Inclusive Business Models to Promote
Sustainable Smallholder Cassava Production (IBC)
Progress in the Lao PDR
Project Components in the Lao PDR
The IBC project is
designed to improve
the income security
and livelihoods of
2,000 smallholder
farming households
by improving the
productivity and
sustainability of cassava
production. August,
2014 marks the halfway
point of the project and
a time for reflection on
progress made.
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Inclusive supply chain development
Sustainable production technologies
Strengthened value chain service providers
Knowledge development
Progress In Brief
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IBC project inception workshop
Farmer awareness rising & farmer registration
Farmer group formation
Cassava production technique training
Loan accesses facilitated for cassava farmers
IB plan development for two enterprises
Cassava production demonstration plot
Study visit to Thailand of farmer groups
representatives
• Consultation workshop on cassava promotion in 3
target districts
Target
2 enterprises
Achievement
3 enterprises including: KPN
tapioca factory (Pathoumphone
District, Champasak
Province), ASIAN Agronomy
(Bajiengchalernsouk District,
Champasak Province), Sernxay
Export-Import Company
(Lakhonepheng District, Salavan
Province)
Lessons Learnt
• New initiative should be start from small
• Start assignment/partnership from need of
clients
• Project should be in line with the local
government development strategy
• Project need resource person, donate and trust
Issues/Problems Encountered
• Motivation (time and people)
• Many buyers, but less buyers promote farmers
• Limited of qualified suppliers (land preparation),
LCB and consultants
• Price fluctuation of cassava
• Farmer group just formed recently
• Capital for farmers to produce cassava is limited
Target
Achievement
IB plan for Lao PDR
Facilitate the inclusive business
plan development for two project
clients
Lead male and female
farmers toward improved
technologies and other
farmers begin to change
Farmers in the target villages
were trained on cassava
production techniques
and showed application of
these techniques in cassava
production. Example: Cassava
stem selection, stem cutting, and
planting spacing
Lead enterprises change
their supply chain sourcing
to include smallholder
farmers and take
responsibility for knowledge
and extension services
Lead enterprises used village
representatives and Bajieng
Agricultural Products Purchasing
Cooperative to buy and deliver
cassava to company buying
point; lead enterprises provided
extension and cassava stems
with contract farming to
registered farmers
34 households conducting
cassava production
demonstration plots in
cooperation with IBC project;
44 plots and 11,390 m2
Increased profit for
enterprises 8% against
baseline after 30 months
Asian Agronomy Company
increased cassava fresh root and
dry chip purchased by 305.82%
(compared 2012 with 2014)
Informal data collection
revealed: 1,500 T of cassava dry
chips purchased in 2013 < 1,800
T in January of 2014
Households: 1,000 / Direct:
5,000 people / Indirect:
10,000 People / Average
USD: $130 per beneficiary
2,275 Households / 12,427
people (6,268 female) /
3,158 Hectare
To be collect by end of project
Improved profitability of
cassava production for male
and female farmers against
baseline after 30 months
Formal data not yet collected
30 model farmers show clear
productivity increases and
have adopted sustainable
cultivation practices at the
end of year 2
NAYOBY Bank Loan to Farmers:
Loaned in 2013 = 187,500 USD
Planned in 2014 = 562,500 USD*
50% of out-growers indicate
that they receive better
knowledge services from
supply chain actors after 30
months
108 key farmers attended TOT
on cassava production techniques
and project and companies
trained farmers at least 3 times/
village in target villages
1 international and 4
national knowledge
workshops conducted
with broad stakeholder
participation by end of 30
months
April, 2013: 1 National workshop
August, 2014: 1 National
workshop
International workshop planned
for December, 2014
Cassava farmer baseline
survey
Baseline survey completed in
October, 2013
Connected with banks to
provide loans to cassava
farmer
*Actual 2014 loans to be
collected by end of the year
Agricultural Promotion Banks
Loaned in 2013 = 13,000 USD
Planned in 2014 = 63,000 USD*
Connected with research
station to provide cassava
stem, peanut seed, soybean
seed, Mung bean seed
National Agricultural & Forestry
Research Institution
www.snvworld.org/laos
National Project Coordinator: Kenekeo Sayarath
Email: [email protected]
Tel: +856 20 55551978