Transcript Project Novella A pro-profit public-private partnership in a framework of environmental and social benefits Harrie Hendrickx Nairobi October 25th 2006

Project Novella
A pro-profit public-private partnership
in a framework of
environmental and social benefits
Harrie Hendrickx
Nairobi
October 25th 2006
Quantity:
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Current best volume estimates for AB oil from
existing trees (t/a):
2006
2007
2008
2009
Tanzania
Ghana
Nigeria
120
50
50
150
65
150
175
90
250
200
125
350
Total
220
365
515
675
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Other countries, like Liberia and Cameroon, may
add to this.
Potential long-term development of AB production
Oil production in Africa
tones of AB oil
100000
90000
With planting AB trees
80000
Without planting trees
70000
60000
50000
40000
30000
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20000
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10000
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0
2005
2010
2015
In 2015:
40,000 t oil
Will require a
US$ 25m
investment
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Grant position
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Excel file
Market development for Allanblackia
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Unilever to guarantee for the next few years (2012)
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Other buyers can come in the partnership
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Should invest in growth of the partnership
Should support our development agenda
Should support business principles / adherence to the law
Should support the sustainability guidelines
Market should begin to function from 2012 latest
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Price fixed at initial high level, quality is food grade
Volume is open end
Aim to deliver the volume and reduce SC costs
Support to cultivation to grow volume
How to ensure a smooth transition ?
Local usage will not be profitable for several years
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Exception possible for niche applications (foods / ointments)
Risks
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In the supply chain
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In the growth of the production
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Produce enough new trees
Plant them successfully
Production is satisfactory
Pests and diseases
Internal threats
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Product quality (safety included)
Success of final products
Competition
Keep the partnership together
External threats
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Malaysia / Brazil can do better
Other crops will become more productive
Risk reduction
For farmers
wild harvesting:
little risk / cash payment
for planting trees
Annual compensation for land use
Annual compensation for labour
For nurserries
Compensation for investments
Compensation for production /
guaranteed price
Plans for Thursday and Friday
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Thursday morning:
Unilever managers meet
 Rest to go on nursery practice , continue with
discussions, or other activities
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Thursday afternoon:
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Friday morning
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Country teams planning
Country teams planning
Friday evening
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Final discussions and farewell (time for
nursery work)
Thank you
(Additional) Benefits and Risks
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Benefits:
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Demonstrates commitment to the development of the poorest
in Africa (Millenium development goals).
Demonstrates commitment to protecting and supporting the
environment and sustainable developments.
Creates options to link business partners with these
developments.
Enables partners to develop a wider scope
Brings a close partnership with high profile institutions like
UNDP, Oxfam, IUCN, DfID, USAID, GTZ and SNV.
Risks:
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Financial
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Loss of investment, liability for own activities, liability for
activities of partners,...
Reputational
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Connection to child labour, poverty, environmental degradation,
low payment to farmers, exclusion of women, spread of
HIV/Aids, set up of plantations, move AB out of Africa, use
African resources for our profit growth, use of this project to
cover up other activities, .....
Outlook on near future
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Unilever to obtain Novel Foods clearance and perform
factory trials.
Production level of about 370 t oil in 2007 and growing
From 2Q2007 Allanblackia used in production of spreads,
to start with Becel / Bertolli.
Planting of Allanblackia trees starts in 2006 (about 20.000)
and will increase to more than 100.000 in 2007.
Project structure in the countries will develop in separate
companies
Make the SC project profitable to all actors quickly.
More publications on the project
Stimulate the partnership to take over more
responsibilities. Relative to total project size Unilever
involvement reduces.