Developing the Market for Natural Products Using a Sustainable Approach

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Developing the Market for Natural Products Using
a Sustainable Approach

• Agri-Business in Sustainable African Natural
  Plant Products (ASNAPP) and Partnership for Food
  and Industry Development (USAID PFID) for Natural
  Products
• J.E. Simon, E. Jefthas, D. Acquaye, N. Zimba, R.
  Govindasamy, R. Juliani, N. Hitimana, H.
  Moharram, M. Wang, J. Goliath, P. Langenhaven,
  D.Alipoe, K. Chin, C. Quansah, M. Nangeur, M.
  Diatta, J.Astante-Dartey

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What are Natural Products and Some Selected
Opportunities?

• Define natural plant products broadly to include
  plants, plant parts, and plant extracts that are
  used as
• Medicinal plants for health and nutrition
• Herbs and Spices
• Natural dyes, gums, resins
• Essential oils
• Natural personal care products
• Indigenous teas and botanicals
• The market for nutrition products grew by 26
  between 1997 and 2000 (from 109 billion to an
  estimated 138 billion)
• Domestic demand for natural personal care
  products, herbals/botanical remedies and other
  nutraceutical products is growing rapidly
• U.S. nutraceutical firms face supply problems
• U.S. has gt300 botanical medicinal products
  manufacturers (sales gt 11.8 billion)
• Require consistent availability quality of raw
  plant inputs

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Key Challenges Facing African Natural Products
Firms

• Africa is only a minor player in the global
  natural products market
• Limited value added occurring within region
• Exports tend to be bulk raw materials
• Local markets sell unprocessed/semi-processed
  plant materials
• Limited financial resources to support research
  and infrastructure
• Common property resource issues (threat of
  over-harvesting)
• Limited technical support is available to
  growers, collectors, post-harvest firms
• Limited expertise on appropriate germplasm and
  seed availability
• Inadequate and/or lack or processing equipment
• Resulting poor quality control and lack of
  product standardization
• Very limited knowledge of foreign market demand
• Few market/business contacts
• Unfamiliar trade turf
• The African natural products sector largely
  informal

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African Products and Market Entry

• A currently prevalent image of
• African Products
• Generally low quality.
• Poor packaging.
• Frequently a health hazard.
• African Producers
• Not sanitary
• Not quality assurance oriented
• Unconcerned with quality control and product
  consistency.
• Novelty in US and international markets.
• African countries have historically been looked
  at as excellent sources of raw material, but not
  of processed or manufactured products.
• Have not been able to graduate into second tier
  of development as many Asian countries.
• Cautiously welcomed as potential alternate
  sources that may help reduce costs from other
  regions (eg. Asia) even more.

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Mission

• To help create, develop and support successful
  African businesses in the natural products sector
  to provide income, employment and development,
  through environmentally and socially conscious
• sustainable production of
• healthful natural products
• for local, regional and
• overseas markets.
• ASNAPP core programs in
• Ghana, Rwanda, Senegal,
• South Africa, Zambia

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How is this Accomplished?

• PFID and ASANPP use a Market Driven Approach
• Engage botanical companies in source country
  and in USA Europe to work with African
  producers and processors
• Provide technical assistance GSP Good Agric.
  Practices
• Provide technical assistance in QA and QC from
  the development of product spec sheets, natural
  product testing and in using science as a driving
  market force.
• Provide technical assistance in organic
  production, processing and distillation
  technologies, product development and marketing
• Provide assistance in developing community
  owned businesses with low entry-cost projects,
  and then
• w/ value-adding technologies.

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Developing Sustainable Collection, Production
Trade in Natural Products is multidisciplinary
US-AID And in future other International Donors
Private Sector Processor, Buyers/Markets Locally
,Regionally/Internationally
Plant/Crop Champions
ASNAPP
African National, Regional Local government
Stakeholders Small Farmers Rural Communities
African and US Universities and Research Org.
NGOs, Environmental, Development
Organizations
Private African Companies (Local and Regionally)
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Figure 1. Market Driven Development market
activities development activities can be
thought of as two separate gears, which interact
at a point where one can push the other. At this
interface are market-related activities essential
to driving development (e.g. Application Work,
Development Partners, Regulatory Review,
Appropriate Techn./Market Channels, Sourcing
Partners, Education.
Hughes et al. 2002
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ASNAPPs Market Strategy

• Uses a Multi-Pronged- Market Approach to Natural
  Product Development
• Examines the market demand of the ASNAPP crops,
  and in the process identifies strategic business
  partners
• Identify lesser-known and experimental niche
  markets from medicinal, spices and other
  essential oil plants.
• Focus on multiple market channels for several
  types of value-added products from these plants
• Developing lines of Exclusively African plants
  African Spices and/or Indigenous African
  Teas
• Focus on core technologies and/or commodity
  clusters and then developing a matrix criteria to
  select best market fit for value-addition
  positioning (bulk, minimally processed, extracts,
  etc.).

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From the Bush To the final Processed Product
VA value addition NMVA non-material value
addition QAQuality assurance QCQuality
control.
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Growers/Collectors
Suppliers/Distillers
Madagascar PRONABIO
Producers/Exporters
Sample product has been rejected destroyed
Lab Testing for QA Evaluation
Rutgers/USA QA Confirmation, Random Auditing
PRONABIO
Product has been accepted- Logo is awarded
Label issued, products ready for export-shipped
with label and Mat Spec Sheet
Example A flow chart of Natural Products Label
procedure by which a botanical sample and forms
can move through the Quality Assurance system to
provide traceability and ensure standards of
quality for export quality. This model links
in-country labs into QC testing and
standardization
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Developing in Madagascar a New National Set of
Grades and Standards established by the Private
Sector (PRONABIO) in partnership with LDI, US
industry, Madagascar government and Rutgers
University
Exporter fills out 3 SOP forms Exporter
requests certification PRONABIO assigns batch
ID Exporter sends samples to lab Lab sends
PRONABIO results (SOP 4) If product meets QC
standards, PRONABIO provides Natiora certificate
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ASNAPP Sharing Technology Making Rare or
Unique Genetic Medicinals Available to Local
Communities and Appropriate Germplasm Available
From Wild Collection to Sustainable Collection
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HoneyBush (SA) From First Time
Cultivation, Processing, QC, to Regional and
Export Trade
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Rooibos Teas-Community-Owned Tea Court, South
Africa
Products now reaching local, regional, European
and USA market
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South African Teas Rooibos and Honeybush w/
Lippia multiflora from Ghana- together in Making
the Connections
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Antioxidant activity/serving (DPPH method) to
green tea.
ASNAPP Using GAP and QC Aroma, Color, Taste,
Health
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ASNAPP Provide Support for African Companies at
Trade Fairs

• Exhibit support
• Market introductions
• Market linkages
• Publicity/Education
• Seminars
• Build reputation/
• awareness African
• products businesses
• Networking
• Ensuring all products
• displayed are QCed and science-driven
• Developing lines of Exclusively African plant
  products, African Spices Indigenous African
  Teas crafts by women cooperatives

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Antioxidant anti-inflammatory activities of
kombo, Pycnanthus angolensis Warb.
(Myristicaceae), or African nutmeg Kombo butter,
kombo butter acid extract, and its constituents,
sargahydroquinoic acid, sargaquinoic acid
sargachromenol

•  

 

Sargaquinoic acid (KB-1)

Sargahydroquinoic acid (KB-3) Strongest major
constituent in the fat
Sargachromenol (KB-2)
ASNAPP Model Bringing Science into developing
new uses of natural products as a
commercialization catalyst.
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Medicinal and Aromatic Plant Improvement for
Human Health, New Foods, Flavors and Improved
Traits
Artemisia Annua Antimalarial WHO approved in ACT
Shea for food cosmetics
Fusarium tolarance
Breeding for disease resistance (e.g. Fusarium
tolerance
Sources of essential oils for food
and Fragrance/perfumery
Moringa Source of local affordable Vit. A,
Vit.E, Fe, Se, protein
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Lessons Learned Strategies for Success in NPPs

• Projects benefit from a multi-disciplinary team
• Successful projects associated with a strong
  crop champion
• Successful projects have strong and proactive
  technology transfer programs with appropriate
  delivery mechanisms
• Projects are enhanced with real science From
  correct chemotypes to strong QA and QC programs
• Successful projects are based upon sound and
  realistic economics and have a strong
  market-driven approach
• Successful projects address the development of
  appropriate production and processing systems
• Successful agricultural-based projects must have
  favorable financing mechanisms and options
  available
• Access to markets is key Timing and Ability to
  Shift with Market Shifts- and this has been
  challenging.
• High Quality Meeting International Requirements
• Communication, Trust, and follow-up critical from
  the outset

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Acknowledgements

• To Our Core Partners
• ASNAPP-South Africa-
• Univ. of Stellenbosch
• ASNAPP-Southern Africa-Zambia (Lusaka)
• ASNAPP-West Africa- Ghana (Accra)
• ASNAPP-Rwanda (Kigali) and World Relief
• ASNAPP-Senegal (Dakar) and the government of
  Senegal
• ASNAPP-USA NGO
• Chemonics Int. and PRONABIO-Madagascar (Tana)
• KNUST-Ghana
• Madagascar-CNARP, CNRE, IAA-ESSA, IMRA, LPN, LCM,
  PRONABIO and the government of Madagascar
• TechnoServe-Ghana
• ltwww.asnapp.orggt

• To Our Stakeholders, communities and crop
  champions in each of our projects and countries.
• To Howard Shapiro, Kodzo Gbeymeyo, Kerry
  Hughes, Barbara Wilde, Mde. Wade, Alison Cutlan,
  Jide Adelaji,
• Dan Brose, and all others that gave of their
  time to ASNAPP.
• To Honest Tea, Bioresources Inc., IFF, Frontier
  Natural Products Coop, NJ Nutraceuticals,
  PhytoRiker, Sheaba, CapeTown Natural Teas, Grass
  Roots Natural Products, MasterFoods, others.
• This work is being made possible by funding from
  the USAID and specifically thank Jerry Brown and
  Carol Wilson, USAID.
• Thank you!

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A series of Lipbalms and cosmetics based On
African natural products and carriers
ASNAPP Model Empowering others to
develop products higher in the value-addition
chain increase income opportunities, increase
health and nutrition using local indigenous
underexploited food plants