Production of Certified Fruit and Vegetables for Export from Lao PDR and Myanmar through Integrated Supply Chain Management (MTF/RAS/242/CFC)

Background

Poor households in the Greater Mekong Subregion can take advantage of the liberalized trade regulations, better roads and communication networks in the region. Lao, Khmer and Myanmar smallholder farmers can supply a rapidly growing demand for quality agricultural produce in Thailand and China alongside the mature markets in Malaysia and Singapore. Incremental income can be earned through training and access to -and adoption of- best practices and technologies to improve produce quality, improve post harvest storage and processing and the rest of the chain up to the supermarket in the importing country.

Problem

Rural households fail to increase their incomes because of non-integration in more rewarding value chains and the lack of adoption of better practices to increase productivity and product quality. Producers, transporters and processors lack knowledge on effective and safe production, handling and transport technologies for profitable and sustainable exports to high value markets. Poor rural households and farmers, especially women, miss out on potential markets within and outside the country due to lack of knowledge about priority commodities, market information and emerging market demands. The lack of farmer organization compromises negotiation power for fair prices. Value chain transaction costs and other border trade impediments can substantially reduce cash income for rural households. ts.

Stakeholders and Target beneficiaries

The project is aimed at a primary target group, encompassing the following typical “practitioners”: i.e. primary producers, traders, processors and marketing agents, within and outside the pilot areas, associated with identified priority commodities and emerging market demands within Lao PDR and Myanmar. Beneficiaries include the following key institutions, agricultural advisory service staff; members of Chambers of Commerce and industry associations; and trade policy makers and regulators. Special consideration is made to ensure that women benefit from the choice of commodities, training in the pilot activities and market opportunities.

Within the context of the FAO TF project, the FAO IPM/Pesticide Risk Reduction Programme for Asia provides technical backstopping to curriculum design and training of farmers’ groups on IPM and good agricultural practices. The Regional IPM/PRR Programme also links up the CFC Project with private sector partners for access to biological control agents, addressing product quality concerns specifically pesticide residue in fruits and vegetables that could affect marketability and export potential.

 

 

Outcome

Pro-poor rural household modalities for competitive production and processing, commodity chain integration and inter-regional marketing

Key Project Activities

Curriculum and materials development for fruit and vegetable production, good agricultural practices and post harvest, training of farmers, certification, linking farmers to market, documentation of experiences on an institutional approach to commodity chain integration and inter-regional marketing.

 

Implementation Period

Phase I: June 2009-July 2013
Phase II: August 2013 – December 2014 (No-cost extension)

Total financial size:

US$ 1,664,866