Situation in Lao PDR

1. Situation in Lao PDR A policy toward the end of poverty Potential roles for agricultural organizations

2. Lao experience with cooperatives andfarmer organizations 1986 1978 1975 1990 New forms of groupings NUMBER OF COOPERATIVES 4 000 1 300 Ministry of Agriculture, Forestry and Cooperatives Prime Minister Office MAF Nationwide food sufficient objectives Transition toward socialist oriented market economy State-owned cooperative Today 1983: Transfer of the Central Leading Committee for Cooperative Development 1975: Creation of agricultural cooperatives 1990: Dismantlement of cooperatives 1986: New Economic Mechanism Farmers organization in Lao PDR

3. Situation in the field Rapid presentation of a couple of initiatives

4. Water User Associations • Water user associations functions are : • Improving access to water • Managing collective regulations for irrigation purpose • Secure wet season crops • Enable wider areas of dry season cropping • Improve the yields • Reduce environmental problems (by shifting cultivation) • Still some problems in terms of capacities (leadership, enforcement of collective regulations, irrigation schemes not always well maintained, no sustainable management) • Legal basis is already quite developed (decree on the establishment and operations of WUA, decree on the full transfer of irrigation system to WUA, law on water and water resources, ) Farmers organization in Lao PDR

5. Coffee producer organizations in Boloven Plateau • In the districts of Paksong, Laongam and Thateng • 2 625 producers, associated in 53 coffee producer groups / “legalization” by district authorities. • 2006-2007: Farmers have formed groups to process and market high-quality coffee collectively • Similar organization as a “renovated cooperative”: business and profit oriented. • 2007 : The groups put themselves under a second level facility : the Association of Boloven Plateau Coffee Producer Groups (AGPC) • AGPC’s mission is to provide representation of groups and encourage the promotion and marketing of quality coffee. • AGPC is evolving toward new activities (credit broker, services provision, extension…) • Interesting results. Regular monitoring by project/authorities. Potential exist for “upscaling” further. AGPC 53 coffee producer groups 2 625 families Farmers organization in Lao PDR

6. Maize marketing organizations in Bokeo 10 commercial companies (border-trading companies) 18 micro enterprises founded and managed by farmers Contract farming Contract farming 280 sub-groups 308 villages 14 257 families • Micro enterprise status: only way to get round the lack of legal framework for profit making farmers groups Farmers organization in Lao PDR

7. Organizations working with the “Smallholder development project” Project carried out in 16 districts • Help rice-farmers to develop a market-oriented agriculture and diversify the dry season crops • 182 farmer production and marketing groups • Assessment of groups currently ongoing by project • Groups are receiving support from project but are often limited in their capacity to establish their own purposes and objectives. Farmers organization in Lao PDR

8. Type of Farmer group in Lao PDR Farmers organization in Lao PDR

9. “Contract farming organizations” • Farmers receive a production support by the company (credit, inputs, services…) • Farmer are “grouped” for the purpose of limiting “transaction costs” : one single “contract” with the group, rather than lots of individuals “contracts” • Company based initiative. Sometimes supported by local extension services. • “Business driven”: farmers usually not at the initiative Processors Traders Input Technical advice Access to market Land Labor Farmers eventually in group Farmers organization in Lao PDR

10. A multitude of forms of local organizations Farmers organization in Lao PDR

11. Most popular form of farmer organization • Formed for a specific and temporary purpose • Light organizational structure • Organization is a way to receive/deliver technical knowledge • Absence of legal framework not really a constraint • EXTENSION GROUPS : • Training and extension group … • IPM groups • SCV groups • Usually formed at the initiative of Extension staff/projects Farmers organization in Lao PDR

12. Taking stock of current knowledge on farmer groups Rapid presentation of a couple of initiatives

13. Research work done under AFPRC Agriculture and Forestry Policy Research Center • Research Thrust 3 “Improving enabling environment and mechanisms to support agriculture and forestry production for increased land use effectiveness.” • Research Area : “Agri-business development and production groups” Catch-up research project (under AFPRC umbrella) • “Managing the transition fromfarmers’ groups to agricultural cooperatives” • 20 projects involving farmers groups were reviewed • Papers drafted Farmers organization in Lao PDR

14. Studies / Capitalization done under projects • Study on contract farming (Leap) • Workshops and workshop reports by VECO (Bokeo) • 2 studies on coffee groups under PCADR/PAB • Irrigation Diagnostic Study. Assessed problems/successes of WUA (PCADR - GoI) • Smallholder study (NAFES) Farmers organization in Lao PDR

15. Lao current legal environment for farmers organizations Potential and limits

16. General overview Farmers organization in Lao PDR

17. Important recent text • DECREE ON ASSOCIATIONS (29th April 2009). • Signed by Prime Minister. • Association refers to a non-profit civil organization set up on a voluntary basis and operating on a permanent basis to protect the rights and legitimate interest of the association, its members or communities; • Non-profit seeking means properties and revenues are obtained from an association’s activities after deduction of administrative costs and the balance is not distributed but applied towards the objectives set out in the association’s charter. • DECREE on Cooperative No.136/MP, 10th March 2010. Signed by Prime Minister. Farmers organization in Lao PDR

18. Recent initiatives aimed at improving legal environment • Current project in order to set up an ASEAN cooperatives status for the ASEAN countries (Lao PDR is the only country of ASEAN not to have a national law. • Draft regulation on Agricultural cooperative will sign by Agriculture & Forestry Minister (NAFES preparing) Farmers organization in Lao PDR

19. CONCLUSIONS • Quite a substantial number of initiatives already exist at local level • Existing farmer organizations are of various types, fulfilling various functions • These organizations are playing an important role in providing/delivering services to farmers, protecting their interest, improving their capacities, raising their incomes • Legal framework is globally enabling but not really regulating, particularly for business oriented farmers’ organizations Farmers organization in Lao PDR

20. ຂອບໃຈThank you for your attention Farmers organization in Lao PDR