"Marketing system development for non-wood forest products in Lao PDR” (TCP/LAO/3002)
This project has been supported by FAO in partnership with the Netherlands Development Organisation (SNV) and implemented by the Forest Research Center, the National Agriculture Forest Research Institute (NAFRI) and the Ministry of Agriculture and Forestry.
In Lao People’s Democratic Republic, where 41 percent of the national territory is covered by forests and 80 percent of the population lives in rural areas, the role of major natural resources is up to non-wood forest products (NWFPs).
The conservation and sustainable utilisation of NWFPs are perceived as important issues to address in poverty eradication strategies, due to their fundamental role in food security and in daily livelihoods.
The project was directly related to these matters, having the objective of establish a model for developing marketing systems for priority NWFP, through the use of Market Analysis & Development (MA&D) approach. The aim was to enable local communities to identify potential products and develop markets to improve income generation and to strengthen stakeholders’ capacity to manage NWFP resources and to improve their market knowledge.
Developing and strengthening environmentally and socio-economically sound NWFP enterprises and improve knowledge of their markets, provide income as well as incentives to local communities to manage NWFP resources in a (more) sustainable way and therefore contribute in reducing the pressure on existing natural forest resources.
The sites selected for project implementation are six villages distributed in three districts:Ban Longlead and Ban Houay Hia villages located in Xiengnung District, in the Northern province of Luang-Prabang;
Ban Nathong and Ban Alouay Kham Noy villages located in The Phin District, in the Southern province of Savannakhet;
and Ban Lak 29 and Ban Heua kheua villages located in Pathoumpone District, in the Southern province of Champasack.
The project also collaborated with a number of projects operating in the three selected districts.
In Luang Prabang it has collaborated with the Forest Management and Community Support Project (FORCOM); the CIAT (Sadu project) and the Upland Agriculture and Forestry Research Project supported by SIDA. The above projects have a focus on NWFP marketing and had also worked in the same districts. Coordination with the other FAO project on fruit and vegetable (GCP-LAO-013-ITA) was ensured through communication between the team members.
In Savannakhet district it has collaborated with the Sustainable Forest Development (SUFORD) supported by WB-Finland Government, and with the Village Development Programme, supported by the Belgium Technical Cooperation (BTC). The SUFORD project was working in the same pilot villages. A strategic alliance has been developed with the SUFORD project.
In Champassak, it has collaborated with SUFORD, INGO GAPE and INGO Village Focus International (VFI).
The Achievements of the project were three-fold:
1) The MA&D trainings and implementation for NWFP enterprise development and marketing.
- Preparatory Phase Inception Workshop and preparation of field activities; Provincial and district survey on NWFP (marketing, natural resources, etc) to learn about current NWFP marketing system; NWFP and socio-economic village survey.
- MAD Phase 1 Assessment and short-listing of most promising NWFP products - 14 NWFP products have been short-listed by the 6 villages.
- MAD Phase 2 Value Chain Analysis of the NWFP short-listed products; selection of the NWFP Products for each of the 6 villages:
-Luang-Prabang Province - Xiengnung District - (1) Ban Longlead selected mulberry Morus spp. products; (2) Ban Houay Hia also selected mulberry products.
Savannakhet Province- Phin District - (1) Ban Nathong selected bamboo and mushrooms products; (2) Ban Alouay Kham Noy selected bamboo and mushrooms products.
Champasack Province - Pathoumpone District - (1) Ban Lak 29 selected rattan and mushroom products; (2) Ban Heua kheua selected rattan and bamboo.
- MAD Phase 3 Partnership establishment with the Faculty of Forestry, National University; NWFP sub-sector policy review. Development and implementation of the pilot enterprises development plans and start up of the new enterprises.
2) NWFP sub sector policy review (ongoing) The project facilitated a process of policy change and favoured the creation of policy working groups at national and provincial level, with the aim to address and overcome the weaknesses suffered by the NWFPs subsector. National NWFP policy, rules and regulations, were analysed and some recommendation and proposals for future changes and improvement in policies emerged.
It was suggested that a multi-pronged approach be adopted for developing NWFPs through supporting grassroots initiatives (such as village-level NWFP production and marketing groups) and promoting national-level policy and institutional support. The issues identified as important to support the ten pilot enterprises at the district and provincial levels will entail: changes to the taxation system, clearer forest management rules and recognition of the pilot enterprises.
IMPACT OF THE PILOT PROJECT AND LESSONS LEARNED
Poverty alleviation impact. The MA&D approach resulted in the establishment of ten pilot NWFP village enterprise groups (involving 239 people) for rattan, bamboo handicrafts, paper mulberry and mushroom production activities, creating employment and income for local residents. The benefits from sales of NWFPs varied from village to village, and the additional income was invested in the enterprises and used for buying food and paying school fees and medical expenses. Additionally, village development funds were set up in order to fill the gap in financial services and help villagers implement the pilot enterprises.
Environmental impact. The project helped local communities gain more benefits from NWFPs while, at the same time, practising sustainable harvesting and production of them. It favoured an increase in some NWFP resources through plantation under natural forest and agroforestry. There was an improvement in rattan, paper mulberry and bamboo harvesting methods, which link extraction rates to the availability of the resource. A villagers’ establishment of village forest management plans came out as one of the consequences of the increased environmental knowledge and awareness of NWFP biodiversity and its role in alleviating poverty among national and provincial policy-makers.
Governance/Policy Impacts. Recognizing the importance of NWFPs in alleviating poverty and supporting national economic development, the Government of Lao PDR has further developed a process of change in its policy direction, enacted the relevant legal framework, and strengthened institutions to support this.
Curriculum development. The National University of Lao PDR (NUOL) was involved in specific project research activities and collaborated with NAFRI. This resulted in efforts to integrate MA&D principles and tools in the university’s courses from 2007.
The project outcomes revealed to local communities and authorities as well as to policy makers the great role that small-scale NWFPs enterprises can play in better livelihood in rural areas.
A case study on Lao PDR project has been developed in order to share the successful experiences obtained. In order to access this case study, please
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