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Agriculture and Natural Resources Sector Needs Assessment (Financed by the Asian Development Bank and the Lao People's Democratic Republic)

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Agriculture and Natural Resources Sector Needs Assessment (Financed by the Asian Development Bank and the Lao People's Democratic Republic) Technical Assistance Consultant’s Report Project Number: 40105 November 2009 Lao People's Democratic Republic: Agriculture and Natural Resources Sector Needs Assessment (Financed by the Asian Development Bank and the Lao People's Democratic Republic) Prepared by Alastair Fraser For the Ministry of Agriculture and Forestry This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. ADB TA 4843 Agriculture and Natural Resources Sector Needs Assessment CONTENTS CONTENTS ................................................................................................................ 2 ACRONYMS ............................................................................................................... 7 ANR Sector and the National Economy ...................................................................... 9 Introduction.............................................................................................................. 9 Background ............................................................................................................. 9 Lessons from past ADB interventions ................................................................... 10 a. Situation in the Southern Provinces .......................................................... 11 b. The impact of FDI on the sector ................................................................ 13 Sector Development.............................................................................................. 16 Implementation Partners ....................................................................................... 20 Government Role...................................................................................................... 21 1 Sector policy and management...................................................................... 21 2 Land-use Planning ......................................................................................... 23 3 Clearance of UXO .......................................................................................... 23 Technical oversight and support............................................................................ 24 The Proposed Project ............................................................................................... 25 1 Objective ........................................................................................................ 25 Activities and Outputs............................................................................................ 25 Special Features.................................................................................................... 28 a. Poverty Reduction and Livelihood Improvement....................................... 28 b. Environmental Management ..................................................................... 28 Stakeholder Consultation ...................................................................................... 29 Cost Estimates ...................................................................................................... 29 Financing Plan....................................................................................................... 29 Implementation Arrangements .............................................................................. 29 Project Management ............................................................................................. 29 2 ADB TA 4843 Agriculture and Natural Resources Sector Needs Assessment Staffing .................................................................................................................. 31 Implementation Period........................................................................................... 31 APPENDIX I. problem tree analysis .................................................................... 32 APPENDIX II. DESIGN AND MONITORING FRAMEWORK ............................... 33 APPENDIX III. Capacity building ........................................................................... 35 Land Concessions, and Land Use and ANR Sector Planning:.............................. 35 Capacity Building in MAF and NLMA .................................................................... 40 Capacity Building at Provincial level...................................................................... 42 The role of the districts .......................................................................................... 43 ANR Sector Planning............................................................................................. 44 Provisional costs.................................................................................................... 45 The MAF planning and appraisal unit ....................................................................... 45 The national land use planning system..................................................................... 45 Provincial and District land use and sector planning................................................. 45 NAFES................................................................................................................... 46 Agricultural Colleges.............................................................................................. 46 APPENDIX IV. trade and investment ................................................................. 48 1 Introduction..................................................................................................... 48 2 Program Objectives, Scope and Strategy ...................................................... 49 3 Commercial Opportunities.............................................................................. 50 4 Product Development Support Requirements................................................ 51 5 Key Areas of Technical Support..................................................................... 51 APPENDIX V. contract farming............................................................................. 53 The following is the main report prepared by Tony Zola and the full report with attachments is available separately. ......................................................................... 53 A Preliminary Assessment of Contract Farming Arrangements and Plantations in the Agriculture and Natural Resources Sector of Lao PDR by Tony Zola ...................... 53 1 Introduction and Background ......................................................................... 53 2 Methodology................................................................................................... 54 3 ADB TA 4843 Agriculture and Natural Resources Sector Needs Assessment 3 Summary typology of foreign/regional and domestic investments in the ANR sector in southern Lao PDR .................................................................................. 55 4 Description of common foreign / regional investments in the ANR sector in Southern Lao PDR ................................................................................................ 56 5 Case Study: Pakxong District Wholesale Market, Champasack Province ..... 57 6 Case Study: Mitr Lao Sugar Co., Xayboury District, Savannakhet Province .68 7 Summary of lessons learned from the Smallholder Development Project ..... 71 8 Working with producer marketing groups....................................................... 72 9 Case Study: Ban Vang Gnao Coffee Producers Group --- An Independent Farmer Group Model ............................................................................................. 73 10 Producer associations: .............................................................................. 74 APPENDIX VI. agronomy................................................................................... 76 1 Approach........................................................................................................ 76 2 Analytical Framework..................................................................................... 76 3 Criteria for Selecting Core Sub-Projects ........................................................ 76 4 The Approach Methodology ........................................................................... 77 5 Criteria for Crop/Commodity Selection........................................................... 77 6 Criteria for Selecting a Sub-Project Location ................................................. 82 7 Safeguard criteria........................................................................................... 82 8 Land Use........................................................................................................ 83 9 Criteria for Selection of Crops with Good Commercial Potential for the Southern Lao Provinces of Champasaak, Xekong, Attepeu, Salavane ............... 84 10 Agriculture Sub-sector Review of Food Crops, Cash Crops, Horticulture and Industrial Crops, including Non Timber Forest Products. ............................... 85 11 Fruits and Vegetables Overview ............................................................... 91 12 Industrial Crops Including Some Cash Crops and Non Timber Forest Products Overview ................................................................................................ 95 13 Methodology Summary of Matching Plants to Land and Identification of Crops for Commercially
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