Download Investment Proposal: Production and Distribution of Processed

Investment Proposal:
Production and Distribution of
Processed Insect Proteins (PIP)
as Poultry Feed in Tanzania,
based on German technology
Your contact person:
Lothar Jakab
Zeilweg 44
60439 Frankfurt am Main
Telephone: +49 (69) 95632935
Fax: +49 (69) 95632934
Email: [email protected]
Frankfurt, 05.11.2016
Value proposition:
Provide affordable animal feed for small-holder farmers in Tanzania and
beyond, building on indigenous natural resources, applying German technology, and avoiding further over-fishing of Lake Victoria and the Indian
Ocean
Local operator/
implementing partner:
Agriculture Resource Supplies Ltd., established 2008:
 Audited annual accounts available for all years
 Operating as a 360° hub for >1,000 small-holder poultry farmers
 Additionally established 50 women groups in August 2016
 Providing hatching services, day old chicks (DOC), vaccination
services, trainings
 Providing access to markets for
small-holder farmers by off-taking
and selling their egg production
 Poultry feed is currently the bottleneck due to the scarcity of fish meal
and its increased prices
Location:
Kibaha, Coastal Region of Tanzania
(40 km West of Dar es Salaam along main Morogoro road)
Business proposition:
Local production of processed insect proteins
as a substitute for fish meal, having a high
nutritional value and a similar profile of amino
acids
Technology:
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Steinbeis Consulting for Impact Investing
Zeilweg 44, 60439 Frankfurt am Main, Germany
Fon: +49 (69) 95632935 | Fax: +49 (69) 9563934
Black Soldier Fly (Hermetia illucens) is an indigenous species in East
Africa and can be collected from the surrounding areas
Not a vector for any pathogens or infectious diseases
Larvae grow fast within several weeks and accumulate the whole
energy for the entire life-cycle of the insect
Life span of the adult fly is 12 days
In a controlled and protected environment the mating, egg laying
and hatching process yields a 90% ratio which turn into larvae
After the “baby station”, the larvae grow on a substrate in a bioreactor, converting organic waste into proteins
www.steinbeis-impact.com
A Company of the Steinbeis Network
www.steinbeis.de
Managing Director:
Lothar Jakab
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10% of the larvae fulfil the natural cycle by turning into pupae, the
rest can be processed into animal feed
However, chicken like them most when they are fresh!
Mating
Egg-Laying
Search for Mating Partner
Hatching
Egg-Harvesting
Metamorphosis
Egg-Hatching
Pupae
Young Larvae Growth
Pre-Pupae
Feed formulation
Larvae Growth
Larvae processing
Figure: Hermetia illucens contained production cycle
Target market/
off-takers:
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Approx. 1,000 existing small-holder chicken farmers
Animal feed processors
Retail
Sourcing and inputs:
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Local abattoir in Kibaha
Local vegetable markets
Up-scaling/
Market potential:
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In Kibaha: expand the customer base of returning customers
In Coastal Region and Dar es Salaam: use existing DOC sales points
Beyond Coastal Region: build franchise system
Technology and knowhow provider:
Hermetia Deutschland GmbH & Co. KG (HDKG) is a 2006 spin-off from
Katz Biotech AG, the leading German company in terms of biological pest
control and ecotoxicological tests with insects and mites. HDKG was the
first European company to achieve a stable and continuous rearing of
Hermetia illucens. The major achievement was the development of a
bioreactor as the central rearing system. On their production site close to
Berlin six bioreactors are operational, Current production capacity is 100
tons of dried larvae per year. The company is owned by the Katz brothers, with Dr. Peter Katz being one of the most recognized entomologists
in Germany and beyond.
Hermetia Deutschland KG is conducting several similar projects around
the world.
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Other stakeholders:
 Commission of Science and Technology of Tanzania (COSTECH)
 Sokoine University of Agriculture
 Tanzania Veterinary Laboratory Agency (TVLA)
 National Environment Management Council of Tanzania (NEMC)
 Tanzania Food and Drugs Authority (TFDA)
 Tanzania Livestock Research Institute (TaLiRI)
The permit to import samples and establish local production was granted
by the Ministry of Livestock and Fisheries Development. COSTECH was
assigned by the Ministry to monitor the development of the project and
report on it.
The Food and Agriculture Organisation (FAO) strongly promotes insect
proteins as a viable source of proteins for the growing global human
population (see http://www.fao.org/docrep/018/i3253e/i3253e.pdf)
Social and Environmental impacts:
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Establish a natural production cycle based on local resources
Overcoming of the scarcity of animal feed from environmentally
doubtful sources (over-fishing of sardines)
Provide an affordable animal feed to small-holder poultry farmers
Contribute to increased income and therefore improved livelihoods of
those small-holder farmers
Avoid transports of sardines and fish meal over long distances
Use local resources as substrate for the larvae, like abbattoir waste
or vegetable leftovers from markets instead of disposing to landfill
Create a local scientific and research community which will develop
the technology further and create genuine knowledge in East Africa
Involvement of local craftsmen and suppliers in manufacturing the
required equipment, e.g. bioreactors
Timeline:
From funding to getting operational: six months
Initial investment requirement:
Approx. 500,000 USD, including first two bioreactors (thereafter approx.
20,000 Euros per each locally manufactured bioreactor)
Purpose of investment:
Building of the local plant in Tanzania with ARSL
Type of investment:
Equity, mezzanine, debt (flexible)
Exit strategy:
Depends on type of investment and upscaling strategy
Steinbeis role:
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Matchmaking between ARSL and Hermetia Deutschland
Facilitation of the entire technology transfer process
Coordinating the local stakeholder collaboration and political engagement, based on partnership with COSTECH
Attention: We would be pleased to forward a full information memorandum upon signature of a confidentiality agreement. All opinions, forecasts
and estimates contained in this investment summary have been submitted according to the best of our knowledge and belief, and represent the
state of knowledge that existed at the time this document was compiled. We do not assume any guarantees that future developments and results
will correspond with these opinions, forecasts and estimates. Information contained herein may be changed by Steinbeis Consulting for Impact
Investing at any time and without notice. In addition, no liabilities can be assumed for the correctness and completeness of information from
secondary sources or the company.
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