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Economics of smallholder rubber expansion in Northern Laos

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Abstract

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.

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Acknowledgements

We would like to thank the National Agriculture and Forestry Research Institute (NAFRI) and the Ministry of Agriculture and Forestry (MAF) of Laos for giving us the opportunity to carry out this study, the Swedish International Development Agency (SIDA) for providing the financial support, the Soil Survey and Land Classification Centre (SSLCC) and the GIS Unit of NAFRI for providing the data on soil characteristics and roads in Luangnamtha Province. Special thanks to Mr. Thavone Inthavong from NAFRI for producing maps. Thanks also to the staff of the Provincial Agriculture and Forestry Office (PAFO) and Provincial Agriculture and Forestry Extension Services (PAFES) of Luangnamtha for providing valuable information. Particular thanks go to Mr. Bounthon Sisavan, a research assistant, for his wonderful cooperation and support during the data collection in Luangnamtha Province. Finally, we would like to give thanks to the authorities and farmers of Hadyao village who shared their time for the interviews and group discussions.

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Correspondence to R. A. Cramb.

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Manivong, V., Cramb, R.A. Economics of smallholder rubber expansion in Northern Laos. Agroforest Syst 74, 113–125 (2008). https://doi.org/10.1007/s10457-008-9136-3

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