The Trouble with Rabbits
by Humphrey Wou
2008
Old man Leng and I sat across from each other, each holding his own surrounded by fifteen speechless villagers. How did it come to this? We were just trying to help HIV+ farmers raise rabbits. But I found myself in an awkward confrontation, haggling over repayment of micro loans.
We launched the Five Household Co-op project in September of last year. Each family got 8 rabbits to begin with. Three months later, most of them had 20 to 40 bunnies from the original 8. Breeding rabbits was great, they said. Three litters in such a short period of time! Everyone was elated. However, soon they were running out of room, running out of cages, and running out of money to buy rabbit food. They were more concerned with production than planning a sustainable growth. "You have to buy a machine to make rabbit feed," our expert advised. "Then your cost will be reduced from 1.8 yuan per jin to 0.7 yuan."
Fortunately the Five Household Co-op project was implemented in two sites. The contrast was sharp. The people in the other site were quite content with their slower rate of bunny reproduction. Without any prompting, they bought their own machine for making rabbit feed quite some time ago.
Don't get me wrong. Old man Leng was not trying to take advantage of us. Recognized as the leader, he took it upon himself to speak for his villagers: "Rabbits eat too much. Feed is too expensive. It takes too much work. They have a skin problem that causes bald spots. They die."
Our experts had explained that there were problems with the feed. They should make their own rabbit food instead. But Leng and his villagers did not act on this advice because the machine costs 1,000 yuan.
Our project coordinator Cheng and I knew that we had to sell some rabbits quick. From the proceeds, we would collect our first repayment. We knew about the harsh winter and their financial situation. But we also knew if we didn't collect anything at all, the borrowers might always find reasons not to repay.
So we were in the village offering to cut this period's repayment in half. Old man Leng took a drag of his cigarette and said, "But that is still not possible. Collectively we can only sell about 150 rabbits and that is still not enough to pay you back. We still have to buy feed for the young ones. We should have chosen goats. Rabbits were a mistake."
So what would be a reasonable payment? I asked them for a number. Everyone looked at Leng who sat silently. I asked again. Still no response. We were in a stalemate.
Later, I learned what others had been feeling. Cheng had put all of his heart and soul into this project, and couldn't believe Leng's unyielding attitude. Our expert advisor Zhang was willing to contribute his own money to add to the price that would be received for the rabbits. He thought this might give them confidence to continue. Our taxi driver, observing from a distance, had been indignant. "These people are useless," he mumbled on the drive back.
The villagers had their own views. One woman said she knew we were there to help. She would do anything to raise her rabbits and wouldn't disappoint us. Leng's wife also said that the rabbits gave her hope. She kept the newborn bunnies warm in her own bed.
After what seemed an eternity, I offered Leng an out, "Do you want to quit the program now?" I looked at him and asked pointedly, "if you do, we can talk about it." He said yes, without hesitation. Then I asked one of his relatives. He too said yes. I turned to the others, "Now Leng and several families are no longer a part of the program. So what shall we do about repayment?" All of a sudden, they began to speak, saying, "We can pay you back in two months" and "We can pay you half of whatever we sell."
"But do you want to continue the program?"
"Yes." One by one the families gave their answer. By then, even the ones that had initially dropped out said yes. So we promised to be back in three days, to bring them rabbit medicine and arrange for the rabbits to be sold.
Cheng and Zhang, my worthy team members, went to work immediately. They went to rabbit restaurants and hotels that cater rabbit feasts. They talked to wholesalers, street venders, middlemen, and rabbit farm operators. They learned that March is a slow season and that prices are down. Even the big farm owners will lose money this month. But the overall outlook is very good. In the summer, the price will go up again, more than making up for the loss of this period. In peak season a single restaurant can use 100 rabbits a day. The market is far from saturated. The market for rabbit skins this year is weak because of the Beijing Olympics. But afterwards, rabbit hides will command a good price once more.
I didn't understand exactly why prices would be depressed in March and the year of the Olympics, but as long as the farmers got some return on their investment, I was satisfied. Cheng and Zhang went back to the village with a big truck and hauled away 121 rabbits. The farmers got 50% of the sale, 1,555 yuan.
The situation in the other village was vastly different. They managed their own sale and had no problem making the first payment. This time it was us who offered the option of deferring repayment.
A major difference between the two sites is leadership. Leng is the leader of the first site while Zhang, our farm expert, leads the second. Many AIDS villages have government funding for economic programs. Because of Zhang, the village government has decided to provide 12 rabbits to each qualifying family.
Meanwhile, our Beijing NGO partner, Z. P. Chen, was anxious to help. He took a train to visit his classmate in the capital of Henan. His classmate works in the provincial government poverty alleviation office.
"Humphrey, I have good news. The Henan government is interested in supporting our work." Z.P. related the results of his trip while my team members were busy selling rabbits.
A week later when we all met back in Beijing, Z.P. explained to us the rules of a government program. The government doesn't provide cash, it does not pay anyone outside of the province, and it does not make grants to any non-governmental organizations. In other words, we can only apply in the name of a rural rabbit co-op for rabbits, cages, supplies, feed machines, medicines, and training programs. And the government disburses money once a year, in July.
Now with these new developments, we have to move quickly. Before Cheng could rest, I asked him to explore the possibility for expanding into a new area of Henan, and asked his assistant to start drafting a five-year proposal with an escalating budget, totaling one million yuan. With higher prices for rabbits, new funding for Zhang's village, and the deadline for applying the government aid all coming together, this summer is going to be a crucial time.