VACE Agribusiness Innovation Opportunity 2026: Apply for Technical Support, Product Development and Market Exposure for Nigerian SMEs in Dairy, Cocoa, Food Processing and Value-Added Industries

Overview of the VACE Project Agribusiness Product Innovation Call for Applications

Are you an agribusiness entrepreneur, food processor, baker, beverage producer, cosmetics manufacturer, or product innovator in Nigeria looking to develop new products, improve your business, and reach new markets? The Value Chain for Agribusiness, Climate and Employment (VACE) Project has announced a call for applications targeting eligible agri-food small and medium-sized enterprises (SMEs), processors, and product innovators interested in developing innovative, market-oriented products using dairy, cocoa, and their by-products.

This opportunity is designed for businesses that want to move beyond their existing product lines, explore new value-added opportunities, improve their product development processes, and strengthen their commercial potential. Selected applicants will receive technical support to develop and launch new products, business development support to strengthen their products and enterprises, and opportunities to showcase their innovations at market exhibitions.

The initiative is particularly relevant to businesses operating in the dairy and cocoa value chains, as well as enterprises in food and beverages, bakery and pastry, cosmetics, health and wellness, nutraceuticals, and other value-added industries. Businesses with a clear plan to create a new product using dairy, cocoa, or their by-products are encouraged to consider applying.

Applications are open to eligible businesses operating in Nigeria, with priority given to enterprises in selected states associated with the dairy and cocoa value chains. The application deadline is 27 October 2026.

1. What Is the Value Chain for Agribusiness, Climate and Employment (VACE) Project?

The Value Chain for Agribusiness, Climate and Employment (VACE) Project is an initiative focused on strengthening agribusiness value chains and supporting business development opportunities connected to agricultural production and processing.

The project provides a platform for eligible businesses to explore ways of transforming agricultural raw materials and their by-products into innovative, marketable products. By supporting product development, business improvement, and market exposure, the initiative seeks to help participating enterprises improve their competitiveness and identify new opportunities for growth.

For small and medium-sized enterprises, value addition can be an important way to strengthen business operations. Instead of selling only raw agricultural products or relying on a limited range of existing goods, businesses can explore the development of new products that respond to customer needs and create additional commercial opportunities.

Through this call, the VACE Project is seeking businesses with the motivation, experience, and willingness to develop at least one new customer-oriented product using dairy, cocoa, or their by-products.

The opportunity is particularly relevant to businesses that already operate within related industries and have a foundation from which they can develop and commercialise new products.

2. Who Is the VACE Agribusiness Product Innovation Opportunity For?

The call targets established businesses and product innovators interested in expanding their operations through product innovation and value addition.

Eligible applicants may include the following categories of enterprises:

A. Dairy processors and dairy-based product innovators

Businesses operating in the dairy value chain are encouraged to explore the opportunity if they have plans to develop innovative products using dairy materials or dairy by-products.

These may include enterprises involved in dairy processing, the production of dairy-based foods, and other value-added applications that can create commercially viable products.

The programme may be particularly relevant to businesses that want to improve their existing product offerings, diversify their product portfolios, or respond to changing customer preferences.

B. Cocoa processors and cocoa-based product developers

Businesses working with cocoa and cocoa by-products are also within the target group.

Cocoa-related enterprises may use the opportunity to explore new product concepts, improve processing approaches, and develop products with stronger market potential.

Businesses with plans to transform cocoa or its by-products into customer-oriented products are encouraged to consider applying, provided they meet the programme’s eligibility requirements.

C. Food and beverage processors

Food and beverage enterprises with at least three years of relevant business experience may apply if they have a clear intention to develop a new product using dairy, cocoa, or their by-products.

This category may include established businesses seeking to diversify their product range, improve product quality, or explore new market segments.

The opportunity is intended for businesses that are prepared to work on an actual product development plan rather than simply seeking general business advice.

D. Bakery and pastry businesses

Bakeries and pastry businesses may also be eligible if they intend to develop a new product incorporating dairy, cocoa, or their by-products.

For established bakeries, product innovation can provide opportunities to introduce new product lines, differentiate their offerings, and reach additional customer groups.

Applicants should demonstrate how their proposed product responds to a customer need and how they intend to bring it to market.

E. Cosmetics manufacturers

Businesses operating in cosmetics and other value-added industries are included in the call, provided they meet the relevant experience and product development criteria.

Cosmetics enterprises interested in exploring appropriate applications involving cocoa, dairy-derived materials, or their by-products may find the opportunity relevant to their innovation plans.

Applicants should clearly explain the proposed product, the materials to be used, and the commercial purpose of the innovation in their concept note.

F. Health, wellness and nutraceutical businesses

Enterprises operating in health and wellness, nutraceuticals, and related value-added industries may also be eligible.

These businesses should have a clear product development concept that aligns with the call’s focus on dairy, cocoa, or their by-products.

As with other applicants, the proposed innovation should be customer-oriented, commercially relevant, and supported by a realistic plan for development and launch.

G. Other value-added agribusiness enterprises

The opportunity is not restricted to the categories listed above. Other businesses working in value-added industries may also be considered if they meet the stated eligibility conditions and intend to develop an innovative product using dairy, cocoa, or their by-products.

The key consideration is whether the applicant has relevant business experience, an eligible business operating in Nigeria, and a genuine plan to develop and launch a new product.

3. Benefits of Applying for the VACE Project

The VACE Project offers several forms of support intended to help eligible businesses develop their product ideas and strengthen their commercial prospects.

Benefit 1: Technical support for product development and launch

One of the principal benefits is technical support to help businesses develop and launch new products.

Product innovation can require specialised knowledge, careful planning, and the ability to turn an initial idea into a product that can be presented to customers. Businesses may have identified an opportunity but need technical guidance to advance the concept and prepare for market introduction.

Through the support offered under this call, participating enterprises can work towards developing a new product based on dairy, cocoa, or their by-products.

This support is relevant to businesses that want to:

• Develop a new product concept.
• Improve an existing idea into a distinct product offering.
• Explore value-added applications for dairy, cocoa, or their by-products.
• Strengthen the technical foundation of a proposed product.
• Prepare a product for launch and customer engagement.

Applicants should explain their proposed innovation clearly and demonstrate their willingness to participate in the product development process.

The call does not specify a guaranteed level of technical assistance for every applicant, so interested businesses should refer to the official application materials for further details.

Benefit 2: Business development support

In addition to technical assistance, the programme offers business development support to help strengthen the product and the business behind it.

Developing an innovative product is only one part of building a sustainable enterprise. Businesses must also consider their customers, sales channels, market positioning, business operations, and plans for growth.

Business development support can be valuable to enterprises seeking to connect their product ideas with practical commercial objectives.

For eligible applicants, this aspect of the opportunity is relevant to plans such as:

• Strengthening the business case for a new product.
• Improving the commercial positioning of a product.
• Identifying ways to reach and serve target customers.
• Supporting the integration of product innovation into wider business growth plans.
• Preparing the business to take advantage of market opportunities.

The programme is therefore relevant to enterprises that are not only interested in creating something new but are also prepared to work towards bringing that product to customers.

Benefit 3: Market exhibition opportunities

The VACE Project also offers market exhibition opportunities through which businesses can showcase their new products to potential buyers and customers.

For an SME, gaining visibility can be an important step towards expanding its customer base. A product may have strong potential, but the business still needs opportunities to introduce it to the market and communicate its value.

Exhibitions can provide a setting for businesses to present their products, explain their features, and engage with people who may be interested in purchasing or distributing them.

This opportunity may help participating enterprises work towards:

• Increasing awareness of their new products.
• Presenting their innovations to potential customers.
• Exploring possible commercial relationships.
• Gathering feedback on their product offerings.
• Identifying potential market opportunities.

Participation in an exhibition does not guarantee sales, contracts, or new partnerships. However, the opportunity to showcase a product can form a useful part of a business’s wider market development strategy.

4. Who Is Eligible to Apply?

Applicants should carefully review the eligibility conditions before preparing and submitting their concept notes. The call targets businesses that are already operating and have the relevant experience and commitment to develop a new product.

The following requirements are outlined in the announcement.

4.1. Applicants must be motivated to expand and innovate

The programme is seeking processors and businesses that are motivated and willing to expand their operations through innovation.

Applicants should demonstrate that they are interested in developing a new product and are prepared to commit the time and effort required to advance the idea.

Businesses that have identified an opportunity to diversify their product lines or improve the value of agricultural materials may be well positioned to explain their motivation in the application.

4.2. Businesses must be legally recognised in Nigeria

Applicants must be legally recognised businesses operating in Nigeria.

They should have the relevant business registration and permits, or provide proof that they are undergoing a registration process.

This requirement means applicants should be prepared to demonstrate their business identity and operating status through appropriate documentation.

Businesses should review their existing registration records and confirm that they can provide the required evidence when submitting their applications.

If registration is still in progress, applicants should ensure they have credible proof of the ongoing process, as specified in the call.

4.3. Applicants must have at least three years of relevant experience

The call requires businesses to have at least three years of experience in one or more of the relevant industries.

These include:

• Dairy.
• Cocoa.
• Food and beverages.
• Bakery and pastry.
• Agribusiness and agri-food processing.
• Cosmetics.
• Health and wellness.
• Nutraceuticals.
• Other value-added industries.

Applicants should be able to explain their business activities and relevant experience in a way that demonstrates their suitability for the programme.

This experience requirement makes the opportunity particularly relevant to established enterprises that are ready to build on their existing operations.

Newly established businesses that have not yet accumulated three years of relevant experience should carefully assess their eligibility before applying.

4.4. Applicants must have a prior plan for developing a new product

Eligible agri-SMEs and product innovators should already have plans to develop a novel product using dairy, cocoa, or their by-products.

The programme is looking for applicants with a defined product development intention rather than businesses that have no clear idea of what they want to create.

A strong concept note should explain the proposed product, the agricultural material or by-product involved, and the intended customer or market.

Applicants should be prepared to describe why the product is worth developing and how it could strengthen their business.

4.5. Businesses must have at least one existing marketing channel

Applicants must have at least one existing marketing channel through which they promote or sell their products.

The announcement gives examples including:

• Social media.
• Direct orders.
• Supermarkets.
• Other sales outlets.

This requirement indicates that applicants should already have some way of reaching customers or marketing their products.

Businesses should identify the channels they currently use and explain how these channels support their sales or customer engagement.

For example, a business that receives customer orders through social media may describe how it uses those platforms to communicate with customers and promote products. A business selling through supermarkets or other outlets may explain its existing route to market.

Applicants should provide accurate information about their current marketing channels and avoid presenting planned channels as though they are already operational.

4.6. Applicants must be willing to develop and launch at least one new product

A central condition of the call is the willingness to develop and launch at least one new customer-oriented product using dairy, cocoa, or their by-products.

The proposed product should be developed with customers and market needs in mind.

Applicants should therefore consider the following questions when preparing their concept notes:

• What product do we intend to develop?
• Will the product use dairy, cocoa, or their by-products?
• Who are the intended customers?
• What customer need or market opportunity will the product address?
• How could the new product complement or expand our existing business?
• Are we prepared to participate in the development and launch process?

A clear response to these questions can help applicants communicate the purpose and potential value of their proposed innovation.

4.7. Applicants must be willing to share product recipes

The call requires applicants to be willing to share the recipe for the product they develop.

Businesses should consider this requirement carefully before submitting an application. Product recipes and formulations can be commercially important, particularly for food processors, beverage producers, bakeries, and other manufacturers.

Applicants should review the official concept note and seek clarification from the project contact if they need further information about the scope of recipe sharing, confidentiality arrangements, or how product information will be handled.

The announcement also requires participants to be willing to engage in future collaboration and monitoring and evaluation reporting.

4.8. Applicants must participate in collaboration, monitoring and evaluation

Businesses must be willing to participate in future collaboration and monitoring and evaluation reporting.

This means applicants should be prepared to engage with the project beyond the initial submission of their concept note.

Monitoring and evaluation activities can help programme implementers understand the progress of supported businesses and assess how the intervention contributes to product development and business growth.

Applicants should therefore be willing to provide relevant information about their participation and progress as required by the project.

The precise reporting format, frequency, and documentation requirements should be confirmed through the official application materials or the project contact.

5. Women-Led Businesses, Youth-Led SMEs and Persons with Disabilities Are Encouraged to Apply

The VACE Project specifically encourages applications from women-led and youth-led small and medium-sized enterprises, as well as persons with disabilities.

This is an important aspect of the call because access to business development support and market opportunities can help enterprises strengthen their operations and pursue new growth opportunities.

Women entrepreneurs and youth-led enterprises working in food processing, dairy, cocoa, bakery, beverages, cosmetics, health and wellness, nutraceuticals, and other relevant industries are encouraged to assess their eligibility.

Persons with disabilities who own or lead eligible businesses are also encouraged to apply.

However, this encouragement does not remove the other eligibility conditions. Applicants must still meet the relevant requirements relating to Nigerian business operations, registration status, business experience, existing marketing channels, and the intention to develop a new product.

Eligible businesses should clearly describe their operations and proposed innovation in the concept note.

6. Priority States for the VACE Project Application

The call identifies specific Nigerian states as priority locations for businesses operating in the cocoa and dairy value chains.

Applicants should pay close attention to these geographical priorities when determining whether to submit an application.

Cocoa value chain: Ondo and Cross River States

The call primarily targets SMEs operating in the cocoa value chain in:

• Ondo State.
• Cross River State.

Businesses in these states that process cocoa or intend to develop innovative products using cocoa and its by-products should consider reviewing the opportunity.

Eligible enterprises should demonstrate how their proposed product relates to the cocoa value chain and how it fits their existing business activities.

Dairy value chain: Oyo, Kaduna, Kano and Plateau States

The call identifies the following states as priorities for dairy-related businesses:

• Oyo State.
• Kaduna State.
• Kano State.
• Plateau State.

Dairy processors and other eligible businesses in these states may consider applying if they meet the experience, registration, marketing, and product development requirements.

The proposed product should use dairy or dairy by-products and be intended for development and launch as a customer-oriented product.

Why the priority locations matter

The geographical priorities help prospective applicants determine whether their businesses align with the call’s focus.

Businesses operating in the specified states should identify whether their proposed innovations relate to the cocoa or dairy value chain.

Although the announcement identifies these states as the primary targets, prospective applicants outside the listed locations should contact the project team to clarify whether applications from their locations may be considered before investing time in the application process.

7. How to Prepare a Strong VACE Project Concept Note

Applicants are required to submit their applications using the concept note to the designated email address. The announcement does not provide the complete concept note template or a detailed scoring framework, so applicants should obtain and follow the official format where applicable

Submit  your application using the Concept Note to flora.asibe@giz.de

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