  {"id":8977,"date":"2016-11-03T20:18:55","date_gmt":"2016-11-04T00:18:55","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/edesia-the-goddess-of-food-is-intervening-to-fight-irreversible-damage-in-africa\/"},"modified":"2016-11-03T20:18:55","modified_gmt":"2016-11-04T00:18:55","slug":"edesia-the-goddess-of-food-is-intervening-to-fight-irreversible-damage-in-africa","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/edesia-the-goddess-of-food-is-intervening-to-fight-irreversible-damage-in-africa\/","title":{"rendered":"Edesia: The Goddess of Food is Intervening to Fight Irreversible Damage in Africa"},"content":{"rendered":"<p><strong><em>Africa, a rapidly changing landscape\u2026<\/em><\/strong><\/p>\n<p>The Intergovernmental Panel on Climate Change states that Africa will be the most vulnerable region to warming temperatures globally. The increasingly unpredictable and erratic nature of weather systems have placed an immense burden on food security and have emerged as a major impediment to agriculture development on the continent. Projections of crop yield indicate a reduction of up to 50%, with crop revenue forecast to fall as much as 90%, by the year 2100. Simply put, climate change will lead to less food availability and lower income for the millions of people in Africa that rely on farming for their livelihood.<sup>1<\/sup><\/p>\n<p><strong><em>Intervention from the Gods\u2026<\/em><\/strong><\/p>\n<p>In 2005, Navyn Salem, a Rhode Island mother of four, watched an Anderson Cooper segment on a revolutionary food called Plumpy\u2019Nut that was saving the lives of severely malnourished children in Niger. This segment hit home for Navyn after witnessing the same problems amongst children living in her father\u2019s country Tanzania. By 2009 Salem had founded Edesia, a non-for-profit named after the Greek Goddess of Food, that became the first producer and exporter of Plumpy\u2019Nut in the United States.<sup>2<\/sup><\/p>\n<p>Plumpy\u2019Nut is a peanut-butter like nutritional supplement packed with micronutrients, which provide the essential vitamins and minerals needed by children for physical growth. Receiving these micronutrients allow a child faced with malnutrition, and on the brink of death, to recover to stable health within a seven-week timeframe.<sup>3<\/sup> Aside from fatality, another catastrophic issue of children not receiving micronutrients is their inability to develop mental capacity, which has an irreversible effect.<sup>2<\/sup> Because Plumpy\u2019Nut is a ready- to-use therapeutic food (RUTF), it doesn\u2019t require fresh water or refrigeration, which are unavailable in Africa\u2019s developing regions.<sup>4<\/sup> This has allowed Edesia to deliver its RUTFs to over 4 million malnourished children since the organization\u2019s inception in 2009.<sup>5<\/sup><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture3-3.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8947 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture3-3.png\" alt=\"picture3\" width=\"657\" height=\"637\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture3-3.png 657w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture3-3-300x291.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Picture3-3-600x582.png 600w\" sizes=\"auto, (max-width: 657px) 100vw, 657px\" \/><\/a><\/p>\n<p style=\"text-align: left\">Climate change has already hit development in rural Africa extremely hard. Variations in temperature and precipitation are causing droughts and heatwaves, which have led to an increase in pests and lower soil fertility levels.<sup>7<\/sup> The impact of this was exemplified by a 30% reduction in crop yields and famines in 2010, 2011, and 2016.<sup>8<\/sup> The conditions have contributed to the number of undernourished people in Africa climbing from 182 million to 232 million over the past ten years, with the expectation to increase in the years to come.<sup>9<\/sup> This leaves Edesia with an insurmountable challenge, how does it use its limited resources to get Plumpy\u2019Nut into the hands of as many children as possible?<\/p>\n<p><strong><em>Increased efficiency is a life or death matter\u2026<\/em><\/strong><\/p>\n<p>During my interview with Navyn Salem, she stated that the organization\u2019s main constraint is its annual operating budget, which has grown from $2 million in 2009 to its current level of $30 million.<sup>10<\/sup> Despite this increase, Edesia\u2019s annual production levels are consistently restricted by its access to funding. Therefore, Salem looks to free up capital for the generation of incremental volume by increasing efficiencies in the production process, as every box shipped represents the potential to save a human life. Edesia has been able to mitigate some of its operational challenges by taking the following strategic actions:<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9118 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table.jpg\" alt=\"final-table\" width=\"931\" height=\"523\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table.jpg 931w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table-768x431.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/final-table-600x337.jpg 600w\" sizes=\"auto, (max-width: 931px) 100vw, 931px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong><em>Continuing the fight\u2026<\/em><\/strong><\/p>\n<p>I recommend that Edesia take the following actions to further its goal of increasing production volume and maximizing efficiency:<\/p>\n<ul>\n<li><em>Gain Access to Additional Funding: <\/em>Based on the Edesia\u2019s recent success in receiving donations linked to consumer brand sales, the organization could amplify this effort by partnering with large US Food producers such as General Mills and Mondelez. These types of companies would benefit from positive public sentiment generated by making a social impact through the organization<\/li>\n<\/ul>\n<ul>\n<li><em>Increase Expertise in Commodity Markets: <\/em>In 2015, Edesia\u2019s largest annual operating expense of ~$15 million was related to the purchase of commodities (primarily ingredients and packaging materials).<sup>11<\/sup> The organization states that it could generate significant cost savings if it became more sophisticated in making these purchases. Therefore, I suggest it looks to hire a procurement officer with experience in the food industry. This action has the potential to increase gross margins, allowing additional capital to be reinvested in production. I also believe that the incremental salary expense would be more than offset by realized cost savings<\/li>\n<\/ul>\n<ul>\n<li><em>Vertical Integration: <\/em>Another opportunity for Edesia to lower production costs is for the purchase of an in-house peanut roasting machine. Currently ~$2m per year is spent on a third-party that roasts peanuts so they can be used in the production of Plumpy\u2019Nut.<sup>11<\/sup> Moving this process in-house, will allow Edesia to receive direct peanut shipments from suppliers and reduce expenses paid for ancillary services<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong><em>With the humanitarian crisis in Africa expected to intensify, what else can be done by Edesia to strengthen its position in the fight against malnutrition?<\/em><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>(799 words)<\/p>\n<p><strong>Sources<\/strong><br \/>\n<em>1. Food and Agricultural Organization of the United Nations, \u201cClimate Change in Africa: The Threat to Africa\u201d ftp:\/\/ftp.fao.org\/docrep\/fao\/012\/ak915e\/ak915e00.pdf<\/em><br \/>\n<em> 2. CCTV America, \u201cNavyn Salem: Peanuts Saving Lives\u201d<\/em><br \/>\n<em> http:\/\/www.cctv-america.com\/2016\/09\/17\/navyn-salem-peanuts-saving-lives<\/em><br \/>\n<em> 3. Edesia Nutrition, \u201cMalnutrition Facts\u201d<\/em><br \/>\n<em> www.edesianutrition.org\/\/malnutrition-faq\/<\/em><br \/>\n<em> 4. This Bar Saves Lives, \u201cWhat We Give\u201d<\/em><br \/>\n<em> http:\/\/www.thisbarsaveslives.com\/pages\/our-cause<\/em><br \/>\n<em> 5. Edesia Nutrition, \u201cIn times of crisis, Edesia&#8217;s ready-to-use foods have a life-changing impact\u201d<\/em><br \/>\n<em> www.edesianutrition.org\/\/the-impact\/<\/em><br \/>\n<em> 6. Image Credits: Edesia Nutrition<\/em><br \/>\n<em> www.edesianutrition.org\/\/malnutrition-faq\/<\/em><br \/>\n<em> 7. 性视界 Business School, \u201cIndigo Agriculture Case Study\u201d<\/em><br \/>\n<em> 8. 性视界 Business School, \u201cClimate Change is a Threat \u2013 and an Opportunity \u2013 for the Private Sector\u201d<\/em><br \/>\n<em> 9. Food and Agricultural Organization of the United Nations, \u201cState of Food Insecurity in the World\u201d<\/em><br \/>\n<em> http:\/\/www.fao.org\/3\/a-i4646e.pdf<\/em><br \/>\n<em> 10. Forbes, \u201cTechnology&#8217;s Role in Ending Child Hunger: Edesia and SAP Business One\u201d<\/em><br \/>\n<em> http:\/\/www.forbes.com\/sites\/sap\/2016\/05\/04\/technologys-role-in-ending-child-hunger-edesia-and-sap-business-one\/#7165d1f34e62<\/em><br \/>\n<em> 11.\u00a0Interview with Navyn Salem (11\/2\/16)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Climate change in Africa has led to widespread malnutrition across the continent. Edesia, a Rhode Island based non-for-profit with limited resources, looks to maximize its production of nutritional supplements in order to help alleviate the impact of this humanitarian crisis.<\/p>\n","protected":false},"author":1830,"featured_media":9137,"comment_status":"open","ping_status":"closed","template":"","categories":[89,1218,1356,244],"class_list":["post-8977","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-africa","category-climate-change","category-drought","category-non-profit"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Edesia: The Goddess of Food is Intervening to Fight Irreversible Damage in Africa - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/edesia-the-goddess-of-food-is-intervening-to-fight-irreversible-damage-in-africa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Edesia: The Goddess of Food is Intervening to Fight Irreversible Damage in Africa - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Climate change in Africa has led to widespread malnutrition across the continent. 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