Presentation at Sub-Sector Working Group on Farmers and Agribusiness, DAEC, Vientiane, 27 Feb 2017

1. AGREE :
promo+ng
agricultural
entrepreneurship
Andrew Bartle:
Team Leader and Policy Adviser
Lao Upland Rural Advisory Service
SSWG-FAB
February, 2017

2. Rural Youth
! There is approximately one
million people in Laos
between the age of 15-24
who live in rural areas.
! What is the future for this
important secMon of
society?
! What services do they
need, and what are they
geOng?

3. Rapid changes
! The shiP from subsistence to
commercial agriculture is accompanied
by increased connec%vity (eg. roads and
phones), which brings opportuniMes and
problems
! Compared to their parents, rural youth
are beTer informed, increasingly
mobile, and have access to a wider
range of products
! They are also more exposed to the
threat of trafficking, drugs, debt...and
more likley to leave the village.
! Many thousands are moving to ciMes in
Laos and going to work in Thailand

4. AspiraMons of rural parents
! Focus group discussions carried out
by LURAS show that parents do not
want their children to conMnue in
farming.
! Villagers state that farming is hard
and dirty work, with uncertain
returns.
! They also see themselves as having
low social status and few
opportuniMes for advancement.
! Parents want their children to get an
educaMon, leading to a non-farm job
(ideally with Government), so that
they can send money back home.

5. AspiraMons of rural youth
! A study of students at Agricultural College
showed that most of them want to work for
the Government, rather than returning to
their village.
! Other studies in Laos show that the aspiraMon
for a ‘beTer life’ leads to paid employment
rather than unpaid labour on the family farm.
! The search for a cash income may involve
migraMon to urban areas (eg. construcMon,
texMles) but equally important is paid labour
in the agric sector (eg. plantaMons,
processing).
! In many rural households, one child will stay
with the parents while others leave. This is
oPen a child with less formal educaMon

6. Scenarios for the next generaMon
Grey Villages Brown Villages Green Villages
Out-migraMon by
young people results in
an ageing rural
populaMon, with no
innovaMon and low
producMvity
Investment in
industrial scale
agribusiness provide
cash incomes in rural
areas, and people stay
in villages
Farmer groups and
SMEs engaged in
‘green’ producMon and
processing provide
aTracMve new
livelihoods
Youth become urban
workers and
consumers
Youth become labour
force for the global
food industry
Youth become pioneers
for rural community
development
Which scenario is most likely to happen?

7. Youth empowerment
! Some observers think the sector has an image
problem, and that we need to make farming more
‘sexy’,
" If this is the case, we need to iden%fy new role models
and success cases, and develop advocacy strategies
that make farming more appealing
! But maybe the problem is more pracMcal. Young
people want to escape drudgery, earn cash and get
access to the products of a modern life
" In which case, we need to pay more a:en%on to rural
job crea%on and enterprise development
! They also also want greater independence, self-
respect and a chance to do something different
" In which case, we need more ini%a%ves that are
planned and managed by rural youth themselves

8. Young Agripreneurs
! If farming communiMes are to remain
a viable and vibrant part of Lao
society, rural youth need local
opportuniMes to earn money, be
creaMve and enjoy themselves.
! The role of Agricultural Colleges is
important, not just because they
train new Government staff, but
because they can be launch pads for
young agripreneurs
! Young agripreneurs are students and
graduates who are developing their
own agribusiness. They make plans,
make connecMons and hopefully
make money.

9. Let’s AGREE!
! AGREE is a scheme for Young Agriprenuers
that started last year at the Northern
Agriculture and Forestry College in Luang
Prabang
! AGREE = Agripreneurs for Green Rural
Enterprises and Economy
! AcMviMes to date:
# Weekend workshops on business planning
# The first AGREE compeMMon
! AGREE is supported by two projects funded
by SDC and implemented by Helvetas:
# The Lao Upland Rural Advisory Service
(LURAS)
# Support to the Reform of Agriculture and
Forestry Colleges (SURAFCO)

10. The process
Design and implementaMon
of the first AGREE scheme
was sub-contracted to EDC

11. ! The first stage of AGREE started with 52 proposals in October and ended
with 12 teams who presented their business ideas to a panel of judges on
21st January.
! The prototype products included out-of-season limes, frozen frogs legs,
vermi-compost, ornamental plants, egg trays made from recycled paper...
and more
The compeMMon

12. ! The panel of judges consisted of prominent people from the public and
private sector in Luang Prabang
! They awarded first prize of 6.5 million kip to three students who
developed a plan for processing and markeMng a herbal tea made from
the flower of the buTerfly pea (dok angsan).
! What impressed the panel was the prototype packaging, the financial
calculaMons, and the confidence of the students.
The winners

13. Next steps for AGREE
! LURAS is currently making plans to support
some of the AGREE finalists aPer graduaMon.
This could include..
# Cash grants
# Advanced training
# Mentoring visits
# A business advice hotline
# An online support group
! A second round of business planning
workshops and compeMMon is being
considered for NAFC
! Expansion of AGREE to other colleges is also
possible as part of Phase III of SURAFCO

14. Some QuesMons
! Which scenario for rural Laos is most
realisMc: grey, brown or green?
! The contribuMon of agric sector to GDP is
falling steadily. Is this inevitable, or can
agripreneurs make a significant difference?
! What other resources and channels are
available for supporMng young
agripreneurs?
! What else can be done to improve the
prospects for rural youth?
! How do we reach scale? We are talking
about the future of 1 million people!