Insta Products (EPZ) Limited
“Ready to Use Therapeutic Food Expansion”
Insta operates as a provider of famine relief food.
Insta has a collaboration agreement with Valid Nutrition (VN) for the development of a ready to use therapeutic food (RUTF) business in Kenya. VN has a license from Nutriset to manufacture a peanut paste product for use by severely and acutely malnourished (SAM) persons. The product provides energy dense food for those who cannot eat enough normal food. SAMs are usually fed the product for six weeks before progressing to other food types. Nutriset holds a patent for the product, sold under the brand name Plumpy Nut, but was asked to provide licenses to encourage competition for the supply of the product. The demand for the product is increasing rapidly, with UNICEF indicating that it currently has unallocated orders for just under 5,000 tonnes per annum. The RUTF product is a mix of peanut paste, sugar, oil and milk powder fortified by 23 vitamins and minerals, and owing to it being a cold mix process, it must be manufactured under pharmaceutical type conditions. Insta has developed a factory that meets the requirements for the manufacturing process, and has excellent laboratory facilities for ensuring the product is within specification. Insta’s current installed RUTF capacity is approximately 6 metric tonnes per day, able to produce 1500 metric tonnes per annum. The capacity bottleneck in the facility is the packaging, which is done by a horizontal form, fill, seal machine. Insta estimates that annual demand could easily exceed 10,000 tonnes from Kenyan supply. To increase its capacity to 4,500 tonnes per annum, Insta needs to buy another packing machine, with twice the capacity of the original machine (dual headed).
The EA Trade Hub grant provides a contribution to the purchase of a dual headed, form fill seal machine. The grant would then increase the installed annual capacity of the RUTF factory from 1500 MT to 4500 MT per year and would enable humanitarian relief organizations to obtain RUTF at a lower price and with a shorter lead time.
Grant Timeline: October 5th, 2009 – December 31st, 2011
Total Amount: $242,432