Savanna Circuit Tech- (MaziwaPlus Pre-chiller)

MaziwaPlus Pre-Chiller is a locally manufactured and last mile distributed solar powered portable  milk chiller that uses business model innovation while fitting in with the smallholder dairy value chains in rural Kenya to enhnace food security and empower the hardworking dairy farmers. The two main objectives are to reduce milk spillage and spoilage at farm level through portable chillers placed on motorbikes which can reduce post harvest losses by upto 90% while providing enough source of nutrition to Africa’s growing populations especially children under five. The portable milk chillers have increased incomes for users from USD70 to 150 in addition to access to finance through our credit scoring system. In just two years we have reached 2000 households and transported over 200,000L of milk to markets. Working with dairy cooperatives, we have created employment opportunities for 18 rural youths alongside innovation and inspiration to rural communities. 

Thirteen billion is lost each year, in milk post-harvest losses majority in the informal dairy sector. Technologies are only fit for the formal sector thus slowing transition of the informal dairy sector. Issues of quality control, product trace ability, fluctuating production volumes and mismanagement hold back these farmers. No cooling infrastructure powered by renewable energy, result in use of available plastic containers which encourages bacteria growth thus compromised quality. Animal transport due to poor road network results to rejection at factory gate. Middle men transporters continually oppress the small holder farmers due to lack of accountability and low prices. Mismanagement at dairy cooperatives heightens conflict between producers and processors and thus tainting agribusiness as an economic opportunity for youth. Spillage and spoilage is the limiting factor to maximized profits in addition to access to affordable nutrients for children under five. Tones of wood fuel are used by majority of dairy farming households to boil milk as a means of preservation thus negative effects of deforestation in addition to negative health effects. We are able to achieve efficiency and saved revenues for food and economic security for all.

There are over 8,000,000 active dairy farmers in Kenya distributed in dairy cooperatives who market the milk to processors and pay the farmers. The small holder produce 70% of the 5.3 billion liters annually. These smallholder communities earn an average of US$ 70 per month due to lack of records and milk volume to create influence on milk pricing from processors who buy their milk. Savanna Circuit conducted market research with dairy cooperatives across Kenya and discovery of a comprehensive post harvest solution was made. We have ran two successful pilots in two different regions. The learnings were integrated both the product and business model. We are continually creating great user experience in our human centered design with long term contracts with cooperatives and a growing clientele.

Savanna Circuit's novel approach is in our delivery model, as we are able to sustainably reach currently unreached, vulnerable dairy farmers. Our hands-on market-based approach owns the last mile of distribution by filling the role of technical implementer on the ground to support small and medium scale dairy cooperatives in Kenya to increase milk volumes delivered, good product quality and farmer record access. Our cooling technology allows custom made capacities of portable cooling units mounted on any means of transport motorbikes(140L), Tricycles(1 Tonne) and trucks(10 Tonnes). The product is solar powered, designed to work in low light for early mornings and late evenings milk collections. It has an intelligent battery management system for power back up for up to 36 hours at 5 C. There is a Milk collection mobile application used alongside the chilling unit for record keeping and dissemination of daily milk collection records to farmers via USSD.  Therefore, combined they solve the challenges comprehensively. 1800 dairy farmers in 4 dairies improved their monthly income from an average of KSh 8000 to KSh 15000 while having transported-chilled on transit 200,000L saving 33% from spoilage. The milk collection app has eliminated the tedious paper based records as farmers generate their record daily which is also used as credit score and collateral at cooperatives. The trained and certified field agents operate the cooling units and app thereby creating jobs. The chilling systems are offered on a lease model to dairy cooperatives where a commisionof 10% is paid for each litre of milk transported to facility. We have had support from both local and national governments in certification and regulations on food safety standards for a competitive product localized for rural communities.

We reach most populations that large-scale post-harvest programs can’t

* We invented a technology specifically design for small/ medium- scale Africa dairies

*Chilling system is 100% solar powered

* Our technology removes all human error risk of the transporter

* No other chilling device available meet our essential criteria

* We remote monitor in real-time through a cellular link

* We own the last mile of distribution, service and support

* We are more cost effective than other transport companies

* Our model neutralizes the additional cost of chilling

* Our success does not rely on the government push or market pull

* We do not use commercial refrigerants that emit greenhouse gases

MaziwaPlus Pre-Chiller is both a hardware and software solution (M+ Milk collection App) that is AI enabled. This is a locally manufactured solar chiller that uses food grade materials and recycled refrigeration component from scrap yards  thus cost effective. It is designed to work in low light powered by a 15Watt solar panel and an intelligent battery system for backup. It 100% is environmentally friendly product as it uses acetone as refrigerant therefore no GHGs. The chillers can be customized in different capacities to fit any mode of transport on rural roads-motorbikes,140L, Tricycles,1Tone and Trucks,10Tonnes.

Our software is a comprehensive farmers and data management system backed by an AI system for farmer credit scoring and data analytics with an algorithm of above 89%accuracy,the system is able to effectively provide predictions and early warning to farmers. Daily milk collection records and pay is done through electronic receipts.

Our innovative business model creates inclusion for all low income dairy house holds as the cost is shared between dairy farmers and dairy cooperatives, thus building a sustainable business whose impact is at scale.

Our Milk ollection app and portable chillers are solutions derived from both personal experiences growing up in low income households and outcomes from our initial field study. 

The problems of milk spoilage and rejection at factory gate were prevalent in rural communities who depend on dairy farming for incomes. We engaged women groups who established that a cooling infrastructure was needed and a means of transport to deliver milk to dairies on the poor roads. 

Managing farmers records on a paper based model was not efficient and additional value of a credit scoring system was efficient. This would show insurers and finacviers that farmers were at an acceptable risk.

This brought along employment for youth and increased incomes for households for improved livelihoods for example, paying for school fees, purchase of solar lamps and water tanks.

The solution created a channel to engage all dairy players vertically and horizontally thereby disrupting without changing the dairy systems.

Since 2018, the milk chillers has reached a total of 2300 total dairy farming households and 6000 more beneficiaries. The farmers(users) are distributed in four regions in 4 dairy cooperatives(customers). There are four regions coverred with 100% conversion of clients post pilot. 

The business already has 8 pending contracts with new dairy cooperatives in 3 new regions with reach of 10,000 new farmers in one year. The demand for the product is high with plans to reach 4000 new farmers by the end of 2019.

In five years the business would have reached 0.4Million users across Eastern Africa with solar refrigerated trucks in use.

our goals are:

* Scale the solution to reach a total of 26000 users and beneficiaries while increasing staedy incomes by 30%

*Carbon credits, the solutions intends to transacat carbon credits from the use of solar cooling over wood fuel in households

*Access to finance, we intend to facilitate credit access to our users by upto US$ 5000 in loans based on milk collection volumes to improve dairy production

*R&D,launch an autonomous soalr refrigerated truck for milk transportation over long distances while exploring cooling of vaccines through our technology

*Partnerships with farmer organizations to provide fodder and animal feeds to farmers at f=air rates for shared prosperity

The biggest barrier is access to finance as manufacturing for a growing business is capital intensive as most of the costs this far have gone into legal requirements

Slow technology adoption among low income rural communities has led to major iteration of the business model thus slow but steady growth

Cultural practices have derailed active participation of women as milk transporters due to lack of skills and licences thus women working at much lower support roles

Sourcing of materials and buying of motorbikes and tricycles has been on the high end therefore affecting the overall cost of production as the business operates on a lease model where the unit+modes of transport are leased to dairies.

The business intends to embark on match funding models where identified partners can facilitate initial setup of the business to kickoff scaling. This will be followed by a series A round and possible crowdfunding campaigns to give a run way before deal closing

Set up national wide campaigns with industry stakeholders to sensitize on proper milk handling nag hygienic practices. This is further supported by the national Dairy Board who recently banned use of plastic containers for milk storage thereby giving the business and edge

We are identifying a group of ambitious women to train and certify as our field operators. We are already inspiring women and girls as majority of our executive is female led.

The Business to get into joint venture partnerships with tricycles and trucks distributors on a profit-sharing model to ease on the cost of acquisation 

NOT APPLICABLE

Full time staff; 18 members

Contract: 2

Part time Staff: 4

we are a young and diversified team with complimentary skills. Guided by our core values of innovation and integrity, we are able to cultivate a strong organizational culture and excellence in customer service and support.
Percy Lemtukei, CEO an informatics graduate with over 7 years of experience in both hardware and software development. He is also the lead innovator. Emmastella Gakuo, COO a communications development graduate with 8 years of experience in entrepreneurship and working with innovations at grass root level. Andrew Githinji, Quality control specialist, food science graduate that has brought in wealth of experience in compliance, policy and farmer knowledge. He also serves as the field manager managing relationships between farmers, field operators and dairy cooperatives. Moses Ahinga, an experienced lead fabricator with deep knowledge on MIG welding necessary to perfect our hardware-milk chiller. 
We also have 15 We field agents who operate the chilling system and app.

We have partnered with a motorcycle and tricycle manufaturers for custom modes of transport.

We have partnered with three dairy cooperatives with a total of 15000 farmers and 8pending contracts with a total reach of 20,000 farmers

We have partnered with courue delivery company to facilitate movement of inventory

Partnered with an international farmer development NGO

A novel initiative bringing together existing technologies and stakeholders in a new way best describes our vision of consolidated dairy value chains for shared value. Small holder dairy farmers are the users of our product while dairy cooperatives are the customers. The business model is based on two revenue streams licensing of technology and lease. The dairy cooperatives pay a monthly service charge of US$ 150 for the customer management platform integrated with their management system in addition to US$ 0.05 per liter of milk chilled and delivered.

Our annual cost per person is expected to be $0.50/person in 2019. The Savanna Circuit's operating expense breaks even in 2021 with 3,000 units, serving 1M people. In 2023, the Savanna Circuit's operations are self-sufficient including all capital expenditures and working capital.

The business will be launching 5 1Tonne capacity milk chillers to compliment the already functional 140L motorbike capacity thereby breaking even in its sixth month. 

However, the high operational and production cost as the business offers chillinh on the go services to cooperatives on lease, there is need for grants or inkind contributions. These will lay ground to be in pipeline for equity investments for international expansion while complimenting the revenues from service charges. Year 2020 revenues are projected at us$ 22,000 gross profit.

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