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PREFACE
In 2007, businessman Stan Smith began a faith-based quest to help save the lives of starving
people living in the rural areas of Malawi, Africa, one of the world’s least developed countries.
After five years of working alongside Malawian locals and a number of global humanitarian
organizations, Smith realized that the area’s nutritional challenges persisted despite water wells,
schools, livestock programs and other attempted interventions. He also witnessed the deadly and
devastating effects of Severe Acute Malnutrition on village children each year.
In March 2012, Stan Smith was joined by Brian Hunsaker, Donna Wertz, Heather Premac, and
Haley Hunsaker, to create PB+J Foods, Inc., a non-profit organization designed specifically to eradicate
Severe Acute Malnutrition in underdeveloped nations and to help build a localized, self-sustaining
economy that could provide for its citizens in the future ... beginning in Malawi.
In just 17 months (March 2012 – August 2013), PB+J Foods, Inc. programs saved nearly 1,200
lives in Malawi.
This document explains how they did it and what they are planning to do in the future.
THE PROBLEM
Severe Acute Malnutrition (SAM) is the number one killer of children under five years of age.
Nearly 20 million children around the world suffer from SAM, and it contributes to the death of more
than 3.5 million children every year. Without proper treatment, the majority of children that survive will
live with compromises to their physical and cognitive capabilities. There are companies that have tried
to address this problem by producing Ready-to-Use-Therapeutic-Foods (RUTF), such as fortified peanut
butter paste, and sell this product to hospitals and world relief agencies. However, the cost is usually
prohibitive for third world hospitals to purchase, and supply can be erratic.
THE VISION
The vision to help resolve this horrific situation was to create an organization that would assist
hospitals and medical clinics in countries where SAM is rampant. The concept is to set up self-sustaining
manufacturing sites that would produce fortified peanut butter paste and other RUTF products for
severely malnourished children in hospital and medical clinic ‘catchment areas’ (the area served by the
hospital and its outlying clinics).
This organization would aid hospitals in building RUTF manufacturing plants in rural
communities where the need is the greatest, then train, teach, and mentor local Malawians on how to
run and manage their own plant. This 3-4 year process would give Malawians their own financially selfsustaining plant, with employees hired from that project area, who would produce enough muchneeded fortified peanut paste (RUTF) for their own community as well as enough RUTF supply for
distribution to surrounding communities.
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THE OPERATION
This vision led to the formation of PB+J Foods, Inc. The PB+J operational model helps local
hospitals and clinics set up self-sustaining manufacturing sites that produce fortified peanut butter paste
for severely malnourished children. The PB+J production plants are owned and operated by hospitals in
a project area, and are financially self-sustainable, with employees hired from that project area.
Once produced, the fortified peanut butter paste will be sold on the open market to such
agencies as World Vision, UNICEF, and the Malawi Ministry of Health. Profits from selling the fortified
peanut butter paste to these agencies are allocated to local hospitals to provide the RUTF to their
patients at the hospital and outreach clinics at no charge.
PB+J Foods, Inc. will help to create economic growth in the community by the development of
Co-op Farmer Programs. These programs will typically have 800 - 1000 farmers. The program will
primarily train single mothers, which will likely produce the best long-term results. In October 2012,
PB+J Foods, Inc. secured support from World Vision Malawi, Afri-Nut, Ltd., and the Opportunity
International Bank of Malawi, to help bring the farming co-op to reality.
The Co-op Farmer Program will help farmers buy seeds for their peanut crop; teach farmers how
to grow the peanut crop; and secure an international buyer to purchase the farmers’ crop of peanuts.
This process will create a cash crop for locals in the project area.
THE MALAWI, AFRICA NKHOMA HOSPITAL PB+J PROGRAM
In August 2012, PB+J Foods, Inc. helped Nkhoma Hospital in Malawi, Africa, start the first PB+J
Program - The Nkhoma Hospital PB+J Program. The initial manufacturing site began production that
month and provided the much-needed RUTF to Nkhoma Hospital’s NRU (nutritional rehabilitation unit),
HIV patients, burn unit children, nursing mothers, and other hospital patients with nutritional needs.
The RUTF is now used throughout the hospital and also in outlying clinics in the catchment area.
RESULTS AFTER ONE YEAR
Since August 2012 The Nkhoma Hospital PB+J Program has outperformed its most ambitious
expectations:
 The Nkhoma Hospital PB+J production facility has grown from approximately 600 square feet to
nearly 1600 square feet;
 In the 600 square feet facility, The Nkhoma Hospital served over 1,200 children between the
ages of 6 months to 5 years, with average increases in weight gain of 2kg in an average of a 2
week period;
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In the 600 square feet facility, The Nkhoma Hospital’s PB+J Programs production has been close
to a 140 bottles per day. This equates to serving nearly 100 children per month, over 1,200 per
year;
The program’s fortified peanut butter paste has been given to adult patients recovering from
surgery, reducing the recovery time, thus, freeing up badly needed bed space for new patients;
Began the formation process of a local farmers co-op targeting at least 800 members;
PB+J Program participants are provided with basic knowledge and skills training in the areas of
food safety and storage, malnutrition management, hygiene and sanitation, family planning,
HIV/AIDS prevention, childcare, nutrition, and agriculture.
ANTICPATED RESULTS FOR 2014
The Nkhoma Hospital PB+J Program will be ready to sell the fortified peanut butter paste on the
open market in early 2014. Anticipated results for 2014 are:
 Over 11,000 children served;
 1,000 children served at Nkhoma Hospital and the catchment area at no charge;
 By the end of 2014, The Nkhoma Hospital PB+J Program operating at a profit;
 Increase Malawian Employment at the production facility
THE NEED
PB+J Foods, Inc and The Nkhoma Hospital PB+J Program are now working to generate $245,000
in donations to fund 2014 operations:
 PB+J Foods, Inc. USA operating budget for 2014 is $127,000.00;
 It is projected that The Nkhoma Hospital PB+J Program will have income in the amount of
$224,900.00 with expenses close to $271,00.00, for a deficit of $46,484.00. Capital expenses for
2014 are anticipated to be $72,000.00.
 It is projected that The Nkhoma Hospital PB+J Program will generate profit in the year 2015
 Planning and fund raising has begun for PB+J’s second plant, also in Malawi. The anticipated 3year budget (2015-2017) is $785,000.
THE FLOW OF FINANCIAL DONATIONS
While it is often difficult to trace the flow of funds in any non-profit organization, especially one
that operates in developing countries, PB+J Foods, Inc. explains their flow of funds as follows:
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Donations are made to PBJ Foods, Inc. USA (a 501(c)3 non-profit organization) via
www.pbjfoods.org. Donations greater than $3,000 are mailed directly to the PB+J Foods,
Inc. Corporate Office.
Funds are then transferred to Nkhoma Hospital where they are used for the Nkhoma
Hospital PB+J Program. Funds are distributed to:
a. Construction of the RUTF Plant in Malawi
b. Acquisition of Equipment for RUTF Plant
c. Purchase raw materials – Sugar, Milk Powder, Oil, Peanuts, and Micro Nutrients
d. RUTF Production Plant, Quality, Testing, and Warehouse Operations
e. RUTF Distribution from Nkhoma Hospital and Clinics
f. Transportation
PB+J Foods, Inc. presently retains funds to pay product testing costs (in the United
Kingdom), and future equipment costs for the Nkhoma Hospital PB+J Program. Once
financially self-sustaining, these costs will be paid directly by the Nkhoma Hospital PB+J
Program.
PB+J Foods. Inc. retains funds for the next PB+J site in Malawi.
PB+J Foods, Inc. retains funds for USA operational costs, which are estimated to be
$127,000 for 2014.
PB+J (Peanut Butter + Jesus) displays the love and compassion of Jesus Christ by providing for
those in need, regardless of their faith and background. PB+J shares the message of the Gospel
throughout its humanitarian activities.
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