potential and challenges of agribusiness in...
TRANSCRIPT
Potential and Challenges of Agribusiness in Laos
Seiichi YOKOI
Agricultural Policy Advisor
JICA
8 August 2014
Potential and Challenges of Agri-business in Laos
Outline of presentation
• Agricultural Policy of Lao PDR
• Potential and Challenges of Agriculture
• Potential and Challenges of Agri-business
Agricultural Policy of Lao PDR
• Policy directions
– Assurance of Food Security
Rice production > Domestic demand
but significant regional imbalance
Increasing demand for other basic food
–Contribution to national economy
Agriculture production for commercial purpose and inputs to processing industries and services
Potential and Challenges of Agriculture in Laos
• General impression of Laos and its agricultureLaos is: a small country
an agricultural countrya rice producing country
Laos has: hilly and mountainous national landsmall population
Laos’ agriculture uses: limited inputslimited improved varieties
What are TRUE and what are NOT TRUE? What does it mean? Is it good or bad?
Potential and Challenges of Agriculture in Laos
• Laos is a small country with small population
Sources: IMF, Japan MOFA
Country/Province Population(million)
GDP(billion USD)
GDP per Capita(USD)
Lao PDR 6.4 9 1,446
Thailand 64.4 366 5,678
Vietnam 90.4 138 1,528
Yunnan Prov.(China)
45.1 163 3,501
Myanmar 63.7 53 835
ASEAN 615.6 2,306 3,745
Potential and Challenges of Agriculture in Laos
• Agricultural land is limited andagriculture has a small share in GDP
Source: FAOSTAT Source: Laos’ LSB
0%
20%
40%
60%
80%
100%
1990 2000 2010 2013
60.7
51.8
28.8 23.5
Agriculture
Industry
Service
Tax/duty
Share in GDP by SectorAgricultural land in total land area
0%
10%
20%
30%
40%
Potential and Challenges of Agriculture in Laos
• Still a large part of population live in rural area and work in agriculture
Sources: Laos LSB, MAF Source: FAOSTAT
TotalPopulation6.39 million
(2011)
Farmpopulation
working inagriculture2.40 million
(37.5%)
Farm population not working in agriculture
2.11 million (33.0%)
Non-farmPopulation
1.88 million (29.5%)
Farm population4.50 million(70.5%)
Total economicallyactive pop.3.36 million
(2011)
Othersectors
0.85 million(74.8%)
Economicallyactive population
in agriculture
2.52 million(74.8%)
Potential and Challenges of Agriculture in Laos
• Laos is a rice producing country
Sources: Laos’ MAF
No. Crop Items
Planted
Area
(ha)
1 Rice 939,100
2 Maize 188,825
3 Vegetables 144,735
4 Coffee 82,145
5Starchy
roots65,995
6 Job's tear 47,160
7 Fruits 37,595
8 Peanuts 24,595
9 Sweet corn 23,205
10 Beans 14,755
Planted areas of major crops Rice production
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2005 2006 2007 2008 2009 2010 2011 2012 2013
2.1 2.2 2.2 2.3 2.5 2.3 2.3
2.8 2.7
0.3 0.3 0.3 0.4
0.5 0.5 0.5
0.5 0.4 0.2 0.2 0.2
0.2 0.2
0.2 0.2
0.2 0.2
Upland rainfed paddy Dry season paddy Lowland rainy season
Mill
ion
to
ns
Potential and Challenges of Agriculture in Laos
• Laos also produces commercial crops
Sources: Laos’ MAF
0.0
1.0
2.0
3.0
4.0
5.0
20052006
20072008
20092010
20112012
2013
0.70.7
0.7 0.8 1.00.9 1.2
0.9 1.3
0.40.4 0.6
0.9 0.80.9
0.9
0.9
1.0
0.20.2
0.3
0.4 0.4 0.8
1.2
1.1
0.9
0.2 0.3
0.4
0.4 0.4
0.6
1.0
1.3
1.5
Starchy roots
Sugarcane
Maiz
Vegetables
Mill
ion
to
ns
Potential and Challenges of Agriculture in Laos
• Laotian farmers use local and improved varieties
Source: Laos’ NAFRI
Types of rice
Types of variety
Commodity production areas
Food production areas
Non-stickyrice
Improved breeds
• VTE450‐1• DTK13
Local varieties
• Chao Hom Maly,• Chao Hom Savanh,• Chao Kam Hom
• Chao Na• Chao Deng• Chao Lao Soung
Sticky rice Improved breeds
• TDK8, TDK11• VTE450‐2• PNGs• TSNs
• TDK1‐sub1• TDKs• PNGs• TSNs
Local varieties
• Hom Nang Nouane• Hom Sang Thong• Kai Noi• Nio Kam Hom
• Naxang• Mouang Nga• Ta Khiat• Kai Noi
Potential and Challenges of Agriculture in Laos
• Laotian farmers use more inputs but still limited
0% 20% 40% 60% 80% 100%
Southern region
Central region
Northern region
National Total
Chemical only Chem.+Org. Organic only No fertilizer
Fertilizer users
in 1998/99 and 2010/11
Temporary crop growers who used fertilizers
0
10
20
30
40
50
60
1998/99 2010/11
Organic only
Chemical/Chem.+Org.
Fertilizer users by region (2010/11)
%
Source: Laos’ MAF
Potential and Challenges of Agriculture in Laos
• Challenges of Laos’ agriculture– Small country with small population
– Hilly and mountainous national land
– Limited use of improved varieties
– Limited use of inputs
Potential and Challenges of Agriculture in Laos
• Potential of Laos’ agriculture– Small country with small population
Neighboring countries with big market potential
– Hilly and mountainous national land
Different climate areas, various genetic resources
– Limited use of improved varieties
Abundant traditional varieties/genetic resources
– Limited use of inputs
Possibility of organic agriculture
Potential and Challenges of Agriculture in Laos
• Large market potential in neighboring countries
Sources: IMF, Japan MOFA
Country/Province Population(million)
GDP(billion USD)
GDP per Capita(USD)
Lao PDR 6.4 9 1,446
Thailand 64.4 366 5,678
Vietnam 90.4 138 1,528
Yunnan Prov.(China)
45.1 163 3,501
Myanmar 63.7 53 835
ASEAN 615.6 2,306 3,745
Potential and Challenges of Agriculture in Laos
• Large neighboring countries
Possibility to gain markets
Good markets in size and purchase power
Agricultural production in Laos is small
No need of big market share
Niche markets would be good targets
Needs to Can import necessary materials
No need to produce everything domestically
No need to import from far countries
Potential and Challenges of Agriculture in Laos
• Different climate conditions
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Precipitation (mm)
0
5
10
15
20
25
30
35
40
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dic
Pakse (Max)
Paksong (Max)
Pakse (Min)
Paksong (Min)
AltitudePaske 107mPaksong 1,284m
Temperature (℃)
Source: climate-data.com
Potential and Challenges of Agriculture in Laos
• Laotian farmers use local and improved varieties
Source: Laos’ NAFRI
Types of rice
Types of variety
Commodity production areas
Food production area
Non-stickyrice
Improved breeds
• VTE450‐1• DTK13
Local varieties
• Chao Hom Maly,• Chao Hom Savanh,• Chao Kam Hom
• Chao Na• Chao Deng• Chao Lao Soung
Sticky rice Improved breeds
• TDK8, TDK11• VTE450‐2• PNGs• TSNs
• TDK1‐sub1• TDKs• PNGs• TSNs
Local varieties
• Hom Nang Nouane• Hom Sang Thong• Kai Noi• Nio Kam Hom
• Naxang• Mouang Nga• Ta Khiat• Kai Noi
• Limited use of input so far
Possibility of organic farming
But
Confusion in interpretation
Kasikam insi (Laotian) ≠ organic
How to develop markets?
A separate problem…
Abuse of chemicals (in non-organic agriculture)
Potential and Challenges of Agriculture in Laos
Potential and Challenges of Agri-business in Laos
• Potential of Laos’ agriculture– Potential markets in neighboring countries
– Various products from different climate areas
– Abundant traditional varieties/genetic resources
– Possibility of promoting organic agriculture
Potential and Challenges of Agri-business in Laos
• Large markets in neighboring countries
Potential: to gain high value markets
• No need to gain big share
• Niche markets would be a good target
Challenges: to Identify commodities and markets
• Quality control
• Stable supply
to improve logistics
• Cold chain
Potential and Challenges of Agri-business in Laos
• Various products from different climate areas
Potential: to develop unique products
• What are Laos-like products?
Challenges: to establish brand names
• Quality control
• Designing and packaging
• Consumers’ interests and trust
• Funding (Private sector)
Potential and Challenges of Agri-business in Laos
• Abundant traditional varieties/genetic resources
Potential: to utilize indigenous genetic resource
Challenges: to Identify useful resources
• Food, medicine, cosmetics, etc.
to develop new plant varieties
• Fitting Lao climate
• With new functions
• Funding
Potential and Challenges of Agri-business in Laos
• Possibility of organic agriculture
Potential: to establish as an export commodity
Challenges: to strengthen certification system
• Certification at the international level
to improve quality
• Production skill
• Quality control
• Funding
Thank you