utilization Most large processors are unprofitable
Production
28.8M cattle - 2nd largest herd in East Africa 50% below potential milk production yields
Early results 4 months
In , DNA’s engagement with farmerallied processors hit hard by COVID-19 has driven
tangible results across the full dairy value chain
Pilot activities in Northern Tanzania have already generated proof points for further investment in Dairy Nourishes Africa
Piloted extension model to support ~200
smallholder farmers
last-mile distribution channel, Built
expanding consumer access to nutritious products
Stabilized and accelerated growth of enterprise, on pace to exceed 2019 revenue by ~30%
Launched industry-wide COVID response and recovery trainings for
54 processors
Increased access to capital, cutting interest rate on enterprise’s debt by 50%
DNA Impact
Dairy Nourishes Africa has the potential to drive systemic and sustainable change in East Africa starting in Tanzania
$15M for DNA Tanzania over the next 5 years allows us to… Reach 2.5M consumers in support of a 50% increase in annual dairy intake through behavior change strategies and consumption & nutrition campaigns
Feed 10K children daily to reduce stunting and wasting by setting up school feeding programs Accelerate & Incubate 20 leading dairy enterprises and create 3000 jobs through the promotion of innovative, sustainable and farmer-allied business models
Support 20K commercially-oriented farmers towards a target of doubling income by improving production techniques & technologies and strengthening market linkages
Long term aspiration DNA will be a catalyst for change in Tanzania aiming to achieve the following outcomes: Nutritional
Societal
200L dairy consumption per person, per year (WHO recommendation)
3 million jobs in dairy (at least 50% for women and youth)
>40% reduction in stunting among young children in collaboration with other nutrition initiatives
80% of dairy farmers above the World Bank’s ‘Upper Middle Income Class Poverty Line’
Economic >5% contribution of the dairy sector to national GDP
Note: 4 East African countries includes Tanzania, Kenya, Uganda and Ethiopia. Rwanda to be considered at a later stage once anchor processors have been established
Environmental
Net-zero emissions by enterprise partners from the dairy sector
Phasing Establishing the replicable model
DNA phasing will enable sustainable, long-term acceleration of dairy industry transformation in Africa
Set up program to develop the replicable model in target geographies. Engage necessary local partners and government officials who, in time, will take over DNA activities
Scaling and broadening reach
Ensure sustainable transformation
Scale down direct involvement and fully sustainable handover to local partners and governments to secure long-term impact, while ensuring they are sufficiently supported during the transition
Further scale activities and broaden reach to a larger demand-base, more farmers, new enterprises, and new geographies, leveraging replicable models and learnings. Local partners and governments engaged to influence direction of DNA
Global Dairy Platform GDP is a collaborative effort to lead global dairy transformation The Global Dairy Platform’s membership of dairy companies, associations, scientific bodies and other partners have been collaborating for over a decade to increase the understanding and consumption of dairy as an integral part of a nutrient-rich diet, and advance the sector’s role in responsible food production
Members include
30
100+
10+
150B+
Commercial members and 60 non-profit members
Years of collaborative efforts
Countries with member operations
($) Cumulative revenues from commercial members
You can join as a funder, providing the financial support needed to progress DNA
Join us in driving sector transformation Let’s combine our knowledge, expertise, and resources to be part of the solution
You can join as a resource provider contributing your organization’s experience, expertise, network, talent, and passion
Jay Waldvogel
Member Board of Directors – Global Dairy Platform DNA@GlobalDairyPlatform.com For more information, please visit www.GlobalDairyPlatform.com/DNA