1. Lao People's Democratic Republic
Peace Independence Democracy Unity Prosperity
Country Report
Agriculture Sector Value Chain
Analysis and Promotion
In Lao PDR
Presented by: Lao Participants

2. I. Country Overview Population: 6 .5 million (2008).
Location: Southeast Asia (Indochina Peninsula).
Landlocked (bordering with 5 countries):
- North: China
- south: Cambodia
- East: Vietnam
- West: Thailand
- Northeastern: Myanmar
Population: 6 .5 million (2008).
Capital: Vientiane .
Population density: 24.0 pers. per sq.km
16 provinces and 1 Vientiane Capital City

3. Land use: Land use Area (ha) Percent Cultivation crop land 800,000 3.4
- Grass land
Forest
11,000,000
46.4
- Scrub/wood-land
5,000,000
21.1
Water way and lakes
2,180,000
9.2
- Others
3,900,000
16.5
Total
23,680,000 ha or 236,800 sq km
100

4. The policies of Government for agriculture
The government designed an agricultural policy which is balancing the interests of farmers and consumers and is compliant with the World Trade Organisation principles.
The government looks for marketplaces for agricultural products in order to provide enough places for the farmers to sell their products after harvesting.
The government sends scholars to support the farmers from production until export.

5. 4. There are Policies Banks for farmers and the farmers can
4. There are Policies Banks for farmers and the farmers can borrow money in low interest on loan or the government gives seeds to the farmers and they are paying a debt after harvesting There are policies for agricultural investments such as the import tax exemption for agricultural materials and equipments.

6. Promotion by government of Lao PDR
Government policies is developed to promote and support organic agriculture and ensure that is well planned and sustainably driven
Increased foreign market access in EU,US and Japan of Lao organic coffee products
Government policy is developed to promote and support:
Organic coffee products export to ensure that
It will increase value and volume,
Increase market access in international trade .
- Increased trade flows, economic growth , rural development and eradication poverty .

7. Figure : Promotion of organic coffee in LAO PDR
Export promotion by the Government
Factors
policy
Trade facilitation
standard
Setup support net work, service delivery net work
Training
Reduce
Unnecessary
Export procedures
NGOs
Lao coffee
Association
Organic certification
Micro finance
other
Export earning
Receive the premium price and achieve to better life
Farmer
Producers
Exporters
Figure : Promotion of organic coffee in LAO PDR

8. Supply chain of coffee production
Supplier
Farmers
Collector
Processor
Wholesaler
Retailer
Consumer

9. Mapping of actors, function and activities
Input
supply
Production
Collection
Processing
Wholesal
and retailing
Consumption
Functions
Government
Agency,
Association,
NGOs
Farmers
Collectors
Millers
Processors
Wholesalers
Retailers
Large millers
Consumers
Actors
Growing
Harvesting
Drying
Buy coffee
Products from
farmers
Drying
Storage
Milling
Grading
Selling, Testing
Supply and
demand
Information,
Set up price
Buy products
Provide seed,
cash, credit,
training,
market demand
Activities

10. Matrix of relation of actors
Supplier
Producer
collector
Processer
Wholesaler / Reatailer
consumption
Ee-c information
Provide seed, cash, credit, training,
market demand
None
Get input and get knowledge
experience
Sell products
Buy products
Wholesaler

11. The SWOT of coffee production
Strength
1. The government has many policies for agricultural productions. 2. Cost of labour is cheap There are enough suitable places for agriculture.
4. transportation.

12. Weaknesses 1. The marketing and promotions are still narrow. 2
Weaknesses   1. The marketing and promotions are still narrow. 2. Lack of technical expertise. 3. The quality of labour is low. 4. Productions still lean on natural. 5. Lack of modern agricultural factory

13. Opportunities High demand market. 2. 80% 0f Lao people are farmers.
3. People support organic coffee.
4. Good environment.
Opportunities

14. Threats 1. competition market. 2. design packaging. 3. migration. 4
Threats 1. competition market. 2. design packaging. 3. migration. 4. market development. 5. demand market. 6. high certificate cost.

15. Export coffee production, 2002-2008
year
Agriculture producers (USS)
coffee(USS)
2002
6,890,268
612,184
2003
8,864,841
10,915,964
2004
13,156,006
13,021,172
2005
19,645,326
9,599,327
2006
28,981,512
9,712,558
2007
59,403,296
29,750,075
2008
24,476,000

18. Peeling and drying coffee

19. Milling

21. Some coffee products

23. Thank you very much for your attention...