Moringa Oleifera Farms and Industries Limited Presentation by
Moringa Oleifera Farms and Industries Limited Presentation by Joseph Brenyah August 23, 2014 Better Nutrition, Better Health
The Scar Face of Malnutrition v In the developing world: • 230 million (39%) children under five are chronically malnourished • 54% of deaths among children under 5 are linked to malnutrition v In Ghana: • Only 76, 500 children under five out of 2. 55 million have normal weight. • 612, 000 are underweight, 51, 000 are chronically malnourished, 178, 500 have acute malnutrition and 1, 887, 000 are anaemic. (GDHS, 2005) • 1, 100, 000 or 43% of pregnant mothers received Vitamin A supplementation within two months after delivery and 1, 100, 000 or 47% of mothers are anaemic. (GDHS, 2005) • Protein Energy Malnutrition (PEM) is the single greatest cause of child mortality (54%) • Over 19 million middle and low income earners are in danger of malnutrition. … appropriate and affordable solution required. . . Better Nutrition, Better Health
Imagine Ghana Without Malnutrition …this is MOFIL’s message of hope • The Armah Family has used moringa products for the past five years through our outreaches and is free from malnutrition. • Little Tom is plagued with acute malnutrition like the other 178, 500 children. - A quick and cheap solution exists. • Farmer Andoh’s vegetable farm is destroyed by excessive and persistent use of chemical fertilizers. - One of the 300, 00 farmers who are enjoying a new lease with our new plant growth hormones from moringa. …MOFIL’s Green Journey has begun and Malnutrition will be no more … Better Nutrition, Better Health
MOFIL Green Journey’s Goal • To develop, produce and market Moringa Oleifera nutritional supplements and fortified foods to fight malnutrition and ensure intake of balanced diets for optimal growth with a vision of Ghana Without Malnutrition and ultimately the World Without Malnutrition. v The Green Journey moves on through: • Our MOFF® brand of Moringa Nutritional Supplements • Our MOFF® brand of Moringa Fortified Foods • Our Free Agricultural Consultancy • Our Powerful Ghana MAP Nationwide Media Campaign Better Nutrition, Better Health
The Green Journey … ensures adequate economic returns with enormous social benefits. Social Benefits § Practical and proven ability of moringa to wipe out malnutrition quickly and cheaper than many interventions. § Solution to the 230 million children in the developing world suffering from malnutrition. § Relief to 19 million Ghanaian low and middle income earners riddled with malnutrition. § Reduction of childhood blindness and mortalities. § 300% increased income for over 300, 000 farmers Better Nutrition, Better Health
Target Market Data USA/Europe $5. 50 B Ghana $4. 50 B Ghana Africa USA/Europe Africa $1. 00 B Better Nutrition, Better Health Total Addressable Market
Target Market Size $5. 50 B $2. 00 B $2. 50 B Low Earners B 2 B Institutional Export $1. 00 B 5% Better Nutrition, Better Health 200, 000 Early Adopters in 2008 who were mainly pregnant women, children and the elderly.
Better Nutrition, Better Health Market Analysis v. Target Market • Low/middle income earners – Prone to malnutrition. • Export and local orders – Business-to-Business v. General Needs • Children – Adequate nutrition for optimal growth • Pregnant women – Proper nutrition in pregnancy/lactation • Elderly – Nutrient supplementation to help manage infirmities • Youth – Nutritional supplementation for active life. v Unique Needs -Appropriate and cheap but effective nutritional supplementation to combat severe malnutrition. v Our Positioning: Dominant and convenient with expected acceptance through a strong brand awareness campaign.
Environmental Enablers & Obstacles Enablers • Moringa grows well in many soils and produces well if irrigated in severe drought. • Production from organic sources will increase the high nutritional and health benefits of our products. Obstacles • Excessive drought decreases production of leaves but can be overcome by irrigation. • Weak brand awareness and high taste of citizenry for imported products, • Availability of cheap competing chemical and synthetic based products and other highly differentiated products. Better Nutrition, Better Health
Current Model Production B 2 B, Institutional Marketing Direct channel Indirect channel Loan + Free Training Loan repayment Farmers Distributors MOFIL Consumers Production input – Leaves, Seeds, Flowers Loan Repayment Loans + Grants Bank and other Financing Institutions Better Nutrition, Better Health Advertising & PR
The Next Step to Scale B 2 B Production Direct channel Farmers Loans + Grants Loan + Free Training Loan + Grants Loan Repayment Certification Indirect channel Production input – Leaves, Seeds, Flowers Advertising & PR MOFIL Farmers Associations Loan repayment Marketing Bank and other Financing Institutions Loan repayment Indirect channel Ghana MAP Distributors Indirect channel Direct channel Institutional Better Nutrition, Better Health NGOs Consumers
Forecast and Financial Projections Beginning Cash Earned Income: 2015 2016 $ 600 $ 41, 180 Product Sales $200, 000 Services $100, 000 Total Earned Income $300, 000 Expenses: 2017 2019 $ $ 31, 160 $ 669, 860 1, 419, 545 2018 Costs of Product Sold $150, 000 $ 275, 000 Payroll Related $ 27, 720 $ 85, 800 Other $ 31, 000 $ 32, 300 $ 50, 500 Total Expenses $208, 720 $210, 020 $ 411, 300 Net Income $ 91, 280 $ 89, 980 $ 138, 700 Cash used for Purchases $250, 700 Cash from Grants/Investments/Int $200, 000 Ending Cash $ 41, 180 $ 2, 891, 748 $ $200, 000 $ 300, 000 1, 500, 000 $ 2, 664, 000 $ 2, 743, 200 $ $100, 000 $ 250, 000 300, 000 $ 360, 000 $ 432, 000 $ $300, 000 $ 550, 000 1, 800, 000 $ 3, 024, 000 $ 3, 175, 200 Investment Activity 2020 $350, 000 $ 500, 000 $ 1, 000 $ 600, 000 $ 280, 715 $ 169, 600 $ 1, 050, 315 $ 749, 685 $ 1, 008, 000 $ 1, 058, 400 $ 308, 787 $ 339, 665 $ 235, 010 $ 243, 901 $ 1, 551, 797 $ 1, 641, 966 $ 1, 472, 203 $ 1, 533, 234 $ 250, 000 $ 250, 000 $ 750, 000 $ $250, 000 $ 250, 000 $ $ 31, 160 $ 669, 860 1, 419, 545 $ 2, 891, 748 $ 3, 924, 982
Competitive Analysis Key Products Features Strengths Weaknesses MOFIL MOFF® supplement and fortified foods Cheap, well processed, nutritious and organic Powerful bioavailable nutrients; Raw materials available locally Poor branding/ marketing; No economies of scale Imported natural and organic food supplements Highly differentiated and expensive Well established Very expensive distribution channels and elitist Cheap and abundant Ineffective against Imported chemical Cheap and synthetic mostly synthetic malnutrition supplements Local Moringa Products Better Nutrition, Better Health Low production but Slightly expensive, poor high patronage production Poor quality, adulteration and expensive
Critical Success Factors • Professionalism with high quality and motivated staff to ensure operational efficiency and adequate financial returns on investment. • Strong corporate and product branding to communicate the outstanding value of our product and service delivery to our customers. • Innovation in the development of new Moringa products and services for sustained customers’ satisfaction and interest in healthy lifestyles. Better Nutrition, Better Health
Management Team Joseph Brenyah – Chief Executive Officer – HND (Ind. Chem. ), Dip. Project Mgt, Dip French, AA (Theology) Robert Morris - 1 st Vice President – BA, MBA Ogbonna Ujor - 2 nd Vice President - HND (Mech Eng. ), Cert. (Int. Mgt)), Dip (Plant Eng. ) Welbeck Nani – Accountant/Internal Auditor – CA Ghana (Chartered Accountant) Kwadwo Ofosu – Factory Manager – HND Accountancy, Dip. Business Studies Cynthia Ofori-Attah – Quality Control Officer – B. Pharm. , Post Grad. (Sales & Marketing) Better Nutrition, Better Health Johnson Kusi- Marketing Research Officer – B. Com …Experienced people with many years of service in various sectors …
Our Esteemed Partners • Christian Volunteer Service International – Developmental NGO and Shareholder • Joe-Bren Enterprises – Moringa Farmer and Shareholder • Various women groups – Moringa Farmer and Shareholder • Moringa Oleifera Farmers Association – Moringa grassroots Farmers’ group and Shareholder • African Women Initiatives for Development and Empowerment – Women developmental NGO and Shareholder • Exxon. Mobil Foundation – Grant Donor • United Bank for Africa – Our bankers Better Nutrition, Better Health
MOFIL – FINANCING PLAN Better Nutrition, Better Health 600, 000 $1. 0 m 500, 000 $1. 0 m 400, 000 $0. 25 m 350, 000 Farmers supported AMOUNT NEEDED 300, 000 $0. 25 m $1. 50 m 2017 Grants/Loan 2018 Grants 2019 Grants 2020 Loans/Investment 2021 Loans/Investment
Metrics Dashboard 2017 2018 2019 2020 2021 Farmers Supported 300, 000 350, 000 400, 000 500, 000 600, 000 Market Penetration 5% 10% 15% 20% 25% Annual Sales Growth 5% 5% 15% 20% 25% 7. 8% 0. 0% % Increase 300% in income of farmers 5% Annual increase % of Grants 14% to Earned Income 8. 3% Better Nutrition, Better Health
Metrics Dashboard (2) • Subsidiary companies to be set up to handle specialty sectors: food fortification, organic fertiliser, plant growth hormones, water purification, biofuels etc. after 2017/18. Social rating index: • 30 -40% reduction in malnourished children under five years old in 5 years. • 20% reduction in malnourished pregnant mothers in 5 years. • 10 -20% reduction in malnourished low income earners in 5 years. • Fortification of all staple cereals and oils in 5 -10 years. Better Nutrition, Better Health
The Green Journey is on …Malnutrition must be eradicated… Join us to make it a reality THANK YOU Moringa Oleifera Farms and Industries Limited Accra, Ghana Better Nutrition, Better Health
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