Public Private Alliances for Piloting Palm Oil Fortification with Vitamin A in Indonesia ADB-UNICEF Regional Workshop The Role of Non-State Providers in Delivering Basic Social Services for Children April 2010 Barbara Lochmann South East Asia Department 20 April 2010

Public-Private Alliances for Health Public-Private Dialogue and Investment to: Integrate public health activities with business models for efficiency and sustainability Integrate business models with health objectives for increased impact on micronutrient deficiencies GOODGOODHEALTHHEALTHGOODGOODHEALTHHEALTH G O O D B U S I N E S S

Why Oil Fortification? Vitamin A deficiency is still a public health problem (VAD prevalence in children 5-15 yrs about 53%) Indonesia is the largest producer of palm oil about 100% of household consume palm oil, out of which 70% are unbranded (Feasibility Analysis KFI/MI,2005) average consumption of unbranded oil 9kg/capita/p.a. consumption variation between poor and rich is not significant

The Experience of the Enriching Lives of the Urban Poor Project (Oil Fortification in Makassar) Extensive advocacy for decision makers and the private sector Industry needs to be engaged at early stage Need scientific evidence what works at what cost Initial investments for fortification and distribution need to be borne by the public sector Product acceptability of consumers requires extensive social marketing because of low consumer awareness

Public-Private Alliances for Fortification Public Partners Ministry of Health: Implementation/coordination National Food and Drug Administration: QA Center for Food and Nutrition Research: Monitoring Ministry of Trade: National standards Private Partners KFI: effectiveness trial Oil distribution company: fortification and distribution Pharmaceutical Industry : supply of retinol and technical training Oil industry: QC/QA, marketing

Value Added Feasible for Government and Industry Fortification technology easily and inexpensively adaptable by palm oil producers ( 6 companies supply more than 70% of the domestic market) Regulation and quality assurance parallel to current systems for wheat flour and salt fortification. Affordable Cost Additional Rs 50 per kg (willingness to pay up to Rs 100) Self Targeted Distribution Unbranded cooking oil reaches poor consumers Maximize Public Health Benefits Fortified oil may be utilized in safety net and or food aid programs

Scaling-Up Oil Fortification Indonesia plans to mandate Vitamin A fortification for cooking oil by January 2011 ADB: Nutrition Improvement through Community Empowerment Project provides investments to scale-up (oil) fortification, regulatory framework and social marketing/communications for fortification GTZ/BASF: Strategic Alliance for the Fortification of Oil provides technical expertise in production, marketing and distribution GAIN: Up-scaling oil fortification through production, distribution, QA/QC