Contract Farming in Lao PDR: Cases and Questions - LAD - nafri

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Contract Farming in Lao PDR: Cases and Questions Table of Contents Introduction ..................................................................................................................................... 6 Case Studies of Contract Farming in Lao PDR ........................................................................... 9 Upland Farmer, Luang Nam Tha ......................................................................................................................10 Chillies from field to table .................................................................................................................................19 Corn along the Mekong ...................................................................................................................................24 Watermelons in Muang Sing ...........................................................................................................................30 Growing pulpwood under contract ..................................................................................................................33 Sugar deal goes sour ......................................................................................................................................37 Smelling the profits of contract coffee ..............................................................................................................40 Managing contracts and trade on the Bolaven .................................................................................................44 Questions about Contract Farming in Lao PDR ........................................................................ 48 1. Contract farming as a business model ..................................................................................................48 1.1 What is contract farming? .....................................................................................................................48 1.2 Is farming under contract appropriate for all farmers in Laos? ................................................................49 1.3 Does contract farming discriminate against poorer farmers? .................................................................49 1.4 Are contracts suitable for all crops? .......................................................................................................50 2. Contract farming and the business environment ....................................................................................50 2.1 Are regulations governing commerce in Laos hindering or helping contract farming? ............................50 2.2 Are regulations clear, simple and accessible enough to promote contract farming? ...............................51 2.3 Is affordable credit easily available to all farmers who want to expand production for contract production? .............................................................................................................................51 4
2.4 Is transport of crops reliable, regular, fast and cheap enough to nurture contract farming? ....................51 2.5 Is transport across borders smooth enough to open up wider markets for contract farmers? ................51 2.6 How can affordable crop insurance be provided to farmers raising crops under contract? .....................52 3. Contract farming and the legal system ..................................................................................................52 3.1 Are contracts necessary? ......................................................................................................................52 3.2 How can contracts be enforced given the current condition of the legal system? ..................................52 3.3 Is the legal system accessible by farmers? ............................................................................................53 3.4 What alternatives are there to the legal system for guaranteeing and enforcing contracts between farmers and traders? ..............................................................................................................53 4. Contract farming and market information ..............................................................................................53 4.1 Do farmers have access to enough information to assess contracts? ....................................................53 4.2 What market information do farmers need to decide whether contracts are appropriate and fair? .........54 4.3 How can farmers access to market information improve? .....................................................................54 5. Contract farming and roles of government staff .....................................................................................55 5.1 What role should government staff play in the commercial relationship of contract farming? ..................55 5.2 How can government staff help potential contract farming partners meet? ............................................55 5.3 How can government staff help farmers prepare for contract farming? ..................................................55 5.4 Is it appropriate for the government to make local units autonomous, thereby getting revenue by charging for services they provide to contract farming? ....................................................................55 Bibliography .................................................................................................................................. 57 5
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Contract Farming in Lao PDR: Cases and Questions - LAD - nafri

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