In a bid to drive compliance in the fortification of processed food products in the country, Technoserve Nigeria has trained major food processors on Holistic Margin Management (HMM).
According to the Eviano Useh, treasurer, Partners in Food Solutions and the training facilitator, HMM is about removing the non-value components from a customer’s perspective and reinvesting those savings in value creating opportunities.
He identified waste elimination and capturing value as the key enablers for HMM, noting that food fortification is a value- creating opportunity that processors should not ignore.
“With the adoption of HMM principles processors will be able to mitigate and minimise the impact of the cost of fortification,” said Useh, who is also the global finance director – global procurement, General Mills.
“Fortification by itself should not automatically translate to higher cost for the consumer or the processors,” he explained.
“The HMM principles are imbedded in the culture of major global food processors and their investments in fortification has not incurred additional cost because of effective management of HMM and this should also help the Nigerian processors,” said Useh.
He stressed that HMM has helped major global processors fortify, revamp and enhance their product line without incurring any additional cost in the process.
He called on the processors present at the training to adopt the HMM principles to grow their bottom line while fully complying with the fortification of food products with essential nutrients.
Despite the pledge by major food processors in the country to fortify their products with essential micro nutrients, most food products found in the Nigerian market have less than the specified quantity of nutritional requirements, or none.
Experts attribute the non-compliance to fortification by food processors to the high cost of premixes – micro nutrients needed for fornication which according to them translates to higher production costs.
Speaking also at the training, Larry Umunna, director, Technoserve Nigeria, said the training was organised to help increase the fortification of food based products in the country while helping processors address issues fuelling non-compliance.
“We provide market-based solutions to help increase the fortifying of food based products in Nigeria and across Africa. We are hoping that learning of the HMM tools can help improve compliance to food fortification,” Umunna said.
“If the processors deal with the issues affecting their bottom line, this will allow them commit more to food fortification. We want to ensure that every processor runs a competitive business,” he said.
He urged the processors to ensure that they did the right thing in the area of fortification and communicate regularly to their consumers what they are doing.
Fortified processed food products have enormous benefits in a child development, experts say.
Nino Ozara, manufacturing director, Honey Well Flour Mills Plc, who was one of the participants of the training, stated that what they have learnt from the training was significant to their business.
“The training I have received here will help us look at areas of minimising waste and creating more value for our manufacturing business and find out how we invest those cost- saving back into the system as well as neutralise the added cost of fortification so that it becomes a sustainable programme,” Ozara said.
“Premixes cost a lot because they are imported and the added issues of logistics, ports congestions and demurrages that are associated with it.
Josephine Okojie
