How can a tea truck save the lives of babies? Let’s continue our trip to the tea farm in Tanzania.
The tea that the farmers pick must be transported from the farm to the factory. Its value deteriorates quickly with time – in a matter of hours. The tea must be retrieved from 28 collection points spread over 30 kilometers and then taken another 30 kilometers to the factory. The roads are very rough, winding and narrow. The peak season is when it is raining so they are filled with mud and slippery besides.
The delivery is provided by a contractor hired by MTC that operates around two trucks to their benefit. The contractor is paid by MTC 20 shillings per kilogram or almost 15% of the value of the tea. The contractor does not have an incentive to deliver the tea quickly because their payment is nearly assured. As a result, the tea is often delivered in poor condition affecting the ability of Mkonge to negotiate a good price for their tea. At peak tea production time, the contractor has their attention diverted by high demand of other farms and may fail to even pick up tea in time for delivery.
What the Mkonge family farmers need are a couple of trucks to deliver the tea themselves. We calculate that the trucks will be paid for in about 18 months and then incomes will rise almost 10% per family just to receive the difference in shipping. But this improvement should afford Mkonge farmers the ability to negotiate a better price for their tea, as well. Here’s a picture of the type of truck that they need (it has a 7 metric ton capacity):
You may see this as a truck. It is so much more.
It is documented that a 10% rise in income = a 6% decrease in infant mortality. This is the index of human health that describes the relative health of the entire community. There is a direct relationship between income and health among the world’s poor. Consider that in Tanzania about 11% of babies fail to make it to age 1. Or that a woman’s chance of dying in child birth makes every child born a risk to the entire family.
Do not get lost in the numbers and statistics. I spoke today to a young man at Tumaini University who has become my friend over the last year, Hosea Mpogole. He just lost his six month old baby. These are real people with real losses. There are many who have lost multiple children.
Infant mortality is the index to all human health. Babies don’t survive when human health conditions are poor. For example, yesterday, I met a woman suffering with malaria and still trying to keep her job at an office. When you ask people if they have ever had it, most have survived it multiple times. But it is a constant threat to life. One woman said, ‘It is the prayer of the day.’
And it isn’t just health that is affected. Increased income is directly correlated to a variety of factors. Consider that increased incomes…
= lower birthrates
= higher education rates
= less child oppression
= less domestic violence & more stable families
= more rights for women
OK, back to Mkonge: It is tempting to think that maybe we should donate a couple of trucks. This is the wrong approach for a variety of reasons:
1. It has been demonstrated that economic growth saves more lives than income redistribution. This is economist-speak for saying that investment is better than donations. Here is why:
2. The biggest opportunity for Mkonge is not the trucks. These trucks will have a limited life and need to be replaced. The biggest opportunity is to teach this association how to save and invest. Then they will be able to replace their trucks as needed and invest in a variety of other things that will continue to raise their income. To this end, Tumaini University will be engaging with us and assisting in teaching these skills and monitoring the maintenance and usage of the trucks.
3. Donating the trucks is not sustainable. They will need to be replaced. Who is prepared to make this kind of indefinite commitment? No one.
4. Donating the trucks fails to teach Mkonge how to profit on their investments. By requiring repayment, discipline is built in that teaches this important skill that will reap benefits for many generations. Again, Tumaini University will engage with us to assist in this.
5. If Mkonge demonstrates success in purchasing and paying for trucks the model can be replicated among many other tea associations in the area, across Tanzania and perhaps elsewhere. Based on Mkonge’s history of joint commitment and the fact that MTC is willing to pay Cheetah directly for the contractor’s value, repayment seems very secure. Literally, thousands of lives might be saved and the quality of life could rise for tens of thousands. Mkonge represents around 3000 people just in their association.
Mkonge is a living example of how bringing farmers together can change lives. It also shows how investments in the food value chain can raise incomes and do so more effectively than by donation. This is why Cheetah is looking for agri-business investments that achieve these kinds of objectives.
Next time you have a cup of hot tea or a glass of ice tea, think of the people of Mkonge and their babies. And perhaps to appreciate what a blessing you have – just look at the fact you have ice in the glass and that you don’t have to worry about the water or ice making you sick.
As we made the journey back to Iringa town, the sunset was spectacular as it sank among the mountains in the region.
To continue this series go here: http://cheetahdevelopment.blogspot.com/2009/06/food-part-5-full-pot-of-honey.html
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