Five thousand tonnes of canola oil will go a long way to helping people in four provinces of China who earn less than $100 per year.
On May 29, the Mennonite Central Committee simultaneously bought the oil in Canada and sold it to a Chinese bidder, said project manager Tony Enns.
The Canadian International Development Agency gave the development agency $5.2 million to buy the oil, and the Chinese government let it into the country duty- and tax-free.
The agency will make about $5.75 million on the sale, after it pays for the oil, insurance and freight, said Enns.
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“We have more money out there than if we would have transferred cash,” said Enns, explaining how Canadian companies and the project will both benefit.
The money will go into an account managed by a steering committee with representatives from CIDA, the Chinese government, the Mennonite Central Committee and a Chinese non-governmental organization known as AMITY.
Enns said the agency has committed another $1 million to the project, and CIDA helped with another $500,000 to get the project rolling. The Chinese government will also help out with staff and local expertise.
This is the first time the Chinese government has allowed a Chinese volunteer organization to be involved in a development project, Enns noted.
“We hope to convince them this is not only workable, but will actually improve the delivery of these programs,” he said.
Some of the money will be used for small-scale irrigation projects like dams and ditches, said Enns.
One province gets significant amounts of rain only once a year, so the agency wants to help farmers dig water cellars to hold some of the water for irrigation.
People in another province will be eligible for small loans for farm equipment, cattle or sewing machines
Enns stressed the people who benefit from the project will help decide how the money is spent over the next five years.
Between 250 and 280 million people in China live below the poverty line, which is equivalent to a net income of $100 per year per person.
