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The first round of bidding has taken place for a £2 million fund launched in
July this year to help increase the UK market for food from Africa. Some 24
concept notes were submitted and 11 of these bidders have been invited to
submit full proposals. The bidding consortia include four major UK
supermarkets, and five established retail brands.
The fund is now open for a second round, with a deadline for the submission
of concept notes of 28th February 2009. The management team would like to
engage with potential bidders. Application details are available from
this site.
The Food Retail Industry Challenge Fund, announced in December 2007 by
Gareth Thomas, Minister for Trade and International Development, is designed
to encourage UK retailers and owners of retail brands, as well as those
supplying to them, to come up with new business ideas that will enable
African farmers to improve their livelihoods by competing more effectively.
By bringing together retailers and African farmers, the fund will help to
increase the market for sustainably produced food and give African farmers a
fairer and more profitable trading relationship with UK buyers.
The Food Retail Industry Challenge Fund
FRICH is a fund launched by the UK Government’s Department For International
Development to challenge the private sector to find ways of getting more food
from Africa into UK supermarkets and other retail outlets.
Giving African farmers greater access for their food exports helps reduce
poverty and increase rural incomes, so the fund is designed to support projects
that bring african farmers and their workers, including poor smallholders into
the food supply chain.
While UK supermarkets have successfully developed African horticulture to meet
year-round demand for fresh fruit and vegetables, most produce is sourced from a
few countries only and farmers find it hard to meet buyers’ exacting standards.
Further obstacles to these farmers can arise from concerns over food miles,
environmental conservation, labour standards and food safety. FRICH seeks to
find new ways to overcome these constraints
FRICH is designed as a risk-sharing mechanism. Its funding will help business
innovations – ideas that might otherwise be too risky to attract commercial
operators – to get off the ground. Innovations may vary widely, from introducing
new technologies along the supply chain, creating links with suppliers in new
countries, developing new crops or products, opening up new distribution
channels or devising creative marketing strategies that target UK consumers.
Successful bidders will need to propose projects with the potential to improve
market access for African products. They are also encouraged to find approaches
that raise awareness among UK consumers and increase their demand for African
food products. The overall goal is to discover new approaches that can be scaled
up, achieving sustained increases in trade.
What are the criteria for projects?
Project types:
The funding targets public-private partnerships in the food retail sector that
are developing new profitable business models that will increase demand for food
sustainably produced by African farmers and agribusiness. FRICH supports
projects and not individual companies or organisations. Moreover, a UK retailer
or retail brand must be involved. While the business models being tested need
not be proven, they should have the potential to be commercially viable.
Geographical spread:
The funding is intended to reach some of the poorest countries north of South
Africa and south of the Sahara. The first bidding round attracted several
projects involving products from Kenya, Ghana,
Rwanda, and Malawi.
FRICH is now keen to support projects in other countries, including
non-Anglophone nations.
Product range:
All food products are eligible (including fish and meat) but projects must be
focused on UK import of a food product or products from Africa.
While proposals have so far included coffee and tea, cashew, pineapple, cocoa,
dried fruit, macadamia, juice and honey
FRICH is seeking ideas that
promote trade in other products, too. FRICH is interested in developing
competitive quality products, not only those that rely on the ‘Fairtrade’
market.
Impact:
Projects should be innovative and commercial, involving new products, services,
marketing approaches, business models or supply chain systems. They should
deliver sizeable benefits to a significant number of people and have the
potential for impact beyond the project through replication or by changing the
way the supply chain functions. They should also address environmental concerns.





