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. • • • • Inclusive supply chain development Sustainable production technologies Strengthened value chain service providers Knowledge development Progress In Brief • • • • • • • • 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
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