Akita University
秋田大学工学資源学部研究報告，第29号，2008年10月
17
Yogurt for Expanding Opportunities
Initiative of Grameen Danone Foods
Hiromi Tsuboi**
Abstract
Bangladesh has made significant progress in the area of human development for the last three decades.
According to the human development index (HDI), Bangladesh’s HDI increased from 0.347 in 1975 to 0.547 in
2005. However the country’s HDI rank in 2005 was 140 out of 177 countries. Forty-eight percent of children under the age of five were underweight. They also lack access to healthy living conditions.
In order to make the environment surrounding children healthier in rural Bangladesh, Grameen Danone
Foods Ltd. launched the production of yogurt in 2006. The mission is to reduce poverty by providing a unique proximity business model that will provide daily healthy nutrition to the poor.
This report first presents an overview of Grameen Danone Foods Ltd., and then, through fieldwork, examines how the lives of rural people have been improved by its activities.
1.
In order to make the environment surrounding
Introduction
Bangladesh has made significant progress in the
children healthier in rural Bangladesh, the Grameen
area of human development for the last three decades.
Bank, Nobel Peace Laureate 2006, proposed to form a
These achievements can be captured by the human
joint venture food enterprise between the Grameen
development
the
Group and the French food company Groupe Danone. In
enhancement of people’s quality of life through
2006, a joint company called Grameen Danone Foods
expanding opportunities. This is achieved by enhancing
Ltd. launched the production of yogurt in the Bogra
basic capabilities, such as the level of health, education
district, 230 kilometers north of the capital, Dhaka (see
and purchasing power. As can be seen from Table 1,
Fig. 1). The mission is to reduce poverty by providing a
Bangladesh HDI increased from 0.347 in 1975 to 0.547
unique proximity business model that will provide daily
in 2005. However it is the second lowest in South Asia,
healthy nutrition to the poor (2).
index
(HDI).
HDI
measures
This report first presents an overview of Grameen
and the country’s HDI rank in 2005 was 140 out of 177
(1)
. The index of underweight children under
Danone Foods Ltd., and then, through fieldwork,
the age of five, which is one of the key indexes to
examines how the lives of rural people have been
monitor human development, shows 48 percent (see
improved by its activities.
countries
Table 2). They also lack access to healthy living conditions. This figure indicates that Bangladeshi children under the age of five are in the poorest health not only in South Asia but also in the whole world
(1)
.
2.
2.1
Overview of Grameen Danone Foods Ltd.
Social Business Enterprise
Grameen Danone Foods Ltd. (hereinafter Grameen
Danone) was established as a social business enterprise, which is neither charity nor a regular business but aims
Received July 10, 2008
**Faculty of Engineering and Resource Science,
Akita University
explicitly at social goals through business activities (3).
Akita University
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18
Human Development Index Trends in South Asia.
Table I
(I)
1975
1980
1985
1990
1995
2000
2005
Iran (Islamic Republic 01)
0.571
0.578
0.615
0.653
0.693
0.722
0.759
Sri Lanka
0.619
0.656
0.683
0.702
0.721
0.731
0.743
Maldives
-
-
-
-
-
-
0.741
0.419
0.450
0.487
0.521
0.551
0.578
0.619
-
0.579
India
r
Bhutan
-
-
-
-
-
0.394
0.427
0.467
0.497
0.516
0.551
0.422
0.453
0.511
0.547
0.427
0.469
0.502
0.534
Pakistan
0.367
Bangladesh
0.347
0.365
0.392
Nepal
0.301
0.338
0.380
Table 2
Underweight Children (Under Age 5).
Iran (Islamic RepUblic 01)
r:=
C
Bhutan
Pakistan
$0
(%)
lOO""'~
100 ....
$0
•
II
F
Sri Lanka
Maldives
India
(I)
-'2~9:-------
INDIA
30
47
19
•
38
48
48
Bangladesh
Nepal
Muhammad Yunus, the founder of the Grameen
Bank and winner of Nobel Peace Prize in 2006 along with the Grameen Bank, advocates that a social business enterprise should be at non-loss and non-dividend to be self-sustaining and create surplus for expansion
(~).
Fig. I
Location of Bogra.
Under this principle, Grameen Danone was undertaken by Groupe Danon of France and the Grameen Group, namely Grameen Byabosha Bikash (Business Promotion),
2) To create jobs. Grameen Danone also aims to help
Grameen Kalyan (Welfare), Grameen Shakti (Energy)
reduce poverty by buying the main ingredients of yogurt,
and Grameen Telecom. Grameen Danone is registered
such as milk and date molasses, from local producers,
under Companies Act of Bangladesh, and its ownership
providing plant jobs and involving communities in
is 50:50.
marketing.
3) To protect the environment. The plant is operated by
2.2
Main Objectives
Grameen Danone highlights four main objectives(2).
solar and biogas energy. Yogurt packages are recyclable and made using poly lactic acid which is created from
I) To offer a product with high nutritional value.
corn starch (see Fig. 2).
Grameen Danone produces a yogurt named Shokti Doi
4) To be economically viable. Grameen Danone is a
(Yogurt for Power) which contains vitamin A, iron, zinc,
company which implements a social mission based on a
iodine and other micronutrients. The price of each 80
business model.
gram cup is five taka (seven US cents), and a single cup fulfills 30
requirements.
percent
of children's daily
nutritional
Akita University
Yogurt for Expanding Opportunities -Initiative of Grameen Danone Foods-
2.4
19
Distribution System
Bangladesh is a country of insufficient energy
supply, where the spread of electricity on the grid is slow, and only 30 percent of the population has access to it (31.
Therefore, most of the households in the rural areas are not equipped with refrigerators.
Under these circumstances, a unique distribution system is organized
(2).
Door-to-door salespeople called
Grameen Ladies (see Fig. 4), who are also borrowers of the Grameen Bank, and small shops are engaged in the selling process. To deliver yogurts in cool conditions,
Fig. 2
Environment-friendly Package.
m
they put them in the ice box on rickshaw vans (see Fig.
5) and carry them to Grameen Ladies and shops within five kilometers of the plant. After receiving their yogurts,
2.3
Currenl Operation
Grameen Ladies carry them in the insulated blue bag
(2)
The total cost of building the Grameen Danone plant is lower than a standard Danone one. The plant size
given
to
them
by Grameen
Danone,
door-to-door sales.
is very small with a surface area of 500 square meters
(see Fig. 3). The plant optimizes the local resources.
Where possible, it uses little high-tech machines so that relatively unskilled employees can operate them easily.
Most of the equipment, such as the boiler, air compressor, refrigeration equipment, gas generator. emuent treatment station, is bought locally. Production capacity is 3000 kilograms per day. Table 3 shows the current operation.
Fig.4
Fig. 3
Table 3
Grameen Ladies.
Grameen Danone Plant.
Current Operation.
First Plant
At Bogra
Inauguration
On November 7, 2006
Plant Size
Small (surface area of 500 mIl
Present Product / Brand
Yogurt / Shokti Doi
Production Capacity
3000 kg / Day
=~-'=::':':"':=="----
Price of Product
I 5 taka / 80 gm Cup
Fig. 5
Rickshaw Van.
and
make
Akita University
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20
2.4
Workshop on Product’s Nutritional Value
The marketing strategy as well as the distribution
system is tailored to the local context. Yogurt is popular among Bangladeshis, but is usually not fortified. Yogurt is considered as not a nutritional supplement but a sweet.
Therefore, Grameen Danone holds workshops to create awareness that Shokti Doi has the nutritional value and it makes everyone, especially children, grow strong (5). Fig.
6 shows a traditional yogurt in a big clay cup. It costs between 100 and 180 taka per kilogram in Dhaka , which is much more expensive than Shokti Doi.
Fig. 8
Place for Weekly Meetings Called “Center”.
1) As can be seen from Table 4, Grameen Danone divides villages in Bogra into three blocks and assigns one block to each of three sales managers. Three sales managers organize a total of 54 Grameen Ladies and arrange one Grameen Lady per 1000 villagers. Each block deals in 1000 cups per day and sells them to
Grameen Ladies. Grameen Danone fixes the allocation of cups for Grameen Ladies. There are three types: 50 cups, 100 cups and 200 cups per day.
2) Most of Grameen Ladies are those who have some
Fig. 6
Traditional Yogurt.
experience in door-to-door sales.
3) Grameen Ladies can get one taka per cup as a commission and are supposed to save 30 percent of this
Impacts of Yogurt on the People
one taka. After one month, they can withdraw their
Fieldwork was conducted at the Grameen Danone
savings from their bank account freely. One Grameen
plant, Mazhira branch of the Grameen Bank (see Fig. 7),
Lady in white sari in Fig. 4 makes door-to-door sales
Center number 65, the place for weekly meetings called
five days a week and sells out 100 cups per day. She can
“center” (see Fig. 8), and Bejora village in Bogra in
earn 2000 taka per month besides her income by regular
March of 2008. Findings are as follows.
business activities. She mentioned that it did not take a
3.
long time to sell out yogurts and the best selling spots were by the school gates as well as at the “center” (see
Fig. 9).
4) Local shops can get 0.5 taka per cup as a commission.
5) As mentioned above (2.4), yogurt is a sort of sweet for
Bangladeshi. To build awareness of the nutritional value of Shokti Doi, the bankers of Mazhira branch continuously explain its nutritional value and the importance of a balanced diet at weekly meetings.
Grameen borrowers I met in Bogra mentioned that after tasting Shokti Doi they became aware of the differences in quality between Shokti Doi and the traditional yogurts.
They tried to give their family members, especially
Fig. 7
Mazhira Branch of Grameen Bank.
children, two cups per week.
Akita University
Yogurt for Expanding Opportunities -Initiative of Grameen Danone Foods-
6) There are some male Grameen borrowers who bought
4.
21
Conclusion
rickshaw vans with small loans called microcredit
The production of yogurt by Grameen Danone has
provided by the Grameen Bank and started a yogurt
improved people's quality of life in Bogra. First, local
delivery business.
people including Grameen borrowers have already started new jobs or expanded business opportunities as well as gotten employment opportunities (Fig. 10).
Table 4
Grameen
Sales
Type of
promoted among local people. Grameen Danone has
Manager
Lady
Perfonnanee
Allocation
been successful in creating awareness of the nutritional
(oj
(oj
/ Block
of Cups
value of Shokti Doi among Grameen borrowers through
f Day
,
Second, the nutritional value of Shokti Doi has been
Sales
Block A
Sales Performance by Grameen Ladies
both the workshops and the weekly meetings at the
1
1
20
11000 cups/day
Typo
!Day
centers. This enlightenment activity is based on the
Block B
1
18
IOOOeups/day
1
50 cups
Grameen Bank's practical experience in these three
Block C
1
16
I 1000 cups/day
2
100 cups
decades. Village people have enjoyed health benefits
)
200 cups
from Shokti Doi by this activity. That is to say, Shokti
TOlal
I
3
I
54
I 3000 cups/day
Doi has the function of grass-roots nutrition education.
Therefore, it is suggested that Grameen Danone plays an important role in human development in terms of viable economic activities and grass-roots nutrition education. However its nutritional impact from the point of view of nutrition science has not been studied yet. As a social business enterprise, Grameen Danone has accountability for its scientific impact. This will be a themc for research in the futurc.
Fig. 9
Grameen Borrowers and a Grameen Lady.
Local
Milk
D
Local
D
Dale Molasses
"
Gramccn
Rickshaw
Danone
\
V"
Plant
-1-j-!-\\~
D
~--':~
:
D
:
D
:D
D
D
:
,
,
,
,
Center
,
,
'~. - ------- -_. --- _. ---~'
:---vJ,D
Employee
I
Fig. 10
Expanding Income Generative Opportunities.
I
D
Akita University
坪井ひろみ
22
(1)
References
UNDP (2007): Human Development Report
2007/2008, UNDP.
(2)
Grameen Danone Foods Ltd. (2006): Grameen
Danone Foods Ltd.: A Social Business Enterprise,
Retrieved
on
May
19,
2008
from
http://www.danone.at/fileadmin/template/Downloads/Pre ss/DP_GrameenDanoneFoods_GB.pdf. (3)
Tsuboi, Hiromi (2007): Social Business for Poverty
Reduction: A Case Study of Grameen Shakti (Energy),
Science and Technical Reports of Faculty of Engineering and Resource Science, Akita University, No. 28.
(4)
Yunus, Muhammad (2006): We Can Put Poverty
into Museums (Nobel Lecture), Grameen Bank.
(5)
Yunus, Muhammad (2008): Creating a World
without Poverty: Social Business and the Future of
Capitalism, Subarna. 