This case study provides a strictly hypothetical description of an individual villagebased
Poppy for Medicine project, to shed light on the project model. Although all the
figures would need to be carefully reassessed for a smaller Pilot Project or larger
village project, nevertheless, the case study provides interesting insights and allows
conclusions to be drawn regarding the potential economic impact of a Poppy for
Medicine project.
In a hypothetical Poppy for Medicine project village, poppy would be cultivated on
twenty-five small licensed farms of 0.37 hectares, or two jeribs, each. Sown in
autumn, the crops would be ready for harvest by project field workers the following
spring. Comprising a total of 9.25 hectares, the twenty-five farms would together
yield a total of at least 340 kg of raw poppy materials over the three-week harvest
period. At the end of each day, the day’s harvest would be collected and brought to
the project village’s storage facility, to be documented and tested for morphine
content. Throughout the harvest period, trained project workers would begin the
medicine production process by drying the raw poppy materials. This initial
transformation step would yield around 310 kg of semi-processed raw poppy
materials.
These semi-processed raw materials would then be securely transported to the wellequipped
district processing facility and transformed into morphine by professional
pharmaceutical chemists, with the support of project participants trained as laboratory
workers. The morphine would then be further processed into 10 mg tablets at the
district processing facility.
In total, approximately 30 kg of morphine would be transformed in morphine tablets
in a single hypothetical Poppy for Medicine project,43 for a total production cost of
USD 76,000. More than two thirds of these costs would be recycled back into the
local economy. After further quality control tests, the finished medicines would then
be sold to the Afghan government for a total of USD 96,000, bringing the
hypothetical village project a net profit of USD 20,000 to invest in local economic
diversification projects.
The locally produced morphine would be securely transported to Kabul, where the
Afghan government would prepare the medicines for international export, possibly
through a special state-owned Afghan National Pharma Company. The packaged and labelled medicines would then be exported at a price of USD 3,800 per kg of
morphine to a country with extensive morphine needs, such as Brazil.
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Transport and export costs to Brazil, including all taxes and duties, can represent as
much as 80% of the value of finished morphine based medicines. However, medicines
imported for a Brazilian public institution are exempted of most of the import duties.
A conservative assumption that the full range of costs and taxes apply brings the price
of Afghan made medicine morphine exported to Brazil to USD 7,700 per kg, or USD
7.7 per gram. After including distribution costs, it is likely that one gram of Afghan-made
morphine would cost the Brazil government less than USD 10 [representing a
hundred 10 mg doses], well below the Brazilian market price of USD 49.5. A Poppy
for Medicine project would provide affordable medicines to guaranteed markets, and
in doing so, would help to respond to a largely un-met need.
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