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Fortification
What leading companies stand to gain from adopting
fortification
As several company leaders have noted, the short term benefit to
companies ready to innovate with fortification is that they would have a
differentiated product, and thus have a competitive advantage in positioning
their product as the market continues to grow. As discussed in more detail
below, fortification presents a clear leadership and growth opportunity for
African food companies:
- Fortification can be used to consolidate and extend market
leadership in staple food processing and marketing: African-owned and
operated companies are currently the leaders in the production of processed
staple foods consumed in Africa. Fortification provides one means to remain
dominant in a competitive industry that is also attractive to international
corporations. By taking the lead in launching fortified products, African food
companies will maintain their leadership in the market for processed food,
rather than having to catch up when international corporations inevitably start
introducing these products into African markets. In addition, starting with
fortifying now will enable African companies to meet the more stringent quality
require- ments of supermarkets, thus ensuring themselves a foothold in this
rapidly growing sector.
- Fortification represents a business development
opportunity: The introduction and expansion of capacity to implement food
fortification provides companies with an opportunity to upgrade production
processing facilities in their plants, which could lead to overall improvement
in productivity. Likewise, when compa- nies embark on upgrading production
processes, they could enhance the benefits of the upgrade by adding the
capacity to fortify. Thus fortification can be a significant component of a
company’s business development strategy.
- Fortification links a company’s core business
activities and its corporate social responsibility (CSR) obligations.
Leading companies worldwide are seeking sound CSR opportunities. Companies
that have started marketing fortified food to communities that were largely
excluded from the market have shown that poor people can be as discerning about
brands and value-added as richer consumers. Taking the lead in marketing
fortified food to poor people is considered a good business oppor- tunity and a
sign of respect for people whose needs are often over looked18. Several African
food company leaders have expressed a strong belief that fortifica- tion is
‘the right thing to do’ and in countries where a specific company has
a strong presence and market share, fortification is already being done
voluntarily14 (for example, RAB Processors, maize flour in Malawi; Namib
Milling, maize and wheat flour in Swaziland; MIDEMA, wheat flour in the DRC;
and the Grands Moulins, wheat flour in Guinea).
- Fortification can help to ensure more equitable integration
into world food markets. By drawing attention to the need to harmonize
stand- ards across the region, and helping to generate in- novative means to
strengthen regulatory capacity, the effort to fortify will facilitate
participation in the global market for a range of products. Already,
development partners have taken steps to address regulatory ca- pacity
constraints. Recently, representatives of 49 countries, with the support of FAO
and WHO, agreed on a five-year food safety plan, which would include attention
to regulations, basic food legislation and consumer information, under the
auspices of a pan- African coordinating body.
- Investment in fortification is an investment in the
company’s future, and in the future of the continent’s people.
While investing in a socially-beneficial technology, companies are paying
attention to their longer term market development and sustainability. By
establi- shing fortification as normal business practice, and thus contributing
directly to the health, vitality and prosperity of their consumer base,
companies would be assuring a growing and sustainable market for their
products.
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