Kickstarting Circular Agribusiness Models in Nigeria and Indonesia

NFP’s mission is to contribute to urgent food system changes in low- and middle-income countries through the leverage of Dutch knowledge and expertise. As part of this mission we are currently working together with Bopinc and MVO Nederland on the development of innovative circular agribusiness models. Business models that focus on the valorisation of current waste and byproduct streams in Nigeria and Indonesia. Both countries face a significant and growing stream of organic waste, with Indonesia being named as second biggest ‘food waster’ in the world. Both countries also represent large domestic markets and the opportunity to build on previous and ongoing circular initiatives supported by the Dutch government.

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NFP sees the involvement of the private sector - and particularly SMEs - as one of the key levers in the implementation of circular approaches in food systems. As an example, 80% of food consumed across the African continent is sourced from private sector value chains. Therefore the initiative aspires to convene 2-3 clusters of various private sector organisations, complemented with relevant stakeholders, around particular circular agribusiness models. Focusing on those models that combine business opportunities with potential environmental impact and application that are beneficial to the food system. And those in which Dutch knowledge and expertise have an added value to accelerate innovation and current developments. NFP, Bopinc and MVO Nederland will support these clusters in their development of a common agenda, action plan for the implementation of these models and identification of necessary financing.

In July and August 2021, we conducted a desk research to identify the waste streams that present the most opportunities for valorisation using criteria such as overall sector size, waste volume and its contribution to local food security. Based on these waste streams we have now identified several concept business models that include turning cashew apples into human consumption food products, brewer’s spent grain into fertilizer and animal feed, cassava peels into briquettes, cocoa by-products into ingredients for food and drinks and rice husks into non-food materials, such as paper and construction panels. Over the next couple of weeks we will select 2-3 of the business models based on their potential impact, desirability, feasibility, viability and suitability. The selected business models will be presented during two events (one for Nigeria and one for Indonesia) with relevant businesses and other relevant stakeholders.

Interested in more information about this initiative, or do you have ambitions to conduct a similar initiative? If so, please reach out to Ibrahim Palaz - see contact details below.