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“Overview of Rubber Situation in Laos” By Vongpaphane Manivong Ministry of Agriculture and Forestry Laos

“Overview of Rubber Situation in Laos” By Vongpaphane Manivong Ministry of Agriculture and Forestry Laos. Contents. Dynamic changes in Laos Rubber boom in Laos Current rubber planting arrangements in Laos Current government strategies Observations Sector prospects.

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“Overview of Rubber Situation in Laos” By Vongpaphane Manivong Ministry of Agriculture and Forestry Laos

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  1. “Overview of Rubber Situation in Laos” By Vongpaphane Manivong Ministry of Agriculture and Forestry Laos

  2. Contents • Dynamic changes in Laos • Rubber boom in Laos • Current rubber planting arrangements in Laos • Current government strategies • Observations • Sector prospects

  3. Drivers of rubber industry in Laos • Moving from ‘land locked to land linked’ • Investor interest in Laos as the ‘orchard of Asia’ • Government policy to turn ‘land into capital’

  4. Agriculture & Forestry Sector Strategy • Goal 1: Food Production • Increase agriculture & forestry GDP growth rate 3.4% annually • Maintain the level of food production at 400-500 kg per capita per year; corresponds to 3.3 million tons of paddy rice by 2010 • Increase quantity of food in the 47 poorest districts; equivalent to national level (350 kg per person per annum) • Increase production of meat, eggs, fish, & fresh milk by 5% annually; average consumption demand of 40-50 kg per capita per year • Goal 2: Commercial Production • Supply raw materials & agriculture & forestry products to processing industries & the service sector • Increase export share of agriculture & forestry products to 1/3 (approximately US$1 billion) of the total export value of commercial & services sectors (US$3.48 billion) by 2010 • Goal 3: Stabilizing Slash-and-Burn Cultivation • Total end of shifting cultivation practices by 2010 • Focus on 47 poorest districts; link to rural development, poverty reduction & environmental protection • Goal 4: Sustainable Forest Management • Balance between exploitation, utilization, and protection/conservation of forest • Increase forest cover from current 41.5% to 53% (9 million ha to 12 million ha) of total land area by 2010

  5. Current rubber planting areas in Laos In the North, Louang Namtha, Phongsali, Bokeo, Oudomxai, Xaignabouri are the key rubber planting provinces In Vientiane Province, Bholikhamxai and Savannakhet a combination of plantation and small holder rubber is emerging In the southern provinces, large scale plantations are competing with other land uses such as high value coffee plantations and mining and hyrdopower concerns

  6. Rubber planting (ha) by province

  7. Current ratio of rubber planting

  8. Planting arrangements

  9. Current strategies of the Government • Clarifying the concession rates and concession regulations • Land use planning to support identification of agro-ecotypes that is most suited to rubber production • Land titling for farmers planting rubber • Developing rules and regulations for development of farmer groups and associations • Improving R&D capacity to support smallholders (inter-cropping, recommendation for planting, variety selection, nursery development)

  10. Observations • Current support is driven by private sector • Current government activities are project driven: • Technical inter-cropping trials (NAFRI) • Socio-economic and social/environmental studies (NAFRI, GTZ, NLMA, NERI, etc) • Technical reference materials (NAFRI/NAFES) • There is still no institutional home for rubber development in Laos • No inter-institutional agency responsible for strategic planning for rubber • No R&D organization responsible for supporting smallholder farmers (credit, technical, processing, marketing, etc)

  11. Sector prospects Opportunities • Close market (China) • Investor interest from China, Vietnam, Thailand • Farmer interest Challenges • Lack of coordination and strategic support from government agencies • Lack of donor support programmes for rubber • Farmer experience in planting, management and processing • Uncertain germplasm could have impacts on quality and yields

  12. Thank You

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