Ministry of Agriculture and Forestry Sector Working Group on Agriculture, Rural Development and Natural Resources Management Core Group Meeting Vientiane Capital, 1st November 2011Dr. Phouang Parisak PravongviengkhamMinistry of Agriculture and Forestry
Outline• Strategic Direction 2011-2015 toward 2020• Alignment of 7th NSEDP and Direction for Implementation – Key Targets for Plan 7th (2011-2015) – Investment Plan for 7th NSEDP – Funding status for 2011-2015• Impact of Natural Disasters and Actions Taken – Immediate Actions and Measure – Funding Status for Rehabilitation• Achievements and Challenges 2010-2011 – Key Achievements – Challenges – Budget implementation• MAF Targets and Funding Status for 2011-2012 – MAF Targets – Funding Available and Gap• Conclusion
Strategic Direction 2011- 2015 toward 2020• The strategic direction for agriculture and forestry based development is to ensure a successful gradual transition from subsistence into commercial smallholder production.• The other strategic direction is to ensure proper and sustainable use of natural resources (land, water and forest) in line with national priorities and regional/international responsibilities (International, regional conventions: REDD+ ….).
Strategic Direction 2011- 2015 toward 2020 (cont.)• This can be achieved by applying innovative technologies and science-based practices for the systematic and continuous production of high-value agric- food products for local value-added agro-processing and for domestic, regional, and world markets.• Modern farmer organizations will be created such as cooperatives, commodity associations, and commodity boards to provide economies of scale and effective participatory regulation.• Focus on SMART, clean and sustainable agriculture systems and value chain targeting comparative and competitive and niche products lead by SME in parallel with FDI based on land use and development schemes that respond to the country and regional development potentials.
Strategic Direction 2011-2015 toward 2020 (cont.)Translating into four goals:• Goal 1: The improvement of livelihood (through agriculture and livestock activities) – Expected impact: Improved food security – Expected outcomes: Smallholder farmers will have food security based on increased productivity of rice and diversified farming system that are resilient to climate change• Goal 2: Commodity production “pro-poor and green value chains” – Expected impact: Significant increases in production, productivity and domestic value added for agricultural commodities – Expected outcomes: MAF will be engaged in a network of PPPs that will facilitate integration of smallholder farmers to domestic, regional, and global value chains
Strategic Direction 2011-2015 toward 2020 (cont.)• Goal 3: Stabilization of shifting cultivation and upland agriculture development with social and environment focus. – Expected impact: Wide application of ecologically sustainable agricultural and forestry practices – Expected outcomes: Eco-agricultural adaptation measures to climate change will contribute to the significant reduction of shifting cultivation in upland areas – Continue on sustainable use of forest resources (commercial forests), promote use and development of biodiversity resources, promote individual and community forest product development, and corporate/collaborate with MoNRE for the conservation and proper use of forest resources in the NBCAs and National Protected Areas.• Goal 4: Sustainable Forest (3 types of forest) Development and Management – Expected impact: Capacity available for sustainable natural resources management and effective management of agriculture modernization – Expected outcomes: Strengthened institutional and human resources capacity. MAF responsible for commercial forest, community and village forest, biodiversity conservation and commercialization, including forest inspection in collaboration with MoNRE and MoIC.
Strategic Direction 2011-2015 toward 2020 (cont.)• Cross-cutting: Institutional capacity and human resources development to manage modernization of the ANR sector – Strengthened institutional and human resources capacity including significant progress in gender mainstreaming
Alignment of 7th NSEDP and Direction for Implementation
Alignment of MAF to 7th NSEDP 7th NSEDP 2011-2015 Conceptual Reform/Policy Human Resources Development Mechanism, systems, administrati Poverty reduction Research & Development ve procedures MAF SPECIFIC GOALS FOR 2011-2015Goal 1: Food security - improvement of livelihood (through agriculture and livestock development)Goal 2: Agriculture commercialization - “pro-poor and green value chains”Goal 3: Stabilization of shifting cultivation and sustainable forest managementGoal 4: Sustainable Forest Development and Management PRIORITISED PROGRAMMES AND PROJECTS FOR 2011-2012(1) Food Production; (2) Commodity Production and Farmer Organizations (3)Sustainable production patterns, landallocation and rural development (4) Forestry Development (5) Irrigated Agriculture (6) Other agriculture andforestry Infrastructure (7) Agriculture and Forestry Research and Extension (8) Human resource development Fourteen Measures
7th NSEDP 2011-2015 Conceptual Reform/Policy Research & Development Mechanism, syst Poverty Four ems, administratreduction Breakthroughs ive procedures Human Resources Development
MAF STRATEGIC PRIORITIES FOR 2011-2015 Goal 1: Goal Goal 3: 1: Food Goal 2: Stabilization Goal 4: security - Agriculture of shifting Sustainableimprovement commercializ cultivation Forest of livelihood ation - “pro- and Development (through poor and sustainable and agriculture green value forest Management and livestock chains” managementdevelopment)
Directions for Agriculture and Forestry Sector for 7th NSEDP1. Land-based agriculture development2. Sustainable forest resource use3. Value chain for SME & FDI4. Public to Public – Private to Private Sector (PP-PP) and Public Private Partnership (PPP)5. Promote development and commercialization of biodiversity resources6. Rural Private Agri-business development7. Supportive policy & regulatory tools (Food Security and Food Safety)8. Win-Win Regional Economic Integration
MAF’s 8 Priority Programmes1. Food Production2. Commodity Production and Farmer Organizations3. Sustainable production patterns, land allocation and rural development4. Forestry Development (Production forest, and collaborate with MoNRE for management and use of protected forest and NBCAs)5. Irrigated agriculture development6. Agriculture and forestry Infrastructure and accessibility7. Strengthening Agriculture and Forestry Research and Extension8. Human resource development
Fourteen Measures1. Agriculture and forestry sector policy and institutional reform and research- development2. Survey and allocation of agriculture and forestry production zones3. Seed and breed availability4. Extension and technical services: and human resources development5. Establish village development group linked to sector development6. Organizing production and establishing economic structures from local/grassroots levels7. Irrigation development and prevention of droughts and floods8. Increase productivity9. Quality control and disease prevention10. Financial mechanism11. Achieving economies of scale in production12. Implementation of monitoring and evaluation13. Decentralization14. Human Resources Development
Key Targets for Plan 7th (2011-2015)ANR sector to grow at over 4% annually (with an overall GDP growth > 8%)• Food security and reserve: ―Rice: 350-450 kg/cap/yr ―Meat/protein: 50-60 kg/cap/ yr ―Rice surplus: 1 million tons ―Rice reserve: 60 to 120.000 tons (starting with reserve of 30,000 tons including 3,000 tons for ASEAN Plus 3 Emergency Rice Reserve ―Rice seed reserve: 5,000 tons
Key Targets for Plan 7th (2011-2015) (cont.)• Promote and organize value chains, incl. in uplands (take advantage of New ASEAN Charter & Economic-Social Pillars; Regional Economic Integration; Dynamic East Asia Economy esp. about P-P & P-P) – reach rural poor areas increased smallholder incomes.• Forest cover up to 65% : REDD+ & climate change.• New employment opportunities for the upland and remote rural poor – no more Shifting Cultivation
Investment Plan for 7th NSEDP10% 10% Public InvestmentCommunity Programs (PIP)funds, micro-finance Ensure basic agric and forestry services. Pursue decentralization atLocal investments in KBP level…production, processing, storage, trade.. 20% 60% Overseas Development Aid (ODA) Foreign Direct Investment (FDI) Innovative investment schemes, safety nets, GoL and stakeholders capacity building Medium to large scale land based investment, rural infrastructures, processing..
Shares of Investments by Thematic Areas Capacity Building, esp. atResearch & dist & Village levelsDevelopment - Agriculture Capacity Infrastructure Building, esp. at dist & Village levels Agriculture Research & Infrastructure Development
Funding Status 7th NSEDP 2011-2015 Investment Volume (Million USD) PIP ODA FDI TotalScenario ONE 120 898 856 1,876(realistic) 6 48 46 %Scenario TWO 120 886 0 1,006(conservative) 12 88 0 %Scenario THREE 132 1,368 2,560 4,060(optimistic) 3 34 63 %
Impact from Natural DisastersTyphoon Haima and Nok-Ten swept through out the country effecting the agriculture and forestry:- Crop production area damaged is approximately 86,000 ha (estimated rice production loss of about 300,000 tons): • Lowland rice areas 77,000 ha • Upland rice areas 110 ha • Other crop areas 8,500 ha- Livestock – 2,500 heads lost for large animals (buffalo, cattle, pig and goat)- 5,400 fish ponds damaged- 690 irrigation schemes need to be reconstructed- Rodent outbreak in northern provinces, especially the rural areas.
Immediate Actions and MeasuresMAF took immediate actions to responds: Establishment of advisory and technical teams to address to emerging needs. Issued regulations including immediate measures for drought and flood relief and prepare for dry season cropping. Provided rice seed to victims in provinces to a value of 600 million kip (108.5 tons) Animal vaccines were provided to a value of 19 million kip. Coordinated with provincial authorities to assess the damage of irrigation schemes; and prepare water pumps and rehabilitate the schemes. International organizations including FAO provided support to develop plan to address emerging needs as well as future needs.
Assessment of ImpactImpact from natural disasters has been assessed. Needs for rehabilitation were identified as: • Irrigation: 170 billion kip • Agriculture: 55 billion kip • Livestock and fishery: 30 billion kip
Funding Status for RehabilitationWhat had been done? Government released Reserve Fund of 30 billion kip for recovery for Agriculture Sector with the priority to rural and poor areas: - 10 billion kip for irrigation - 17 billion kip for seeds - 3 billion kip for vaccine and pesticide Some DPs, CSOs/NGOs – also provided support Funding gap approximately 225 billion kip
Priority NeedsShort-termEnsure food security, improve nutritional status and reduce poverty of marginal and small holders and their families to improve income generation with the following assistance: – Improve seeds and tree seedlings – Provide fertilizers and chemicals – Access to agricultural machinery – Livestock and animal feed and housing – Improve fish boats – Provide aquaculture packages and capacity building
Priority Needs (cont.)Medium-term• Recovery of land affected by mudslides• Diversification of crops (long beans, onion, etc.)• Rehabilitation of irrigation schemes• Rehabilitation of fish ponds• River protection work• Improved access to banking facilities• Promotion of Non-Forest Timber Products (NTFP)• Improve animal breeds
Priority Needs (cont.)Long-term• Development of comprehensive agriculture and forestry disaster management plan• Development of early warning system and information management center• Strengthen and enhance capacity of disaster management organizations at sub-national level• Conduct public information and awareness activities
Key Achievements in 2010-2011Despite the impacts of the natural disasters, ANR sector made significant achievements: Increased agriculture and forestry achieved growth rate of 2.8%. Secured 30,000 tons of national rice reserve and the contribution of 3,000 tons under the ASEAN Plus 3 Emergency Rice Reserve (Apterr) agreement. Planned rice production 3.4 million tons but estimated harvested - 3.1 million tons (actual production trends to be lower caused by natural disasters with estimated loss of about 300,000 tons). Fruit and vegetable increased to 2.5 million tons from 1.8 million tons in 2009-2010.
Key Achievements in 2010-2011 (cont.)• Protein sources ( meat, fish, egg.. ) increased from 45kgs/cap in 2009-2010 to 47kgs/cap.• Commodity production – Maize reached 916,700 tons compared to 915,940 tons in 2009-2010. – Estimated coffee production will reach 47,000 tons, and plantation areas has increased. – Sugar cane production was 1.76 million tons, and increase of more than 100% compared last year. – Cassava achieved 501,400 tons compared to 500,090 tons produced last year.
Key Achievements in 2010-2011 (cont.)• Cattle exports increased to 108,000 heads from 100,600 heads in 2009-2010.• Forest cover reached 50-51% of total land area (target 2006- 2010 = 53%). Forest management follows the 3 Forest Categories: – Conservation Forests covered 4.62 million ha, i.e. 19.4% of total land. Focusing on improvement of management at national, province and district levels. – Protection Forests covered 8.05 million ha (increased by 2 million ha from 5.86 m ha in late 2010). – Production Forests covered 3.1 million ha including newly plantation forest of 39,000 ha.
Key Achievements in 2010-2011 (cont.)• Area of rice cultivation (planted area before natural disasters) Wet season - 680,000 ha including irrigated area – 180,000 ha Dry season irrigated area - 110,000 ha (however, affected by flood - 86,000 ha)• Human resource development – Continued to strengthen capacity of staff to achieved target of 2015 (in 2010-2011, there were 4,327 graduates in which 3 PhD, 21 masters, 101 bachelor degrees and 4,197 higher diplomas and 5 diplomas) – Expanded agricultural technical services and veterinarian network including strengthening capacity to provide service at Kumban and village levels, especially the focal areas.
Challenges• Natural disasters impeded development in AF sector (e.g. early rainy season, heavy rain, Nokten storm, including rodent outbreaks in northern provinces).• Persistence of low productivity of agriculture.• WTO accession – competitiveness is seen as an important driver of change in AF sector.• Need to address international quality standard control for agriculture and forestry products, plant & animal quarantine (SPS).• Availability of fund does not meet the needs.
Challenges (cont.)• Need greater efforts to encourage active participation from stakeholders especially local communities, private sector and CSOs throughout the agriculture and forestry development.• Inadequate reporting especially at provincial and district level - this creates difficulties in planning and monitoring . A new M&e system has been designed, and implementation roll-out.• Need for improvement on coordination among departments including clear roles and responsibilities.• Although training continues to be provided, there remains limited staff to implement work plans, especially at the Kumban and district levels.
Budget Implementation 2010-2011 Description Plan 2010-2011 Implementation (Million US$) 2010-2011 Actual % Spending (Million US$)ODA 30.1 27.3 90FDI 138.51 83.1 60PIP 4.25 3.85 90Total 172.85 114.25 1 Registered fund of 94 companies/projects
MAF targets for 2011-12MAF targets include:• Increase agriculture and forestry production by 3.1 – 3.5%.• Increase food production to 400-450 kg per capita per year.• Increase the production of meat, eggs, fish to 48 kg per capita per year.• Forestry rehabilitation in three type of forests aiming at land cover of 65% by 2015. Follow through REDD+ and PES.
MAF targets for 2011-12 (cont.)• Area of rice cultivation Wet season - 810,000 ha including irrigated area – 210,000 ha Dry season irrigated areas - 135,000 ha.• Increase new employment opportunities for the remote rural areas – no more Shifting Cultivation. Commodity production systems to be market- oriented.• Ensure by appropriate measures of value chains for high- value crops for local value-added processing for local and international markets.• Enhance regional integration: ASEAN, ASEAN+3, GMS, ACD, South-South Cooperation.
MAF targets for 2011-12 (cont.)• Rice production – 3.6 million tons (more efforts to be taken for the forth coming dry season irrigated agriculture) – Rice seed reserve: 30,000 tons and 3,000 tons for ASEAN Plus 3 (Emergency rice reserve)• Fruit and Vegetable – 2.66 million tons• Protein sources ( meat, fish, egg.. ): 48kgs/cap• Maize – 1 million tons• Sugar cane – 1.7 million tons• Cassava – 500,000 tons• Beans – 95,000 tons• Cattle (export) – 120,000 heads• Increased production diversified crops• New plantation forest – 30,000 ha
Budget Status 2011-2012 Funding Source Budget Plan Budget Funding (Million US$) Available Gap ODA 251.0 59.71 192.0 PIP 11.4 8.52 2.9 FDI 230.5 138.53 92.0 Natural disaster 32.0 3.84 28.2 rehabilitation Total 524.9 210.5 315.11 147 projects2 116 projects3 37 companies/projects4 Government released Reserve Fund for natural disaster rehabilitation for AF sector
Conclusion• Despite the heavy effects from natural disasters, overall performance of AF sector improved.• Greater investment in food and agriculture as well as in natural resource management is fundamental to meeting the MDGs, in particular the goals concerning poverty, hunger, and health.• Food security can only be achieved in Lao PDR if a broad range of stakeholders are partnering and aligning to a common objective.• Climate change is a major driver of change, with critical implications for AF sector development.• Scarcity of resources remain a constraint, including HRD at district and village levels.
Conclusion (cont.)• Promote P-P & P-P.• Promote development and commercialization of biodiversity.• Development of rural agribusiness.• Improve and reform policy & legal framework guideline to new development priorities.• Need for greater recognition of involvement of women in agriculture and forestry development. Women’s contribution to the agricultural share of the economy is significant.• PIP, ODA & FDI to be complementary to each other – avoid overlapping.
Conclusion (cont.)• ODA Management need to be streamlined and strengthened.• Promote value chain (SME, FDI) to response to local market and connect to regional integration.• FDI has an important role in reducing poverty. However, there is an issue of FDI quality. Not all FDI is good. FDI representatives need to participate more in the policy debate.• Upland and highland agricultural production will first and foremost aim to meet local food security needs.• Agreement reached between MAF & MoNRE on forestry management.