1. Upland Development Strategy for Agriculture and Rural Development, 2015-2020 2nd Draft
Northern Uplands Development Programme
Department of Planning and Cooperation
Ministry of Agriculture and Forestry
11 July 2013

2. Outline of the Presentation
Major revisions to the draft Upland Development Strategy
Context of the Uplands in Lao PDR
Definition of the Uplands
Resource base and production systems
Past performance and recent developments
Policy framework
Legal framework
Proposed Second Draft: Upland Development Strategy
Vision
Objectives
Principles
Target beneficiaries
Pillars
Cross-cutting aspects
Institutional roles
Indicators
Operational framework
Next steps

3. Context

4. Definition of the Uplands
Area of multi-dimensional marginality
Characterized by remoteness, diverse ethnicity, language, and culture
Comparatively high level of poverty
Livelihood dominated by pockets of food insecurity and shifting cultivation
Bio-physical factors
Elevation above 200 m.a.s.l.
Rugged dissected terrain
Steep slopes, narrow valleys
Large diversity of upland rice varieties

5. Resource base and production systems
NORTH
North
Soils suitable for cash crops and animal husbandry
Annamite Uplands
Acid soils: limited potential for high value agriculture
Potential for large livestock
Bolovens Plateaux
Rich soils
Elevation: 500-1,500 m.a.s.l.
Rainfall: 2,500-3,000 mm/yr
Annamite Uplands
BOLOVENS PLATEAUX

6. Past performance and recent developments
Northern uplands
Natural forests degraded by logging, shifting cultivation, rubber plantations, hydropower
Opium production
Annamite uplands
High UXO, low rural population density, high poverty, tree plantations, hydropower, fisheries, large livestock rearing
Bolovens Plateaux
Wide range of farming systems
Tree crops: coffee, fruit
Horticulture: tea, cardamom, vegetables
Declining shifting cultivation
Medium to large scale agriculture land concessions for coffee, cassava, and rubber
Capital, chemical, and mechanical intensive agriculture

7. Past performance and recent developments
Policy push factors
Poverty reduction through market orientation
Stabilizing farming systems
Land allocation, focal area development
Opium reduction
Increase in forest cover: 70% by 2020
Promotion of land-based FDI in upland areas: 45% of all investment is in unstocked forest or shifting cultivation areas
Improved access to regional markets
Demand pull factors
Increased demand for niche market products in domestic and regional markets
Increasing demand for upland commercial crops in nearby markets: cassava, rubber, fodder maize, sugar cane, bananas, coffee, tea, NTFPs

8. Past performance and recent developments
Constraints to upland agricultural and rural development
Minimal farmer experience with modern agriculture
Traditional agricultural production
Monocropping: rice security
Low labor productivity and availability
Minimal access to agriculture information
Lack of land tenure security
Complex business investment regulations
Small and inexperienced upland domestic enterprises
Weak financial services in upland areas
Trade logistics at upland border districts are inadequate

9. Past performance and recent developments
Regional opportunities and challenges
Northern Uplands
Build on commercial agricultural production for China, Thailand, Vietnam markets
Harmonized standards for commodities
Cassava, maize, bananas, livestock, citrus
Niche rice varieties
Build on quality agricultural products for heritage, nature, & agro-tourism
Branding of indigenous products
Textiles, organic tea and coffee, clean temperate climate fruit and vegetables
Agroforestry : teak, fruit trees, NTFPs, herbs, essential oils, livestock
GMS agribusiness trade clusters
Preliminary agro-processing
Semi-finishing of primary products
Joint venture with neighbor country enterprises: cool store, silos, logistics, storage facilities
Local & International Border Crossings in Northern Lao PDR

10. Past performance and recent developments
Regional opportunities and challenges
Annamite Uplands
Produce commercial agriculture products for Vietnam; rice, cassava, fodder maize, tobacco, fisheries, livestock
GMS agribusiness trade clusters
Preliminary agro-processing
Semi-finishing of primary products
Joint venture with Vietnamese enterprises: silos, logistics, storage facilities
Establish upstream linkages for the Vung Ang Economic Zone, Ha Tinh Province, Vietnam

11. Past performance and recent developments
Regional opportunities and challenges
Bolovens Plateaux
Build on high value horticultural products and niche crops
Coffee, tea, fruit, clean agriculture products, certified Halal and organic vegetables
Implement Lao Coffee Strategy
Agribusiness trade cluster
Champasak - Ubon
Preliminary agro-processing
Joint venture with neighbor country enterprises: cool store, silos, logistics, storage facilities
Promotion of PPP
GOL-GOT
LNCCI-Thai Chamber of Commerce
Champasak-Ubon universities

12. Policy framework
Political Report to the 9th Party Congress, March 2010
7th National Social and Economic Development Plan
Decree No. 16/PMO 2012 on Three Builds (sam sang)
Rural Development and Poverty Eradication Five-Year Plan ( )
Agricultural Development Strategy to 2020
Agriculture Master Plan,
Forestry Strategy to 2020
National Nutrition Policy
National Adaptation Programme of Action to Climate Change
Land Policy Statement (pending legislative approval)

13. Legal framework Law on Agriculture Law on Food Forest Law
Law on Environmental Protection
Law on Land
Law on Industrial Processing
Law on Water and Water Resources
Fisheries and Aquatic Resources Law

14. Proposed Second Draft: Upland Development Strategy
11 July 2013

15. VISION FOR THE UDS
Long-term holistic sustainable development of agriculture, natural resources, and rural areas
by an economically empowered and better skilled upland population
mostly deriving livelihoods from secure access to productive assets
that support food security and resilient farming systems
with links to pro-poor and climate-smart agricultural value chains
and off-farm economic opportunities.

16. Objectives 4 objectives by 2020:
Integrated rural development is a process for eradicating poverty in upland areas
Upland food security through increased food production and improved incomes linked to market activities
Strengthened capacity of local government facilitates decentralization leading to improved effectiveness of service delivery in upland areas to maximize development of local potential
Sustainable natural resources management including conservation and sustainable use of agro-biodiversity

17. Principles Principle 1: Principle 2: Principle 3: Principle 4:
Human resources are given a high priority
Principle 2:
Promote local ownership
Principle 3:
Contribute to GOL policy objectives
Principle 4:
Role of Government is to improve the delivery of public services
Principle 5:
Mobilize capital from all sectors

18. TARGET GROUPS Upland communities Smallholder upland farmers
Poor communities in remote upland areas
Food insecure areas in upland areas
Border districts with upstream linkages to upland smallholder farmers

19. 5 Pillars of the UDS Food security and self-sufficiency
Commercial agriculture, markets, and marketing
Conservation and sustainable use of natural resources
Rural upland infrastructure
Human resources development and delivery of public services

20. Cross-cutting aspects
Pillar 1: poverty, gender, culture, empowerment
Pillar 2: poverty, gender, empowerment, technology innovation
Pillar 3: poverty, environment, climate change, hazard risk reduction, innovation
Pillar 4: risk reduction
Pillar 5: gender equality, rule of law, poverty, culture, values

21. Pillar 1: Food security and self-sufficiency
Priority areas for action:
Farming systems approach for food security, farm diversification, improved nutrition, and self-sufficiency
Value-chain analysis for food security
Gender-linked extension for food security
Soil conservation
Stabilizing land use rights
Agroforestry farming systems
Climate smart upland agricultural development
Irrigation system effectiveness
Improvement of livestock productivity
Reduction of opium production

22. Pillar 2: Commercial agriculture, markets, and marketing
Priority areas for action:
PLUP
Use TSCs to improve monitoring of land concessions
Farming systems approach
Strengthen farmer organizations
Reduction of opium production
Facilitate competition in agricultural trade
Application of GAP
Promotion of niche market products
Technology transfer to farmer organizations
Gender and extension
Promote soil conservation and fertility improvement for better fodder production
Priority areas for action:
PPP with upland mega-projects
Market-oriented crop production and extension
Improved competitiveness of commodities
IPM / FFS
Use of model farmers
Rural financing
Irrigation system effectiveness
Improvement of livestock productivity
Implementation of the national coffee strategy
Rural economic diversification based on value chain analysis
Economic empowerment of communities

23. Pillar 3: Conservation and sustainable use of natural resources
Priority areas for action:
Community-based watershed management
Resource-based planning for stabilization of cultivated land
Decentralized management of natural resources linked to value chain gap analysis
Investments in green zones: agroforestry, grazing areas, clean agriculture production
Promotion of soil fertility improvements as ecological landscape management based on land zoning and land use planning
Carry-out PLUP and land zoning
Promote soil erosion control through conservation agriculture
Priority areas for action:
Integrated watershed management for ecological landscape management and conservation and sustainable use of agro-biodiversity
Participatory forest rehabilitation with benefit sharing (PES)
Promotion of village forestry associations
Management of NTFP extraction
Climate change mitigation and adaptation
Conservation agriculture as part of ecological landscape management

24. Pillar 4: Rural upland infrastructure
Priority areas for action:
Upgrade irrigation systems on 14 upland plains
Develop small-scale irrigation for upland communities
Upgrade rural market access roads
Upgrade market infrastructure at strategic border crossings
Improve rural water supply to enhance rural quality of life and nutrition

25. Pillar 5: Human resources development and public services delivery
Priority areas for action:
Individual and group capacity development
Improving women’s nutrition
Producing safe, appropriate and high-quality complementary food
Micronutrient interventions
Gender mainstreaming
Gender balanced training
Gender-linked extension groups
Agricultural modernization aimed at youth
On-farm and off-farm occupational skills development
Priority areas for action:
Institutional structures and processes
Training needs assessment
Government decentralization (sam sang)
Delivery of public sector development services
Government monitoring of contract farming
Government monitoring of land-based mega-projects
Professional standards for service delivery
Monitoring and evaluation knowledge management
Land tenure

26. INSTITUTIONAL ROLES

27. Public services provided by MAF
Consultations with upland agricultural land concessionaires; use investment/ business plans as platform for consultations and basis for monitoring
More effective monitoring of contract farming arrangements with agro-processors
Promoting awareness of CSR to agro-enterprises
Verification of clean agriculture products and certification of organic products
Technology transfer through TSCs
Up-grade knowledge and skills of GoL staff (technical, financial, social)
Ensure access to finance for upland smallholder farmers and micro-enterprise
Ensure participation through facilitation of project planning and monitoring by communities, safeguarding the rights of women, poor people, and ethnic groups
Set-up institutional inter-departmental coordination mechanisms for coordinated planning, implementation, and evaluation of projects.
Facilitate land-use planning and ensure permanent and reliable land use-rights for individuals and communities.

28. MAF cross-sector coordination
Public services to be delivered
Lead agency
Coordinating agency
Nutrition-based livelihood development
MAF/Department of Planning & Cooperation
Ministry of Public Health
Integrated local planning
NLCRDPE
MAF/ Department of Planning & Coop.
Facilitate cross-border trade of upland agricultural products at border districts
MOIC
Guarantee markets for upland commodities (i.e., rubber, livestock, cassava, bananas, vegetables)
MFA
MOIC, MAF/ Department of Planning & Coop.
PLUP: To stabilize upland agricultural production and provide land tenure security for upland farmers
MAF/DALM&D
MONRE
Trees are accepted by Government banks as assets in agroforestry systems and family forests
MAF/DOF
APB
Nayoby Bank
Policy measures to promote agribusiness investment in border districts
MAF/DAEC
MPI
MOF
Increased access to institutional credit for upland smallholder farmer organizations
Bank of Lao PDR
Promotion of FDI in upland border districts using fiscal policy measures
MAF/ Department of Planning & Cooperation

29. Eexpected actions of farmers in implementing the UDS
Apply experience, indigenous knowledge, and local wisdom to increase productivity of upland subsistence farmers
Blend local knowledge with modern upland agricultural production technologies
Understand production and marketing benefits of farmer organizations
Respect upland ecosystems on which productive and profitable agriculture is dependent
Adopt agricultural entrepreneurship and minimize debt

30. Expected actions of farmer organizations in implementing the UDS
Contribute to upland community food security and quality of life
Respond to incentives offered to modernize and commercialize upland agriculture
Clean agriculture, GAP, harmonized SPS procedures, farming systems, inter-cropping, agroforestry, trees as assets, value-added processing, mechanization, post-harvest technologies
Risk mitigation and adaptation to climate change, conservation agriculture, soil fertility improvements, water, and land conservation
Participate in dialogue with GOL and agribusiness
Retain maximum value-added at the community level
Learn about markets, marketing, and traders; liaise with other stakeholders in value chains
Expected actions of farmer organizations in implementing the UDS
Participate in farmer field schools (FFS) for integrated pest management (IPM)

31. Expected actions of the private sector in implementing the UDS
Seek profitable investments
Provide services for which upland farmers are prepared to pay
Operate contract farming
Comply with GOL laws and regulations
Mitr Lao Sugar

32. Expected actions of CSOs in supporting implementation of the UDS
Provide subsidies, grants, low-interest loans, and income-generating schemes to fund alternative rural development approaches
Respond to local needs related to community development
Ensure that women have a voice in decision making at all levels
Coordinate with the GOL to implement upland agricultural and rural development policies and strategies
Coordinate with the GOL to train and advise upland communities about natural resources management, PLUP, conservation agriculture, and ecological landscape management
Promote FFS for IPM
Coordinate with GOL to train and provide international professional certification to GOL technicians and managers

33. Expected actions of development partners in supporting implementation of the UDS
Support GOL to undertake upland development using PBA
Monitor jointly with government progress of upland development based on agreed key indicators using Lao PDR’s statistical, monitoring, and evaluation regulations and procedures

34. Indicators (from Annex 1: Results Framework)
General indicators
Provincial GDP growth rate
Provincial wealth distribution (Gini coefficient)
20% crown cover by natural forests in designated upland conservation, protection, and production forests
Agro-processing facilities established at strategic upland border trading districts supplying outlets for diversity of crops
Application of post-harvest technology by upland producers
Outcome indicators:
Number of farmer organizations organized around farming systems
Agriculture lands, forests, and forestlands are designated (zoned), delineated, and registered in 25% of all upland districts
Climate change risk mitigation and adaptation measures are being applied by one farmer organization in each upland district
At least one upland irrigation system for supplementary wet season irrigation of rice (and other upland crops) is operating in each upland district
% increase in yield of wet season upland rice
25% increase in police fines and court cases against illegal logging
Trade flows to neighboring countries are normalized
Sanitary and phyto-sanitary procedures are harmonized with principal trading partners

35. OPERATIONAL FRAMEWORK
Process is gradual, phased, and maturing
Criteria for programme-based approach
Government ownership and leadership
Strategy based on shared vision and priorities
Comprehensive resource framework
Coordination of institutional arrangements and assignment of responsibilities
Harmonized approaches to implementation and management

36. NEXT STEPS Endorsement of the UDS by MAF Prepare an action plan
Prepare an investment plan
Implement the UDS

37. The end
Thank you