Solutions for hidden hunger

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							Solutions for hidden hunger




             ANNUAL REPORT
                    06-07
                                                           SOLUTIONS FOR HIDDEN
                                                           HUNGER IN AFRICA

                                                           Our Mission
                                                           The Micronutrient Initiative (MI) works to ensure the most
                                                           vulnerable – especially women and children – in developing
                                                           countries get the vitamins and minerals they need to survive and
                                                           lead productive lives.

                                                           How MI Helps Stop Hidden Hunger
                                                           MI helps governments, food producers and partner organizations
                                                           to develop and implement culturally appropriate and cost-
                                                           effective micronutrient programs. The services offered by
                                                           MI experts include:
                                                           •   situation assessment and program design
                                                           •   technology development
                                                           •   policy development
                                                           •   capacity development
                                                           •   procurement
                                                           •   technical assistance to countries

                                                           We are passionate about:
                                                           • helping developing nations save lives and improve livelihoods
                                                             through better nutrition
                                                           • developing and sharing the most appropriate solutions for
                                                             hidden hunger
                                                           • reaching the people who need vitamins and minerals the most

                                                           We believe that:
                                                           • children have the right to a healthy start in life and should grow
                                                             up free from the preventable impairment of hidden hunger
                                                           • women have a right to the vitamins and minerals that will provide
                                                             for their full economic and social participation in society
                                                           • working in partnership with governments, the private sector
                                                             and civil society organizations is essential to success
                                                           • collectively we have the ability to implement existing, simple
                                                             and affordable solutions for hidden hunger – to the benefit of a
                                                             full third of the world’s population


                                                           Financial Supporters
                                                           MI thanks the following financial supporters,
                                                           without whom the work described in this annual report
                                                           would not have been possible:

                                                           Canadian International Development Agency (CIDA)
                                                           Christian Blind Mission International (CBMI)
                                                           DSM Nutritional Products
                                                           Government of Bolivia
                                                           Government of Bihar State, India*
                                                           Government of Indonesia
                                                           Government of Pakistan
                                                           Inter-American Development Bank (IADB)
                                                           International Centre for Diarrheal Disease Research
                                                           in Bangladesh (ICDDR,B)
                                                           The Izumi Foundation
                                                           UNICEF
                                                           The World Bank
                                                           World Food Programme (WFP)

                                                                                                   *Through the MI India Trust


2   The Micronutrient Initiative Annual Report 2006-2007
FIFTEEN YEARS OF
HIGHLIGHTS
PROGRESS THROUGH
FROM AFRICA
PARTNERSHIP

                                                                    Kul C. Gautam                       M. G. Venkatesh Mannar
                                                                    Chair                               President



Fifteen years ago, the Micronutrient Initiative (MI) was born out   MI has also worked directly with national governments across
of a pledge by world leaders to protect children everywhere from    three continents to help develop and implement national action
the tragic and preventable disease and impairment caused by         plans to address hidden hunger. Examples this year included
hidden hunger. Since then, MI and its many partners have            the India Micronutrient National Investment Plan, launched in
worked hard to protect some of the world’s most vulnerable          October 2006, Senegal’s new push to iodize all of its salt, and
people. We have focused particularly on the poorest women           Bolivia’s program to address childhood anemia, all of which are
and children in developing countries because they are               already showing significant and lasting benefits.
disproportionately affected. By helping women and children
survive and thrive, our programs are helping to break cycles of     To help ensure effective coordination between development
poor health and poverty and to build up the physical and            partners, last year MI hosted the secretariats for the Network for
financial well-being of families, communities, and whole nations.   Sustained Elimination of Iodine Deficiency (Iodine Network) and
                                                                    for the newly formed Global Alliance for Vitamin A (GAVA). MI was
We estimate that last year alone MI                                 also active in the Flour Fortification Initiative (FFI), the Initiative to
                                                                    End Child Hunger and Undernutrition, the 10-year strategy to end
programs reached approximately                                      micronutrient deficiencies co-ordinated by the Global Alliance for
                                                                    Improved Nutrition (GAIN), as well as in the Partnership for
500 million people.                                                 Maternal Child and Newborn Health. MI worked particularly
                                                                    closely with UNICEF, WFP, the World Health Organization (WHO)
We estimate that last year alone MI programs reached                and the World Bank by seconding staff to these organizations to
approximately 500 million people. This, our greatest ever reach     enhance program coordination and results.
in one year, has only been possible with the help, support and
commitment of national governments, non-government                  Over the years, MI has also become known for innovation and for
organizations, industries and individuals, and the many             extending the boundaries of what can be achieved. MI recently
development partners who have worked jointly with MI to             earned international recognition for its work on an award-winning
address hidden hunger. The ongoing support and commitment           gravity operated fortification device in Nepal that extends the
of the Canadian Government through the Canadian International       health benefits of flour fortification to rural people served by small
Development Agency (CIDA) deserves special mention.                 traditional mills. Other innovations featured in this report include
                                                                    the use of GPS technology to map small-scale salt producers in
The success of the last year is also the result of tireless         Senegal and work with them and the Government of Senegal to
advocacy over the last 15 years, keeping hidden hunger high on      support iodization of the salt they produce.
the world’s agenda, and bringing together key partners to both
create the conditions for action, and to make it happen.            As the 2006-2007 year ended, MI underwent a strategic visioning
Through these efforts, MI has learned that leadership by            process to evaluate the lessons of the past 15 years, and to
countries and well coordinated support from development             develop a new strategy for the next 5 years. This will see MI
partners are essential for sustained success.                       strengthen its presence and efforts in core countries, further
                                                                    increase collaborative programs that complement the strengths of
The global vitamin A effort is a perfect example of success         its partners, and strengthen its focus on programs that accelerate
through nationally led programs. For over 10 years, a major         the achievement of the Millennium Development Goals.
thrust for MI has been its work with UNICEF in over 70
countries to support nationally led programs to improve child       In the coming years as we put MI’s new strategy into action, we
survival through vitamin A supplementation. Best estimates          look forward to the power of your support and partnership.
indicate that these national programs had saved the lives of        Working together, we can implement the simple and affordable
more than 2.5 million preschool children by December 2005. As       solutions that will protect women and children around the world
you will see in the pages that follow, vitamin A programs           from hidden hunger and fulfill that leadership pledge – both
continue to be a major priority for MI.                             ambitious and admirable – that gave rise to MI 15 years ago.

Universal Salt Iodization efforts are another area where MI,
throughout its 15-year history, has had a key role in stimulating
national plans and action. Last year we launched a major new
partnership with the World Food Programme (WFP) to help 6           Kul C. Gautam                           M. G. Venkatesh Mannar
key countries with high rates of iodine deficiency increase their   Chair, Micronutrient Initiative         President, Micronutrient Initiative
supply of high quality iodized salt.                                Deputy Executive Director, UNICEF




                                                                                                                                                  3
    FOCUS ON PARTNERSHIP


       His Excellency, David Malone, Canadian High Commissioner to
       India, and Mrs. Deepa Jain Singh, Secretary, Women and Child
         Development, Government of India at the launch of the India
         Micronutrient National Investment Plan. The Investment Plan
      seeks to provide micronutrient protection to 206 million people.


    Joint Efforts Speed Progress toward the                               Partnering with National Governments
    Elimination of Iodine Deficiency Disorders                            The Micronutrient Initiative launched the India Micronutrient
    MI and WFP launched a new salt iodization partnership in May          National Investment Plan (IMNIP) for 2007-2011 on 19
    2006. Together WFP and MI are strengthening local salt                October 2006 in New Delhi. The plan examines specific
    producers’ ability to iodize salt in 6 countries where iodine         programs and investments needed – in addition to the
    deficiency rates are high: India, Pakistan, Sudan, Ghana,             significant infrastructure and programs that have been
    Senegal, Haiti. These six countries are home to over 40% of           established by the government and its partners to date – to
    the world’s people who are not yet protected against iodine           adequately address micronutrient malnutrition in India. The plan
    deficiency. This new partnership has the potential to protect up      was prepared and launched in response to the Government of
    to 740 million previously unprotected people in these countries,      India's increased priority towards combating malnutrition,
    including approximately 19 million newborn babies. It is a            specifically micronutrient malnutrition. The government at the
    significant step toward the overall global goal of extending salt     level of the Prime Minister encouraged the development of such
    iodization to the 30% of the developing world still lacking it, and   a plan. It was prepared as a joint endeavour by a task force
    eliminating iodine deficiency disorder by the year 2010. MI’s         consisting of representatives from government departments,
    work toward this global goal is conducted within national plans,      academic institutions, non-governmental organizations, private
    led by governments and salt producers, and coordinated with           sector, and international organizations concerned with
    the work of a variety of important partners such as UNICEF, the       micronutrient malnutrition in the country. It advocates an
    International Council for the Control of Iodine Deficiency            investment of approximately 14 US cents per capita per year.
    Disorders (ICCIDD) and other members of the Iodine Network.           Micronutrient deficiencies cause an estimated per capita loss to
                                                                          Gross Domestic Product that is 50 times higher than the
    Stable Funding Fosters Innovation and Impact                          investment advocated, so the return on investment is clear in
                                                                          economic terms as well as human terms.
    As a long-term supporter of MI’s core operations, CIDA has offered
    the stable funding that has empowered MI to develop
    expertise, build capacity, expand the micronutrient knowledge
    base, bring together partners and stimulate action throughout
    the past 15 years. Furthermore, this stable long-term funding has
    been essential for developing and supporting stable, reliable
    programming. Programming that yields high impact results such as
    reaching over 500 million people in one year.

    Even as MI broadens its base of partnership and funding
    agreements, it is often the core funding from CIDA that provides
    MI with the capacity to build on lessons learned, react rapidly
    and develop innovative solutions to problems encountered in the
    field. Solutions such as those described in the Innovations
    section of this report. Solutions that are often scaled up with the
    support of a wide variety of partners so that CIDA core funding
    serves as the catalyst not only for innovation but also for                   A Kenyan mother cooks with fortified edible oil
                                                                           after partners collaborated on the first ever food fortification
    ongoing progress through partnership.
                                                                          Rapid Results Initiative in Africa to speed the product to market.
    Within the framework of this powerful and effective long-term
                                                                          Working with the Food Industry
    partnership with CIDA, an interim evaluation of MI’s progress
    was conducted by CIDA in 2006. The central finding of the             Since its inception MI has partnered with private corporations to
    evaluation was that “MI continues to be highly successful in          test and scale up interventions. Our partners have included
    areas of coverage, innovativeness, entrepreneurship,                  hundreds of domestically owned food processing companies
    advocacy and partnering in the cause of addressing                    across Asia, Africa and Latin America and a number of
    micronutrient deficiency across the developing world, and             transnational corporations. For example, in the 2006-2007 fiscal
    that its creative leadership in this cause is recognized              year, MI worked with small-scale salt producers in 52 districts in
    globally.” As MI expands its programs to serve even more of           Pakistan to support salt iodization there. MI also worked with 53
    the hardest to reach people, the team is also incorporating           roller millers in 4 Indian states. These millers now fortify wheat
    feedback from the CIDA interim evaluation in order to enhance         flour with iron as a result of MI efforts. Another example of
    the key functional areas that will support this growth. In            innovative work including the private sector is the Rapid Results
    particular, communications, human resource development, and           Initiative to get edible oils fortified with vitamin A to market within
    results based management are key areas addressed in the               130 days. See the Highlights in Africa section on page 11 for
    organization’s new 5 year strategy.                                   more details.



4     The Micronutrient Initiative Annual Report 2006-2007
INNOVATION FOR
HIGHLIGHTS
ENHANCED EFFECTIVENESS
FROM AFRICA
Overcoming Challenges in the Field
with New Solutions for Hidden Hunger

                      A village miller shows a new gravity powered
            flour fortification device developed by MI to work with
             small, traditional mills and extend the health benefits
                                  of flour fortification to rural Nepal.



First of its Kind, Gravity Powered Flour                                   implementation partner Imagine Lalitpur successfully undertook
Fortification Device to Improve Health and                                 final pilot testing of the device in small village watermills in the
                                                                           Lalitpur district of Nepal. This pilot testing was the culmination of a
Physical Productivity in Rural Nepal                                       comprehensive development and refinement process carried out
A majority of Nepalese suffer from iron deficiency anemia (IDA)            with funding support from the Government of Canada through
due to poor traditional diets. Although the World Bank has                 CIDA. MI has since won the World Bank’s Development
identified food fortification as one of the “short routes” to              Marketplace award to expand the project and extend the benefits
improved nutrition and health, most rural Nepalese do not have             to 22,000 rural villagers through 100 mills.
access to centrally produced fortified flours that could help
prevent IDA because rural Nepalese villagers mill their own                Because the new fortification device is simple to use and does
grains at small, local mills. In order to extend the proven health         not require electricity, the Micronutrient Initiative plans to adapt it
benefits of flour fortification to rural villagers, MI has developed       for use in additional countries and extend the benefits to many
a simple, gravity powered new device to fortify flours with                more rural populations. MI’s experience with small millers
essential vitamins and minerals at the village level.                      throughout Asia, Africa, and the Americas indicates that there is
                                                                           significant potential for adaptation and expansion.
The device does not require electricity or significant additional
workload and it automatically adds correct doses of iron, folic acid,
and vitamin A to grains being milled. In 2006-2007, MI and




New Use of GPS Technology Helps the
Hard to Reach
In 2006-2007 MI concluded an innovative program to map all
the small-scale salt producers in Senegal and Bangladesh using
a Global Positioning System (GPS) platform. This exciting
exercise allowed MI to identify salt producers to receive support
in both countries, including those producers to receive
assistance in the early stages of a joint MI-WFP-Government of
Senegal project. The results of the mapping survey were also
used to design and procure custom-built equipment to enable
salt iodization by small-scale producers.

Many of the small-scale salt production units across Africa and
Asia are not surveyed or assessed because they are located in
remote areas and do not have physical addresses. This has
presented a barrier to successfully advancing final stages of the          GPS technology helps MI and partners survey rural and remote
push for universal salt iodization. The new approach to                      salt producers to better understand their needs and support
                                                                           their efforts to iodize the salt they produce. This image is taken
surveying small-scale salt producers with GPS technology can
                                                                                    from a GPS survey of salt producers in Senegal.
help alleviate this difficulty. It presents a promising opportunity to
identify and provide technical support to the small-scale
producers that supply salt for people in rural and remote areas            This use of GPS technology also enables MI or local partners
throughout Africa and Asia that would otherwise be at high risk            to gather accurate estimations of the size of salt works
for iodine deficiency disorders. MI has therefore been expanding           surveyed. This critical piece of information allows MI to better
the use of this model in additional countries.                             advise on the type of iodization equipment that will work best for
                                                                           a particular salt operation. The GPS technology can further be
GPS technology is particularly promising for further use in                combined with Geographic Information Systems (GIS) and
projects similar to that done in Senegal and Bangladesh                    databases to provide a powerful platform that can be used for
because the technology is easily accessible, free to use and can           program planning, monitoring and evaluation and can be linked
be used to not only initially mark the position of salt sites but to       to a range of data to draw analyses and trends in performance.
also navigate back to the sites using GPS units by personnel
who are not familiar with the area.




                                                                                                                                                     5
    PATHWAYS OUT OF POVERTY:
    Hidden Hunger and the
    Millennium Development Goals


    A young girl in Ethiopia receives a vitamin A supplement as part
     of a national child health program. In 2006-2007, MI programs to
      avert child deaths by controlling vitamin A deficiency included
     arranging for supplies of enough vitamin A capsules and syrup
       to meet the needs of 347 million children in over 70 countries.


    About Hidden Hunger                                                  Zinc deficiency contributes to approximately 800,000 child
                                                                         deaths per year. Zinc supplementation for children during
    Hidden hunger is unlike the hunger that comes from a lack of
                                                                         diarrhea episodes can significantly reduce child mortality
    food. It is a chronic lack of vitamins and minerals that often has
                                                                         associated with diarrhea. In 2006-2007, MI worked with The
    no visible warning signs, so that people who suffer from it may
                                                                         Zinc Task Force and IZiNCG to advocate for accelerating the
    not even be aware of it. Its consequences are nevertheless
                                                                         implementation of WHO Guidelines on incorporating zinc
    disastrous: hidden hunger can lead to mental impairment, poor
                                                                         supplements into diarrhea treatment for children. MI also
    health and productivity, or even death. One in three people in
                                                                         convened a Latin American regional advocacy workshop that
    the world suffer from hidden hunger. Women and children from
                                                                         led to the adoption of these guidelines in Guatemala and
    the lower income groups in developing countries are often the
                                                                         Nicaragua.
    most vulnerable.


    Ending Hidden Hunger. Achieving the
    Millennium Development Goals.
    Growing recognition of the importance of micronutrient
    programming for achieving the Millennium Development Goals
    (MDGs) has been reflected in recent publications such as the
    World Bank’s 2006 book Repositioning Nutrition as Central to
    Development. It recognizes food fortification in particular as a
    short route to development success. As the 2015 deadline for
    achieving the internationally agreed upon MDGs draws nearer,
    the importance of finding and seizing such short routes becomes
    increasingly clear to all in the development field. Micronutrients
    will continue to play a central and increasingly important role in
    the push to achieve the MDGs. With this in mind, MI is
    increasingly tying its micronutrient programs and advocacy
    efforts directly into a framework based on the MDGs. The              Workers in Sri Lanka package salt that has been iodized to help
    majority of MI’s work will directly enhance efforts to reduce         prevent mental impairment and promote healthy development.
                                                                             MI programs led to the production of enough additional
    child mortality and improve child development at global,
                                                                            iodized salt to reach 267 million people globally last year.
    regional, national, and subnational levels. MI programs will
    also support improvements in women's health and empowerment
    and help efforts to eradicate extreme poverty and hunger and         Child Development
    lessen the impact of HIV/AIDS, malaria and other diseases.           MDG#2: Achieve universal primary education

                                                                         MI works to improve cognitive development and
    Child Survival                                                       educational outcomes among children through increased
    MDG #4: Reduce Child Mortality                                       intake of iodine and iron.

    MI works to prevent the deaths of children under 5 by                Iodine deficiency causes intellectual impairment in newborn
    increasing sustained vitamin A and zinc intake.                      babies and is the world’s leading cause of preventable mental
                                                                         impairment. In 2006-2007, MI continued to host the secretariat
    Vitamin A deficiency compromises immune systems, lowering            of the Iodine Network to promote and sustain universal salt
    resistance to disease and infection and leading to the death of      iodization (USI) efforts. MI works closely with UNICEF and
    approximately one million children each year. MI programs to         ICCIDD on USI programs. Our own work in this area also
    avert child deaths by controlling vitamin A deficiency in 2006-      includes a major new partnership with WFP to build on the
    2007 included arranging for supplies of enough vitamin A             progress and foundation established by the USI movement and
    capsules and syrup to meet the needs of 347 million                  to advance the next and hardest phase – reaching the hardest
    children in over 70 countries. In addition, MI provided field        to reach and achieving coverage for the last 30% of the global
    level support in 12 countries to improve current and future          population. MI activities over the past year have included iodine
    coverage with vitamin A supplements. MI also worked on the           programs to enable the increased production of effectively
    production and distribution of foods rich in vitamin A, such as      iodized salt in 7 countries in Africa, 6 states in India, 6 other
    fortified edible oil, and in 2006 MI began hosting the secretariat   countries in Asia, and 1 country in the Americas. These
    of the newly formed GAVA.                                            programs led to the production of enough additional
                                                                         iodized salt to reach 267 million people. That equates to
                                                                         approximately 5% of global salt consumption.


6     The Micronutrient Initiative Annual Report 2006-2007
HIGHLIGHTS
FROM AFRICA

                 Children in Bihar, India receive lozenges fortified
              with multiple micronutrients to help prevent anemia
                                and promote healthy development.




Iron deficiency anemia impairs the mental development of over           Poverty and Hunger
40% of the developing world’s infants. Zinc deficiency impedes
                                                                        MDG#1: Eradicate extreme poverty and hunger
child growth and development and folic acid deficiency in
pregnant women leads to serious neural tube birth defects. In           MI works to help reduce poverty and hidden hunger and,
2006-2007, MI programs to reduce iron, zinc, folic acid and             in turn, to increase productivity and economic growth
other deficiencies reached 13 million people in 10                      through reduced vitamin and mineral deficiency among
countries. Programs included the supply, distribution and               the most vulnerable and the weakest economic sections
monitoring of multi-nutrient lozenges in India and zinc                 of the population.
supplements and sachets of micronutrient powders for
institutional and home use in Asia and the Americas as well as a        MI’s work to include micronutrients in feeding programs in
micronutrient powder for use in community feeding programs for          emergency situations reaches some of the world’s poorest and
refugees in Darfur.                                                     most vulnerable people at times when they are particularly
                                                                        susceptible to illness and disease and therefore have both the
                                                                        greatest need and least access to high quality, nutritious foods.
Women’s Health and Empowerment
MDG#3: Promote gender equality and empower women                        Much of MI’s work in this area is policy related. An important
MDG#5: Improve maternal health                                          example is MI’s service as a member of the Nutrition Cluster
                                                                        of the UN Interagency Steering Committee (IASC) for
MI works to improve the survival, health and productivity of            coordination of humanitarian assistance. Participation and
women by increasing iron, folic acid and iodine intake and,             membership in this group allows MI to influence and advise
in turn reducing the consequences of iron deficiency                    key decision makers (international organizations, NGOs and
anemia and of poor pregnancy outcomes.                                  UN agencies) on the importance of and most appropriate use
                                                                        of micronutrients in emergencies.
The impact of iron deficiency on women tends to be greater
than that on men, reducing women’s potential to participate in          One interesting example of MI’s practical, field-level work to
social and economic activity and to escape poverty. Women are           improve the micronutrient quality of food provided during
more susceptible to anemia throughout their years of child-             emergencies is the South-South transfer of technology that
bearing age and particularly during pregnancy itself. A                 occurred when MI adapted a vitamin and mineral mix developed in
combination of approaches including supplements and foods               India for testing and use in emergency feeding programs in Darfur.
rich in or fortified with iron and folic acid, are typically the best   See the Highlights from Africa section on page 11 for more details.
way to help prevent anemia. Flour fortification is one area in
which MI has invested significant effort. A post project review in
2006 indicated that the MI model of flour fortification with iron       Infectious Diseases
and folic acid has been particularly successful in the Middle East      MDG# 6 Combat HIV/AIDS, malaria and other diseases
and has resulted in well-functioning national programs reaching
approximately 80 million consumers there. MI and other FFI              MI has recently established the interaction between
partners continue to mobilize key actors to accelerate the further      micronutrient nutrition and infectious diseases, including
scaling-up of such efforts in the Middle East and other regions.        malaria, TB, and HIV/AIDS, as a new area of focus in the work
                                                                        of the organization. MI will work towards improving our
Beyond flour fortification, MI supported an important study on          understanding of how these interactions affect human health.
the efficacy of iron fortified rice. This represents a promising new    MI will advocate, and mobilize resources, for action to
approach to addressing anemia on a very large scale because             strengthen the scientific and operational evidence base linking
of the wide-spread use of rice as a staple food. The study was          micronutrients with infectious diseases, and will translate that
published in the American Journal of Clinical Nutrition. In             evidence into policy and intervention where relevant.
Nicaragua, MI has been assisting the Programa de Atención
Integral a la Niñez Nicaraguense (PAININ) in a project to               MI’s newly begun work in this area has included commissioning a
replace iron syrup supplements with sachets of multiple                 review of evidence in the research literature relating to
micronutrient powder to help address anemia among children              interactions between micronutrients and HIV. The review is in
and expecting mothers.                                                  progress and MI expects to publish the findings during the 2007-
                                                                        2008 fiscal year. MI is working with WHO, UNICEF, and key
                                                                        international partners to address iron deficiency safely in malaria-
                                                                        endemic areas through a two-pronged approach. This includes
                                                                        systematic communication of information based on the most
                                                                        recent studies as well as proactive support for research to
                                                                        address identified knowledge gaps. MI is also analyzing recent
                                                                        evidence that may show a positive link between micronutrient
                                                                        supplementation and cost-effectiveness of tuberculosis treatment.

                                                                                                                                               7
    FINANCIALS
    Full audited financial statements available at www.micronutrient.org.




                      Summarized Statement of Net Assets
                      As at March 31, 2007

                      (expressed in U.S. dollars)
                                                                            2007                2006
                                                                               $                   $
                      Assets

                      Current assets
                      Cash                                             1,096,542             676,679
                      Short-term investments                           9,200,630           5,352,584
                      Amounts receivable and other current assets      3,108,289           7,244,020

                                                                      13,405,461          13,273,283

                      Capital assets                                    665,994             291,382
                      Future income tax asset                            11,337              12,365

                                                                      14,082,792          13,577,030

                      Liabilities

                      Current liabilities
                      Accounts payable and accrued liabilities           578,257             505,345
                      Deferred project contracts                       7,920,784           8,601,473

                                                                       8,499,041           9,106,818

                      Lease inducement – net of amortization            240,289                   –

                      Net assets                                       5,343,462           4,470,212




             Total Expenses ($28.2 million)                         Program Expenses by Region ($25.8 million)

                   10%
                                                                            20%
           4%
                                                                                                                  43%

                                                         54%

     23%


                                                                      33%

                    9%                                                                            4%

      Vitamin A Procurement and Interventions       15.2 million              Africa                    5.1 million
      Iron Interventions                             2.8 million              Asia                      8.6 million
      Iodine Interventions                           6.6 million              Americas                  1.0 million
      Other Vitamin & Mineral Interventions          1.2 million              Global Programs          11.1 million
      Management and Administration                  2.4 million




8    The Micronutrient Initiative Annual Report 2006-2007
FINANCIALS




   Summarized Statement of Activities and Changes in Net Assets
   For the year ended March 31, 2007

   (expressed in U.S. dollars)
                                                        2007         2006
                                                           $            $
   Revenues
   Contracts                                      28,199,198    30,695,399
   Interest and other                                834,561       171,317

                                                  29,033,759    30,866,716
   Expenses
   Program activities                             25,782,887    27,695,669
   Management and administration                   2,422,415     2,995,889

   Total expenses                                 28,205,302    30,691,558

   Net revenue for the year                          828,457      175,158

   Net assets – Beginning of year                  4,470,212     4,140,352

                                                   5,298,669     4,315,510

   Translation adjustment                             44,793      154,702

   Net assets – End of year                        5,343,462     4,470,212




   Summarized Statement of Cash Flows
   For the year ended March 31, 2007

   (expressed in U.S. dollars)
                                                        2007         2006
                                                           $            $
   Cash flows from (used in)

   Operating activities
   Net revenue for the year                          828,457       175,158
   Items not affecting cash                          147,707       123,724
   Net change in non-cash working capital items    3,527,954     (142,827)

                                                   4,504,118      156,055

   Investing activities                           (4,058,933)     207,484

   Effect of translation                            (25,322)      (48,238)

   Net change in cash for the year                   419,863      315,301

   Cash – Beginning of year                          676,679      361,378

   Cash – End of year                              1,096,542      676,679

   Non cash activity                                 250,739            –




                                                                             9
     SOLUTIONS FOR                                                       SOLUTIONS FOR HIDDEN
     HIDDEN HUNGER IN AFRICA                                             HUNGER IN AFRICA

     A refugee in South Darfur displays a container of “Rahma” –
        a powder containing vitamin A, iron, and folic acid that is
        added to food to reduce anemia. In trials at two camps in
      Darfur the powder was effective in reducing anemia among
      children 6 months to 5 years old. The powder was adapted
                     from a product developed and used in India.


     MI programs in Africa in 2006 reached an
     estimated 98 million people.
                                                                         MI published a
     A major focus for MI’s work in Africa has been the expansion of     detailed toolkit to help
     vitamin A supplementation and integration with programs to          district level managers
     improve child survival. The efforts include regional and            throughout Africa
     country-level advocacy to secure sustainable funding for            plan, implement, and
     vitamin A supplementation and ensure delivery of vitamin A as       monitor vitamin A
     part of a package of child survival services. MI has published a    supplementation in
     detailed toolkit for planning, implementing and monitoring          Child Health Weeks.
                                                                         Vitamin A programming
     vitamin A supplementation in Child Health Weeks. It is aimed at
                                                                         aims to improve
     district level managers to support their work to develop vitamin
                                                                         immune function and
     A supplementation programs.
                                                                         reduce child mortality.
     MI has also worked to increase the proportion of salt that
     is fully iodized from major African salt producing
     countries such as Sudan, Senegal, Ethiopia, Ghana,
     Mozambique, Tanzania and Angola. This work has included
     tailoring salt iodization equipment to fit the needs of different
     sized salt production plants, tools for monitoring at the
     production level and developing a training video and an
     operation manual for salt iodization equipment. Our work
     complements the policy and demand creation thrust by
     governments and other international agencies to enable a
     coordinated push towards USI in the region.

     Efforts to prevent iron deficiency anemia
     and other forms of hidden hunger
     included working closely with the new
     Partnership for Africa’s Development
     (NEPAD) and the African Union (AU) as
     well as WFP, the UN High Commission
     for Refugees (UNHCR), USAID, and
     GAIN to secure high-level
     endorsement of nutrition security
     within food security programs. Work
     to bring together African grain, oil, sugar
     and salt producers to fortify their
     products with essential vitamins and
     minerals continued with the launch of
     the FortAf website and email newsletter.




                      www.fortaf.org
      MI launched the FortAf website and
        email newsletter to bring together
          African grain, oil, sugar and salt
        producers to fortify their products
     with essential vitamins and minerals.
        See the website at www.fortaf.org.




10     The Micronutrient Initiative Annual Report 2006-2007
  HIGHLIGHTS
  FROM AFRICA
                                                                                                                          I
                                                                        G                         F                                  B
  HIGHLIGHTS FROM AFRICA
A Angola
                                                                                         C
  Supported UNICEF in training over 1,300 health workers from                                                                      D
  720 health posts in nine provinces on the importance of
  vitamin A supplementation and deworming.

B Ethiopia
  Partnered with the Government of Ethiopia, the World Bank,                                                 A
  the USAID-funded A2Z project and UNICEF to complete an
  important costing study needed to secure long term,
  sustainable funding for Vitamin A supplementation in Ethiopia.                                                                     E

C Ghana
  Continued to provide support through UNICEF for extending                                                         H
  the number of small producers iodizing their salt. Partnered
  with WFP and initiated support to additional small producers,
  procuring equipment to enable iodization.
                                                                            please see the Innovations section on page 5.
D Kenya
  In 2006, MI partnered with the Rapid Results Institute, the               Developed advocacy materials to promote iron
  Government of Kenya, and the Kenyan oil industry to                       supplementation through school nutrition projects to the
  complete the first ever food fortification rapid results initiative       Ministry of Education.
  (RRI) in Africa. The Initiative greatly sped the process of
  introducing fortified oil products and one of the early                   South Africa
  implementers, the private company Bidco, had three certified          H   Supported the Medical Research Council to improve
  products on store shelves in 130 days. The initiative triggered           standardization of iodine monitoring methods.
  a process of industry change and other industry members
  have indicated that 9 more brands will soon be applying for               Continued, together with GAIN, and UNICEF, to support the
  certification of fortified products. MI plans to build on this            South African government and the large South African flour
  success and use the RRI model to stimulate flour fortification            millers through strengthening the monitoring and
  in Kenya in the 2007-2008 fiscal year.                                    communication aspects of the ongoing commercial fortification
                                                                            of maize and wheat flour with vitamin A, iron and folate
E Malawi
  Nearly 2 million children received vitamin A supplements with             Collaborated on a project to support small and medium scale
  MI funding support in 2006 – approximately 200,000 more                   maize millers in South Africa to meet the flour fortification
  children than were reached in 2005.                                       regulations. The project included developing a training manual
                                                                            and workshops for small millers and developing a series of
                                                                            articles for publication in commonly read agricultural and farming
F Nigeria                                                                   magazines. Program challenges included the need to build trust
  Placed hidden hunger, and vitamin A supplementation for                   with reluctant millers within a highly competitive market.
  children, on the agenda at the Presidential Stakeholder Forum
  on Child Nutrition, the World Health Day Media Forum, and                 Sudan
  the consultative forum Nutrition in Under Fives: A Review of          I
  the National Response.                                                    Put agreements in place to ensure implementation of the
                                                                            Sudan National Plan for Universal Salt Iodization, and
  Participated in the Iodine Network assessment mission to                  procured equipment and potassium iodate for 14 large salt
  certify that Nigeria had achieved universal salt iodization.              producers in the Port Sudan area.

                                                                            Completed successful South-South transfer of technology by
G Senegal                                                                   adapting a multiple micronutrient powder used in India to
  Supported Senegal to develop a Strategic Plan for                         fortify meals for internally displaced persons in two refugee
  Fortification by providing technical assistance. Secured multi-           camps in South Darfur. The powder, which contains vitamin A,
  sectoral endorsement of a universal salt iodization monitoring            iron, and folic acid, proved effective in reducing anemia
  plan to be led by the Premier’s Office.                                   among children 6-59 months of age in the camp. By providing
                                                                            strong options for improving the micronutrient quality of foods
  Concluded an innovative program to map all the small-scale                provided in refugee camps, MI expects to significantly
  salt producers in Senegal using a Global Positioning System               increase the ability of humanitarian organizations to protect
  (GPS) platform. This mapping exercise allowed MI to identify              some of the most vulnerable segments of the global
  those producers to receive support and in some cases                      population from hidden hunger.
  custom-built equipment in the first phase of a joint-
  Government of Senegal-MI-WFP project. For more details,

                                                                                                                                                 11
     SOLUTIONS FOR
     HIDDEN HUNGER IN ASIA

          A boy gets vitamin A syrup at a rural site in Jharkhand, India.
        MI undertook successful collaborative advocacy to increase the
     upper age limit for vitamin A supplementation programs in India to
       the international standard of 5 years. This dramatically increases
              the number of children that will be reached and protected.


     MI programs in Asia in 2006 reached an                                   HIGHLIGHTS FROM ASIA
     estimated 340 million people.
                                                                            A Afghanistan
     Vitamin A supplementation has continued to be a major focus              Completed a scoping mission in December 2006 and
     for MI throughout Asia. Notable efforts in this area during              subsequent strategy development to scale-up MI’s work to
     2006-2007 included successful collaborative advocacy to                  address hidden hunger in Afghanistan with funding support
     increase the upper age limit for vitamin A supplementation               from CIDA.
     programs in India to the international standard of 5 years.
     This change dramatically increases the number of children                Began work on salt iodization and flour fortification to address
     who will be reached and protected. In addition to supporting             iodine deficiency and anemia. Partnered with WFP in
     the supply of vitamin A syrup, MI also supported vitamin A               Afghanistan and flour millers in Pakistan. Through this
     delivery in 6 Indian states with emphasis on strategies for              partnership, MI is supporting the fortification of flour in
     reaching the hard to reach. Other areas of focus included                Pakistan for distribution in Afghanistan, where it is expected
     salt iodization, with significant progress in Pakistan and Sri           to reach some 2.5 million people over an 18 month period
     Lanka, and work with a variety of multiple micronutrient                 beginning in July 2007.
     products such as Anuka and Nutri-Candies.
                                                                              MI’s ongoing work to provide vitamin A supplements through
     MI continued to work throughout Asia to stimulate and                    UNICEF now reaches approximately 5.3 million children in
     support the development of strong national nutrition                     Afghanistan each year.
     policies and micronutrient programs. For example, MI
     provided technical support for the development of the Nutrtion         B Bangladesh
     PC-1 plan in Pakistan and launched the India Micronutrient               Successfully piloted a model for getting vitamin A supplements
     National Investment Plan. The Investment Plan seeks to                   to hard to reach children.
     protect 206 million people per year from hidden hunger
     over a five year period. It was developed in consultation with           Continued upgrading salt iodization plants, leading to
     government departments, academic institutions,                           significant improvements in the quality of salt iodization.
     nongovernmental organizations, the private sector and other
     international organizations and it has been influential in the           Groundwork by MI on oil fortification led to nation-wide scale-
     development of the Government of India’s 2007-2011plan.                  up by GAIN.

     MI’s New Delhi office also continued to support the
     development of the MI India Trust, which became fully
                                                                            C China
     operational in 2006-2007. In addition to being MI’s prime                10 million more people are protected from iodine deficiency
     implementation partner in India, the Trust has provided                  disorders as a result of MI supported salt iodization work
     efficient procurement services for MI programs in other                  through UNICEF and in collaboration with the Ministry of Health
     countries throughout Asia, Africa, and Latin America.                    in 7 of China’s Western provinces. While the national
                                                                              percentage of households using iodized salt has improved
                                                                              significantly in China, given the high population of 1.2 billion
                                                                              there is still need to reach and protect more people in the poor
                                                                              and rural areas through this MI-UNICEF-Ministry of Health
                                                                              collaboration.

                                                                            D India
                                                                              Successfully advocated with UNICEF for the Government of
                                                                              India to extend vitamin A supplementation programs to include
                                                                              children aged 37 to 59 months. The cut-off had previously
                                                                              been at 36 months of age.

                                                                              Supported the supply of 109 million doses of locally produced
                                                                              vitamin A.
        Partner representatives attend the launch of the AJK Wheat
          Flour Fortification Project in Pakistan in January 2007.            Collaborated with WFP in Rajasthan, using a new model of
        Representatives include the MI National Program Manager               organizing small-scale salt producers into associations to help
         in Pakistan, the Government of Pakistan Senior Minister,             increase their capacity to iodize their product.
             the Minister of Food, the Minister of Agriculture,
                        and the CIDA representative


12     The Micronutrient Initiative Annual Report 2006-2007
                                             A                                     C
                                                 G
  Worked with ICCIDD on a
  targeted advocacy program to further
  universal salt iodization.
                                                          D
                                                                      B
                                                                  F
  In collaboration with UNICEF, completed a
  study to prove the feasibility of using Anuka
  multiple micronutrient sachets in the Integrated
  Child Development System in Rajasthan. The test                 H
  has been so successful that the project will be expanded
  to the State of Orissa by UNICEF with funding from BASF.                              E

  Engaged with the States of Tamil Nadu, Andhra Pradesh and
  Karnataka to develop a pilot rice fortification project that will
  initially target government feeding and food distribution
  programs that use rice.
                                                                          F Nepal
  Established a partnership with an Indian company in Mumbai to             Completed a national survey of iodine
  supply the premix for MI double fortified salt programs globally.         deficiency disorders and iodized salt coverage

  Ensured 3.6 million children in Tamil Nadu consumed more                  Collaborated with WFP and Population Services International
  iron to prevent anemia through a midday meal program that                 (PSI) to develop a low-cost fortified complementary food for
  uses salt fortified with iron and iodine.                                 children. Nepal is now among the first countries to introduce
                                                                            such a food at a price point that makes it accessible to low-
  Launched the India Micronutrient National Investment Plan                 income families.
  (IMNIP) for 2007-2011, developed co-operatively with
  government and private sector representatives and civil                   Supported further intensification of Maternal and Neonatal
  society partners, to provide a roadmap for addressing                     Micronutrient Program (IMNMP) in 12 more districts bringing
  micronutrient deficiencies in India. See Focus on Partnership             the total districts supported by MI up to 35. Encouraged by
  section on page 4 for more details.                                       the success of the program, other development partners have
                                                                            also replicated the program. It is now in place in 41 of 75
                                                                            districts in Nepal.

                                                                            Successfully pilot tested an innovative device to fortify flour
                                                                            produced at small village watermills without using electricity or
                                                                            increasing the miller’s workload. The project has since won a
                                                                            World Bank Development Marketplace award. See the
                                                                            Innovations section on page 5 for more details.

                                                                          G Pakistan
                                                                            Supported a pilot test of an innovative approach to vitamin A
                                                                            supplementation that does not rely on twice-yearly National
                                                                            Immunization Days, which are due to be phased out in 2009.
                                                                            Supported the distribution of Sprinkles™ using both a social
                                                                            marketing approach and free distribution through the Lady
                                                                            Health Worker Program.

                                                                            Supported the scaling-up of wheat flour fortification in
     Children in Tamil Nadu consume more iron to prevent anemia             collaboration with partners such as the Government of
   through a midday meal program that uses salt fortified with both         Pakistan, WFP, and GAIN.
       iron and iodine. The program protects 3.6 million children.
                                                                            Supported the design of a national iodine deficiency control
                                                                            program by the Government of Pakistan and worked with small-
E Indonesia                                                                 scale salt producers in 53 districts to encourage salt iodization.
  Worked with Government of Indonesia, the Coalition for
  Fortification in Indonesia (KFI) and UNICEF to support the              H Sri Lanka
  national vitamin A supplementation program and with KFI and
                                                                            Commenced work to upgrade two main salt iodization
  UNICEF on support for production of adequately iodized salt.
                                                                            plants, which have the capacity to produce enough salt to
                                                                            meet 80% of the country’s needs. The plants were
  Provided technical assistance to Asian Development Bank
                                                                            subsequently inaugurated by the Prime Minister and
  nutrition project, helping test home-based fortification and
                                                                            recognized nationally by the President.
  oil fortification.



                                                                                                                                                 13
     SOLUTIONS FOR
     HIDDEN HUNGER
     IN THE AMERICAS

                 MI developed the technical process to fortify cassava
                    snacks, such as the one this Haitian boy is eating,
                   with vitamin A, B vitamins, folic acid, iron and zinc.




     Reducing vitamin A deficiency to prevent child deaths has been           A survey of the fortified oil actually consumed at household level
     a high priority in the Americas and MI addressed this through            was also commissioned last year and is in progress.
     the supply of vitamin A capsules. MI also supported improved
     delivery of vitamin A supplements through a child health week in         Guatemala
     Haiti. And in Bolivia MI helped strengthen local capacity for
                                                                              Reached 20,000 low-income children with multiple
     monitoring and quality assurance of vitamin A fortified oil,
                                                                              micronutrient sachets and zinc supplements through an
     which is now distributed nationally after earlier MI support.
                                                                              ongoing trial. Worked through Guatemala’s public health system,
                                                                              with funding from the Izumi Foundation.
     MI has been focusing regional salt iodization efforts on Haiti,
     where only 2% of households have access to effectively iodized
     salt. MI worked with WFP on improving layouts for salt ponds             Haiti
     and mapping salt production in Haiti. MI also participated in a          Developed the technical process for fortifying cassava snacks
     multi-agency advocacy mission and the development of an                  which have been incorporated into school feeding programs.
     iodization work plan with local officials.
                                                                              Nicaragua
     Iron deficiency anemia is a significant nutritional problem in the
     Americas and MI has therefore been promoting the use of                  Contracted by the Inter-American Development Bank to provide
     multiple micronutrient sachets to reduce the prevalence of               technical assistance replacing iron syrup with multiple micronutrient
     nutritional anemia in children 6 to 24 months old. Efforts have          sachets. The sachets will reach 87,000 children under six years of
     been focused in Haiti, Guatemala, Bolivia, and Nicaragua.                age and 13,000 pregnant and lactating women through the
                                                                              Programa de Atención Integral a la Niñez Nicaraguense.


     HIGHLIGHTS FROM THE AMERICAS                                                                                              Multiple
                                                                                                                               micronutrient
     Bolivia                                                                                                                   sachets called
                                                                                                                               Chispitas and zinc
     18 million multiple micronutrient sachets called “Chispitas”                                                              supplements were
     distributed. Chispitas incorporated into new zero malnutrition                                                            distributed to
     health policy in the first documented instance of a national                                                              children in low-
     government scaling up the free public distribution of multiple                                                            income families
     micronutrient sachets to a national level.                                                                                through the public
                                                                                                                               health system
                                                                                                                               in Guatemala.
     Approximately 34 million litres per year of vitamin A fortified oil,
                                                                                                                               Across Bolivia,
     60% of the national supply, is now being produced and marketed                                                            18 million more
     commercially in Bolivia as a result of MI’s long-term collaboration                                                       Chispitas sachets
     with and technical and financial support for the World Food                                                               were distributed.
     Programme and public and private sectors in Bolivia.



     SOLUTIONS FOR HIDDEN HUNGER IN THE MIDDLE EAST
     10 Years of Progress through Wheat Flour                                 HIGHLIGHTS FROM THE MIDDLE EAST
     Fortification
     MI recently completed a review of its investment over the past           Yemen
     10 years to fortify wheat flour in the Middle East. The results are      Flour fortification was launched on a national scale with MI
     encouraging. Five years after the completion of MI’s work, and a         support. More than 60% of the country’s flour is now fortified.
     total investment of approximately $3 million, the following results
     are being achieved on a self-sustaining basis:                           Conducted a salt situation analysis and made recommendations
                                                                              on improving the proportion of adequately iodized salt in Yemen.
     • 7 million metric tons of fortified flour was milled in 13 countries,
       reaching 80 million people
     • 10 countries have established standards for fortified flour and 4
       more countries are currently developing standards
     • 13 ongoing national programs have expansion plans and 3
       additional countries have plans to initiate flour fortification


14     The Micronutrient Initiative Annual Report 2006-2007
LOOKING FORWARD:
MI Develops a New Strategy
for Accelerating Global Progress
and Fostering Innovation


As we end the fiscal year and look back to take stock of our
progress, we also look forward to the coming years and the
challenges and opportunities they will hold for MI and the
constituencies we serve. This is especially true for MI at the
close of the 2006-2007 fiscal year as we both celebrate 15
years of progress and look ahead with a renewed 5 year
strategy for the years 2008-2013.

This new strategy will anchor the work of the MI to the
Millennium Development Goals, focusing our work even more
sharply on maximizing our contribution to child survival, child
development, women’s health and empowerment, and the
reduction of poverty, hunger and infectious diseases. In
particular, MI will prioritize micronutrient programs that improve
child survival. Our second largest area of focus will be
micronutrient programs to promote healthy child development.

The strategy recognizes our commitment to reach the most
vulnerable people as a fundamental operating principle that
will be woven throughout our programming. This includes
special emphasis on ensuring that women and girls, rural
communities, and the poorest segments of society are all
reached by and benefit from our programs.

MI has worked hard to stimulate awareness of micronutrients
and their importance to the achievement of the Millennium
Development Goals. As awareness has grown, so has the
range of micronutrient products available and the variety of
mechanisms to deliver them. Because these products and
delivery mechanisms are all at different stages of evolution, MI
recognizes the need to show leadership in ensuring
evidence-based effectiveness while stimulating innovation.
Therefore a key component of the new strategy is MI’s
commitment to strike an optimal balance between extending the
reach of established solutions and developing, testing and
stimulating the adoption of new ones where needed. The bulk
of MI’s efforts will be devoted to accelerating progress and
protecting more people through well established solutions such
as vitamin A supplementation and universal salt iodization. MI
will also continue to play an important role in stimulating the
broader adoption of well-tested and promising new solutions
such as fortified lozenges, double fortified salt, and multiple
micronutrient powders. Selective forward-looking research and
development projects will round out MI’s efforts.

We will share more details of the new 5 year strategy and
resulting plans as we continue to refine and operationalize with
the invaluable and ongoing input and support of our partners
and financial supporters.




                                                                     15
About the Micronutrient Initiative
Passionate about developing and implementing solutions for hidden hunger, the Micronutrient Initiative works in partnership with
governments, the private sector and civil society organizations to address this serious problem that affects one third of the world’s
population. Governed by an international Board of Directors, MI works in Asia, Africa, Latin America and the Middle East and reaches
people in over 70 countries. With headquarters in Ottawa, Canada, MI maintains regional offices in New Delhi, India and Johannesburg,
South Africa that manage our country offices in Asia and Africa.



Board of Directors                           Officers and Senior Staff                  Contact Information
Mr. Kul C. Gautam                            Mr. M. G. Venkatesh Mannar                 Headquarters
Deputy Executive Director, UNICEF            President                                  180 Elgin St., Suite 1000
Chair                                                                                   Ottawa, Canada, K2P 2K3
                                             Mr. David Porter                           Tel: +1 613 782 6800
Mr. Robert Moore                             Vice-President of Corporate Services       Fax: +1 613 782 6838
Past-President, Kiwanis International                                                   Email: mi@micronutrient.org
Vice-Chair                                   Mr. Mark Fryars
                                             Director, Program Services                 Africa Regional Office
Mr. Richard Ham                                                                         P.O. Box 2927
Managing Director,                           Ms. Evelyne Guindon                        Houghton, South Africa, 2041
JPMorgan Investment Bank                     Director, Resource Development and         Tel: +27 11 327 6292 or +27 11 327 7820
Member and Chair of Finance                  Partnerships                               Fax: +27 11 327 6286
and Audit Committee                                                                     Email: miafrica@micronutrient.org
                                             Mr. Luc Laviolette
Ms. Frances R. Davidson                      Director, MI Asia                          Asia Regional Office
Health Science Specialist,                                                              11, Zamroodpur Community Centre
U. S. Agency for International Development   Ms. Carol Marshall                         Kailash Colony Extension, New Delhi
(USAID)                                      Director, MI Africa                        110048, India
Member                                                                                  Tel: +91 11 4100 9801
                                                                                        Fax: +91 11 4100 9808
Mr. Jean-Louis Sarbib                                                                   Email: miasia@micronutrient.org
Director, Wolfensohn & Co.
Member

Ms. Sheila Sisulu
Deputy Executive Director,
World Food Programme (WFP)
Member

Ms. Diane Vincent
Executive Vice-President,
Canadian International
Development Agency (CIDA)
Member



                                                                                                   www.micronutrient.org

						
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