Agriculture, natural resources and rural development / Agricultural production - Agro-industry, marketing, and trade

Transport / Road transport (non-urban)

The purpose of the Project is to promote sustainable commercial smallholder agriculture and associated associated agribusiness in the Lao PDR, with the goal of achieving sustained increases in rural incomes and long-term reductions in rural poverty. The purpose will be achieved by (i) increasing production and marketing of diversified, nonrice dry seosan cash crops, livestock, and fisheries; (ii) improving smallholder access to domestic and international markets and to market information; and (iii) increasing investment in value-adding agribusiness.

To achieve these objectives, the Project has four components: (i) farmer support services to improve farmers' technical knowledge of integrated farming systems, and access to market information and inputs; (ii) agribusiness and marketing to stimulate investment in agribusinesses; (iii) rural infrastructure to improve physical access to produce markets and reduce marketing costs; and (iv) project management.

1. Effective agricultural extension and training mechanism

2. Improved physical infrastructure for input and produce marketing

3. Effective primary market network in project provinces

The project has made good progress, with the physical progress of 100% and financial progress of 100%. The project completion date was 31 December 2011 and the closing of loan account was 18 September 2012.

Component 1: Effective Agricultureal Extension and Training Mechanism. Main achievement include: (i) the 549 villages received training on rice and other cash crops plantation technique, (ii) the 162 Farmer Production and Marketing Groups (FPMGs) were established, (iii) 14 kinds of commodity involving 9,291 households from 329 villages of 16 project districts, (iv) the 185 training sessions were conducted for the 6,196 farmers, and (v) the 439 study tour were organized for the 1,580 farmers;

By strictly adhering to recommended organic farming principles, Bungphao Organic Vegetable Group has received Organic Certificate from Department of Agriculture of MAF

Component 2: Improved Physical Infrastructure for Input and Produce Marketing. An integrated agribusiness model between farmers and factories has been developed. (i) The FPMGs have concluded the contracts with the Cannery Factory for selling sweet corn and receiving fertilizer, while the Factory allots the cattle raising groups to obtain corn cob and fresh corn stems from it. This approach is being replicated in Khammouan and Champassak provinces at lower level with private traders instead the factory, and (ii) The Rice Miller Group has an agreement to supply 500 tons of white rice to Lao Beer Factory and contract to export 2,000 tons of white rice and 1,000 tons of glutinous rice to Vietnam. The Project has supported to formation of sub-group for beef and pork processing, these two sub-groups are important to note that members of the groups are women and run by women management.

All planned infrastructure under the component were fully constructed including (i) 78 km new feeder roads, (ii) 54.9 km all-weather improved roads, and (iii) 9 bridges totaling 329 meters. About 35,024 households living in the adjacent areas are benefitting from the roads; the number of transported commodities to the market has increased significantly as well as the number of new business registrations and investment along the road corridor.

Component 3: Effective Primary Market Network. 6 Primary Markets has been constructed in strategic locations of: Thourakom district-Vientiane province, Nongbok district-Khammouane province, Xaybouly and Xayphouthong districts-Savannakhet province, Pakxong and Phonthog districts-Champassak province.

Component 4: Project Management. The planned activities under this component are being satisfactorily implemented.