Case stories on capacity development and sustainable results

LAO PDR19LAO PDR – Entrepreneursdriving productivity and capacityin smallholder rice farmingContextImproved rice production is key to developmentand food security in Lao PDR.While paddy rice production has increased,less attention has been paid to improvingproductivity both on-farm and inpost-harvest handling, including milling.One kilo of paddy rice milled in Lao PDRused to produce significantly less ediblerice than in neighboring countries. Poorquality has meant lower prices, reducingprofits for both millers and farmers. Productionof better quality paddy rice andimproved milling practices can increasethe supply of rice in Lao PDR, open newdistribution channels and improve theprofits and livelihoods of both millers andsmallholder farmers.Development resultsWithin 18 months of starting, the EnhancingMilled Rice Production project in LaoPDR brokered fair trading relations between21,360 smallholder rice producersand 21 selected rice mills. The project hasseen some highly encouraging results, includinga 10 percent increase in milling recoveryrates and a 20 percent productivityincrease in production per hectare, due toquality input and extension provided bymillers.Farmers say that the benefits include inputand extension, an agreed minimum priceat the start of the season, and a premiumprice for higher quality at harvest time.Eight of 21 Enhancing Milled Rice Productionproject millers have gone on toorganize new Miller Groups outside theprogramme – without additional support– involving more than 100 new millers.This spontaneous up-scaling stronglymultiplies the outreach and impact bysharing approaches, exploring new markets,and supporting sustainability. SomeMiller Groups are now able to access subsidizedinterest rate loans and institutionalmarket actors like the World FoodProgramme.The project represents a shift in approachfor capacity development in farming communities.It deliberately uses business relationsas a driver for capacity growth andimproved relations in the value chain.Results10 percent increase in milling recovery rates anda 20 percent productivity increase in productionper hectare.Miller Groups are now able to access subsidizedinterest rate loans and institutional market actorslike the World Food Programme.Millers can support 1,000 smallholder farmersand support self-organization. Farmer groups arebetter able to make informed decisions, sharelearning, and negotiate.