sumatra school soy milk and java tempe production project

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SUMATRA SCHOOL SOY MILK Sheraton Surabaya Hotel, 2-3 August 2010 3RD SOY SYMPOSIUM Health, Social-Cultural and Market Perspectives

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Page 1: Sumatra School Soy Milk and Java Tempe Production Project

SUMATRA SCHOOL SOY MILK

Sheraton Surabaya Hotel, 2-3 August 2010

3RD SOY SYMPOSIUM Health, Social-Cultural and Market Perspectives

Page 2: Sumatra School Soy Milk and Java Tempe Production Project

Goal: Healthy elementary school children in 5 provinces, 4 on Sumatra and one on the island of Java

Health Objectives:1. Reduce the percentage of children with anemia

in target schools2. Reduce the percentage of children suffering

from Helminth Infections in target schools

Goal & Objectives GOAL AND OBJECTIVE

Page 3: Sumatra School Soy Milk and Java Tempe Production Project

Where we work5 Provinces:

• West Sumatra• Lampung• Bengkulu • Riau • Yogyakarta

Beneficiaries:

More than 136,000 direct beneficiaries (students and teachers) in nearly 1,000 elementary schools/madrasah)

WHERE WE WORK?

Page 4: Sumatra School Soy Milk and Java Tempe Production Project

Beneficiaries/Population• The number of the school children participating in the

SHSP program has risen from

– 170,000 at the beginning of the program in 2005

– 245,000 school children in 2006/2007

– 295,440 school children in 2007/08

• Increases a product of

increased support and

interest on the part

of local district governments

BENEFICIARIES

Page 5: Sumatra School Soy Milk and Java Tempe Production Project

Major Program Activities•Distribute FSM (Fortified Soy Milk) to elementary school children

•Provide de worming treatment to students in target schools

•Promote key behaviors to students and communities

•Implement prioritized Water and Sanitation projects in the target schools

•Implement potable water pilot projects

•Create sustainability through Local Government participation

PROGRAM ACTIVITIES

Page 6: Sumatra School Soy Milk and Java Tempe Production Project

SHSP Strategy for Health

Short Term Provide Iron Fortified

Soy Milk Provide de – worming

medicines Build Water and

Sanitation Infrastructure

Long Term Behavior Change Potable water

PROGRAM STRATEGY

Page 7: Sumatra School Soy Milk and Java Tempe Production Project

FSM Program

• 200 ml of Susu Kedelai is distributed to school children in target schools three times a week when school is in session.

• The distribution of Susu Kedelai has had measurable impact reducing anemia rates, particularly among children in lower primary school.

FSM PROGRAM

Page 8: Sumatra School Soy Milk and Java Tempe Production Project

FSM Efficacy Studies

• Three Recent Studies

Establish the Efficacy

of FSM for reducing Anemia– Bengkulu Study (Poltekes): Children treated with

FSM 40% less likely to be anemic– Sijunjung Endline: Children treated are 20-25%

less likely to be anemic– Tulang Bawang Study: Children treated are 20-

35% less likely to be anemic

FSM EFFICACY STUDY

Page 9: Sumatra School Soy Milk and Java Tempe Production Project

Significantly Lowered Risk of Anemia

• Among 9-10 year olds, the risk of being anemic if the child participates in the FSM program is 35% less.

• The risk of being anemic among 7-8 year olds receiving fortified soy milk is 29% less in comparison to children not receiving the milk

SIGNIFICANTLY LOWERED RISK OF ANEMIA

Page 10: Sumatra School Soy Milk and Java Tempe Production Project

Value Initiative Program (VIP)

JAVA TEMPE PRODUCTION PROJECT

Sheraton Surabaya Hotel, 2-3 August 2010

3RD SOY SYMPOSIUM Health, Social-Cultural and Market Perspectives

Page 11: Sumatra School Soy Milk and Java Tempe Production Project

Sector Tempe

Focus Area Greater Jakarta (Jakarta, Bekasi, Depok, Tangerang and Bogor)

Enterprise Tempe producers including renter producers; “lopper/middlemen and wet market vendors; and street vendors

Goal Increase income, improve working conditions, and diminish environmental impact of production in Greater Jakarta.

Purpose Increase efficiency and product quality

Implementation Partners

Tofu &Tempe Cooperative, Forum Tempe, Bank Syariah Mandiri, America Soybean Association, Business Service Providers, Local Government, Metal Workshop Association, Vendor Association

BackgroundBackground

Page 12: Sumatra School Soy Milk and Java Tempe Production Project

Why Tempe?

•Tempe a staple food for approximately 40 million poor people

•Most tempe and vendors live in urban areas and are informal workers.

•The tempe and vendors offers employment opportunities for individuals with limited formal education. It also offers an additional source of income for their extended families (remittances).

Page 13: Sumatra School Soy Milk and Java Tempe Production Project

Owner Renter

Factory, raw material, housing for workers

Rent space and all equipment from owners

Fresh tempe;

40-150 kg

Soybean

/day

Fresh tempe;

20-50 kg

Soybean

/day

$ 17/day $ 8-9/day

1 workers;

@ $ 2/day

No workers

Asset/Provision

Product-Capacity

Income

Tempe Producers

Worker

Enterprises in the sector

Motorbike, kiosk.

Only sell fresh tempe and take margin

$ 8-10/day

No workers

Lopper (middlemen) / Wet market vendors

Page 14: Sumatra School Soy Milk and Java Tempe Production Project

“Out door

eaters”

Consumer associations

Processing Food Preparation

& Snack Food Vendor

Consumption

Input Supply Informal and

Formal Marketing

Soybean wholesalers

Soybean Agents

Producer Group

Large/lead producers

Renter producers

Small producers

Take home consu-mers

Medium sized producers

Renter producers

Wholesaler/Agents

Food stalls

Wet Market / Cart Vendors

Association of soybean, tofu/tempe producers, and vendors; cooperative

Ministry of Environment, Ministry of Trade and Industry, Governments, Banks/ MFI, Research Institute

Food and hygiene inspection Body (BPOM)

Mini-Mart

Hospital

Catering

School

Fo

rmal

M

arke

t

Analyzing the Sector: Value Chain Map

10%

50%

20%

20%

80%10%

10%

Page 15: Sumatra School Soy Milk and Java Tempe Production Project

Value Chain Analysis

Inp

ut s

upp

lyP

roce

ssin

g

Inp

ut s

up

p ly

Pro

cess

ing

Foo

d &

sna

ck

stre

et v

endo

r

Info

rmal

&

form

al

mar

ketin

g

Long term availability of traditional fuel

Used cooking oil & other toxic additives effect

human health

informal markets is the biggest market

Inefficient production

Cleaner production can reduce cost

Opportunity

Lim

ited

shel

f life

Lack

of a

cces

s to

fina

nce

Constraints Consumed by large poor people

Bad

env

ironm

enta

l effe

ct d

ue to

sm

oke

caus

ed fi

rew

ood

Co

nsu

mp

tion

Only use 100% of fresh cooking oil will lead to increase sales

Page 16: Sumatra School Soy Milk and Java Tempe Production Project

• Improve production process

- Improve productivity and hygienic process

- Access to finance

• Promotion of cleaner healthy products– Branding and marketing

Strategy & Interventions

Page 17: Sumatra School Soy Milk and Java Tempe Production Project

Improve Production Process

How?- Establish pilot factory in East Jakarta

• Demonstration tofu factory that provides a working example to other producers

1. Micro Banking, executed by Syariah Mandiri Bank

2. KUR

- Access to Finance

Page 18: Sumatra School Soy Milk and Java Tempe Production Project

Improve Production in Tempe

Business Models - Pilot

Equipment supplier

TempeProducers

Equipment Information

IDR

Renters/Vendors

Info on good quality product

MFI Tempe

Producers

Access to finance

Interest

Renters/Vendors

info on good quality product

#1 Business Model

#2 Business Model

Page 19: Sumatra School Soy Milk and Java Tempe Production Project

Progress So Far ?

Improve Production in Tempe

• 3 clusters of tempe producers (20-50 tempe producers/cluster) in Bekasi and Jakarta want to apply micro credit from Syariah Mandiri Bank

Average loan : USD $1,100 – 2,200/producerInterest rate : 20 %/yearPayback period : 2 yearsCollateral : motor bike, house, landLoan purpose : renovate factory/replacement equipment &

soybean proqurement

• Demonstration tempe factory in East Jakarta shows better efficiency in process (fuel, smoke reduction, etc)

• Tempe producers want to change from firewood into gas and use the stainless drum for boiling

Page 20: Sumatra School Soy Milk and Java Tempe Production Project

Improve Branding and Marketing

HOW ?

Project facilitates:- Pilot: 1 models : branding and labelling for tempe

and tofu product- Support for PIRT certificate- Promoting hygienic and environmentall friendly

product

Page 21: Sumatra School Soy Milk and Java Tempe Production Project

Improve Branding and Marketing

Business Model - Pilot

Producers

Info on better

product qualityVendors

#1 Business Model

Primary

Cooperative Producers

Info on branding and

marketing

Vendors

Info on better product quality

#2 Business Model

(2) (40)

(1) (100) (2000)

Page 22: Sumatra School Soy Milk and Java Tempe Production Project

• How a project engages with social networks

• Women’s role in production

• How to convince the Government to provide better services from small and micro businesses?

• How does branding work for consumer awareness in products that matter for the poor?

• How will financing work for small informal producers (tempe)?

• Certification for the products may not work?

Some Key Learning Areas

Page 23: Sumatra School Soy Milk and Java Tempe Production Project

THANK YOU

TERIMA KASIH