Vongpaphane Manivong

Economics of smallholder rubber expansion in Northern Laos

In Northern Laos, as elsewhere in the Southeast Asian uplands, there is an agricultural transition underway from subsistence production based on shifting cultivation to commercial production based on tree crops. In response to demand from China, rubber smallholdings are being established by shifting cultivators in Northern Laos, encouraged by government land-use policy. We examine the bio-economics of smallholder rubber production in an established rubber-growing village and model the likely expansion of smallholder rubber in Northern Laos. Data were obtained from key informants, group interviews, direct observation, and a farm-household survey. Latex yields were estimated using the Bioeconomic Rubber Agroforestry Support System (BRASS). A financial model was developed to estimate the net present value for a representative rubber smallholding. This model was then combined with spatial data in a Geographical Information System (GIS) to predict the likely expansion of rubber based on resource quality and accessibility. Implications are drawn for upland development in the region.

The Adoption of Smallholder Rubber Production by Shifting Cultivators in Northern Laos: A Village Case Study

Rubber smallholdings are being established by shifting cultivators in Northern Laos, in response to demand from China and encouraged by government land-use policy. This can be seen as part of a general transition from subsistence to commercial agriculture in the uplands – in particular, from shifting cultivation to tree crop production. This study examines the economics of smallholder rubber production in an established rubber-growing village in Luangnamtha Province. Data were obtained from key informant interviews, group interviews, direct observation, and a farm-household survey. The study shows that, given current market conditions and credit support, investment in smallholder rubber production in the uplands of Northern Laos can be economically rewarding. Hence rubber can be considered one of the potential alternatives for poor upland farmers, in line with the government policy of stabilising shifting cultivation and supporting new livelihood options for poverty reduction. However, there are risks associated with rubber production and emerging constraints of land and labour, hence government should move cautiously in promoting rubber where farmers are uncertain about reducing their dependence on shifting cultivation or where forests are under threat. The recommended role for government is to ensure provision of support services for rubber development, including adaptive research, technical support, extension, credit, road access, and marketing. In particular, maintaining secure access to the China market will be crucial. If carefully managed, the expansion of smallholder rubber in Northern Laos has the potential to contribute to sustainable rural livelihoods.

Alternatives to land grabbing: exploring conditions for smallholder inclusion in agricultural commodity chains in Southeast Asia

Smallholder engagement with export commodities in Southeast Asia potentially offers a more inclusive development pathway than large-scale plantation production, which has been associated with the phenomenon of land grabs. This raises three questions which we explore in this paper: What are the agro-economic factors favouring or obstructing smallholders relative to plantations? What are the incentives for agribusiness firms to contribute to smallholder production other than by direct control of land? Can smallholder production be broadly inclusive in the face of internal differentiation and encroachment by external investors? We compare smallholder involvement with four cash crops which have experienced strong market demand – rubber, oil palm, cassava and teak – based on fieldwork in six Southeast Asian countries. We conclude that smallholder production can be a viable and inclusive strategy, contingent on the case-by-case confluence of a number of key factors which we enumerate.