Upland Development Strategyfor Agriculture and Rural Development, 2015-2020

2nd Draft

Northern Uplands Development ProgrammeDepartment of Planning and Cooperation

Ministry of Agriculture and Forestry11 July 2013

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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

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Context

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Definition of the Uplands

• 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

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Resource base and production systems

• 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

NORTH

BOLOVENS PLATEAUX

Annamite Uplands

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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

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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

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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

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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

N

PAKSAN -Bungkane

VIENTIANE

XAISOMBOUN

SAYABOURI

LUANG PHRABANG

HOUAYSAI -Chiang Khong

LUANGNAMTHA

OUDOMXAI

XAM NEUA

PHONGSALY

Pakmong

Longsan

Thong Khoun

Ban Loi - Nameo (to be soon opened asInternational Crossing

Xam Tai

Namkan - Nam Can

Thannaleng - Nongkhai

Namngeun - HoieiKone

Boten -Bohane

Pakha -Ban Chom

Lantui - Paksa

PHONSAVANH

5

7

6

4B

4A

2W

3

13N

1A

1B

1C

13N

PHONHONG

2E

Sop Hun - Tai Trang

Ban Vang -Paksom

Kenthao -Nong Pheu

Pa hang - Long Sap

Ban Dan - Xiang Khouang

Panghay -Pangthong

Provincial Capital

National RoadRiver

National Capital

LEGEND

International Border crossing

National border crossing

Lao PDR: Northern Province Strategy Study:Local and International Border Crossings

Local & International Border Crossings in Northern Lao PDR

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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

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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

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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 (2011-2015)• Agricultural Development Strategy to 2020 • Agriculture Master Plan, 2011-2015 • Forestry Strategy to 2020 • National Nutrition Policy • National Adaptation Programme of Action to Climate

Change • Land Policy Statement (pending legislative approval)

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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

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Proposed Second Draft:Upland Development Strategy

2015-202011 July 2013

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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.

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Objectives4 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

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Principles • Principle 1:

– 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

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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

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5 Pillars of the UDS

1. Food security and self-sufficiency2. Commercial agriculture, markets, and

marketing3. Conservation and sustainable use of natural

resources 4. Rural upland infrastructure 5. Human resources development and delivery

of public services

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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

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Pillar 1: Food security and self-sufficiencyPriority 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

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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

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Pillar 3: Conservation and sustainable use of natural resourcesPriority 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

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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

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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

INSTITUTIONAL ROLES

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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.

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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 • MAF/ Department of Planning & Coop.

• 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/Department of Planning & Cooperation

• MAF/DAEC

• MPI• MOF

• Increased access to institutional credit for upland smallholder farmer organizations

• MAF/Department of Planning & Cooperation

• Bank of Lao PDR

• Promotion of FDI in upland border districts using fiscal policy measures

• MAF/ Department of Planning & Cooperation

• MPI• MOF

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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

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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

• Participate in farmer field schools (FFS) for integrated pest management (IPM)

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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

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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

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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

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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

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OPERATIONAL FRAMEWORK

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

Process is gradual, phased, and maturing

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NEXT STEPS

• Endorsement of the UDS by MAF • Prepare an action plan • Prepare an investment plan• Implement the UDS

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The endThank you