food waste beneficiation

Are we missing what we are holding?

LOOK AROUND YOURSELF

Strictly private and confidential February 2013

Agenda

Strictly private and confidential

Who is Calico Capital? Food Waste Facts Sad realities of Situation Case Study Alternative Opportunity Discussion


ADVISORY Calico Capital is a corporate advisor that prides itself in oering a unique,

personal service to a wide range of clients across a broad spectrum of industries.

Calico ventures beyond tradi

Calico Capitals Investment Strategy is to originate investment opportunities in the South African Agricultural Sector which would not only generate respectable returns on investment but will also act as catalysts for further investment and expansion of an industry segment within the sector.


Agriculture contributes just less that 4% to the South African GDP.

However, when one considers the full agricultural value chain through from the soil to the shelf where agricultural goods, products and services are consumed and /or used then its true contribution raises to closer that 14 15% which makes the agricultural sector a critical contributor to the South African economy.

Is the core activity of the rural poor who are mainly African, but more importantly are the core group of persons faced by severe poverty, food insecurity, joblessness and disease. Over the past decade, the agriculture sector which contributes significantly and disproportionately to employment since the cost of creating a job opportunity is so much lower for the sector compared to mining, manufacturing, services and most other industries, has unfortunately shed well over 500,000 jobs. The sector has seen a decline in the number of commercial farmers from over 45,000 to under 38,000 in less than 10 years with dramatic drops in such sectors such as dairy, sugar cane farming and in the cotton value chain.

Calicos Investment Strategy


FOOD WASTE FACTS


Food Production in SA CIRCA 28,8 million tonnes/annum Food Waste CIRCA 9,04 million tonnes/annum Estimated Waste 31,4% of Food Production Wasted per person 177kg per Capita Total Value R61,5billion / annum

Value Chain food distribution R19.6 billion processing and packaging R15.6 billion agricultural production R12.5 billion Food Group fruit and vegetables R22.4 billion meat R17.3 billion fish and seafood R7.8 billion

FOOD WASTE FACTS

Equivalent to 2.1% of South Africas GDP


Cost of food waste in each stage of the value chain for each commodity group (2012 R billions)

FOOD WASTE FACTS


Contribution of each Commodity Group

FOOD WASTE FACTS


Contribution through the Value Chain

FOOD WASTE FACTS


CHILDREN without Breakfast 19% (2,66million meals) CHILDREN without Lunch 51% (7,14million meals)

Number of Pupils at School 14 million

Food Waste CIRCA 9,04m tonnes / annum Total No of Meals Required 9,8million meals/day

Total Meals per annum 3,58 billion

Food Waste per meal 2,53 kgs

SAD REALITIES

Food production uses 70% of the world's fresh water, with the South African figure standing at around 65% of fresh water. As the 30th driest country in the world, this means any food that is wasted also wastes water.


EASTER CAPE PINEAPPLE INDUSTRY

CASE STUDY

Where?

Processing

Turnaround Strategy

Key Thesis

Convert a primary agriculture to agro-processing business into a primary agriculture to agro-processing to nutra-pharmaceuGcal business by value addi

Innovation Strategy Value Add to Waste

Waste Streams

a. Process Waste fruit & peel pulp remaining aWer PJC process. b. Agricultural Waste pineapple plant biomass remaining aWer fruit

picked.

Previous Use

a. Process Waste sold to dairy farmers for minimal value (R5/mt) b. Agricultural Waste burnt or ploughed into ground. Cost to farmer.

Value Add

a. Process Waste conversion to pineapple dietary bre. b. Agricultural Waste

i. Leaf Fibre converted to Micro-Crystalline Cellulose. ii. Bromelain extracted from Leaf and Stump Juice.

Pineapple Dietary Fibre World First

Project Start March 2009, based on: a. Internet research indicated pineapple may be an excellent source of dietary bre. b. Worldwide focus on health in diet. c. Waste stream volume 15,000 to 20,000mt/annum genera

Progress to Date

a. Dicul

Pineapple Fruit Waste

Mini-Production Line

Fibre Plant Area Pre-Build

Fibre Plant Area Completed Unit

Wet Fibre Automated Process

Drying Facility

Dry Fibre Flakes

Pineapple Dietary Fibre

Dietary Fibre Functional Effect

Micro-Crystalline Cellulose and Bromelain

Pineapple Plant Biomass

Leaves 41%

Stems 28%

Dry Waste 31%

Fibre 2.2%

Waste 97.8%

MCC 90%

Juice 30%

Waste 10%

HGM 7.5%

Waste 92.5%

Bromelain 2.16%

Waste 70% BioCoal

Organic Fer

Micro-Crystalline Cellulose

Micro- Crystalline Cellulose is a ne white powder, rich in alpha cellulose that has many uses in the pharmaceuGcal, nutraceuGcal and food processing industries

PharmaceuGcal Industry: a. MCC revolu

Bromelain

Bromelain is a protease enzyme that acts as a natural anG-inammatory agent and is found only in the pineapple. a. Main uses are athle

MCC & Bromelain Project

Project Start March 2011, based on:

a. Research (Stellenbosch University 2008/2009) indicated pineapple leaf bre may be a source of extremely pure alpha-cellulose.

b. Alterna

MCC & Bromelain Project

Progress to Date a. MCC produced at lab scale.

b. MCC mini process currently being rened.

c. Bromelain juice produced and tested (results to date have been excellent)

g. Valida

MCC & Bromelain Harvesting

MCC & Bromelain Process

FINANCIAL IMPACT

!"!!!!

!50!000!!

!100!000!!

!150!000!!

!200!000!!

!250!000!!

2014! 2015! 2016! 2017! 2018!

Bromelain/!MCC!

Dietary!Fibre!

Juice!

Projected EBITDA per Business Unit (R 000)

Conclusion

Summary a. Great strides have been made since 2007, but the turnaround is

not yet complete.

b. Summerpride PJC business sustainable based on long term averages, but subject to cyclicality.

c. Agricultural risk is the biggest risk to Summerpride and industry at present.

d. DF may be used to mi


ZERO WASTE FARMING

Zero Waste farmers use bacteria, algae and fungi to convert plant and animal waste into food, feed, fertilizer and fuel, generating over R36,000 per ha/year

If less than 50% of our arable land was converted to Zero Waste

Agriculture it is possible that small family farmers can produce all of South Africas energy needs in electricity and liquid fuel from ethanol, biogas and biodiesel processed by local cooperatives.

ALTERNATIVE PROTEIN SOURCES .. ..

DISCUSSION

ALTERNATIVE OPPORTUNITIES

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food waste beneficiation

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