Lao People's Democratic Republic Peace Independence Democracy Unity Prosperity Country Report Agriculture Sector Value Chain Analysis and Promotion In Lao PDR Presented by: Lao Participants

I. Country Overview Population: 6 .5 million (2008). Location: Southeast Asia (Indochina Peninsula). Landlocked (bordering with 5 countries): - North: China - south: Cambodia - East: Vietnam - West: Thailand - Northeastern: Myanmar Population: 6 .5 million (2008). Capital: Vientiane . Population density: 24.0 pers. per sq.km 16 provinces and 1 Vientiane Capital City

Land use: Land use Area (ha) Percent Cultivation crop land 800,000 3.4 - Grass land Forest 11,000,000 46.4 - Scrub/wood-land 5,000,000 21.1 Water way and lakes 2,180,000 9.2 - Others 3,900,000 16.5 Total 23,680,000 ha or 236,800 sq km 100

The policies of Government for agriculture The government designed an agricultural policy which is balancing the interests of farmers and consumers and is compliant with the World Trade Organisation principles. The government looks for marketplaces for agricultural products in order to provide enough places for the farmers to sell their products after harvesting. The government sends scholars to support the farmers from production until export.

4. There are Policies Banks for farmers and the farmers can 4. There are Policies Banks for farmers and the farmers can borrow money in low interest on loan or the government gives seeds to the farmers and they are paying a debt after harvesting. 5. There are policies for agricultural investments such as the import tax exemption for agricultural materials and equipments.

Promotion by government of Lao PDR Government policies is developed to promote and support organic agriculture and ensure that is well planned and sustainably driven Increased foreign market access in EU,US and Japan of Lao organic coffee products Government policy is developed to promote and support: Organic coffee products export to ensure that It will increase value and volume, Increase market access in international trade . - Increased trade flows, economic growth , rural development and eradication poverty .

Figure : Promotion of organic coffee in LAO PDR Export promotion by the Government Factors policy Trade facilitation standard Setup support net work, service delivery net work Training Reduce Unnecessary Export procedures NGOs Lao coffee Association Organic certification Micro finance other Export earning Receive the premium price and achieve to better life Farmer Producers Exporters Figure : Promotion of organic coffee in LAO PDR

Supply chain of coffee production Supplier Farmers Collector Processor Wholesaler Retailer Consumer

Mapping of actors, function and activities Input supply Production Collection Processing Wholesal and retailing Consumption Functions Government Agency, Association, NGOs Farmers Collectors Millers Processors Wholesalers Retailers Large millers Consumers Actors Growing Harvesting Drying Buy coffee Products from farmers Drying Storage Milling Grading Selling, Testing Supply and demand Information, Set up price Buy products Provide seed, cash, credit, training, market demand Activities

Matrix of relation of actors Supplier Producer collector Processer Wholesaler / Reatailer consumption Ee-c information Provide seed, cash, credit, training, market demand None Get input and get knowledge experience Sell products Buy products Wholesaler

The SWOT of coffee production Strength 1. The government has many policies for agricultural productions. 2. Cost of labour is cheap. 3. There are enough suitable places for agriculture. 4. transportation.

Weaknesses 1. The marketing and promotions are still narrow. 2 Weaknesses   1. The marketing and promotions are still narrow. 2. Lack of technical expertise. 3. The quality of labour is low. 4. Productions still lean on natural. 5. Lack of modern agricultural factory

Opportunities High demand market. 2. 80% 0f Lao people are farmers. 3. People support organic coffee. 4. Good environment. Opportunities

Threats 1. competition market. 2. design packaging. 3. migration. 4 Threats 1. competition market. 2. design packaging. 3. migration. 4. market development. 5. demand market. 6. high certificate cost.

Export coffee production, 2002-2008 year Agriculture producers (USS) coffee(USS) 2002 6,890,268 612,184 2003 8,864,841 10,915,964 2004 13,156,006 13,021,172 2005 19,645,326 9,599,327 2006 28,981,512 9,712,558 2007 59,403,296 29,750,075 2008 24,476,000

Peeling and drying coffee

Milling

Some coffee products

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