2006-2007 Annual Report

06-07 ANNUAL REPORTINNOVATION IN NUTRITION

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© 2008 – Global Alliance for Improved NutritionWritten by Olivia PasiniDesign by åtta designPrinted by Polygravia SA on semi coated FSC paper

Global Alliancefor Improved Nutrition2

GAIN fights malnutrition to make people and economies healthier and more productive. GAIN stimulates public-private partnerships and provides financial and technical support to get healthier foods and supplements to those people most at risk from malnutrition.

www.gainhealth.org

3Global Alliancefor Improved Nutrition

GAIN is currently supporting 19 large-scale, market-based projects in 18 countries and developing a range of innovative partnership projects to improve the nutrition and health of 1 billion people.


WELCOME

INNOVATION

HIGHLIGHTS OF THE YEAR 2007

HIGHLIGHTS OF THE YEAR 2006

01 FIGHTING MALNUTRITION

MEASURING OUR PERFORMANCE

02 BUILDING PARTNERSHIPS

MOBILIZING NEW PARTNERS AND INNOVATIONS

03 ENABLING INNOVATION

04 IMPROVE NUTRITION

LARGE-SCALE FORTIFICATION PROGRAMS

05 FINANCIAL STATEMENT

INCOME STATEMENT AS AT 30 JUNE 2007

BALANCE SHEET AS AT 30 JUNE 2007

GAIN BOARD OF DIRECTORS

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We are midpoint in the global undertaking to achieve the Millennium Development Goals by 2015. While many

countries show progress, others will surely fail if they do not change their trajectory radically. The challenge is to

ensure that we get back on track.

It should shock us all to learn that every year 3.5 million children die from causes related to under-nutrition.

Moreover, eighty per cent of the burden of disease is concentrated in twenty countries in South Asia and

Sub-Saharan Africa - many of which grapple with poverty, related socio-economic, as well as political challenges.

We must stop mothers and children dying of preventable diseases and hunger. That is our mission.

Fighting hunger and fulfilling the right to good nutrition must become a global campaign that mobilizes all

stakeholders. Interventions must be sustainable and address the failures of institutions and markets that

still expose a third of humanity to the disastrous impact of malnutrition. We must build linkages to the challenges

of infant mortality, maternal deaths, HIV and AIDS, food security and rising food prices.

Over the past year, my work for GAIN has given me the privilege to interact with people from all over the world

and see scores of examples of effective work in the fight against malnutrition - action that gives dignity and hope

to millions of people.

GAIN, as an alliance and a catalyst for action, has taken important steps to put malnutrition on the global agenda.

It is building partnerships with governments, the UN system, regional institutions and civil society towards scaling-

up successful interventions. It is implementing new programs with the New Partnership for Africa’s Development

and with a range of companies who are delivering affordable and healthy products to millions of people.

I wish to thank the Board for its unstinting participation and leadership, and in particular Marc Van Ameringen

and his team for the passion and dedication with which they have pursued GAIN’s objectives.

Over the coming year, let us be guided by the African saying: ‘Sekunjalo ke Nako’, which means ‘Now is the Time’.

The time to act is now.

Jay Naidoo - Chair, Board of Directors


To date, GAIN has provided more than US$ 40 million in funding and technical support, including US$ 28 million

in grants to 19 fortification projects in 18 countries, to improve the nutrition of millions of people.

We are also implementing new programs and approaches to reach many millions more. For instance, we are

bringing our ability to mobilize partnerships and find large-scale solutions that improve nutrition to a new push

for worldwide salt iodization, and to a new program of work to enhance the quality of food given to infants and

young children.

I am grateful for the continued support of our partners in these efforts, especially of the Bill & Melinda Gates

Foundation, the Canadian International Development Agency, and the United States Agency for International

Development.

This annual report is first and foremost a review of these activities and the improvements we bring to the health of

our target populations. I hope you will share my conclusion from this report that GAIN is making a difference.

But there is more : under our dedication to fighting malnutrition and delivering measurable impacts lies our

ingrained drive for innovation to find and apply new solutions to what remains a daunting challenge.

I hope you will also see in this report our growing ability to involve new stakeholders, to find novel ways to fight

malnutrition, to demonstrate the effectiveness and efficiency of our methods, and thereby justify the trust our

partners and supporters bestow on us.

That is the solid foundation on which GAIN operates, and which will allow us to do even more in future.

Marc Van Ameringen - Executive Director

INNOVA-TION


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2007HIGHLIGHTS OF THE YEAR

June 2007The total of GAIN funding support to 19 large-scale

food fortification projects in 18 countries reaches

US$ 5.2 million for the year.

The governments of eight West African countries

join forces for the fortification of cooking oil with

vitamin A. The aim of this program, supported by

HKI, MI, USAID and GAIN, is to reach at least 70%

of the population by 2010.

May 2007The Naandi Foundation and GAIN start the

distribution of fortified meals to school children in

the Indian states of Andhra Pradesh, Rajasthan and

Madhya Pradesh. In Hyderabad, Britannia Industries

adds fortified biscuits for 120,000 children.

30 Swiss business leaders pledge to fight

malnutrition at the GAIN Business Alliance event in

Lausanne, Switzerland.

April 2007GAIN is selected by the Fast Company as one

of the 50 most entrepreneurial and imaginative

innovations to change the state of the planet.

March 2007The first GAIN Business Alliance Global Forum,

held in India, brings together 130 business and

government leaders from fifteen countries to explore

new partnerships to fight malnutrition.

January 2007UNICEF in the Indian state of Rajasthan receives

a US$ 198,480 GAIN grant for the fortification of

home-made complementary foods with a mix of

vitamins and minerals aimed at 120,000 children

aged between six and 36 months.

GAIN provides US$ 195,252 to Bangladesh’s

Social Marketing Company to promote the use of

Sprinkles, a food fortification mixture to be used in

the home, for the benefit of under-fives.


2006December 2006GAIN supports the fortification of wheat flour in the

Chinese provinces of Gansu and Shaanxi, and helps

draft a nation-wide standard.

November 2006The GAIN Board approves support to wheat flour

fortification in Egypt, oil fortification in Bangladesh

and wheat, oil and maize flour fortification in

Uganda.

Football star Zinedine Zidane opens a small-scale

factory in Bangladesh that produces 3,000 tons

of fortified yoghurt per year in Bangladesh, a

partnership between Danone and Grameen Bank,

and GAIN as the nutrition expert.

Leading US companies pledge to fight malnutrition

at the GAIN Business Alliance Forum in Seattle.

GAIN initiates a US$ 1.8 million project in Ghana to

fortify flour with eight micronutrients and vegetable

oil with vitamin A.

October 2006GAIN signs a three year grant for US$ 1,199,000

with the Georgian National Fortification Alliance

and a national NGO to provide micro-feeders to 18

large and medium-sized flour mills to add nutrients

to the flour.

September 2006A project to provide nutrient-dense blended food to

people living with HIV/AIDS in Tamil Nadu, India with

the World Food Programme and the Tamil Nadu

State Aids Control Society kicks off.

GAIN supports the fortification of 10,000 metric

tons of blended food to reach 400,000 children

aged between six and 36 months in the Indian state

of Gujarat.

HIGHLIGHTS OF THE YEAR

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01FIGHTINGMALNUTRI-TION

GAIN makes millions of people healthier and more productive through the large-scale and sustainable improvement of their nutrition.

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Malnutrition reduces the health and productivity of at least 2 billion people worldwide. The Lancet this year

estimated it kills 3.5 million children and leaves 178 million permanently damaged. It is an ongoing tragedy

that can be prevented. We have the ability to end malnutrition in our lifetime if we apply proven strategies on

a large scale.

GAIN’s programs and projects around the world are improving the nutrition and health of vulnerable groups,

especially women and young children. We currently support 19 large-scale food fortification projects in 18

countries as diverse as Ghana and Georgia. These initiatives put affordable, high-quality products on the

market. They are already improving the nutrition of an estimated 160 million individuals and will reach over 600

million people within the next five years.

The Chinese Center for Disease Control reported reductions in anemia in project areas in the order of 30%

following the introduction of fortified soy sauce in China. In four provinces of South Africa, spina bifida in

newborn babies decreased by 40% following the addition of folic acid to wheat flour and maize meal.

Such large-scale and sustainable improvements to nutrition can only be accomplished by partnerships

between governments, the private sector and civil society. Using the unique know-how and resources of each

stakeholder, we can deliver new and innovative solutions that complement the strategies of public health.

GAIN mobilizes such partnerships and provides the technical and financial support to enable innovation. Our

efforts to fortify widely-used staple foods and condiments are demonstrating their first return on investment, as

listed on the next pages. But we are also exploring new partnerships and approaches to deliver on the promise

to reach one billion people with improved nutrition.

In the field of fighting malnutrition, GAIN has always been an organization

that seeks the most effective and innovative solution - addressing the key

issues and at the same time showing a lot of sensitivity by discussing the

various topics with all key stakeholders involved.

Bruno Kistner - DSM Nutritional Products Ltd.


MEASURINGOUR PERFOR-MANCETARGET 1: COST PER DALY GAINED: LESS THAN US$ 15

Our primary target is to reduce the number of years that are lost in a population because

of death and illness caused by malnutrition – this is a measure known as ‘Disability

Adjusted Life Year’ or DALY. We aim to add one healthy year to a person’s life at a cost

lower than US$ 15, but our current estimates are that it will be between US$ 19.50 and

US$ 37 when our current projects are at full-scale. This means we need to work harder

and better to find novel cost-effective ways to tackle malnutrition in those places where it

is most widespread; we have already started new initiatives to do just that.

TARGET 2: REDUCTION IN DEFICIENCY PREVALENCE: MORE THAN 30%

Data from two nearly-completed projects demonstrate that we are on track to decrease

the prevalence of deficiencies by 30% or more. Sentinel site data in China show a 1/3

decrease in anemia in areas where iron-fortified soy sauce has been introduced, whilst

spina bifida decreased by 40% in four provinces of South Africa following the introduction

of folic acid fortification.


TARGET 3: REACH * : 1 BILLION PEOPLE;

TARGET 4: COVERAGE * OF TARGET GROUPS: MORE THAN 500 MILLION PEOPLE

Our current data projects that, when all our programs are at full scale, we will reach 612

million individuals, 335 million of whom are our target groups, especially children and

young women who are most vulnerable to malnutrition. To achieve our goals to positively

affect one billion people and 500 million people in vulnerable groups, we are working on

new projects to reach the remaining 388 million individuals and 165 million vulnerable

people over the next two years. We are, for instance, designing innovative large-scale

projects in Kazakhstan and India; preparing a series of new initiatives aimed at infants and

young children; and planning to strengthen salt iodization in 13 priority countries.

TARGET 5: COST PER TARGET INDIVIDUAL: LESS THAN US$ 0.25

We currently estimate that, on average, our current fortification efforts cost GAIN US$ 0.30

per person. This figure is expected to drop to US$ 0.16 and US$ 0.13, respectively three

and five years after the inception of individual projects.

TARGET 6: RAISE MORE THAN US$ 50 MILLION FROM DONOR AGENCIES AND

LEVERAGE MORE THAN US$ 700 MILLION IN PRIVATE SECTOR INVESTMENT

Our target to capture additional investments from donor agencies of US$ 50 million has

already been achieved: by this year, they have invested US$ 70.5 million. The commitment

of the private sector stands at US$ 360 million, which we hope to increase for instance

through our work to improve infant and young child nutrition in partnership with the private

sector.

* Reach: the number of individuals consuming fortified foods

* Coverage: the number of individuals in target groups most at-risk of vitamin

and mineral deficiencies (e.g. women of reproductive age and children) who are

consuming fortified foods


02BUILDINGPARTNER-SHIPS

GAIN builds partnerships, and especially engages the private sector, to the benefit of all involved.

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GAIN, itself an alliance of different sectors, believes that partnerships are essential in the fight against

malnutrition. Therefore, we build and stimulate connections between stakeholders at the national and

international level.

With governments, the private sector and civil society, for instance, we change legal frameworks to allow salt

iodization, supply specific nutrients to schoolchildren and people living with HIV/AIDS, develop new social

businesses that meet the needs of low-income consumers, and find ways to deliver public goods through

private channels.

Our specific strength is mobilizing the private sector to encourage contributions to our common fight to end

vitamin and mineral deficiencies through innovations, new products, distribution mechanisms and marketing

methods. Good business also thrives from delivering healthy foods to those in need.

Our partnerships are diverse and include :

Improving emergency rations

As the number of refugees and displaced people grows every day, we are investigating the distribution of food

aid and options to fortify emergency rations together with the World Food Programme. Food aid all too often

consists of basic packages, so that fortifying emergency food or providing vitamin and mineral powders have a

huge potential to improve the health of an already vulnerable group.

Stimulating healthy growth

We worked with private and public partners on a new program to improve the health of infants and young

children. It resulted in a new partnership program, which aims to promote exclusive breastfeeding up until

six months of age, and to promote the use of low cost, high quality fortified complementary foods and

supplements for children older than six months.

Fortifying local growth

We are working with Grameen Danone Foods Ltd. on a novel business model in Bangladesh. Local producers

supply milk for a small-scale factory, which turns it into a yoghurt with essential nutrients - Shoktidoi. Women

vendors earn a living by selling it at an affordable price. GAIN works with the Johns Hopkins University to study

the impact on the health of children.


Iodizing salt

Salt iodization still does not reach everyone. In partnership with UNICEF, GAIN aims to increase salt iodization in

13 priority countries to bring the percentage of households that use iodized salt globally from 70 to 85%. This

means protecting an additional 790 million people, including 20 million infants, from iodine deficiency.

Reaching consumers

GAIN is working with leading multinational Cargill since November 2006. Cargill is making some of its expertise

and know-how available to GAIN to make access to quality premix easier for the fortification of products in

developing countries.

Establishing sectoral collaboration

GAIN has set up a nutrition network of international partners in China, including UNICEF, the Asian Development

Bank, the United States Centers for Disease Control, the Program for Appropriate Technology in Health, the

World Food Programme, the World Health Organization and the Food and Agriculture Organization of the United

Nations. The group met for the first time in 2007 and is now working to help China more effectively address

malnutrition.

While we make money, we can also do good. That is what social busi-

ness is all about, and you can use your creative energies to get involved

in social business that improves nutrition. GAIN can help in that effort.

Prof. Mohammad Yunus - Nobel Laureate


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In April 2007, the Fast Company, a group and magazine that uncovers best and “next” practices, recognized

GAIN as one of the 50 most entrepreneurial and imaginative innovations to change the state of the planet.

This is because GAIN acknowledges that ending malnutrition requires, in addition to government and NGO

interventions, the new thinking, models and technical and financial resources that are applied by the business

community.

Over the past couple of years, GAIN has conducted a multitude of face-to-face meetings with companies

worldwide, convened ten business conferences and engaged with more than 200 companies. These efforts

have resulted in the inception, last year alone, of ten new partnership projects to tackle malnutrition. Today,

providing healthy food to poor and vulnerable communities makes good business sense. It strengthens a

company’s brand and reputation, and ultimately contributes to a profit-driven business strategy.

Our efforts to build public-private partnerships included :

Defining new services

The world-wide growth of the GAIN Business Alliance called for a fresh look at what these networks do and how

they do it, and how GAIN can best support their actions. Through consultation, we defined the services that will

add value and promote collaborative actions : The GAIN Global Forum as the global platform for networking and

partnership building; Partnership Assistance to help companies find suitable non-profit partners; a Knowledge

Bank with the World Bank Institute and leading business schools such as IMD and Harvard to provide expert

knowledge and case studies; and the GAIN Marketplace where companies, governments, NGOs and investors

can meet to “do business”.

MOBILIZING NEW PARTNERS AND INNOVATIONS


Building networks

Last year we expanded the range of our Business Alliance and welcomed leading companies to our events in

India and Switzerland. There, we encourage learning on new business models and demonstrate successful

models to inspire increased private sector involvement in the fight against malnutrition : one of the first concrete

outcomes in India was the launch of iron-fortified biscuits by Britannia Industries Limited, to be distributed in

schools.

Stimulating global action

The first global meeting of the GAIN Business Alliance in India, held in March 2007, saw business and

government leaders showcase innovative business approaches and foster new partnerships. Delegates

demonstrated that companies are increasingly providing nutritious food to vulnerable people at affordable prices.

They shared innovations, built new partnerships and established several new initiatives.

Focusing on China’s rural poor

The second meeting of the GAIN Business Alliance in China, in December 2006, built bridges between 70

representatives from government agencies, international organizations, large retail chains, media outlets and

the business community. Participants proposed action plans and identified the next steps in applying business

solutions to reduce malnutrition throughout the country.

Britannia is delighted to be partnering with GAIN in a first-of-its-kind

public private partnership in the school feeding program in Hyderabad

wherein we make and supply specially fortified biscuits to some of the

most disadvantaged children. We are grateful to GAIN for supporting

our work.

Vinita Bali - Managing Director

Britannia Industries Ltd, India


03ENABLINGINNOVA-TION

GAIN enables partnerships to innovate through grants and know-how.

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Innovation is one of our defining characteristics. We work with others to develop and test new approaches and

new business models that make markets work for vulnerable groups. In doing this, we create benefits for those

who are malnourished as well as for our partners from the public and private sectors.

Our financial and technical support then enables partnerships to apply these innovations at a large scale,

ensuring that impacts and return on investments are accurately measured. Last year, the following specific

initiatives demonstrated our drive for innovation :

Supporting the fight against HIV/AIDS

In India, we are looking at the relationship between nutrition and HIV/AIDS together with the World Food

Programme and the Tamil Nadu State Aids Control Society. While we already know that people respond better

to treatment when they are well-nourished, we are trying to discover the best way to integrate nutrition as part

of care, support and treatment. The provision of nutrient-dense meals in Tamil Nadu to 13,000 patients is the

most visible part. The program in Tamil Nadu is currently being extended to cover 25,000 people.

Making infants stronger and healthier

Much work over the year went into the preparation of a major new initiative to improve the nutrition of infants

and young children, because the first two years of life are vital to everyone’s future. The lack of affordable

fortified complementary foods and food supplements, for use after infants reach six months of age, remains a

major reason why children fall ill and suffer later in life. The initiative aims: to support sound practices, such as

exclusive breastfeeding during the first six months of life and continued breastfeeding up to and beyond two

years; to encourage companies and partnerships to develop and market high-quality foods for low-income

families at a large scale; and to create a sound environment for good feeding practices.

Sprinkling against deficiencies

The Indian state of Rajasthan, with support from GAIN, started pioneering the fortification of home-cooked

dishes on a large scale in January 2007. Today, some 120,000 children between six and 36 months of age

from the most disadvantaged groups are receiving a small sachet of vitamin and mineral powder on top of their

homemade meals. In neighboring Bangladesh, we enabled the Social Marketing Company to raise demand

for the product. Both projects aim to demonstrate the health impacts of fortification and catalyze the wider

distribution of Sprinkles.


Removing obstacles to fortification

Another new endeavor, launched at a meeting of the Clinton Global Initiative in September 2007, is the GAIN

Premix Fund. The Fund aims to enable programs that currently have difficulty purchasing and sourcing quality

supplies to easily access fortificants. The Fund provides loans and grants, brings producers and users together,

and offers technical assistance. With DSM Nutritional Products, Cargill, Akzo Nobel and Procter and Gamble

having pledged their support, this revolving fund will remove a major obstacle to fortification.

Reducing vitamin and mineral deficiencies by 2015

A good strategy is the first building block in attaining the vision of the entire nutrition sector working together to

drastically reduce vitamin and mineral deficiencies by 2015. This past year, a reference group and eight working

groups, made up of high level participants from the micronutrient sector, identified priority areas for action

and mechanisms for coordination. The result of their work will be presented for final validation in 2008 and the

strategy subsequently implemented.

Developing viable business models which can impact malnutrition on

a large scale and contribute to reducing poverty is a new approach for

both the private and non-profit sectors. It is a difficult challenge and an

immense opportunity to match competencies and co-create innovative

solutions. The close cooperation between Danone and GAIN in Bangla-

desh illustrates how joining forces can be efficient.

Bernard Giraud - Vice-President

Sustainable Development and Social Responsibility Group

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04IMPROVE NUTRI-TION

GAIN delivers results: it makes people healthier, stronger and more productive.

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GAIN is actively supporting 19 projects in 18 countries that bring fortified staple foods and condiments to

people in need, and is involved in a range of other targeted partnership projects.

They are making a tangible difference to people’s lives around the globe. While not all monitoring and evaluation

data is yet available, progress achieved to date on our targets and on our ultimate aim of improving the nutrition

of one billion people is significant.

We continuously improve the tools at our disposal to measure and better our performance. Our partners

now use a new semi-annual reporting tool and will receive training in how to better measure results with a

peer-reviewed toolkit. All data are fed into an organization-wide results database.

On the ground, we continue to work with our partners to directly measure baseline and mid-term data from our

projects in Ghana, Côte d’Ivoire, China and South Africa. Finally, looking to the future, we have undertaken a

costing study to identify the countries and food vehicles where fortification can have the largest impact over the

coming ten years.

The first results of our evidence-gathering are encouraging. We are on track to reach 612 million people when

our projects are at full scale, 335 million of whom are in vulnerable groups such as women and children.

Here are a few examples of how we tangibly improve nutrition on a large scale and thereby enhance people’s

lives on a daily basis.


Georgia

Georgia has adjusted maternal mortality rates that are nearly three times those of industrialized countries, and

the probability of a child dying before the age of five is about eight times higher. GAIN supports the Georgian

National Fortification Alliance and Georgian NGO ACTS to install micro-feeders and premix inclusion machines

at 18 large and medium-sized flour mills. Millers are trained in production, quality control and assurance. The

project aims to produce 280,000 metric tons of fortified wheat flour that will benefit some 2.3 million consumers,

including 1 million of the most vulnerable women and children.

Ghana

In Ghana, 65% of pregnant women, 76% of preschoolers and 41% of women of child bearing age are anemic,

and this contributes to 20% of maternal deaths. Our project supports the introduction of mandatory flour

fortification with eight micronutrients and vegetable oil fortification with vitamin A, and upgrades quality control

in the public and private sector. After three years, 100% of all commercially milled wheat flour, as well as

manufactured and imported vegetable oil, will be fortified. This equates to 481,000 metric tons of wheat and

40,000 metric tons of vegetable oil per year. This initiative will cover 80% of the population, including the 4.4

million individuals most at risk.

China

Since December 2006, GAIN has been working on a nation-wide policy for wheat fortification. The National

Standard for Fortified Wheat Flour has been approved by National Standards Standing Committee. Iron-fortified

soy sauce now reaches an estimated 33 million people at risk of iron deficiency. Over the past year, four more

large companies obtained accreditation to fortify soy sauce, bringing the total to 20 producers.

Through its convening power and innovative mindset, GAIN is helping

address hunger and undernutrition effectively and sustainably. GAIN

is creating a new partnership paradigm that combines the respective

strengths of the private and public sectors, producing both social and

economic value for all stakeholders and in particular the poor.

Paulus Verschuren - Unilever


Francophone West Africa

GAIN and others have supported the Economic and Monetary Union of West Africa to organize a public-private

dialogue on oil fortification with the governments of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Guinea

Bissau, Senegal and Togo. In March 2007, the Union and other partners joined forces to promote the mandatory

fortification of cooking oil with vitamin A for at least 70% of the population by 2010. These efforts build on GAIN-

supported oil fortification programs in Côte d’Ivoire and Mali.

India

Many children in the Indian state of Gujarat are nutrient-deficient. In September 2006, GAIN initiated a food

fortification project where 10,000 metric tons of fortified blended food, procured by the government through

the Integrated Child Development Services system, reaches 400,000 children aged between six and 36 months.

This project brought in additional resources and is now being scaled up to reach a million children.

The Government of Gujarat revised its norms and will now only procure fortified blended food for the system.


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4. 7.6.5.

LARGE-SCALE FORTIFICATION PROGRAMS


DominicanRepublic

ProductWheat flourFortificantIronvitamin B

ProductSugarFortificantvitamin A

Bolivia


ProductVegetable oilFortificantvitamin A

ProductMilkFortificantIron, Zincvitamin AC, D & E

Morocco


ProductVegetable oilFortificantvitamin A, D

Mali


Côted’Ivoire

ProductWheat flourFortificantIronfolic acid

ProductPalm andcottonseed oilFortificantvitamin A

Ghana

ProductWheat flourFortificantIronvitamin AZincvitamin B


Nigeria

ProductWheat flourFortificantIron, Zincvitamin A, B


ProductSugarFortificantvitamin A

SouthAfrica


ProductMaize flourFortificantIronvitamin AZincvitamin B

Zambia

ProductMaize flourFortificantIronvitamin AZincvitamin B

Uganda


ProductMaize flourFortificantvitamin A, BIronZinc


Egypt


Georgia


Uzbekistan

ProductWheat flourFortificantIronZincvitamin B

Kazakhstan


Pakistan


Bangladesh


China

ProductSoy SauceFortificantIron

Vietnam

ProductFish sauceFortificantIron

China(Gansu and Shaanxi province)


1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

11. 12. 13. 14. 15. 16. 17. 18. 19.

14.13.

15. 17.16.

18.

19.

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10.

11.

12.

8.


* footnote: vitamin B here denotes the B vitamins for ease of reading; the actual use of B vitamins varies slightly between projects

05FINANCIAL STATE-MENT

GAIN is in sound

financial shape.

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Steady growth

Since the financial year 2005/2006, GAIN’s total expenditures have been expanding. This growth is primarily

due to the growth in new programs, such as our work on infant and young child nutrition. For the financial year

2007/2008, we are currently forecasting total expenditures of US$ 22.5 million.

GAIN keeps accurate track of its income and expenditure, and applies strict policies and procedures to ensure

transparency and accountability towards its supporters and partners. The result is that our auditors, Deloitte,

have given our accounting a clean bill of health. While our Income Statement and Balance Sheet from that

report are presented in the pages that follow, we invite you to read the complete auditors report and financial

statements, which can be found at www.gainhealth.org.

2005/62006/7

2007/8

$20,000

$10,000

$5,000

$15,000

Total Expenditures by Financial Year

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figures in thousands; estimated figure for 2007/8

20200505/6/6202006/7/7

202007/88

$$20,000

$$$$$$$$$$$$$$$$$$1111111111111111111111000000000,000

$$$$$$$$5,000

$$$11555555555555,,,,,,,,00000000

Total Expenditures by Financial Year

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figures in thousands; estimated figure for 2007/8


Investing in nutrition

Financial and technical support to food fortification in 2006/2007 took the largest share of expenditures at

almost 54 per cent, whereas our efforts to create new partnerships and work on innovative projects received

17 per cent of our operating budget. One per cent was invested in the development of our new program

of work on infant and young child nutrition.

Our expenditures on corporate and administrative services reached nearly 16 per cent, only slightly higher than

our goal to keep overheads below 15 per cent. It means monitoring and cutting costs remain as important as

ever. Further, the projected increase in program expenditures in the coming fiscal year will also allow us to meet

this efficiency target.

Food Fortification1%

17%

5%5%2%

16%

54%

Infant & Young Child Nutrition

Performance Measurement & Research

Communication & Advocacy

Investments & Partnership

Corporate Administrative Sevices

Special Programs

Financial Year 2006-2007Expenditures by Program


INCOME STATEMENT AS AT 30 JUNE 2007

2006/2007 2005/2006

INCOME

Donations received $ 42,781,128 $ 7,053,713

Bank interest $ 1,828,900 $ 554,490

Sundry income $ 77

TOTAL INCOME $ 44,610,028 $ 7,608,280

EXPENDITURE

Project related costs

Project grant expenditures $ 5,232,368 $ 6,148,260

Project supervision fees $ 25,000 $ 25,000

$ 5,257,368 $ 6,173,260

General administration expenses

Staff related expenses $ 3,709,441 $ 3,994,828

Office rental $ 199,741 $ 177,367

Secretariat operational expenses $ 594,047 $ 390,502

Professional, technical and legal fees $ 2,101,949 $ 1,699,343

Travel and meeting expenses $ 1,318,577 $ 953,540

Depreciation $ 100,568 $ 72,938

Other miscellaneous $ 17,658 $ 42,465

Bank charges $ 39,876 $ 35,936

Exchange difference, net $ 42,151 $ 29,054

$ 8,124,008 $ 7,395,973

TOTAL EXPENDITURE $ 13,381,376 $ 13,569,233

Surplus of income over expenditure $ 31,228,652 $ (5,960,953)

Surplus, beginning of the year $ 954,246 $ 6,915,199

SURPLUS, END YEAR * $ 32,182,898 $ 954,246

All figures in USD, figures for 2005/2006 as comparison

* These funds are already committed to multi-year grant agreements for food fortification,

the program on infant and young child nutrition, and project supervision contracts.


BALANCE SHEET AS AT 30 JUNE 2007

2006/2007 2005/2006

ASSETS

CURRENT ASSETS

Cash at bank $ 41,230,415 $ 10,580,590

Advances to UNDP and UNOPS $ 111,223 $ 311,223

Other receivables $ 791,071 $ 236,108

Prepaid expenses $ 147,553 $ 62,626

Total current assets $ 42,280,262 $ 11,190,547

Fixed assets, net $ 211,836 $ 189,131

TOTAL ASSETS $ 42,492,098 $ 11,379,678

LIABILITIES

CURRENT LIABILITIES

Bank overdraft $ 1,349,818 $ 47,859

Accounts payable $ 313,124 $ 240,120

Other creditors $ 35,998 $ 21,150

Accrued expenses $ 426,140 $ 608,802

Grants payable $ 3,541,144 $ 6,797,524

Project supervision fee $ 228,896 $ 328,793

Total current liabilities $ 5,895,119 $ 8,044,248

LONG TERM LIABILITIES

Grants payable after one year $ 4,377,894 $ 2,344,997

CAPITAL AND RESERVES

Foundation capital $ 36,187 $ 36,187

Surplus $ 32,182,898 $ 954,246

Total capital and reserves $ 32,219,085 $ 990,433

TOTAL LIABILITIES $ 42,492,098 $ 11,379,678

All figures in USD, figures for 2005/2006 as comparison


RE

UTE

RS

/Iss

ei K

ato


Jay Naidoo, Chair

Chairman, Development Bank of Southern Africa;

Chairman, J&J Group, South Africa.

Jaime Sepulveda, Vice Chair

Director, Integrated Health Solutions Development

Program, Bill & Melinda Gates Foundation, USA.

Chunming Chen

Senior Advisor, Chinese Center for Disease Control

and Prevention; Director, International Life Science

Institute, China.

Frances Davidson

Health Science Specialist, Office of Health and

Nutrition, Bureau for Global Programs, U.S. Agency

for International Development, USA.

Christopher Elias

President, PATH, USA.

Pierre Henchoz

Partner, Lombard Odier Darier Hentsch & Co,

Switzerland.

Richard Hurrell

Professor, Institute of Food Science and Nutrition,

Swiss Federal Institute of Technology, Switzerland.

Catherine Le Galès-Camus *

Assistant Director General, Noncommunicable

Diseases and Mental Health, World Health

Organization, Switzerland.

Kul Gautam *

Deputy Executive Director, UNICEF, USA.

Olivier Kayser

Vice President, Ashoka, UK.

Ernest Loevinsohn

Director General, Health and Nutrition Directorate,

Canadian International Development Agency, Canada.

Franck Riboud

Président Directeur Général, Groupe Danone, Paris,

France.

Anji Reddy

Executive Chairman, Dr Reddy’s Laboratories Ltd,

India.

Paulus M. Verschuren

Senior Director, Partnership Development,

Unilever, the Netherlands.

Julian Schweitzer, Ex Officio

Director of Health, Nutrition and Population, Human

Development Network, World Bank, USA.

Marc Van Ameringen, Ex Officio

Executive Director, GAIN, Switzerland.

* Retired from their positions at the time of publication

of this report; their replacements are expected to join the

GAIN Board in 2007/2008.

GAIN BOARD OF DIRECTORS


Marc Van Ameringen

Executive Director

Regina Moench-Pfanner

Senior Manager, Food Fortification

Dominic Schofield

Manager, Infant & Young Child Nutritionas of 1 May 2008

Bérangère Magarinos

Senior Manager, Investments and Partnerships

Barbara Macdonald

Senior Manager, Performance Measurement

and Research

Elroy Bos

Senior Manager, Communications and Advocacy

Edward Atkinson

Chief Financial Officer

Craig Courtney

Manager, Investments and Partnerships

Vanessa Ng

Legal Manager

Rajan Sankar

Senior Manager and Regional Representative,

South Asia

Larry Umunna

Regional Representative, Africa

Bing Liu

Regional Representative, South East Asia

GAIN MANAGEMENT


GENEVA, SWITZERLAND

Rue de Vermont 37-39CH-1202 Geneva

SwitzerlandT +41 22 749 1850F +41 22 749 1851

E [email protected]

NEW DELHI, INDIAYWCA Complex

Ashoka RoadNew Delhi - 110001

IndiaT + 91 11 4658 0246 /47/48

F + 91 11 4658 0249

BEIJING, CHINAE - Tower # 1505,

C12 Guanghua RoadChaoyand District

Beijing - 100020China

T + 86 10 6592 5193F + 86 10 6592 5197

JOHANNESBURG,SOUTH AFRICAP.O. Box 1234

MidrandHalfway House 1685

South AfricaT +27 11 256 3488F +27 11 256 3489

Delivering improved nutrition to make people, communities and economies stronger, healthier and more productive.

www.gainhealth.org

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2006-2007 Annual Report

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