Soy Innovations for increased
soybean industry opportunities and
competiveness
By
Martin Ssali, Bsc FST, MSc TIID
CEO Smart Foods Limited
martin@smartfoods.co.ug
International Symposium and Exhibition on Agriculture in the
EAC , 4th November 2013
4/8/2015
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Background
• Smart Foods Ltd, small scale company started
in 2008.
• My motivation for R&D was dev’t of a low cost
process for production of a healthy, nutritious
plant based product as an alternative to
animal based products.
• As a youth and a scientist, I had the desire to
commercialize R&D outputs.
4/8/2015
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Background
• We won a USD 5,000 grant from Rockefeller in
2009 and East African University and Business
Research in Agricultural Innovations award in
2010
• We launched in 2010 and so far we have a
capital investment of USD 20,000 and an
annual turnover of USD 17,000.
• We sell to health conscious clients and those
who wish to taste some thing different.
4/8/2015
3
Business Impact and Achievements
a. Special training in soy processing in USA
b. After 1 yr of investment in promotion, two
companies launched competing products
with investments of over USD 1 million.
c. In spite of our compromised market, their
investment created market opportunities for
over 5,000 soybean farmers in Eastern
Uganda supplying over 10,000 MT per year
worth USD 3.2 m/yr.
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Business Impact and Achievements
• Special radio programs on the opportunities of
soya beans in Uganda’s industry
• The company currently employs a total of 10
staff (4 permanent, 3 casual workers and 3
distributors)
• In 2011, I won the Young Innovations Award in
the Business and Trade category.
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Business challenges strategic solutions
a. Lack of financing/business start-up capital
As a company we have raised capital through;
– Winning business plan competitions
– Re-investment of profits
b. Lack of access to equipment to start operations,
poor processing facilities and high costs of
electricity and water.
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Struggling with process improvement
A rudimentary technique of
pressing soybean curd with
use of stones and a small
stainless steel box in 2009
4/8/2015
Use of a hydraulic press to out put quality
product but maintaining the technical
design at the Food Technology Business
7
Incubation center in 2010
Struggling with design of machinery
Juakali soy bean grinding and
separating machine, locally
fabricated in 2011
4/8/2015
Imported soybean grinding and
separating machine imported from
China in 2012.
8
Business challenges & strategic solutions
• Challenge of developing brand strength and
customer loyalty
Basic presentation
of youth venturing
into business
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Business challenges & strategic solutions
d. Logistical challenges in sourcing raw materials
and product distribution which stifles SMEs.
e. Challenge in obtaining the best and affordable
human resource
– Obtained personnel with a desire to learn, and
grow with the business.
– In return the company has always promised and
offered some shares to staff
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Business challenges & strategic solutions
f. Lack of relevant SME industrialization policies
in Uganda
The lack of incentives discourages youth and
SME to get involved in business innovation.
g. Competition from new entrants
Continuous innovation by use of differentiation,
cost reduction and hybrid strategies is key.
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11
Business challenges & strategic solutions
h. Delayed payments from clients which lead to
poor cash flows and business failure
I. Delay in graduation from the incubation center
There is need for a strategy that will enable the
business to progressively move from the business
incubator to an industrial park or own facilities for
further business commercialization.
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How to attract and retain youth the
agribusiness sector
a. Development of business support centers and
more business incubators
– The incubation centers need to recruit innovation
managers
b. Re-develop the current youth fund/venture
capital to benefit the already struggling and
progressing SMEs.
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How to attract and retain youth the
agribusiness sector
d. There is need to develop long-term
equipment leasing and financing mechanisms
e. There is need to develop a tax holiday
structure for science/technology based small
business to enable.
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Thank you for listening
Martin Ssali,
martin@smartfoods.co.ug
4/8/2015
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