Update on the Upland Development Strategy

2015 to 2020 and the Draft Action Plan

Northern Uplands Development ProgrammeDepartment of Planning and Cooperation

Ministry of Agriculture and ForestryVientiane, Lao PDRPresentation to the

Sub-sector Working Group - Uplands24 June 2014

Outline of the presentation

• Highlights of the UDS• Status update of the

UDS• Current status of the

UDS Action Plan• Process• Challenges• Way forward

Highlights of the UDSObjectives1. Integrated rural development is

established as a process for eradicating poverty in uplands

2. Upland food and nutrition security is derived from improved livelihood and income security

– Guaranteed through increased food production and improved incomes; linked to markets

3. Strengthened capacity of local government facilitates decentralization that leads to

– Improved efficiency and effectiveness of public services delivery; and,

– An enabling environment for private sector and civil society in uplands;

– To maximize development of local potential

4. Sustainable natural resources management: conservation and sustainable use of agro-biodiversity

Northern Uplands

Annamite Uplands

Bolovens Plateaux

Lao Uplands

Pillars of Upland Development

Cross-cutting aspects:• Respect for the rule of law

• Poverty reduction• Gender mainstreaming• Respect for local culture• Economic empowerment

• Technical innovation• Resilience to climate change (sustainable agricultural development, sustainable

environmental management, hazardous risk reduction)

Cross-cutting aspects:• Respect for the rule of law

• Poverty reduction• Gender mainstreaming• Respect for local culture• Economic empowerment

• Technical innovation• Resilience to climate change (sustainable agricultural development, sustainable

environmental management, hazardous risk reduction)

Pillar 1: Food security and self-sufficiency

Pillar 1: Food security and self-sufficiency

Pillar 2: Commercial agriculture, markets, and marketing

Pillar 2: Commercial agriculture, markets, and marketing

Pillar 3: Conservation and sustainable use of natural resources

Pillar 3: Conservation and sustainable use of natural resources

Pillar 4: Rural upland infrastructure

Pillar 4: Rural upland infrastructure

Pillar 5: Human resources and institutional development and public services delivery

Pillar 5: Human resources and institutional development and public services delivery

Status Update: UDS• SSWG-Uplands:

– Reviewed and discussed several times throughout 2012 and through mid-2013

• Stakeholder consultations in early 2013:– Provincial: 3 northern, 1 central, and 1 southern– District: 1 district in each province

• Circulation of UDS among members of SWG-ARD mid-2013; significant feedback incorporated

• Discussed and endorsed by the SWG-ARD: – 11 July 2013

• Draft Final UDS dated 6 August 2013:– Comments from SWG-ARD, key stakeholders, and senior MAF officials

• Lao version:– Translation into Lao completed in early 2014

Status of the UDS Action Plan

Pillars 1 & 2: Objectives and Activities

Pillar 1: Food security and self-sufficiency

O1: Food and nutrition security has improved in upland districts

O2: PLUP-PALM is being applied to stabilize land use in uplands

O3: Opium production is being reduced annually

A1: Value chain gap analysis

A2: Strengthen FO for food & nutrition security

A3: PLUP-PALM in priority watersheds

A4: Intensify farming systems

A5: Promote CA

A6: Promote SALD

Pillar 2: Commercial agriculture, markets, and

marketing

O1: FO strengthened

O2: GAP improves competitiveness

O3: Niche products are certified

O4: TSCs & FOs are used for technology transfer

O5: Agricultural micro-credit is available for FOs

A1: Application of ASEAN GAPA2: Technology transfer to DAFO/TSCs at focal

development centersA3: Promote Lao Coffee Strategy

A4: Eliminate agricultural product monopsonies

A5: Certification of managed livestock farms

A6: Strengthening of FOsA7: FO operate as savings and loan units and

cooperativesA8: Strengthen agribusiness associationsA9: Prepare commodity production and

marketing strategies

Pillars 3 & 4: Objectives and Activities

Pillar 4: Rural upland infrastructure

O1: Improved infrastructure supports agriculture modernization and market access

O2: Market access roads and cross-border trade infrastructure are upgraded

O3: Upgraded irrigation systems support increased productivity in upland agriculture

O4: Improved water supply systems enhance upland quality of life

A1: Survey and prioritize rural infrastructure needs in priority upland districts

A2: Design of priority rural infrastructure units

A3: Construction of rural upland infrastructure

A4: Design, test, and implement community-based infrastructure maintenance program

Pillar 3: Conservation and sustainable use of natural

resources

O1: Watershed management is integrated and participatory

O2: Land cultivation stabilized through resource-based planning

O3: Watersheds function to provide water for hydropower

O4: Carbon stocks are conserved

O5: Climate change risk mitigation/adaptation measures adopted by FOs

A1: Implement climate change risk mitigation /adaptation measures

A2: Participatory community-based resource and land use planning is used for integrated

watershed management and stabilized cultivation

A3: FOs organized into ecosystem associations to manage watersheds using ISP

A4: FOs conserve carbon stocks

Pillar 5: Objectives and Activities

Pillar 5: Human resources, institutional development, and public services

delivery: Individual and group capacity development

O1: Individual and group capacity have been developed related to: gender, youth, improved

nutrition, rule of law, poverty, ethnicity, and cultureO2: Institutional structures and processes have been developed related to: governance, rule of law,

global and regional trade, technology innovation, local values, and administrative effectiveness

A1: HRD needs assessment

A2: Implementation of the strategy for reform in the agriculture and forestry colleges towards 2020A3: Agricultural modernization programs for

capacity development of upland youth and young farmers

A4: On-farm and off-farm occupational and technical skills development; focus on upland

women and youthA5: Nutrition-linked upland livelihood development

training

A6: Agroforestry extension for upland farmers

A7: Gender mainstreaming in upland community development programs

Pillar 5: Human resources and institutional development and public

services delivery: Institutional structures and processes

A1: Establish a baseline database consistent with the MAF ProMIS System, for conditions in priority

upland districts against which the output and impact indicators of the UDS Action Plan can be

measured for progress, results, and return on investments

A2: Improve government management of upland contract farming

A3: Strengthen planning and budgeting capacities of organizations to PBA and public expenditure

management linked to PBA

A4: Improve delivery of public sector rural and agricultural development services

A5: Decentralize, modernize, and improve delivery of government services (sam sang) in upland

districts

A6: Training and accreditation of DAFO personnel for institutional development and modernization

Sample of the UDS Action Plan: Pillar 2Upland Development Strategy Pillar 2: Commercial agricultural development; markets and marketing Output Indicators Impact Indicators

Responsible Units

(Monitoring/reporting)

Pillar objectives

1. Farmer organizations have been strengthened for sustainable intensification farming system practices linked to increased agricultural productivity

Number of upland districts in which the GoL is implementing guidelines to reinforce the rule of law on land concessionaires and manage investor business plans in upland districts

Smallholder farmers are engaged by land concessionaires through farmer organizations

MAF: DOPC, DAEC MPI:

Number of agribusiness and trade associations established in upland districts

Smallholder farmers are engaged by agribusiness enterprises through farmer organizations

MAF: DOPC, DAEC, PAFO MOIC: TPPD

Number of agricultural product market monopsonies eliminated in each upland district

Agricultural product market monopsonies have been eliminated

MAF: DAEC, PAFO MOIC: PICO

2. GAP is applied to improve competitiveness Number of certified managed livestock farms established in each upland district

Number of agricultural products are verified as GAP

Lao livestock and agricultural products meet ASEAN GAP standards

MAF: DOLF, DAFO

3. Certified Lao niche products are sold Number of upland districts in which the Lao Coffee Development Strategy is being implemented

An increased number of niche products are being sourced from upland Lao smallholder farmers

MAF: DOA, DAEC, PAFO, DAFO, Southern Agriculture Research Center (SARC) National Authority for Science and Technology (NAST) Lao Coffee Association

4. Farmer organizations and TSCs are used for technology transfer (including women extension groups)

% increase in farm productivity and labor income of upland subsistence farmers in each upland district

TSCs are being used as centers of technology transfer linked to priority crops for food and nutrition security, market-oriented production, and contract farming with land concessionaires

MAF: DOPC

5. Micro-credit for agriculture is readily available to upland FOs % increase in credit made available through APB, Nayobay Bank, Acleda Bank, Lao Development Bank for agricultural land development, plantation crops, machinery and equipment, livestock, and structures for livestock

Agricultural credit and micro-financing is available in priority upland areas on a systematic and continuous basis

MAF: DOPC MOF: BOL

Implementation steps

(What will be done?)

Pillar objectives

& indicators

Responsibility (Who will do it?)

Resources

(Indicative: Funding[USD]/Time/People/Materials)

Timeframe (By when?)

Gov’t. Non-Gov’t. 2015 2016 2017 2018 2019

1. Application of ASEAN-GAP through on-going TA projects Establish Lao Certification Board (LCB) centers in Luang Prabang and Paksé Training of trainers Training of producers Extension and dissemination of ASEAN-GAP Certification of GAP and organic products Dissemination of SPS measures linked to Codex Alimentarius (Codex), World

Organization for Animal Health (OIE) and International Plant Protection Convention (IPPC)

No. 2 Lead role People/Time/Materials: Establish DOA organic and GAP certification centers in

Luang Prabang and Paksé=$180,000 X 2=$360,000 Training of trainers and producers; 3 trainers & 235

producers =$100,000 Extension and dissemination of ASEAN-GAP=$500,000 Extension and dissemination of Codex, OIE, and IPPC

measures=$500,000 Indicative funding estimate: $1,460,000

Preparation Implementation

MAF: DOA FOs

Stakeholders

MAF: DOPC/DEI, DAEC, PAFO, DAFO MOIC: PICO

LNCCI Agribusiness and trade associations

2. Technology transfer training for DAFO and TSC technicians and FO in 64 GOL focal development centers in the following areas:

Food and nutrition security Improving productivity and competitiveness of commercial crops Post-harvest technology for marketing of niche crops Preparation and transfer of specialized (crop, livestock, fisheries, horticultural)

technologies to upland farmers by TSC technicians and provincial SMS Preparation and transfer of crop technologies for strategic commodities

designated by the GOL, namely: rice, maize, rubber, coffee, cassava, sugar cane, cattle

No. 4 Lead role People/Time/Materials: PAFO subject matter specialists in 14 upland provinces

(covering priority poverty districts) train FO leaders and DAFO/TSC trainers at 30 TSCs = $250,000

PAFO SMS staff/ province @ 30 TSCs = $150,000 Training materials: For 30 TSCs and provincial SMS =

$500,000 Technology transfer by SMS and TSC

technicians=$500,000 Indicative funding estimate: $1,400,000

MAF: PAFO FOs

Stakeholders

MAF: DOA, DAEC, DOLF, PAFO, DAFO, NAFRI MOIC: PICO NUOL

CSOs Agribusiness and trade associations

Upland Development Strategy Pillar 2: Commercial agricultural development; markets and marketing

Implementation steps (What will be done?)

Pillar objectives

& indicators

Responsibility (Who will do it?)

Resources (Indicative: Funding[USD]/Time/People/Materials)

Timeframe (By when?)

2015 2016 2017 2018 2019 Gov’t. Non-Gov’t. Preparation Implementation

8. Strengthen successful agribusiness and trade associations in upland border districts: Establish terms and conditions for private investment Survey and identify successful associations Training in cross-border trade Introduce and implement quality control measures and product certification

(i.e., SPS, GAP, organic agriculture, etc.) for border trade Monitor cross-border agri-trade Refresher training as needed

No. 3 Lead role People/Time/Materials Facilitate conditions for private investment = $50,000 Survey and identify successful agribusiness and agricultural

trade associations in upland border districts=$50,000 Contract with Small and Medium Enterprise Promotion and

Development Office (SMEPDO) for training of provincial agribusiness and trade association members in enterprise development=$500,000

Contract with LNCCI (or GMS Business Forum or ASEAN Business Advisory Council or Mekong Institute) for training of provincial agribusiness and trade association members in cross-border trade development=$500,000

Funding to DOA,PAFO,PICO for certification, inspection, quality control=US$700,000

Indicative funding estimate: $1,800,000

MAF: DAEC Business and trade associations

Stakeholders

MOIC: PICO MAF: DOA, PAFO

LNCCI SMEPDO

9. Preparation of commodity production and marketing strategies for high priority upland commercial crops oriented to markets, namely: rice, maize, rubber, coffee, cassava, livestock, NTFPs DOPC establish an intra-ministerial working group to coordinate and guide

preparation of commodity strategies and agree on an harmonized framework for each strategy in priority upland districts

Recruit and mobilize domestic consultants to prepare commodity strategy reports consistent with GOL policies and market outlets

Obtain MAF endorsement of commodity strategies Assign responsibility for and undertake implementation of each commodity

strategy

No. 3 Lead role People/Time/Materials Budget for operations of an intra-ministerial working group

to coordinate and guide preparation of commodity strategies=$150,000

Recruit and mobilize domestic consultants to prepare commodity strategy reports=$250,000

Field work and report preparation for commodity strategy reports=$200,000

Technical support for implementation of commodity strategy reports=$200,000

Indicative funding estimate: $800,000

MAF: DOPC LNCCI

Stakeholders

MAF: DOA, DAEC, NAFRI, DOLF, PAFO MOIC: TPPD, Department of Foreign Trade Policy MOF: Customs Department Bank of Lao PDR: Nayobay Bank, APB

Provincial and district business associations Private commercial banks

Estimated total funding required for Pillar 2: $10.33 mil.

Potential constraints Producers resist innovative measures and modern technologies (e.g., organic production, improved livestock breeds, AI, product certification, joint liability credit groups) Local shortage of labor and capital restrict farmers from participating in agricultural modernization activities Poverty, vulnerability, economic status may not allow some producers to take risks Some farmers are more interested in quick returns from their labor and land than in conserving soils for future use Existing contracts and regulations prevent the elimination of agricultural product monopsonies Business associations have established marketing channels and resist product upgrading and change

Implications for professional development Specialized training for PAFO and DAFO technicians in GAP applications Specialized training for PAFO, DAFO, DAEC, DOA, DOLF in increasing productivity and competitiveness of commercial products Specialized training for PAFO, DAFO, DAEC, DOA, DOLF in cross-border agricultural commodity marketing

Implications for village participation Specialized training for lead farmers and strengthened FOs in GAP Training of FO members in agricultural entrepreneurship and savings and micro-credit management Training of FO members in post-harvest handling and preliminary community-based processing

On-going projects Proposed actions

Pillar objectives & indicators

Upland Location Responsible units Budget (US$)

Timeframe Comments

1. Lao-China Hybrid Maize Seed Production and Technical Training Project No. 1 No. 2 Northern Uplands MAF: DOA $2,400,000 China 2. Project for strengthening commercial capacities of Lao coffee value chain No. 3 No. 3 Champasak,

Sekong,Salavan MAF: DOPC $1,524,000

2010-2015 AFD

3. Livestock and aquaculture development and livestock feed production 18 year project

No. 5,9 No. 2,3 Luang Prabang MAF: DOLF $8,600,000 2010-2028

Hungary

4. Strengthening farmers’ organizations on food security and nutrition No. 6,7 No. 1,5 Bokeo MAF: PAFO $584,187 2013-2015 GAA 5. Bamboo sector development project No. 6,8,9 No. 1,3 Houa Phanh MAF: PAFO $2,240,000

2011-2014 Professionals for Fair Development (GRET)

6. Construction of agriculture technical service center No. 2 No. 4 Xieng Khouang MAF: PAFO $10,000 2014 Vietnam

Action Plan preparation process• Zero draft completed in March 2014• Focus group meetings to review Pillar 1, Pillar 2, and

limited review of Pillar 3 – 20 and 25 March 2014

• Bilateral discussions with MAF Vice Minister – 29 April 2014

• Bilateral discussions with MAF/DoOP – 2 May 2014

• Bilateral discussion with MONRE/DOPC on Pillar 3 – 5 June 2014

• Focus group meetings being scheduled to review Pillar 4 and Pillar 5– Latter part of June 2014

Challenges during UDS and Action Plan preparation

• UDS:– Numerous stakeholders– Many individual agendas

• Action Plan:– Need two versions:

• In-depth and detailed• Streamlined

– Cross-sectoral: issues of coordination– Consistency with other strategies and plans

Way forward and points for discussion• Prepare second draft of the UDS Action Plan• Complete Investment Plan and identify investment gaps• July 2014: Submission as a package to MAF

1) Draft Strategy2) Draft Action Plan3) Draft Investment Plan

• Incorporate feedback from MAF• Present package to the SSWG-Uplands and SWG-ARD in 3rd

quarter of 2014• Endorsement by MAF• NUDP will recommend:

1) Inter-ministerial panel -- dialogue to review UDS2) Dialogue with DPs on formulation of a PBA to implement the UDS

• Review and endorsement by Government• Implementation: FY 2016-2020

The End