RonipamThe Food Company

www.ronipam.com

Promoting Innovation & Trade in Horticulture

KIGALI, Rwanda 25TH– 27TH November 2015 pitch

Value Addition – Best Practices

Presented by: Rodney J.N. Miselo

Ronipam is a private company limited by shares, incorporated on

7th March 2012. Founded by Rodney Miselo and Priscilla Mtopa,

located in Lusaka, Zambia.

Introductio

n

The innovation is aimed at addressing the wastage of fruits and

vegetables by processing them into valued added products, working

with smallholder farmers to improve rural income.

Brands & Products

‘adding’ to raw ingredients and processing them in a

way that increases economic return.

Value

addition

Reinvention of product for economic gain.

Subsistence agriculture

Agribusiness

Changing trends in

agribusiness

Commodity driven market

Product driven market

Homogeneous group of crops Crop

diversification

Olden day concepts

Source of energy and nutrients, Focus was on balanced

diet.

Food concepts

Modern day concepts

Provide heath benefits • Weight control • No chemical

additives • Fresh • Long shelf life • Safe food •

Require minimal preparation • Ready-to-eat form • Trans

fats •Food allergens

Eat to live Eat for good

looking and well-being

Commodity vs. Product

Why value added products?

Commodities are…

Identical from farm to farm

Subject to price

fluctuations

Production - oriented

Value-added products

are…

Unique

Less price sensitive

Consumer -oriented

In general, food processing is applied for one or more of the

following reasons: preservation, extending the harvest in a safe

and stable form; safety; quality; availability; convenience;

innovation; health and wellness; and sustainability

Primary

Processing

Cleaning

Grading

Conditioning

Packaging

Storage

No physical transformation

of commodity

Secondary

Processing

Paddy to Rice

Wheat to Flour

Oilseed to Oil

Pulses to Dal

Dal to Besan

Physical transformation

but product is not ready

to eat

Tertiary

Processing

Cooking Rice

Baking

RTE Foods

Pickles

Ketchups

RTE Products, convenient.

Food Processing

Provides

Largest

manufacturing

sector

Off season

Food

availability

Enhanced

Marketability

Added

functionalityNutritional

improvement

Forward and

Backward

linkages Increased shelf

life and storage

quality

Preserve

Health

compounds

Industry Growth Drivers -

DemandIncreased spending

on healthy foods

Increased family and

working women

Demand for functional

foods

Organized retail and

private label penetration

Changing demographics

Rise in disposable

income

Increasing

urbanization

Lifestyle and

AspirationsFood Processing

Demand Drivers

Huge wastage across the supply chain leads to lower level

of processing and hence low value addition…

Field Losses

(Pest, Diseases, Rodents..Etc.)

Pre-Processing

(e.g. inefficient harvesting, drying,

milling)Transport

(e.g. Spillage, Leakage)

Storage

(e.g. Technical deficiencies)

Processing & Packaging

(e.g. Excessive peeling, washing)

Marketing

(e.g. Spoilage, rotting in stores)

Wastage by Consumers

(e.g. Overeating, food wastage)

Field

Form

Consumer

Producer

Developing Countries –

Relatively high losses in

the initial parts of the

value chain.

Developed Countries –

High losses at a later

stage in the food chain

High domestic demand and supportive policy significant opportunities across the food

processing value chain.

Farm inputs FarmingMarketing/

AggregatorProcessi

ng

Logistic

s

(Food)

Retail

Service

s

Consumer

Food Safety

Management Systems

Opportunities

Product

Design

Quality

Control

Transport

Services/

Infrastructure

Financial &

Business

Services

Market

Intelligence

Food Parks/

Market

Integrated

cold chain

Backward and

Forward

Integration

Key

Opportuniti

es

B2B Sales

Quality

Control

Labs

Joint Research

Facilities

Customized

Farm

Equipment

Training

Facilities

Distributi

onMarketing

Recommendation

Process-able variety

of crops

Skilled human

resource

Infrastructure

strengthening

Technology

Up gradation

Market Access to

farmers

Support Backward

Integration

A Dynamic Food

Process

• Adding value is the process of changing or transforming a

product from its original state to a more valuable state that

is preferred in the market place.

Concluding remarks

• Greater opportunities for adding value to raw commodities

because of increased consumer demands .

• Producers involved with adding value can fetch a larger share

of the food dollar.

• Adding value to farm products becomes vital for rural growth by

enhancing farm income and providing employment in processing

businesses

Concluding remarks

• It is not enough merely to increase and conserve the supply of

raw food.

• Growing population and rapid urbanization are expected to

continue.

Thank You

Rodney Miselo | (+260) 973 402 602 | rodney@ronipam.com

www.ronipam.com

Any Questions?