Partners
• Faculty of Agriculture – NUOL (staff and students)
• Agriculture and Forestry Policy Research Centre – NAFRI
• University of QLD (staff and students)
• Savannakhet and Champasak PAFO
• DAFO staff from project districts
AGRARIAN SYSTEMS ANALYSIS
MARKET STUDIES
POLICY OPTIONS
FARM AND COMMUNITY
STUDIES
TECHNICAL OPTIONS
Farm and community studies: Developing a household typology
PHASE 1 -Consultation
with DAFO staff regarding
village classification and selection
PHASE 2 -Village
reconnaissance field work
PHASE 3 -Household
survey
PHASE 4 - Case study analysis
PHASE 5 -Monitoring and
Evaluation
Agro-economic zones in Savannakhet
Where would you put the structural boundaries?
0
1000
2000
3000
4000
5000
6000
0 1 2 3 4 5 6 7 8 9 10
Yie
ld (
kg/h
a)
Area (ha)
Self-sufficient line Market orientation
Functional typology
Labour
• Remittance dependent
• Farm labourers ---------------------
• Farming professionals
Semi Subsistence
• Intensive lowland
• Extensive lowland
• Upland/ lowland
• Diversified cropping
• Swidden/NTFP/Collector
• Livestock keepers
Diversified livelihood
Market oriented
• Rice specialists
• Cropping specialists
• Livestock focused
• Agro-forestry
Provisional classification (Savannakhet)
0
10
20
30
40
50
60La
bo
ur
Mig
rati
on
Pro
fess
ion
al
Smal
lsca
lelo
wla
nd
Med
ium
Lo
wla
nd
Tran
siti
on
al
Swid
den
Live
sto
ckke
eper
Low
lan
dN
TFP
Ric
e M
arke
t (2
0%
)
Agr
ofo
rest
ry
Div
ersi
fied
Labour Subsistence Market Diversified
Nu
mb
er
of
ho
use
ho
lds
(n=3
00
)
Lowland Transitional Upland
Household rice security status in lowlands (2010)
0%10%20%30%40%50%60%70%80%90%
100%N
agas
or
Ph
on
egn
anan
g
Ph
ano
mxa
i
Ph
on
tan
Gea
ngX
ai
Kh
amsa
-e
Ph
alin
g
Ou
pal
ath
No
ne
Ph
ajao
Bo
un
gkeo
Kh
oke
No
ngb
ua
Hie
ng
Outomphone Phalanxai Phin Phonethong Soukhuma
Pe
rce
nt
of
su
rvey
ed
ho
use
ho
lds
Both Buy Self-suff Sell
IR IRSupISupI RIR TRANTRAN SupI SupIR R
WS paddy yields by rice security status (2010)
0
1000
2000
3000
4000
5000
6000
0 2 4 6 8 10 12
Yie
ld (
kg/h
a)
Area (ha)
Both Buy Self-sufficient Sell Self-sufficient line Market orientation
Constraints
Incentive
Adoption of modern varieties (Champasak)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
5
10
15
20
25
30
35
Cu
mu
lati
ce p
erc
en
t o
f h
ou
seh
old
s (%
)
Nu
mb
er
of
ho
use
ho
lds
Year
Phaling Oupalath None Phajao Boungkeo
Khoke Nongbua Hieng Cumulative adoption
Fertiliser use in the lowlands (SVK &CPP):80% of households (n=360)
Grow paddy rice
(347)
Inorganic Fertiliser
(276)
Seedbed
(171)
Basal
(113)
Top-dress
(64)
No top-dress
(49)
No Basal
(58)
Top-dress
(38)
No top-dress
(20)
None on seedbed
(86)
Basal
(68)
Top dress
(31)
No top-dress
(37)
No Basal
(18)
Top dress
(18)No information
(19)
No Inorganic
(71)
Rate of fertiliser remains low (kgN/ha)
District/Village Only basal Basal + Top dress Only top dress TotalOutomphone 9.9 12.0 8.8 9.4Nagasor 13.1 17.7 8.5 11.3Phonegnanang 5.9 8.2 9.0 7.2
Phalanxai 11.5 13.0 17.8 12.1Phanomxai 16.8 17.6 19.1 14.4Phontan 10.0 8.4 15.9 9.7
Phin 9.6 16.3 8.0 2.2Khamsa-e 7.3 0.6GeangXai 9.6 16.3 8.4 3.6
Phonethong 8.0 28.0 15.2 15.4Phaling 6.4 26.3 17.2 19.3Oupalath 18.1 29.8 23.5 21.8None Phajao 5.3 6.1 2.4
Soukhuma 11.1 24.9 10.7 13.0Boungkeo 16.2 32.1 13.5 19.5Khoke Nongbua 11.3 24.7 16.0 12.9Hieng 6.3 10.7 4.3 5.7
Grand Total 10.3 21.1 13.1 11.2
Cumulative distribution of kgN/ha
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0 20 40 60 80 100 120
Pro
b
KgN/ha (Basal + Top-dress)
All paddy Apply N
Mechanisation – Land preparation
District/Village Own Tractor Buffalo Hire Tractor Buffalo/HireOwn Tractor and Buffalo NA
Outomphone 78% 18% 2% 0% 0% 2%Nagasor 77% 17% 3% 0% 0% 3%Phonegnanang 80% 20% 0% 0% 0% 0%
Phalanxai 56% 19% 20% 3% 0% 2%
Phanomxai 60% 13% 23% 0% 0% 3%
Phontan 52% 24% 17% 7% 0% 0%
Phin 85% 9% 6% 0% 0% 0%Khamsa-e 88% 8% 4% 0% 0% 0%GeangXai 81% 11% 7% 0% 0% 0%
Phonethong 43% 47% 3% 5% 1% 1%
Phaling 59% 21% 10% 7% 0% 3%Oupalath 45% 45% 0% 7% 3% 0%
None Phajao 24% 76% 0% 0% 0% 0%Soukhuma 69% 6% 16% 8% 1% 0%Boungkeo 67% 7% 20% 3% 3% 0%
Khoke Nongbua 67% 7% 13% 13% 0% 0%Hieng 75% 4% 14% 7% 0% 0%
Total 64% 21% 10% 4% 1% 1%
Barriers to market development
Labour
• Remittance dependent
• Farm labourers ---------------------
• Farming professionals
Semi Subsistence
• Intensive lowland
• Extensive lowland
• Upland/ lowland
• Diversified cropping
• Swidden/NTFP/Collector
• Livestock keepers
Diversified livelihood
Market oriented
• Rice specialists
• Cropping specialists
• Livestock focused
• Agro-forestry
Internal and external constraints
Farming system
• Soil fertility
• Water
• Rice quality
External
• Price of output
• Price of inputs
• Infrastructure
• Processing
• Taxes and trade restrictions
Source: Annual report 2010, PICO of Savannakhet province
18%17%
14%
7% 7% 7% 7% 7%6%
4%3%
2%1% 0.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Pro
du
ctio
n (
Ton
s)
Rice production share by district, 2010
1.2. Trade in Agricultural sector
Savannakhet rice production
Location of studies
• The study area has the geographical position advantage for the
expansion of exports to Vietnam as it located on road n. 9 which
links the study area to Quang Tri province via Lao Bao –
Dansavanh cross border ;
• 20 % of rice collected by rice millers in study district is export to
Vietnam
• The study area has approximately 14,000 metric tons of rice
surplus every year. This is an opportunity for farmers to supply
local mills in their own district;
• The horizontal integration between traders can facilitate the
trade negotiation in the market level
– Rice millers group
Potential
• Seasonality of supply source: it is increasing the difficult to
source the rice in study area
– > 50% of rice is collected outside the study area ;
• Price fluctuation due to production levels and policy decision
– Low production (drought or flood)
– Banned of rice exports
– 1700 kip/kg (2009), 3500 - 4200 kip/kg (2010) and 1800 kip/kg (2011)
• Difficulty to set up quality standards recognized by
international actors due to poor processing facilities in the
rice mill;
– High percentage of broken piece, low percentage of whole grain (35%)
– High humidity of polished rice (> 16%)
• Market fragmentation due to the lack of horizontal linkage in
the supply site (non formal farmer’s organisation)
Major constraints
Rice marketing chain
• Strengthening the horizontal linkage in the supply site:
Farmers in the study area should have a formal collective
action in order to facilitate the purchase of rice by
traders, whilst giving them “a bargaining power”;
• Improving the vertical linkage: the vertical linkage can be
leveraged to increase the flow of information to farmers. If the
information transfer between farmers and traders is better
organized and linked, farmers can orient their production to
meet the market demand rather than produces for home-
consumption;
• Improve processing knowledge and facilities to be able to
ensure quality recognized by international standard.
Recommendations
Further information