Topic: Impact of Commercial Agricultural Production on Poverty Reduction: A case study of Vientiane Province Sengpheth SENGMEUANG Laos Agricultural policy Laboratory Kyushu University March 29,

Contents Introduction Problem overview Study area Research objectives Scope of study Method of study Result expectation 2

Introduction Area: 236,800 sq km Population : 6.7 Million (2008) GDP per capita: 1,069 USD ( ) – Agriculture: 38.6% – Industry: 35.7 % – Service: 25.7 % Export of agricultural production: million USD ( ) – Agriculture and forestry: 15.95% – Manufacturing and Handicraft: 17.15% – Electricity and Mining: 66.9% 3

Problem Overview In Laos, a large majority of the population depends on agriculture and use of natural resources for livelihood, and most of them living in the rural areas. Laos is one of developing country as based on agriculture and natural resources to boost economic growth. In 2006, Lao government applied the new policy called Commercialization of Agriculture and Commodity Production (shift from household consumption to a market based agricultural production). 4Source: Lao National Socio-Economic Development Plan( )

Problem Overview (Con’t) The poverty is defined as the lack of ability to fulfill basic human needs such as not having enough food, lacking adequate clothing, not having permanent housing and lacking access to health, education and transportation services 5Source: decree of poverty (Laos)

Study Area Vientiane Province 6

Research objectives To understand the policies and situations of agricultural commercial productions in Laos To investigate impact of agricultural productions on households‘ income to boost poverty reduction. 7

Scope of study The research will be conducted in the poor district. The research is implementing and promoting of commercial crops production. The villages and family farmers who has started practicing commercial crops will be priority focused 8

Method of study Preparing and gathering the general information of the focus area such as planted area, harvested area, yield, production and etc. Study the transaction of goods in that area, which shows the market chain of products by surveillance and questioners. Summarize the data information from research and holding seminar for getting feedback and recommendation from relevant sector and communities. 9

Result expectation Identify the potential commodity product of a poorest district the collaboration among communities, private and government sector in promoting commodity products Recommendations for further development of promote the products in order to contribute to generate income to household and improve living standard 10

References Lao National Socio-Economic Development Plan( ) Socio-Economic Development Plan of the Ministry of Industry and Commerce ( ) The Manufacture and Commerce Developed Strategy ( ): the Ministry of Industry and Commerce. National Growth and Poverty Eradication Strategy, Government of Lao PDR,

Thank you! 12

Study on the Factors that Caused Increasing Food Prices in Laos Case study: Pork in Vientiane Capital. Sengpheth SENGMEUANG Agricultural policy Laboratory Kyushu University May 17,

Contents Introduction Problem Overview Study Area Study Objectives Method of study Expected result 14

Introduction According to the World Bank’s food price index, the Global food prices continue to rise. The prices increased by 15% between October 2010 and January 2011 and are only 3% below its 2008 peak. 15 Source: 15th May 2011http://

Introduction Besides, the price of crude oil has risen from USD 28.1 (2003) to USD per barrel in 2008, and decreased rapidly at USD in 2009 and continues risen to USD in Source: EIA Weekly Petroleum Status Report; 16 th May 2011

Problem Overview Laos is one of developing country that relies on agriculture etc. to boost economic growth. Besides, Laos experienced GDP growth of 7,5% per year, which is 914 USD in The structure of the GDP is as follows: 38.6% agriculture, 35.7% industry (10.2% manufacturing) and 25.7% services. 17 Source: MOIC and NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN ( )

Problem Overview But Laos imports almost all the material for agriculture, livestock and industry as material for garment, fertilizers, food for animal etc. Moreover, Laos import 100 percent of fuel. And Laos farmers largely dependent on that material to input to food processing and transfer goods to market or factory. Import value is 1, million USD in with 23.17% for fuel and gas, 6.27% for foods, 4.89% for goods to agriculture production, and 2.53% for goods to industry production etc. 18 Source: MOIC and NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN ( )

Study Area 19Source: MOIC Vientiane Capital Area: 3,920 sq km Population: 795,159 people (Growth rate 3.3 %) Economic growth: = 9.79% = 11%. GDP per capita: 1,829 USD per year

Study Area 20Source: MOIC Vientiane Capital Pork Demand per day: 40 tons (2008) Pork supply: Vientiane. C and Khammouane province.

Study objectives To study the main cause of price increases in pork due to oil price, the depreciation of the dollar etc. to examine if the oil price or the Kip appreciation has the main impact on pork prices. 21

Scope of study The research will be conducted in the market channel of Vientiane Capital. The research is implementing of pork price structure in each level of market chain. The farmers, middleman and slaughter house will be priority focused 22

Method of study Preparing and gathering the general information of the focus area such as farm, demand/supply, oil price(inside/outside), exchange rate (Thai Bath and USD to Kips) Study the transaction of goods in that area, which shows the impact factors on market chain of products by surveillance and questionnaires. Summarize the data information from research and analysis 23

Expected result Identify the significant factor that impact on pork price rising and also can be basic for study further. Help to planning policy on create stability of agriculture and foods product price. Understand the price structure of pork and connected food products. 24

References NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN ( ) The Manufacture and Commerce Developed Strategy ( ): the Ministry of Industry and Commerce. World Bank: Food Prices Watch in Feb Retrieved on May 15 th 2011 from _report _feb2011.html _report _feb2011.html Asia Monitor: Macroeconomic Forecast Laos (Feb 2 nd 2011). Retrieved on May 15 th 2011 from file/7476/laoshomepage.htmlhttp:// file/7476/laoshomepage.html EIA weekly Petroleum Status Report: Monthly West Texas Intermediate Crude Oil Prices. Retrieved on May 16 th 2011 from US&periodType=Monthly&startYear=2003&startMonth=1&startQuarter=1&en dYear=2011&endMonth=5&endQuarter=4 US&periodType=Monthly&startYear=2003&startMonth=1&startQuarter=1&en dYear=2011&endMonth=5&endQuarter=4 Lao Statistics Bureau: Lao GDP. Retrieved on May 17 th 2011 from id=32&lang=en id=32&lang=en 25

Thank you! 26

Study on the Factors that Caused Increasing Food Prices in Laos Case study: Pork in Vientiane Capital. Sengpheth SENGMEUANG Agricultural policy Laboratory Kyushu University June 21,

Contents Methodology Questionnaire Overseas Research Plan 28

Methodology First concept of establishing model: Output = Input 1+ Input 2 + input 3+ Input 4+ Input 5 Where Output denotes the cost/prices of Pork Input 1 represents the prices of oil/fuel (Kip/litre) Input 2 represents the prices of feed (Kip/Kg) Input 3 represents the inflation (percent/month) Input 4 represents the prices of rice (Kip/Kg) Input 5 represents the prices of corn (Kip/kg) 29

30 Note: CPI-Consumer Price Index by region (Dec,99=100) Source: Ministry of Planning and Investment, Bank of Laos, 20 th June 2011

31 Source: Ministry of Planning and Investment

32 Source: Ministry of Industry and Commerce,

Questionnaire 33

Overseas Research Plan 34 PeriodPlaceActivitiesContact Phone number 2011/09/26 To 2011/09/28 Ministry of Industry and Commerce, Vientiane, Laos -Permanent Secretary Office -Department of Domestics Trade -Department of Industry -etc Collect: -Annual reports -Weekly food and oil prices report -Pork’s demand and supply in Vientiane -etc

Overseas Research Plan 35 PeriodPlaceActivitiesContact Phone number 2011/09/29Ministry of Agriculture and Forestry, Vientiane, Laos -Department of Livestock and Fisheries -Department of Planning -etc Collect: -Information about pig farms -Livestock annual report and planning -etc

Overseas Research Plan 36 PeriodPlaceActivitiesContact Phone number 2011/09/30 To 2011/10/14 Districts in Vientiane Capital: -Farm -etc -Survey: over 30 farms 2011/10/17 To 2011/10/24 Ministry of Industry and Commerce, Laos -Permanent Secretary Office -etc To check up the data and information that complete or not

References Bank of Laos: Annual Report Retrieved on June 18 th 2011 from Bank of Laos: Inflation and CPI rate. Retrieved on June 19 th 2011 from Ministry of Industry and Commerce: Monthly Report ( ). Lao Statistics Bureau: Consumer Price Index ( ). Retrieved on June 17 th 2011 from 37

Thank you! 38