Monday theme 5 1645 1700 room 10 muoki

1. FROM LAB TO LIFE:
MAKING STORABLE
ORANGE-FLESHED SWEETPOTATO
PURÉE A COMMERCIAL REALITY
Temesgen Bocher, Jan Low, Penina Muoki, Tawanda Muzhingi,
and Antonio Magnaghi
10th Triennial African Potato Conference
th th

2. Farmer sorting
out SP roots
Manual biscuits making Wheat flour Biscuits
Biscuits
packaged
New technology
The Golden Power Biscuit
Old technology
Packaging
targeting
high end
consumer
Packaging
targeting
lower end
consumer
Building on our value chain experience with
orange-fleshed sweetpotato purée in Rwanda
EIL
Support
Purée was prepared
& immediately used-
Waste to pigs

3. Hypothesis: Building a OFSP Purée factory will
widen adoption of OFSP purée as an ingredient
 Most bakers do not have space nor desire to deal with waste
 Most bakers are used to using flour; for adoption need equally convenient form
Advantages:
Root Supply to Factory
- Located in major
sweetpotato zone, with
commercially-oriented
sweetpotato farmers
- Local market for farmers
- Sweetpotato profitable
compared to alternative
crops
Make OFSP Purée at Factory
- Not transporting roots
long distances
- Can store fresh roots to
cover periods of scarcity
- In rural area; cost of
electricity subsidized
- Local job creation
Make Bread at Tusky’s Factory
- Receives purée
in convenient
vacuum-packed 5 kg
bags; can use just like
flour
- Bread can be made at
central bakery or in
decentralized bakeries
Sell Bread at Tusky’s Stores
- Bread has golden color
and higher vitamin A
content, making it a
specialized product that
may be able to attract a
premium price
- OFSP-based bread
should be cheaper to
produce that 100% wheat
flour bread

4. The partnership for developing the chain &
their roles
International Potato
Center (CIP)
Facilitation of Team
Food Safety
Laboratory analysis of
beta-carotene &
microbes
Purée Research
CIP
Farmer
Recruitment &
Vine & Root
Supply
Organi Limited
Factory for Purée
Production
Responded to
public call for
investment
Owner based in
the USA
Natural
Resources
Institute
(NRI)
Fresh Root
Storage and
Handling
Euro Ingredients Ltd.
Expertise in
appropriate
equipment &
methods for purée &
OFSP bread recipes
Tusky’s
Supermarkets
Bakeries
52 Stores
nationwide

5. Roots production a viable business

6. Farmer Obuya and
Her son observing
the weight of the
roots from thier field,
Kakuma village,
Rachonyo East,
Kenya

7. Profit margin analysis in Root production
Description
UNIT Western Kenya
OUTPUTS
Yield tons/ha 13.70
Price US$/ton 140.00
Total value of Production US$/ha 1,918.00
INPUTS Cost % total cost
Hired labor cultivation/ploughing US$/ha 105.91 8%
Hired labor harrowing US$/ha 79.57 6%
Hired labor ridging US$/ha 96.55 8%
Hired labor planting US$/ha 92.59 7%
Hired labor for weeding US$/ha 138.89 11%
Hired labor harvesting US$/ha 117.92 9%
Planting materials US$/ha 493.65 39%
Packaging US$/ha 50.00 4%
Transpiration US$/ha 88.31 7%
Cash outflow (total cost) =A US$/ha 1,263.38
Cash inflow (total revenue) =B US$/ha 1,918.00
Profit C=B-A US$/ha 654.54
Profit margin D=C/A*100 % 52%
Percentage gross margin=C/B*100 34%

8. Is sweetpotato root production
profitable
Scenario
Average(KES) Minimum(KES) Maximum(KES
)
Average profit if vines were purchased
(500KES/30kg bag of 1000 cuttings)
111,140(300,106) -3,854 961,133
Average profit margin if vines were
purchased
35%(39%) -21% 86%
Average profit if vines accessed for
free (own source)
123,140(310,334) 5,110 1,001,133
Average profit margin if vines
accessed for free (own source) *
68% (18%) 40% 90%

9. Puree production a viable business
to improve profit efficacy in puree
production system

10. Phase I& II- Getting the private sector interested
Innovation provided to the
company
o Tuskys agrees to open the
orange fleshed sweetpotato
line of products
o Competitive selection of puree
processor and setting up of
puree factory
Consumers acceptability
study done in collaboration
with Tuskys
Selection was based on a
company already
interested in OFSP
Commitment
from top
management
Guides on
equipment
needs

11. Phase III- January-June, 2016 …600kg of
roots/day
Innovation provided to the
company
Quantity root
used Kg/month
Net profit
margin
Per unit
production
cost(KES)
o Food safety training
o Food quality training
o Food handler
certificate
15,000 -13% 75

12. Phase 4- July-Aug, 2016
Innovation provided to the company Quantity
root used
Kg/month
Net
profit
margin
Per unit
production
cost(KES)
o Two phase SP washing (socking
and brushing)
o High fiber pureeing machine
(pureeing without peeling)
o High root-puree conversion rate
o High fiber, minerals and other
micronutrients in puree and bread
o Better waste management
10,530 18% 53

13. Phase 5- Embracing innovations for profits
(1400kgs per day)
Innovation provided to the
company
Quantity root
used Kg/month
Net profit
margin
Per unit
production
cost(KES)
o Implementing innovations in
phase IV
o Increasing resource use
efficiency.
o One more root boiler
35,000 42% 36

14. Scenario analysis
38%
45%
28%
33%
34%
48%
10%
4% 6%
7% 7% 6%
4% 4% 6%
4% 2% 2%
4% 4% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Current scenario Potential scenario* Ideal scenario**
Labor Roots House rent Packaging Transport Fuel Other expenses

15. Puree and root supply in the past one and half year
Year-Month Total roots used
(kg/month)
Cost(KES/month) Puree produced
(KGS/month)
Puree Sale value
(KES/Month)
15-Jun 5,980 83,720 3,017 184,037
15-Jul 5,514 77,196 2,397 146,217
15-Aug 7,313 102,382 4,464 272,304
15-Sep 6,113 85,582 3,705 226,005
15-Oct 8,472 118,608 3,675 224,175
15-Nov 6,855 95,970 3,330 203,130
15-Dec 7,255 101,570 3,405 207,705
16-Jan 11,235 157,290 5,860 196,725
16-Feb 15,379 215,306 4,815 312,975
16-Mar 19,084 267,176 5,085 330,525
16-Apr 39,493 552,902 8,950 581,750
16-May 29,522 413,308 3,970 258,050
16-Jun 23,106 323,484 3,130 203,450
16-Jul 10,530 147,420 5,330 346,450
16-Aug 15,172 212,408 8,265 537,225
16-Sep 6,981 97,734 2,560 166,400

16. Thank You