Lao PDR Country Report.pdf

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    ASEAN Regional Conference

    On Food Security (ARCoFS)

    (Country Paper of Lao PDR)Ministry of Agriculture and Forestry,

    Department of Agriculture

    Penang, Malaysia 8-10 October 2013

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    Outline of Presentation Overview of Agricultural Development, related to

    FS during the last 5 years(20062010) andTarget for Next 5 Years (2-011-2015)

    Challenges and Opportunities to Achieving Food

    Security

    Improvement of Poor Farmers Livelihood

    Sustainable Agricultural and Food Production

    Responsible Agricultural Investments and

    Partnerships for FS and ANR SectorDevelopment

    Agricultural Innovation and Technology Transfer

    FS Arrangements in Case ofEmergency/Shortage caused by Natural Disaster

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    Land-linked

    advantages

    N

    PAKSAN -

    Bungkane

    VIENTIANE

    XAISOMBOUN

    SAYABOURI

    LUANG PHRABANG

    HOUAYSAI -Chiang Khong

    LUANG

    NAMTHA

    OUDOMXAI

    XAM NEUA

    PHONGSALY

    P

    akmong

    Longsan

    Thong Khoun

    Ban Loi - Nameo (to be soon opened as

    International Crossing

    Xam Tai

    Namkan - Nam Can

    Thannaleng - Nongkhai

    Namngeun - Hoiei

    Kone

    Boten -

    Bohane

    Pakha -

    Ban Chom

    Lantui - Paksa

    PHONSAVANH

    5

    7

    6

    4B

    4A

    2W

    3

    13N

    1A

    1B

    1C

    13N

    PHONHONG

    2E

    Sop Hun - Tai Trang

    Ban Vang -

    Paksom

    Kenthao -

    Nong Pheu

    Pa hang - Long Sap

    Ban Dan - Xiang Khouang

    Panghay -

    Pangthong

    Provincial Capital

    National Road

    River

    National Capital

    LEGEND

    International Border crossing

    National border crossing

    Lao PDR: Northern Province Strategy Study:

    Local and International Border Crossings

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    Overview on Agricultural Development

    Lao PDR covers area of 236,800 km2

    Mountainous areas account for 80% and about20% is lowland area.

    Cultivated land covers about 1.2 million ha (5%),

    rice is occupying 60---70% of the total crop

    area. Population is about 6.51 million (In 2012);

    GDP per capita 1,349 US$ (in 2011-12). Growthrate is about 8.3% and target for 2012---13 is 1,519

    US$. Lao PDR is divided into 17 provinces, 145 districts

    and 8,615 villages (in 2012)

    Agri. GDP contributes 26.7% (in 2011--2012) to

    Nat. GDP, and est. for 2012-13 is about 25.5%.

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    The Food Situation Laos has achieved basic self-sufficiencyin Year 2000 (300-

    350 kgs of paddy/cap/year), but productivity is still low anddeficiency is chronic in the Uplands(2/3 of Laos )Howeverfrom a nutritional standpoint very much deficient

    At the national level, approximately 270,000 or 37% of childrenunder 5 (CU5) remain underweight and over the past ten years,this rate has not declined. Chronic malnutrition remains thebiggest problem with nearly 300,000 or 40% of CU5 stunted.There is a sharp increase in stunting and underweight between6 and 24 months.

    Food security and diversification: 23% of the population isundernourished. The most significant constraint to theavailability of food in Laos is the low level of domesticproduction of food items. The low level production is mainly theresult of low levels of productivity and high risks in theagricultural sector.

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    Rice Production has attained overall the

    country since 2000-2001. It achieved to 2.1

    million tons of paddy

    6

    (300,000)

    (200,000)

    (100,000)

    -

    100,000

    200,000

    300,000

    400,000

    1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

    Surplus of raw milled rice (tons)

    surplus

    insufficiency

    FAO 2011

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    Plan VII : 2011-2015ANR sector will perform over 4% of

    annual growth (overal GDP growth > 8%)

    1- Food security and rice reserve:

    - Consumption target at 300-350 kgs/cap/yr for rice paddyand 50-60 kg/cap/ yr for protein(meat,fish, ),

    - Expect to have excess up to 1 million tons minimum, no

    more significant rice and food deficit in Laos in 2015

    -Rice reserve 60 to 120.000 tons and rice seed reserve over10.000 tons(on going to prepare rice reserve at 30.000 tons)

    2- Promote value chains, incl. in uplands ( take advantage of

    New Asean Charter & Economic-Social Pillars; Regional

    Economic Integration; Dynamic East Asia Economy esp.about PP&PP) reach rural poor areasincrease income

    3- New employment opportunities for the upland and remote

    rural poorto reduce Shifting Cultivation

    4- Forest cover up to 65% : REDD+ & climate change program

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    Rice Sector Target by 2015

    MAF has developed the following targets forthe rice sector in 2015: Total paddy rice production increased to 4.2 million mt

    from 3.07 million mt in 2010 and 3.4 million mt in 2012

    Planted area increased to 1.04 million hafrom 870,000ha in 2010.

    500,000-600,000 mt of good-quality, non-glutinous rice

    would be exported, mostly to countries in the ASEAN

    region but also to the international market. Non-glutinous rice increased to 30%from 10% in 2010

    Food insecurity and malnutrition would be reduce by

    one-halfthrough increased availability, access to and

    utilization of rice and other foods.

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    Challenges and

    Opportunities toAchieving Food Security

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    Multiple path exist for achieving food security High diversity of existing rural

    land use systems

    Aim for family-based foodsecurity

    Aim for community-based foodsecurity

    National food security derivedfrom an integrated food supplychain analysis

    Analysis => awareness ofstrengths and opportunities

    Analysis => investments toovercome weaknesses andthreats

    Food security is more than rice :increased commodity & trade =increased income & safety nets

    Agroforestry

    Shifting

    cultivation

    Mixed

    farming

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    Existing Opportunities

    Regional (GMS) comparative advantage factors: Ability to produce natural/conventional and organic products Land available for smallholder farmers and intensive / plantation-style

    mega-projects Availability of NTFPs and other niche products for niche markets (natural

    & domesticated species, indigeneous species). Lao PDR has more than

    15,000 Varieties of rice (second country after India). Lao commodities are in high potential in regional markets:

    Field crops: maize, cassava, peanuts, soybeans, sesame, etc. Tree crops: rubber, Eucalyptus, teak, agar wood, etc. Horticulture crops: coffee, tea, vegetables, fruit Industrial crops: Jatropha, sugar cane Specialty crops: NTFPs Livestock: cattle for meat; buffalo for hides; pigs / chickens as natural /

    wild products. ASEAN development gap:

    CLMV vs. advanced ASEAN (Brunei, Indonesia, Malaysia, Philippines,

    Singapore, Thailand)allow for complementarities

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    13

    Rice

    Rubber

    Vegetables

    Maize

    NTFP

    Regional

    EconomicIntegration :Opportunity for theLao PDR :Turn land-linkedtransport corridors intoeconomic corridors :increase in land-based

    investments(concessions, contractfarming.. ) to produce &supply food & ANR

    goods to the Region &World

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    Improvement of Poor

    Farmers Livelihood

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    The Improvement of Livelihood has Food

    Security as its first Priority for Poor Farmers1- Through agriculture and livestock activities(Agricultural diversification):

    this approach will be promoted in order to enable improvement thenutritional well-being of people, to meet food products requirements/markets.

    2- Food security and livelihood improvement is linked to ensuring good

    management of agricultural land, good soil management, use of improvedseed, application of suitable fertilizer packages, and IPM.

    3- Farmers practicing irrigated agriculture will be given more training in on-farmand in field-water use and community management of irrigation structures, toincrease productivity and yield.

    4- Local breeds of livestock will be cross-bred to increase productivity anddisease resistance to ensure resilience to climate change.

    5- Basic veterinary services and vaccination programs will be strengthened tosupport animal disease control.

    6- Agricultural research, extension, and development will aim to increase

    productivity, reduce of cost production, and enhance quality to improvemarket competitiveness.

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    Sustainable Agricultural and

    Food Production

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    18

    Food security based systems

    Food security based integrated with

    commercial agriculture

    water

    Low land RICE (1crop/y)

    housing

    Up land rice fieldnatural forest

    animal grazing

    field

    water

    Low land RICE(2 crop / y)

    housing Horticulture

    Natural

    Forestr

    y

    Agro-- forestry

    (veg. fruit tree)

    Uplandrice

    Crop

    Rotation Animalgrazing

    Lao Smallholder agriculture is in transition

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    Responsible Agricultural

    Investments andPartnerships for Food

    Security and ANR Sector

    Development

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    Imperatives of Regional Integration1- Continued investments : PIP, ODA but focus on FDIneed new

    policies, regulations and incentives, e.g. land lease policies likeleasing irrigated agriculture land, nucleus estates

    2- Institute new cross border links, building a new Asean Economic &Social Community transport corridors & economic

    corridorsincreased connectivity & integration3- Collective effort in preventing or mitigating on new risks supportto SPS

    4- Sustain Technology Development through increased intra-Asean;Asean Plus Three & Cooperation with all DPslessons learned from

    the past : varietal improvement, supply chain dvpt, cattle dvpt, NTFPsdvpt( PP & PP )

    5- Effective engagement with small holders and larger holders need torealize Decrees on Associations & Cooperativesto promote SMEs

    & producers to private businesses partnerships ( key to povertyeradication)

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    Future Needs for Public Investment and

    Foreign Direct Investment in Agriculture

    Financial investments required to support the7thNSEDP ( 2011-2015 ) :

    Public investment: 10%Community-based / micro-finance: 10%

    ODA: 20%

    FDI: 60%

    Approximately 1 Billion USD neededinagriculture and forestry sector for the coming5 years

    21

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    Lao PDR has become WTO membership, need to

    improve and upgrade laws and regulations, . . Inorder to meet WTO requirements.

    Lao agriculture and forestry need to upgrade its

    capacity to meet :

    GAP standards SPS standards

    Organic Agriculture standards (OA)

    Fair trade standards

    Livestock health standards, etc..

    Public and private investments needs to

    be synergized for successful regional andglobal integration

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    Agri-business : North Organic tea to China

    Rubber to China

    Maize to China, Thailand,

    Viet Nam

    Soybeans to Thailand

    White sesame to Thailand NTFPs to China, Japan,

    Korea

    Beginning of supply

    chainsmostlyunprocessed products or

    early stage of processing

    - Cross-border trade - major

    incentive

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    Agri-business : Central

    Maize to Thailand

    Sugar Canecomplete supplychains shaping

    Sweet corn to Europe

    Vegetables to Europe

    Peanuts to Thailand Cassava to Thailand, China

    Black glutinous rice to Europe,

    some organic

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    Agri-business : South

    SME supply chains Okra to Japansupply chain

    Coffeeto Hongkong, Europe,Thailandsupply chain Cabbages to Thailand,

    Viet Nam

    Bananas to Thailand,

    Viet Nam Cotton indigo products to

    Japan

    Peanuts to Thailand,

    Viet Nam

    Cassava to Viet Nam Rubber to Viet Namsupply

    chain

    Soybeans to Thailand,

    Viet Nam

    The Cast of Characters :

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    The Cast of Characters :

    Success stories Coffee

    Dao Heuang (Champasak)

    Sinouk (Champasak)

    Lao Mountain Coffee

    Outspan Coffee (Singapore)

    Vegetables

    Lao Agro Industry (VientianeProvince)

    Mme. Inpeng (Champasak)

    Taniyama-Siam (Sekong)

    Textiles

    Laha (cotton indigo)(Savannakhet)

    Lao Sericulture (Mulberries)(Xieng Khouang)

    Benzoin Agroforex (France) in Huaphan

    Sugar cane Mitr Lao (Thailand) in Savannakhet

    Savan (Thailand) inSavannakhet

    Jatropha Kolao (Korea) in Vientiane

    Province

    Tree plantations Oji (Japan) in Borikhamxay,

    khammouane)

    Birla (India) in Savannakhet

    Sun Paper (China) Savannakhet

    Cassava Yetao (China) in Savannakhet

    Henan (China) inSavannnakhet

    Tenghui (China)in Savannakhet

    Hu Phu (Viet Nam) in Salavan

    Emerging & Growing SupplyChains

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    P-P & P-P ( Tighten Value Chains) Public & Public: Government to Government

    MOU: Lao Government and Partner Government

    Public & Private: Government to private company:

    MOU: Lao Government and Private company

    Private & Producers: Private company to producers

    (Contract farming)Example : Case of rice or any commodity production in a

    given Province. Partner Govt : varieties & breeds; technology; capacity building

    Partner country Private Sector : capital; market; certification

    Lao Govt & Private Sector complement : land lease; policy &other investment incentives; TA; capital & internal market;

    liaising & business support

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    P-P & P-P

    Barren land available as

    a land concession

    30 year renewable lease

    30 ha1,000 ha

    Operate as a nucleusestate

    Contract farming outreach

    program with local farmers

    Lease land from farmers

    Use farmers as workers

    while transferring

    technologyincrease

    income & food security

    Case Study:

    Taniyama-Siam, Thateng

    District, Sekong Province

    Okra:

    Sekong

    to Japan

    in 72

    hours

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    Vientiane

    Capital

    Champasak

    Pro

    Investment Potential in Lao PDR in ANR Sector

    Vientiane

    Pro

    Livestock, Rice

    and Industry

    Maize

    Rubber tree,

    Sugar cane

    and Rice

    Mekong Fish

    indigenuos,

    Cofee and

    Vegetable

    Savanakhet

    Pro

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    Agriculture and Forestry Landin Perspective

    Agriculture and ForestryLand area for promotionand attraction investment:

    Total land area: 2.36 mil ha

    1) Agriculture land: 1.8 mil ha, incl.:- Field crops land: 0.78 mil ha

    - Fruit tree crops land: 0.78 mil ha

    - Pasture land: 0.23 mil ha2) Industrial trees plantation: 0.56 mil

    ha

    3) Barren land : 7 million ha ( North, East )

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    Agricultural Innovation and

    Technology Transfer

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    Agricultural Innovation National rice research program, area-based approach

    Agricultural technologies (production, post harvest,agro-processing, land use planning, )

    Variety improvement (flood and drought tolerant ricevarieties, high yielding, seed corn,),

    Farming diversities (agro-forestry, mixed farming, )

    Animal improvement (Cattles, pig, fish, feeds,vaccine,)

    Agricultural infrastructure facilities development ,focusing on existing schemes.

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    Technology TransferNational agricultural extension strategy/program

    (through extension network to village/cluster level)Technical service centers (now: 216 centers atprovincial, district and village cluster levels )

    Farmers organization(group, association, by product:

    crop, livestock,...)

    Public-private-villager agricultural extensionpartnership

    Extension infrastructure and revolving fundFarming technologies and marketing information

    Seed distribution and production system

    Agricultural input support program

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    Food Security Arrangements

    in Case ofEmergency/Shortage caused

    by Climate Change Effects

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    In Case of Emergency caused

    by Natural Disasters- National Committee on Management of

    Natural Disasters

    - National Emergency Rice Reserve- National Rice Seed Reserve

    - Revolving Fund/Micro finance

    - Irrigation systems and agri. Inputs supply

    - Asking for assistance from APTERR,other donors, . . .

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    Sharing Food Security

    Information

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    Through ASEAN Network/

    International Org./Financ.Instit.ASEAN Food Security Reserve Board

    (AFSRB annual meeting)

    ASEAN Food Security Information System(AFSIS),

    APTERR

    Sharing with FAO, WFP, WB, ADB,IRRI,in the Country based and Regional,

    Sharing with MIP, MCI, (in the country)

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    Conclusions Food security remains in Lao PDR an important challenge

    and Lao PDR

    Greater investment in food and agriculture as well as in naturalresource management is fundamental to meeting the MDGs, inparticular the goals concerning poverty, hunger, and health.

    Food security can only be achieved in Lao PDR if a broad rangeof stakeholders are partnering and aligning to a commonobjective.

    NGOs need to be more present, working efficiently at communitylevel, and increasing local authorities capacities

    FDI and Domestic investment can play an important role inboosting agricultural production, importing food safetystandards, ..

    Increase focus on food security in environmental impactassessments (EIA) for investments in agro-based industries andplantations, bio-fuel industries, mining, hydro-power and others

    Lao PDR need to enhance its responses to regionalchallenges (e.g. AIFS, SPA-FS)

    Lao PDR National strategy needs to be further articulated with the

    regional food security strategy

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    Lao Agriculture is Open

    to Cooperation & Investment

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    Thank you

    For your attention