Pineapple juice

Pineapple Juice Production

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Pineapple Juice Production

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) No Poverty (SDG 1) Industry, Innovation and Infrastructure (SDG 9)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Gender Equality (SDG 5)

Business Model Description

Process pineapples into fruit juice with methods that preserve the quality of juices without additives and to gain increased market share against local and foreign competitors, taking advantage of technical assistance and provision of pineapple suckers provided to all stakeholders through the Pineapple Sector Investment Action Plan 2024-2028.

Expected Impact

Contribute to food security and reduce imports while improving workers' incomes through well paid jobs.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Togo: Maritime
  • Togo: Centrale
  • Togo: Plateaux
  • Togo: Kara
  • Togo: Savanes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Poverty is slowly decreasing with a rate going from 55.1% to 45.5% between 2015-2019, far from a complete elimination of extreme poverty targeted for 2030. In rural area, the poverty rate is 76.1% (1). Chronic, acute malnutrition and underweight affect respectively 27.5%, 6.5% and 16% of children under five years old particularly in the regions of Savanes, Kara and Plateaux (21).

Policy priority
Making agriculture a real engine of growth and job creation is one of Togo's ten strong ambitions (2). The Agricultural Plan aims to “modern, sustainable and high value-added agriculture serving national and regional food and nutritional security; a strong, inclusive, competitive economy that generates decent jobs and stable by 2030 and reduction of poverty and rural vulnerability (21).

Gender inequalities and marginalization issues
Women are poorly empowered and confined to agricultural activities. Mostly women (53.46% compared to 46.54% of men) carry out agricultural activities, notably in the activities of weeding, sowing, harvesting, storage, processing and marketing of products. The agricultural sector, with its low productivity and low income, plunges agricultural workers, particularly women, in high levels of poverty (1).

Investment opportunities introduction
Investment opportunities are due to both the expansion of local and foreign markets for many agricultural value chains and the land reform Togo initiated, which establishes equal rights of access to land for both women and men. Food crops have significant growth and employment potential, while livestock products and cash crops have additional growth effects (3).

Key bottlenecks introduction
Several constraints affect agricultural value chains like, limited production capacities to satisfy expanding and competitive markets, financing constraints for farmers, lack of long-term credit, and transport costs and constraints. Land issues also exacerbate the situation of farmers, particularly women and young people (3).

Sub Sector

Food and Agriculture

Development need
The situation of malnutrition and undernourishment in Togo places the food and beverage production sector at the center of these scourges. The agricultural sector does not provide sufficient production and suffers from low productivity and low income for workers. Various agricultural subsectors are involved, including crop, livestock, fish production and agri-food industries (21).

Policy priority
As part of the operationalization of the agricultural national policy, investment plans by crop have been developed for the period 2024-2028 (21). The pineapple subsector plan aims to boost its growth and sustainability, with doubling pineapple production and increasing local pineapple processing from 35% in 2024 to at least 75% by 2028 (22).

Gender inequalities and marginalization issues
Women are engaged in individual activities to the point where the majority of them are in the informal sector (54%), commerce and services (53.46%) as well as agricultural activities. Women experience land insecurity and low jobs opportunities which also affect young people. They also suffer from limited support in securing their production plots, as well as difficulties in accessing credit (4).

Investment opportunities introduction
With a view to encouraging exports, Togo has engaged in liberalization characterized by measures to harmonize legislative and regulatory frameworks with treaties and agreements. Making way for the private sector, Togo inaugurated the Adétikopé Industrial Platform dedicated to the transformation of Togo's natural resources and agricultural exports (5).

Key bottlenecks introduction
The pineapple sector is faced with constrains that include access to land and its limited extent; weakness of infrastructure for crop conservation; low purchasing power of the local population; high cost of energy and of laboratory analysis and packaging; insufficient qualified labor; and high interest rates (23, 29).

Industry

Processed Foods

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Pineapple Juice Production

Business Model

Process pineapples into fruit juice with methods that preserve the quality of juices without additives and to gain increased market share against local and foreign competitors, taking advantage of technical assistance and provision of pineapple suckers provided to all stakeholders through the Pineapple Sector Investment Action Plan 2024-2028.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

Production of 1,000 litters of pineapple juice per hour generates sales of more than USD 8 million per year.

Based on Jus Délice, a multi-fruit factory in Gbatopé, a production capacity of 1,000 litters of pineapple juice per hour can lead to an annual juice production of at least 2,592,000 tonnes. At a price of USD 3.39 per kilogram or litter, annual sales of USD 8,786,880 can be expected (26, 28).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

20% - 25%

The transformation of pineapple into fruit juice is considered profitable by industry players in Togo. A study conducted on the case of Jus Delice of Togo estimates an internal rate of return at 20.59% and the profitability index per monetary unit invested at 1.33 (23, 30).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

The recovery period for the amount invested is estimated at three and a half years for a fruit processing plant for pineapple into fruit juice in the case of Jus Delice in Togo (30).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Supply chain constraints can affect the availability of pineapple raw material at the processing plant. These constraints can be linked to the quantity and quality of the products, limiting the availability of the material. Supply difficulties could also be linked to transport problems (3, 31).

Market - Highly Regulated

The processing of fruit, and particularly pineapple into fruit juice, is not strongly regulated outside of the quality standards to which the products are subject to guarantee their organic character and the health of consumers (27).

Market - High Level of Competition

The processing of fruit, and in particular pineapple into fruit juice, experiences strong competition from both companies and independent producers whose ease of access to the fruit to be processed, because the growers themselves can be an advantage (3).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Sustainable development of pineapple production is envisaged in Togo by doubling its production from 44,391 tonnes to 88,782 tonnes and increasing fruit processing by 35% by 2028 (29). In 2022, imports of legumes and fruits were 57,469.70 tonnes against exports of 19,115.20 tonnes (6).

The deficit for legumes and fruits was USD 5.14 million in 2022 (6). Pineapple production in Togo increased from 30,000 tonnes in 2019 to 44,391 tonnes in 2022. However, yields remain low due to poor agricultural practices and climatic hazards (29).

The level of pineapple processing also remains low, but with significant potential in terms of added value and jobs. Processing is faced with high analysis costs for quality control. Similarly, access to credit to finance working capital is at high interest rates (29).

Gender & Marginalisation

Women represent 62.46% of the actors in the value chain working in pineapple production compared to 34.33% in processing and only 3.21% in marketing (29).

Semi-wholesalers are made up of 97% women who mainly buy non-certified pineapple and rarely organic pineapple in the fields, assembly or collection markets to resell them on the roadsides and in markets. Retailers are also made up mainly of women (29).

Women are less represented in the decision-making bodies in the pineapple sector. They represent 24% of the members of the boards of directors and only 5% of the members of the supervisory boards (29).

Expected Development Outcome

Processing of pineapple into fruit juice, based on high productivity and quality standards, will provide abundant and nutritionally diverse beverages and food products to meet the growing needs of the population and strengthen food safety.

Processing of pineapple into fruit juice will provide better remuneration to workers engaged in the sector and contribute to increased revenues from the export of organic pineapple juice and a reduction in juice imports and food products.

Processing of pineapple into fruit juice will create increased opportunities for the valorisation of raw materials, particularly pineapple for the production of fruit juices and dried fruits.

Gender & Marginalisation

Pineapple processing for fruit juice production improves the remuneration of workers in the pineapple sector, particularly women who are the most numerous to work there, and allows them to escape precariousness and poverty.

Pineapple processing for fruit juice production improves the technical and financial capacities of women in agricultural activities and allow them to improve their financial assets and capabilities for undertaken and fully seize their opportunities.

Pineapple processing for fruit juice production allows women, including young people, to develop their technical skills on proven processes for processing agricultural products with increased value added (29).

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.4.1 Proportion of agricultural area under productive and sustainable agriculture

Current Value

4.62% in 2021 (1).

Target Value

N/A

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

26,6% in 2021 (9).

Target Value

N/A

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.3.1 Proportion of small-scale industries in total industry value added

Current Value

Constant at 80% from 2018 to 2021 (1).

Target Value

N/A

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Gender Equality (SDG 5)
5 - Gender Equality

Directly impacted stakeholders

People

Workers implementing pineapple processing for fruit juice production based on high productivity will see their well-being improved and their ability to work strengthened. Such success would be likely to attract other promising people to this space and contribute to the fight against poverty.

Gender inequality and/or marginalization

Women and girls employed in the pineapple processing for fruit juice production, with improved equipment and pineapple suckers, will be able to increase their production and achieve significant remuneration that can improve their living conditions.

Planet

The stakeholders, companies and workers involved in the processing of pineapples for the production of fruit juice will ensure that a system for recycling organic waste is in place to limit its environmental and health impacts.

Corporates

Companies engaged in the processing of organic pineapples for the production of fruit juices will gain increased market shares both domestically and for export to the European Union (EU), generating spin-off effects on related activities. agriculture and processing of agricultural products.

Public sector

Public authorities, through the implementation of planned agricultural development zones and incentives aimed at strengthening the competitiveness of organic pineapple cultivation, will contribute to strengthening the local valorisation of agricultural products and promoting exports.

Indirectly impacted stakeholders

People

Workers of cooperatives and family agricultural units involved in the processing of pineapple for the production of fruit juice will find in the highly productive investment in the pineapple sector avenues of opportunity to develop agricultural entrepreneurship competitive.

Gender inequality and/or marginalization

Women, girls and young people will find in the processing of pineapple for the production of fruit juice opportunities to carry out their own activities differently, drawing inspiration from them as models to earn more .

Planet

Pineapple processing workers for fruit juice production will learn from sustainable agriculture and low-carbon fruit processing techniques that have proven successful in their immediate environment and will in turn implement them and ensure the sustainability of their activities.

Corporates

Companies participating in the processing of pineapple for the production of fruit juice will constitute, through their activities, a vector of innovation that can have repercussions on the dissemination of good agricultural practices and the processing of agricultural raw materials.

Public sector

Local authorities in the pineapple processing industry for the production of fruit juice will have the possibility of collecting taxes on these activities and those linked to them and deployed in their environment.

Outcome Risks

The processing of pineapples into juice can require significant land for pineapple cultivation, which can lead to the displacement of landless populations.

The process of transforming pineapples into juice could result in high greenhouse gas emissions due to the transportation of pineapples and the sometimes unsustainable nature of pineapple cultivation.

The process of transforming pineapples into fruit juice can rely on non-renewable energy consumption that is both costly and has a high level of greenhouse gas emissions.

Workers, particularly women, may suffer from difficult working conditions in terms of safety and limited social protection.

Impact Risks

Low availability of qualified people, including young and women, in the production area could increase the cost of labor and limit the impact of pineapple processing in improving the well-being of these populations.

Failures in the supply chain of pineapples to be processed into fruit juice could disrupt the production chain and limit the expected impact in achieving food security.

Failure to meet quality standards in pineapple processing could negatively affect products, resulting in loss of market share and failure to achieve expected impacts.

A lack of equity could deprive women with little training from employment opportunities in the processing of pineapples and thus leave them behind.

Impact Classification

B—Benefit Stakeholders

What

Investing in the processing of pineapple into fruit juice will reduce fruit juice imports, increase the income of workers in the sector, particularly women, while contributing to food security.

Who

Companies, farmers and trade associations involved in processing pineapple into juice, including the Ministry of Agriculture, are helping to boost food and beverage production.

Risk

While the model is proven, workforce qualifications, supply chains and employment opportunities for women require consideration.

Impact Thesis

Contribute to food security and reduce imports while improving workers' incomes through well paid jobs.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Pineapple Sector Investment Action Plan 2024-2028, adopted in May 2023, outlines priority actions amounting to 9.5 billion FCFA (USD 15.833 million) to double pineapple production from 44,391 tonnes to 88,782 tonnes by 2028 and to increase local processing frow from 35% in 2024 to at least 75% by 2028 (22, 29).

Among the supports provided to all stakeholders through the Pineapple Sector Investment Action Plan 2024-2028 are technical assistance and support for pineapple quality through the provision of pineapple suckers (22, 29).

Financial Environment

Law 2019-005/PR of January 2019 on the investment code provides for approved companies making a minimum of USD 83,333,333 in new investment, exemptions from duties and indirect taxes or, in the case of imports, other taxes collected (granted for a period of five years) (12).

Investments are eligible for the special regime when a proportion of at least 75% of production is intended for export (13).

Companies generating 75% of their turnover from exports benefit from the special industrial zone regime (12) and are eligible for more tax advantages, including exemption from corporate tax during the first 5 years and 10% on taxable profit from the 11th to the 20th year (13).

Regulatory Environment

Pineapple Sector Investment Action Plan 2024-2028 was put in place with the objective of promoting processing units for juice fruits and dry fruits production (29). This plan promotes the pineapple processing value chain in the agro-industrial dynamic and agropoles (22).

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Pronatura, Tropic Bio Production, Junabio, Agro-Food, Julado, Jus Délice, Rimouski, and All Bio (23).

Government

Ministries of Agriculture, Livestock and Rural Development; Urban Planning, Housing and Land Reform; Village Water and Hydraulics; Environment and Forest Resources; and Promotion of Investment.

Multilaterals

African Development Bank (AfDB); International Fund for Agricultural Development (IFAD); Food and Agriculture Organisation (FAO); European Union (EU); World Bank; West African Development Bank.

Non-Profit

Interprofessional Council of the Pineapple Sector in Togo; National Federation of Pineapple Producer Cooperatives of Togo; Association of Pineapple Processors of Togo; Association of Pineapple Exporters of Togo (23).

Public-Private Partnership

The Incentive Mechanism for Agricultural Financing Based on Risk Sharing (MIFA) in a Public Limited Company, one year after its creation, facilitates the reduction of the cost of acquiring agricultural inputs, the development of the soil fertility map and the creation of regional economic development hubs. The government ensures, thanks to MIFA, that the financing chain of the agricultural sector is operationalized for the benefit of agricultural producers (33).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
semi-urban

Togo: Maritime

The Maritime region is one of the pineapple producing regions (29). Other activities include food crops such as corn, cassava, beans, yams, sweet potatoes, and livestock activities (14).
semi-urban

Togo: Centrale

The Central region is one of the pineapple producing regions (29). It is also known for is crafts, notably artisanal processing of agri-food products, the manufacture of local cheese, mango juice, mechanics, weaving, sculpture, basketry, and pottery (16).
semi-urban

Togo: Plateaux

The Plateaux region, dominated by agriculture, is one of the main producers of pineapples (18, 29).

Togo: Kara

Togo: Savanes

References

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