DNA Overview

Page 1

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


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