Moritz Runge, Head of Purchasing and Finance, was interviewed by Cocoa Platform's executive director, Christian Robin.
* The interview was conducted in German and translated into English *
How did the "Salama Mateza" project come about within Felchlin? How did you come across the topic of health care?
We have been working with our partner in Sambirano, Madagascar for a long time. The small farmers who produce our cacao, like almost all small farmers in Madagascar, do not have access to health insurance. In this case, we happened to hear about an organization called mTomady that has developed a system to give the rural population in Madagascar access to health insurance through their cell phones. When we see an opportunity to support our local farmers in a sustainable way through a good project, we try to do it. That's what happened in this case. Our customers were also convinced. Without our customers supporting the project, the implementation would not be possible to this extent. However, it is not about charity. The health insurance is ultimately cheaper than the ad hoc "out of pocket" health costs for medicines and treatment that farmers are exposed to in case of illness. So in the longer term, the system should be self-financing without outside help.
The project has just been initiated. What are the immediate challenges in the project?
It is a pioneering project and as with anything new and innovative there are many different challenges: There is the understanding of the concept of health insurance itself, which we take for granted but has never existed there for most people. The step from going to a healer in the village that people know, but who can't meet all medical needs, to going to a health center that people don't know yet and that may not be in the same village, is a big one. Other challenges are the integration of the employees of the implementation partners (insurance, pharmacies, health centers) into the processes so that the system can function smoothly and the reception of the mobile network. However, the first insurance cases have already arrived and treatment and registration has worked.
Salama Mateza benefits from the advances in digitalization? How important is the mobile technology used to the success of the project?
Mobile technology enables transparency and therefore trust. Some of the farmers do not have an identity card but they can be identified by their mobile phone number. The cash flows and treatment services can be recorded and tracked digitally, allowing us to track progress and provide the necessary confidence for us and our clients to invest in this project. In addition, digital technology allows for easier scaling of the project.
How do you see the chances of scaling the project within your cocoa supply chain, which includes many countries of origin?
We source our cacao from smallholder cooperatives and family-run small organizations. They face similar challenges in most cocoa-growing countries. If the project in Madagascar continues to develop successfully and our local customers and partners join in, then we would be happy to implement this project in other countries of origin as well. However, one of our principles is that we always work on an equal footing with our partners and the local farmers. This means that we do not force a project on anyone in the country of origin just because we like the idea here in Switzerland. It must be a shared vision.
To what extent can other members of the Cocoa Platform benefit from the experience of the project? To what extent can this model be "copied"?
I think wherever smallholder cocoa farmers do not have access to health insurance today, which is unfortunately the case in several cocoa producing countries, there is potential for such a project. As a medium-sized company, we are very flexible and pragmatic and can play a pioneering role in this type of project. If the model works for us, I think the proof is there that this system can work. We would then of course be delighted if other companies also got involved in this direction.
Read more about the Salama Mateza project on Felchlin's website.
Pictures: Salama Mateza, Max Felchlin AG