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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
2
Mekong Institute
3
Project Profile
4
Project Profile
Kayin, Myanmar
and Tak, Thailand
Khammouane, Lao
PDR and Nakhon
Phanom, Thailand
Quang Tri, Vietnam and
Savannakhet, Lao PDR
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
• 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
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
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
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)
10
GAP Training
Capacity Development
11
GMP Training
Capacity Development

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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
  • 4. 4 Project Profile Kayin, Myanmar and Tak, Thailand Khammouane, Lao PDR and Nakhon Phanom, Thailand Quang Tri, Vietnam and Savannakhet, Lao PDR
  • 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)