Presentation at the Core Working Group Meeting on November 1 2011. Presentation by Dr. Phouang Parisak Pravonviengkham on MAF and GOL strategy

1. Ministry of Agriculture and Forestry
Sector Working Group on Agriculture, Rural
Development and Natural Resources Management
Core Group Meeting
Vientiane Capital, 1st November 2011
Dr. Phouang Parisak Pravongviengkham
Ministry of Agriculture and Forestry

2. Outline
• Strategic Direction 2011-2015 toward 2020
• Alignment of 7th NSEDP and Direction for Implementation
– Key Targets for Plan 7th (2011-2015)
– Investment Plan for 7th NSEDP
– Funding status for 2011-2015
• Impact of Natural Disasters and Actions Taken
– Immediate Actions and Measure
– Funding Status for Rehabilitation
• Achievements and Challenges 2010-2011
– Key Achievements
– Challenges
– Budget implementation
• MAF Targets and Funding Status for 2011-2012
– MAF Targets
– Funding Available and Gap
• Conclusion

3. Strategic Direction 2011 – 2015 toward 2020

4. Strategic Direction 2011- 2015 toward 2020
• The strategic direction for agriculture and forestry based
development is to ensure a successful gradual
transition from subsistence into commercial
smallholder production.
• The other strategic direction is to ensure proper and
sustainable use of natural resources (land, water and
forest) in line with national priorities and
regional/international responsibilities
(International, regional conventions: REDD+ ….).

5. Strategic Direction 2011- 2015 toward 2020
(cont.)
• This can be achieved by applying innovative technologies and science-based
practices for the systematic and continuous production of high-value agric-
food products for local value-added agro-processing and for
domestic, regional, and world markets.
• Modern farmer organizations will be created such as cooperatives, commodity
associations, and commodity boards to provide economies of scale and
effective participatory regulation.
• Focus on SMART, clean and sustainable agriculture systems and value chain
targeting comparative and competitive and niche products lead by SME in
parallel with FDI based on land use and development schemes that respond to
the country and regional development potentials.

6. Strategic Direction 2011-2015 toward 2020
(cont.)
Translating into four goals:
• Goal 1: The improvement of livelihood (through agriculture and
livestock activities)
– Expected impact: Improved food security
– Expected outcomes: Smallholder farmers will have food security based on
increased productivity of rice and diversified farming system that are resilient
to climate change
• Goal 2: Commodity production “pro-poor and green value chains”
– Expected impact: Significant increases in production, productivity and
domestic value added for agricultural commodities
– Expected outcomes: MAF will be engaged in a network of PPPs that will
facilitate integration of smallholder farmers to domestic, regional, and global
value chains

7. Strategic Direction 2011-2015 toward 2020
(cont.)
• Goal 3: Stabilization of shifting cultivation and upland agriculture development with social
and environment focus.
– Expected impact: Wide application of ecologically sustainable agricultural and forestry
practices
– Expected outcomes: Eco-agricultural adaptation measures to climate change will
contribute to the significant reduction of shifting cultivation in upland areas
– Continue on sustainable use of forest resources (commercial forests), promote use and
development of biodiversity resources, promote individual and community forest
product development, and corporate/collaborate with MoNRE for the conservation and
proper use of forest resources in the NBCAs and National Protected Areas.
• Goal 4: Sustainable Forest (3 types of forest) Development and Management
– Expected impact: Capacity available for sustainable natural resources management
and effective management of agriculture modernization
– Expected outcomes: Strengthened institutional and human resources capacity. MAF
responsible for commercial forest, community and village forest, biodiversity
conservation and commercialization, including forest inspection in collaboration with
MoNRE and MoIC.

8. Strategic Direction 2011-2015 toward 2020
(cont.)
• Cross-cutting: Institutional capacity and human resources development
to manage modernization of the ANR sector
– Strengthened institutional and human resources capacity including
significant progress in gender mainstreaming

9. Alignment of 7th NSEDP and Direction for
Implementation

10. Alignment of MAF to 7th NSEDP
7th NSEDP 2011-2015
Conceptual Reform/Policy Human Resources Development
Mechanism, systems, administrati
Poverty reduction
Research & Development ve procedures
MAF SPECIFIC GOALS FOR 2011-2015
Goal 1: Food security - improvement of livelihood (through agriculture and livestock development)
Goal 2: Agriculture commercialization - “pro-poor and green value chains”
Goal 3: Stabilization of shifting cultivation and sustainable forest management
Goal 4: Sustainable Forest Development and Management
PRIORITISED PROGRAMMES AND PROJECTS FOR 2011-2012
(1) Food Production; (2) Commodity Production and Farmer Organizations (3)Sustainable production patterns, land
allocation and rural development (4) Forestry Development (5) Irrigated Agriculture (6) Other agriculture and
forestry Infrastructure (7) Agriculture and Forestry Research and Extension (8) Human resource development
Fourteen Measures

11. 7th NSEDP 2011-2015
Conceptual
Reform/Policy Research
& Development
Mechanism, syst
Poverty Four
ems, administrat
reduction Breakthroughs ive procedures
Human Resources
Development

12. MAF STRATEGIC PRIORITIES FOR 2011-2015
Goal 1: Goal
Goal 3:
1: Food Goal 2:
Stabilization Goal 4:
security - Agriculture
of shifting Sustainable
improvement commercializ
cultivation Forest
of livelihood ation - “pro-
and Development
(through poor and
sustainable and
agriculture green value
forest Management
and livestock chains”
management
development)

13. Directions for Agriculture and Forestry
Sector for 7th NSEDP
1. Land-based agriculture development
2. Sustainable forest resource use
3. Value chain for SME & FDI
4. Public to Public – Private to Private Sector (PP-PP) and
Public Private Partnership (PPP)
5. Promote development and commercialization of
biodiversity resources
6. Rural Private Agri-business development
7. Supportive policy & regulatory tools (Food Security and
Food Safety)
8. Win-Win Regional Economic Integration

14. MAF’s 8 Priority Programmes
1. Food Production
2. Commodity Production and Farmer Organizations
3. Sustainable production patterns, land allocation and
rural development
4. Forestry Development (Production forest, and
collaborate with MoNRE for management and use of
protected forest and NBCAs)
5. Irrigated agriculture development
6. Agriculture and forestry Infrastructure and
accessibility
7. Strengthening Agriculture and Forestry Research and
Extension
8. Human resource development

15. Fourteen Measures
1. Agriculture and forestry sector policy and institutional reform and research-
development
2. Survey and allocation of agriculture and forestry production zones
3. Seed and breed availability
4. Extension and technical services: and human resources development
5. Establish village development group linked to sector development
6. Organizing production and establishing economic structures from
local/grassroots levels
7. Irrigation development and prevention of droughts and floods
8. Increase productivity
9. Quality control and disease prevention
10. Financial mechanism
11. Achieving economies of scale in production
12. Implementation of monitoring and evaluation
13. Decentralization
14. Human Resources Development

16. Key Targets for Plan 7th (2011-2015)
ANR sector to grow at over 4% annually (with an
overall GDP growth > 8%)
• Food security and reserve:
―Rice: 350-450 kg/cap/yr
―Meat/protein: 50-60 kg/cap/ yr
―Rice surplus: 1 million tons
―Rice reserve: 60 to 120.000 tons (starting with
reserve of 30,000 tons including 3,000 tons for
ASEAN Plus 3 Emergency Rice Reserve
―Rice seed reserve: 5,000 tons

17. Key Targets for Plan 7th (2011-2015) (cont.)
• Promote and organize value chains, incl. in uplands
(take advantage of New ASEAN Charter &
Economic-Social Pillars; Regional Economic
Integration; Dynamic East Asia Economy esp. about
P-P & P-P) – reach rural poor areas increased
smallholder incomes.
• Forest cover up to 65% : REDD+ & climate change.
• New employment opportunities for the upland and
remote rural poor – no more Shifting Cultivation

18. Investment Plan for 7th NSEDP
10% 10%
Public Investment
Community
Programs (PIP)
funds, micro-
finance
Ensure basic agric and forestry
services. Pursue decentralization at
Local investments in
KBP level…
production, processing, sto
rage, trade..
20%
60% Overseas Development
Aid (ODA)
Foreign Direct
Investment (FDI) Innovative investment
schemes, safety nets, GoL and
stakeholders capacity building
Medium to large scale land based
investment, rural
infrastructures, processing..

19. Shares of Investments by Thematic Areas
Capacity
Building, esp. at
Research & dist & Village levels
Development -
Agriculture Capacity
Infrastructure Building, esp.
at dist &
Village levels
Agriculture
Research & Infrastructure
Development

20. Funding Status 7th NSEDP 2011-2015
Investment Volume
(Million USD)
PIP ODA FDI Total
Scenario ONE 120 898 856 1,876
(realistic) 6 48 46 %
Scenario TWO 120 886 0 1,006
(conservative) 12 88 0 %
Scenario THREE 132 1,368 2,560 4,060
(optimistic) 3 34 63 %

21. Impact of Natural Disasters and Actions Taken

22. Impact from Natural Disasters
Typhoon Haima and Nok-Ten swept through out the country
effecting the agriculture and forestry:
- Crop production area damaged is approximately 86,000 ha
(estimated rice production loss of about 300,000 tons):
• Lowland rice areas 77,000 ha
• Upland rice areas 110 ha
• Other crop areas 8,500 ha
- Livestock – 2,500 heads lost for large animals
(buffalo, cattle, pig and goat)
- 5,400 fish ponds damaged
- 690 irrigation schemes need to be reconstructed
- Rodent outbreak in northern provinces, especially the rural
areas.

23. Immediate Actions and Measures
MAF took immediate actions to responds:
 Establishment of advisory and technical teams to address to
emerging needs.
 Issued regulations including immediate measures for drought
and flood relief and prepare for dry season cropping.
 Provided rice seed to victims in provinces to a value of 600
million kip (108.5 tons)
 Animal vaccines were provided to a value of 19 million kip.
 Coordinated with provincial authorities to assess the damage of
irrigation schemes; and prepare water pumps and rehabilitate
the schemes.
 International organizations including FAO provided support to
develop plan to address emerging needs as well as future needs.

24. Assessment of Impact
Impact from natural disasters has been assessed.
Needs for rehabilitation were identified as:
• Irrigation: 170 billion kip
• Agriculture: 55 billion kip
• Livestock and fishery: 30 billion kip

25. Funding Status for Rehabilitation
What had been done?
 Government released Reserve Fund of 30 billion kip for
recovery for Agriculture Sector with the priority to rural and
poor areas:
- 10 billion kip for irrigation
- 17 billion kip for seeds
- 3 billion kip for vaccine and pesticide
 Some DPs, CSOs/NGOs – also provided support
Funding gap approximately 225 billion kip

26. Priority Needs
Short-term
Ensure food security, improve nutritional status and reduce
poverty of marginal and small holders and their families to
improve income generation with the following assistance:
– Improve seeds and tree seedlings
– Provide fertilizers and chemicals
– Access to agricultural machinery
– Livestock and animal feed and housing
– Improve fish boats
– Provide aquaculture packages and capacity building

27. Priority Needs (cont.)
Medium-term
• Recovery of land affected by mudslides
• Diversification of crops (long beans, onion, etc.)
• Rehabilitation of irrigation schemes
• Rehabilitation of fish ponds
• River protection work
• Improved access to banking facilities
• Promotion of Non-Forest Timber Products (NTFP)
• Improve animal breeds

28. Priority Needs (cont.)
Long-term
• Development of comprehensive agriculture and forestry
disaster management plan
• Development of early warning system and information
management center
• Strengthen and enhance capacity of disaster management
organizations at sub-national level
• Conduct public information and awareness activities

29. Achievements and Challenges 2010-2011

30. Key Achievements in 2010-2011
Despite the impacts of the natural disasters, ANR sector made
significant achievements:
 Increased agriculture and forestry achieved growth rate of
2.8%.
 Secured 30,000 tons of national rice reserve and the
contribution of 3,000 tons under the ASEAN Plus 3 Emergency
Rice Reserve (Apterr) agreement.
 Planned rice production 3.4 million tons but estimated
harvested - 3.1 million tons (actual production trends to be
lower caused by natural disasters with estimated loss of about
300,000 tons).
 Fruit and vegetable increased to 2.5 million tons from 1.8
million tons in 2009-2010.

31. Key Achievements in 2010-2011 (cont.)
• Protein sources ( meat, fish, egg.. ) increased from 45kgs/cap
in 2009-2010 to 47kgs/cap.
• Commodity production
– Maize reached 916,700 tons compared to 915,940 tons in
2009-2010.
– Estimated coffee production will reach 47,000 tons, and
plantation areas has increased.
– Sugar cane production was 1.76 million tons, and increase
of more than 100% compared last year.
– Cassava achieved 501,400 tons compared to 500,090 tons
produced last year.

32. Key Achievements in 2010-2011 (cont.)
• Cattle exports increased to 108,000 heads from 100,600
heads in 2009-2010.
• Forest cover reached 50-51% of total land area (target 2006-
2010 = 53%). Forest management follows the 3 Forest
Categories:
– Conservation Forests covered 4.62 million ha, i.e. 19.4% of
total land. Focusing on improvement of management at
national, province and district levels.
– Protection Forests covered 8.05 million ha (increased by 2
million ha from 5.86 m ha in late 2010).
– Production Forests covered 3.1 million ha including newly
plantation forest of 39,000 ha.

33. Key Achievements in 2010-2011 (cont.)
• Area of rice cultivation (planted area before natural disasters)
 Wet season - 680,000 ha including irrigated area – 180,000
ha
 Dry season irrigated area - 110,000 ha
(however, affected by flood - 86,000 ha)
• Human resource development
– Continued to strengthen capacity of staff to achieved target
of 2015 (in 2010-2011, there were 4,327 graduates in which
3 PhD, 21 masters, 101 bachelor degrees and 4,197 higher
diplomas and 5 diplomas)
– Expanded agricultural technical services and veterinarian
network including strengthening capacity to provide service
at Kumban and village levels, especially the focal areas.

34. Challenges
• Natural disasters impeded development in AF sector (e.g. early
rainy season, heavy rain, Nokten storm, including rodent
outbreaks in northern provinces).
• Persistence of low productivity of agriculture.
• WTO accession – competitiveness is seen as an important driver
of change in AF sector.
• Need to address international quality standard control for
agriculture and forestry products, plant & animal quarantine
(SPS).
• Availability of fund does not meet the needs.

35. Challenges (cont.)
• Need greater efforts to encourage active participation from
stakeholders especially local communities, private sector and
CSOs throughout the agriculture and forestry development.
• Inadequate reporting especially at provincial and district level -
this creates difficulties in planning and monitoring . A new M&e
system has been designed, and implementation roll-out.
• Need for improvement on coordination among departments
including clear roles and responsibilities.
• Although training continues to be provided, there remains
limited staff to implement work plans, especially at the Kumban
and district levels.

36. Budget Implementation 2010-2011
Description Plan 2010-2011 Implementation
(Million US$) 2010-2011
Actual %
Spending
(Million US$)
ODA 30.1 27.3 90
FDI 138.51 83.1 60
PIP 4.25 3.85 90
Total 172.85 114.25
1 Registered fund of 94 companies/projects

37. MAF Targets and Funding Status for 2011-2012

38. MAF targets for 2011-12
MAF targets include:
• Increase agriculture and forestry production by 3.1 –
3.5%.
• Increase food production to 400-450 kg per capita per
year.
• Increase the production of meat, eggs, fish to 48 kg per
capita per year.
• Forestry rehabilitation in three type of forests aiming at land
cover of 65% by 2015. Follow through REDD+ and PES.

39. MAF targets for 2011-12 (cont.)
• Area of rice cultivation
 Wet season - 810,000 ha including irrigated area –
210,000 ha
Dry season irrigated areas - 135,000 ha.
• Increase new employment opportunities for the remote
rural areas – no more Shifting Cultivation. Commodity
production systems to be market- oriented.
• Ensure by appropriate measures of value chains for high-
value crops for local value-added processing for local
and international markets.
• Enhance regional integration:
ASEAN, ASEAN+3, GMS, ACD, South-South Cooperation.

40. MAF targets for 2011-12 (cont.)
• Rice production – 3.6 million tons (more efforts to be taken for the
forth coming dry season irrigated agriculture)
– Rice seed reserve: 30,000 tons and 3,000 tons for ASEAN Plus 3
(Emergency rice reserve)
• Fruit and Vegetable – 2.66 million tons
• Protein sources ( meat, fish, egg.. ): 48kgs/cap
• Maize – 1 million tons
• Sugar cane – 1.7 million tons
• Cassava – 500,000 tons
• Beans – 95,000 tons
• Cattle (export) – 120,000 heads
• Increased production diversified crops
• New plantation forest – 30,000 ha

41. Budget Status 2011-2012
Funding Source Budget Plan Budget Funding
(Million US$) Available Gap
ODA 251.0 59.71 192.0
PIP 11.4 8.52 2.9
FDI 230.5 138.53 92.0
Natural disaster 32.0 3.84 28.2
rehabilitation
Total 524.9 210.5 315.1
1 147 projects
2 116 projects
3 37 companies/projects
4 Government released Reserve Fund for natural disaster rehabilitation for AF sector

42. Conclusion
• Despite the heavy effects from natural disasters,
overall performance of AF sector improved.
• Greater investment in food and agriculture as well as
in natural resource management is fundamental to
meeting the MDGs, in particular the goals concerning
poverty, hunger, and health.
• Food security can only be achieved in Lao PDR if a
broad range of stakeholders are partnering and
aligning to a common objective.
• Climate change is a major driver of change, with
critical implications for AF sector development.
• Scarcity of resources remain a constraint, including
HRD at district and village levels.

43. Conclusion (cont.)
• Promote P-P & P-P.
• Promote development and commercialization of
biodiversity.
• Development of rural agribusiness.
• Improve and reform policy & legal framework
guideline to new development priorities.
• Need for greater recognition of involvement of
women in agriculture and forestry development.
Women’s contribution to the agricultural share of the
economy is significant.
• PIP, ODA & FDI to be complementary to each other –
avoid overlapping.

44. Conclusion (cont.)
• ODA Management need to be streamlined and
strengthened.
• Promote value chain (SME, FDI) to response to local
market and connect to regional integration.
• FDI has an important role in reducing poverty.
However, there is an issue of FDI quality. Not all FDI is
good. FDI representatives need to participate more
in the policy debate.
• Upland and highland agricultural production will first
and foremost aim to meet local food security needs.
• Agreement reached between MAF & MoNRE on
forestry management.

45. THANK YOU!