5) Description of health product/service offering: This project will address Micronutrient Deficiency or Hidden Hunger, the cause of death for millions of children annually and affecting two billion individuals according to the December 2005 report of the International Food Policy Research Institute. It can be done by providing poor families an effective means of accessing cheap vitamins, minerals, trace elements as well as amino acids in the form of shellfishes fortified with microscopic algae. Micronutrient deficiency adversely affects the health, economic and social development of individuals, communities and nations. The human body cannot produce vitamins/minerals and therefore its uptake on a very regular basis is a must to counter effects of deficiency. In particular, iron deficiency, the world’s most widespread nutritional disorder, is the main cause of anemia associated with malaria and chronic infections such as HIV. Furthermore, iodine deficiency is the single greatest cause of brain damage in fetal, infants and young children. Vitamin A deficiency increases the risk of blindness in children and pregnant women. At the Cellular Level, DNA damage from micronutrient deficiencies is likely to be a major cause of cancer. This new product consists of clams, oysters and mussels fortified with algae through the process of biotechnology fortification. The innovation is covered by three patent applications in shellfish post harvest handling and transport of mollusks. The service for shellfish growers is a process whereby mollusks are kept alive in water circulating tanks and fed with cultured algae. Clams, oysters and mussels are filter feeders that siphon or draw off the contents of the water column in its vicinity. When this happens, the original nutrients available from shellfish meat are supplemented with vitamins, minerals and trace elements coming from microscopic plants like chlorella and spirulina. The fortified product has 19 amino acids, 10 vitamins and 8 trace elements to combat micronutrient deficiency.

6) Description of innovation: MicroNutrient Express® Project is the patented process of “Fortification Feeding” whereby algae are used as the food of aquatic animals such as shellfishes. Without being bound by theory, shellfishes are known as filter feeders and therefore, the introduction of algae in the water medium guarantees that nutrients coming from plants will be available for man. By combining the results of a High Performance Liquid Chromatography Test (http://www.nutriadvice.com/nutritional_facts/Mollusks,% 20oyster,%20Pacific,%20raw.htm and http://www.nutriadvice.com/nutritional_facts/Seaweed,% 20spirulina,%20raw.htm),

a simple calculation will show that one piece of fortified oyster can have 15 times more nutrients than one capsule Pharmaton. Total nutrients for one piece oyster is 4532.85 mg (price: US$0.08) while a Pharmaton capsule has 291.66 mg sold at US$0.42. The genetic makeup, photosynthetic apparatus & respiratory system of microscopic algae are not separated by internal membranes such that these are easily assimilated during human digestion. Branding and access to larger markets will provide profits for growers and health benefits for consumers. It is the goal of MicroNutrient Express® to integrate the distribution of nutrient fortified shellfishes with existing traders normally found in wet markets, supermarkets and seafood outlets everywhere. This strategy will greatly enhance immediate distribution as well as the convenience for customers being able to buy in places where shellfishes are actually traded previously. For poor families, commercial vitamins are a low priority or totally unheard of and its uptake by children and even adults outside regular meals is oftentimes neglected or missed. A clear contribution of MicroNutrient Express® to set a new pattern for the health field is the ability of fortified shellfish products to be incorporated in regular meals or diet unlike pharmaceutical products and dry herbs in tablet/capsule forms requiring extra effort to take.

7) Operational model: The focus of MicroNutrient Express® on health care, income generation and environmental sustainability can be summarized in the value propositions as follows: a) Social Value Proposition - For the two billion people suffering from nutrient deficiency (Figure 1 found in link: www.ifpri.org/pubs/agm05/jvbagm2005.asp), shellfish nutrient fortification will provide a good source of vitamins, minerals and trace elements that can be affordable even to the poorest of the poor. Unlike commercially prepared vitamins and minerals which require extra money and effort to take, fortified shellfish will form part of peoples’ regular food regimen. b) Financial Value Proposition - For marginal coastal shellfish growers who are one of the poorest in the industry, shellfish nutrient fortified products will provide income of as much as three times current levels. This will be done through shellfish fortification, branding and access to larger markets; c) Environmental Value Proposition - For the environment that has been neglected and abused through the years, shellfish nutrient fortification will give a chance to promote coastal resources management through Information, Education and Communication efforts. The motto, NO PROTECTION, NO LIVE MOLLUSK TRADING will provide the impetus for people to start an Integrated Coastal Management program. MicroNutrient Express® has developed an original concept called FRONT®- FRANCHISE OPERATE ‘N TRANSFER similar to a BOT Scheme (Build

Operate and Transfer). In this concept, Local Government Units are required to pay a franchise fee which will be used to start up new facilities for MicroNutrient Express®. The franchise fee will ensure that shellfish growers who normally don’t have the capital for business will be able to avail of government funding. For nutrient fortified shells to impact the global nutrient deficiency problem, it is imperative that shellfish fortification centers are established in most areas where culture of shellfishes exist.

8) Human resources: Bonifacio Comandante Jr, Project Leader & Technical Officer will be responsible for the strategic direction including some marketing aspects. He is an Agricultural Engineer, finished MS Economics, MS Coastal Resources Management and currently pursuing PhD in Marine Biology at Silliman University, Dumaguete City, Philippines. He has several distinctions: • Grand Prize Winner – Department of Trade & Industry - Business Innovations Awards, 2004 Philippines. • Best International Business Award – University of San Francisco, USA, 2005 (www.usfca.edu/sobam/nvc/bpc/bpc_2005.html) • First and only Filipino Vice-President of Wholesale Warehousing Industries/DS MAX, a global direct marketing company operating in 122 countries. Norberto Riego, Training Director and overall responsibility for day-to-day operations. Currently Camp Superintendent of Buhi Marine Worldwide Supply, Inc. providing trainings & seminars for live fish and mollusk post harvest technologies. Norberto finished his Bachelors Degree from Silliman University and completed all academic subjects in MA Education. He is currently pursuing a Masters Degree in Coastal Resources Management at Silliman University, Dumaguete City.

9) Key operational partnerships: MicroNutrient Express® is a partnership between e-BEST (an affiliate of Partners Worldwide), a non-profit organization focusing on entrepreneurship/social transformation and Buhi Worldwide, a business enterprise providing services for post harvest handling and waterless transport of fishes and other seafood products. Bonifacio is Chairman of Buhi Worldwide as well as the First President and Incorporating member of e-BEST in 2001 while Norberto is currently VP for e-BEST Visayas (www.e-bestph.com/html/officers.htm). Shellfish growers who are members of e-BEST will be given the chance to avail of loans for project expansion. E-BEST program covers a Holistic Development Framework, an Enterprise Development Program and strengthening of Organizational Structure. Two sites in Central Visayas, Philippines namely; Bais City and Jiabong, Samar were originally chosen on the basis of prior association by Buhi Worldwide with shellfish growers in the area. Biotechnology facilities will be constructed or enhanced and handled by technicians from Buhi Worldwide. Each site will be manned by two supervising technicians while the rest of the helping hands will be sourced from the community. Gender sensitivity and good governance will be part of the project. For global expansion, Partners Worldwide (http://partnersworldwide.org/partnerships/country.html) will come in handy to support e-BEST MicroNutrient Express® Projects in Asia, Africa, Latin America, North America and Europe.

10) Financial Sustainability

          • Fees charged to clients?: Yes

          • How do you assure affordability?: Shellfishes are cultured or harvested from the wild in both freshwater, brackish and seawater making its availability very common worldwide (World trade: 21.297 M metric tons annually). Clams and mussels are very affordable in developing countries because of abundant supply from the wild and ease in production. Shellfish fortification and distribution is estimated at US$0.29 per kg. In Southeast Asia, clams and mussels are one of the cheapest viand where a common practice for low income families is to take one kg every week. At expected retail prices, one kg clam or mussel will cost $0.75 per week or $39.00 per year for the whole family. The micronutrients provided by the cheap fortified shellfishes will go a long way in uplifting the health of children, mothers and nations in general.

          • Earned incomes as a percentage of operating costs: 48%

          • Other funding sources: Funding Sources: a)Investors/Personal US$ 38,461 – Businessman Edward Du invested in exchange for 27.5% shares in Buhi (Philippine Securities & Exchange Commission No. CS200406859 - May 3, 2004). b)Bank Loan US$19,230 – currently being negotiated with the Land Bank of the Philippines. Credit investigators finished visiting Buhi Camp facilities. c)World Bank Financial Assistance US$11,538 – the project (entry No. 0004) is currently a finalist in the WB Development Innovation Marketplace (www.panibagongparaan.com/projects-finalists.html). d)Other Grants US$10,576 – winning the grant from Ashoka’s Competition will augment the requirement for this grant. Payback Period: 2.08 years Net Present Value US$173,944 Profitability Index 3.17 MicroNutrient Express® is a very viable business.

          • Strategy for long-term sustainability: Shellfish products brought to the facilities will be charged with a fortification processing fee equivalent to US$0.10-0.15 per kg, the purpose of which is to fund administrative and operational expenses i.e., 5-step business process: culture of algae, shellfish depuration, nutrient fortification, transport & marketing including Coastal Resources Management initiatives. It is the goal of the project to turn over the facilities to the fisherfolks after a year or even earlier if beneficiary confidence in handling the center is felt. These values include strong leadership of officers, good planning & monitoring skills as well as a very supportive body of members. Technology transfer, on the job training and sharing of responsibilities will prepare the beneficiaries for facilities take over.

11) Current and Future Impact

          • Total number of clients: 3840 persons

          • Clients in the past year: 3840 persons

          • Percentage of low-income clients: 65

          • Impact: Buhi Worldwide has an existing contract with Bais City (Memorandum of Agreement dated June 28, 2004) in handling & marketing live seafoods. With this shellfish project, Bais government continued to play its role as lead agency to ensure that best fishing practices reach the grass root levels. Fifty (50) local shellfish growers have started to appreciate the value of what live shellfish trading can do. A concrete example is the ability of stakeholders to separate gravid animals enabling the organism to release eggs properly. Most importantly, the project was designed to cater for the needs of not only fisherfolks from the immediate vicinity but also that of neighboring towns. This has built partnerships among different groups that have been historically at odds in terms of fishing domain.

          • Overall "market": For MicroNutrient Express® budget proposal at hand, the project will try to address the needs of 2.8 million individuals (466,667 families) or 0.14% of the 2B global population affected by the deficiency problem (10-yr plan). Each family needs 1 kg of clams or mussels weekly. The potential demand is 0.024 million metric tons of shellfish (fortified with nutrients) or 0.36% of current global production. Product Sources •First Year: Central Philippines (No. of Marginal Shellfish Growers-150, Aquaculture Production- 0.056 million metric tons & Market Value-US$42,000) •Second Year: Southern Luzon (No. of Marginal Shellfish Growers-150, Aquaculture Production-0.008 MMT & Market Value-US$6,000) •Third Year: Ilocos Region & Mindanao (No. of Marginal Shellfish Growers-300, Aquaculture Production 0.015 MMT & Market Value US$11,250). Other Sources– Year 3-5 •Thailand (500 growers, 0.43 MMT & US$322,500) •Vietnam (500 growers, 0.24 MMT & US$180,000)• Indonesia (500 growers, 0.17 MMT & US$127,500) The project is in line with Philippine Republic Act 8976 also known as the Food Fortification Act of 2000 & United Nations program being implemented by the Center for Disease Control and Prevention.

12) Scaling up strategy

          • Stage of the initiative: Scaling Up stage.

          • Expansion plan: Two areas of expansion: The first will be the role of e- BEST (www.e-bestph.com), an NGO active in bridging the gap between what micro-finance entities and regular banks cannot offer. Philippine micro-finance is limited mostly to livelihood start-ups wherein funds available range between US$100-300 per loan. Banks on the other hand require collaterals for loan transactions. e-BEST has a program to meet the requirements of these non-bankable shellfish growers wherein loan amounts can reach up to US$10,000. From the current yearly average income of US$1,920 per shellfish grower, MicroNutrient Express® can provide a means of increasing incomes by three times or US$5,760 in the 2nd or 3rd year. Second will be the effective usage of FRONT® to scale up operations. Internal revenue allotments of local government units and congressional funds will be tapped to avail money from government. This money will serve as the Franchise Fee for MicroNutrient Express® project and will specifically be earmarked for algae culture tanks and shellfish depurating raceways. Buhi has contracted the services of RK Franchise to speed up negotiations & documentations (www.rkfranchise.com/fifa/members.htm).

13) Policy change: An Information, Education and Communications program on the health advantages of micronutrients coupled with the institutionalization of Coastal Resources Management should be the top policy change needed to accelerate social change in MicroNutrient Express® Projects. The biotechnology center will cater to the needs of the fisherfolks in all aspects of nutrient fortified shellfish trade and health benefits. The approach for CRM will be made similar to government’s delivery of basic health services. The center will therefore be a permanent landmark for peoples’ concern on micronutrient health deficiencies and problems on marine resources. The shellfish nutrient fortification project entails the establishment of a center and protected area to impose the motto, “NO PROTECTION, NO MOLLUSK TRADING.” The project will therefore be an entry point for the larger terrestrial environment issues.

14) Origin of the initiative: In December 2003, a pioneering technology on Live Fish Transport without Water was successfully presented by Bonifacio Comandante in Silliman University. Soon afterwards, Boni found out that the process works for most organisms with gills. Similar experiments were then done on mollusks and by 2004, MicroNutrient Express® developed into a full-blown business. Last year, Boni won the Best International Business Award from the University of San Francisco. Boni is President of Buhi Philippines & Chairman of Buhi International Group –Australia (ACN113023500). Boni holds an Agricultural Engineering diploma from the University of the Philippines, took his Masters Degree in Economics at the Asian Social Institute and later finished a Master’s of Science course in Coastal Resources Management, Silliman University. Bonifacio is currently pursuing his Ph.D in Marine Biology at Silliman University.

Contact Information:
Bonifacio Jr  Comandante
President
Buhi Worldwide (Buhi is a word adjective for LIVE in the Philippines)
(Business)
3089 Cangmating Road, Sibulan Negros Oriental, Philippines
Philippines
Tel: +639212994720
Fax: +6335-4199293
Email: bonicom@yahoo.com
Website: www.buhiworldwide.com Document:http://www.pia.gov.ph/album.asp?mo=0407&da=17&fi=04071703.jpg