PRCC 2 Bolovens Coffee

LAO PDR
AGRICULTURE
Strengthening of Lao coffee sector’s commercial
capacities - PRCC 2 Bolovens Coffee
The support program to the coffee sector and to the Bolovens Coffee Producers Association (AGPC) is financed in the context of the Trade Capacity Building Program (PRCC) and builds on the intervention initiated
by AFD in 1996 in this sector. The project emphasizes particularly on strengthening the capacities and
autonomy of AGPC and the Lao National Coffee Board (CNCL or Lao Coffee Board).
KEY DATA
PROJECT DETAILS
149th out of
190 in 2012
The project aims at increasing coffee producers’ incomes and
improving the involvement of all agents in the sector’s orientation.
Objectives
138th out of
186 in 2012
BACKGROUND
The project’s objectives are divided into two components aiming at strengthening:
1)
Producers organization: the Bolovens Plateau Coffee Producers Association (AGPC);
2)
The national coffee sector inter-professional organization through the Lao National Coffee Board (or
CNCL);
The Lao coffee sector is:
♦
The first agricultural product of export value
for Laos (~20 000 T, 60 million USD en 2012)
♦
The Bolovens Plateau, a historical production
area (95 % of national production—70,000 ha)
♦
15,000 families of producers, middlemen, 20 to
30 exporters and about thirty industrial plantations
♦
Emergence of new production dynamics in
« non-traditional » areas
♦
Strategic vision to 2020, implementation by
CNCL or Lao Coffee Board in collaboration
with the Lao Coffee Association
The Bolovens Coffee Producers Association groups
since 2007 56 groups or 2,650 families (17% of producers). Coffee is mainly commercialized in niche
markets under organic and fair trade labeling.
Project implementation
The project supports AGPC and CNCL through a Central Unit
based in Pakse. The executive agency of the project is the
Ministry of Agriculture and Forestry with technical assistance
support from two junior experts for CNCL and AGPC each and
an intermittent senior expert.
AGPC component:
The project aims at improving AGPC’s organizational, commercial and financial capacities, allowing it (i) to ensure superior quality coffee production which may be exported directly
to niche markets and sold roasted in the national market, (ii) to
supply services to its members in relation with production
(technical support, credit, etc.) and marketing (seeking customers, upholding the coffee’s image, etc.) and (iii) to project
an image of the produced coffee according to set terms of
reference and in conditions allowing for a local economy’s
sustainable development.
Laos.afd.fr
Updated in:
May 2014
LAO PDR
AGRICULTURE
IMPACT
The project’s activities are directed towards improving the
groups’ production and, downstream, the professionalization of marketing.
CNCL component:
The project supports CNCL’s development as platform for
national discussion between the sector’s agents to:
(i) Facilitate concerted elaboration and execution of a sector strategy,
(ii) Increase the share of Lao coffee in the world market
through a unified and efficient marketing approach and exist as producing country
Economic effects:
The project will endeavor to improve Lao coffee’s image
and price in the international market, assist AGPC in becoming a viable and autonomous enterprise which services are paid at cost.
Institutional effects:
The project tends at sustaining AGPC and enhancing
CNCL’s viability. CNCL will group the sector’s agents,
especially family farmers and promote the implementation of coffee subsector policy by the Lao Government
favorable to small producers by improving coffee promotion and capitalizing on experiences, particularly on the
AGPC’s.
Social effects:
(iii) Introduce sustainable financing methods to highlight
Lao coffee (establishment and follow-up of « Bolovens Coffee » Geographic Indication, access to niche markets, outlining of export norms and standards, etc.) and
At AGCP level, expected effects are strengthened appropriation of the structure by its members. At the sector
level, the establishment of an inter-profession structure
in which all agents are equitably represented.
(iv) Capacity building of the Government for better support
to export sectors.
Environmental effects:
KEY INFORMATION
Expected effects are AGPC producers continue production in organic agriculture and CNCL is able to disseminate new practices that are more respectful of the environment in the sector, particularly by meeting the requirements in agronomic research.
CONTACT
FINANCIAL TOOL : grant to the Ministry of
Agriculture and Forestry
AMOUNT: 1,46 M€ of which AFD (1.2 M€)
AGPC (0.2 M€) and GoL (0.6 M€)
PARTNERS: AGPC, GoL
PRESS CONTACT
Paul BELCHI, AFD Vientiane
[email protected]
DATE ALLOCATION: 12/05/2010-30/06/2014
Laos.afd.fr
CLA 1056

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