Mr.Nguyen Hung Cuong presented on 'Make Market Work for the Poor: A Case of Rice in Khammouane Province, Lao PDR' at Regional Review and Planning Workshop 2017, Hanoi, Vietnam
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Make Market Work for the Poor: A Case of Rice in Khammouane Province, Lao PDR
1. SRI-LMB
Regional Review and Planning Workshop 2017
Make Markets Work for the Poor:
A Case of Rice in Khammouane
Province, Lao PDR
By Mekong Institute
April 24, 2017
5. 5
Lao Rice – A Quick Analysis
• Sustainable farming practice (chemical
free)
• Diversity of traditional and unique rice
varieties
• Comparatively low cultivation cost
Strengths
• Small-scale farming
• Productivity and milling quality are both
considered low
• Weak in food safety certification
• Mixture of varieties on plantation
• Comparatively high cost of milled rice
Weaknesses
Opportunity
• Policy support (e.g. export-led and food
safety strategies)
• Preferential trade by EU and growing
economies
• Recently became a net rice exporter
(400,000 tons of milled rice for export)
Threat
• Rice trade is highly regulated by the Gov.
• Import control by neigbours
• Geographical challenge (e.g. landlock,
surrounded by major rice producers/
exporters)
6. 6
• Rice cultivation areas: 53,084 ha in wet
season; 10,350 ha in dry season
• Defined as the national rice hub -
(together with Savannakhet province –
the biggest rice producer) for both food
security and export purposes
• More than 200 rice mills, but only 13
are small and medium scale
• Bordering with both Thailand and
Vietnam
• By transport road, 850km to Bangkok
port and 620km to Danang port
• Rice markets: Greatly domestic, few
international markets like Vietnam,
China, Thailand and Europe
Khammouane: Provincial Profile
7. 7
Our Interventions
Rice Mills
Seed Farmer
Groups
Rice Farmer
Groups
Aiming at improving:
• Rice productivity
• Rice quality
• Access to quality and certified seed
• Access to credit
• Access to high-end markets
• Sustained linkages
8. 8
Our Interventions
• Improved and certified seed availability
• Improved variety consistency
• Better seed distribution and access for farmers
• Higher productivity
• Improved rice quality in terms of variety consistence
• Improved good practices and certification (GAP)
• Steady output market
• Improved quality and volume for trade
• Improved food safety and certification (GMP)
• Better market access (produce what the markets need)
• Sustained input supply
Seed
Farmer
Groups
Rice Farmer
Groups
Rice Mills/
Association
9. 9
Project Results in 2015/16
• 78 tons of certified seed increased
• 82 seed producers increased additional income of USD
26,402 (USD 322/hh)
• Productivity improved by 12.8%
• Production cost declined by USD 56/ ha
• Income increased from USD 297.60 to USD 434.28 per ha
• Total increased income for 555 hhs was USD 94,629
• Trade volume increased by 2,362 tons
• 5 rice mills got total additional profit of USD 315,464
Seed
Producers
Rice
Producers
(certified
seed)
Rice Mills
• Rice prices increased by 25-35% over market prices
• 80 GAP rice households got additional income of USD
12,518 (USD 156.5 / hh)
Rice
Producers
(GAP rice)