Publications

Written by Mekong Institute

The Mekong Institute was commissioned by the Thailand International Development Cooperation Agency (TICA) to conduct a twelve-day training course on "Postharvest Practices: Experiences and Best Practices in New Zealand and Thailand" from 14-25 October 2013. Fifteen government officials from Cambodia, Lao PDR, Myanmar, Thailand and Vietnam participated in the training program. The course objective is to increase the awareness of the participants on several ways to reduce losses in the production and marketing of agricultural products. The course was held at the MI Residential Training Facility in Khon Kaen with field visits on three sites, i.e., SWIFT Fruit and Vegetable Processing Company and Postharvest Technology Center (PHTC) in Nakhon Pathom Province, and Talaad Thai Wholesale Market in Pathumthani Province.

The training course was designed and delivered using modular training approach, of which, all participants went through three progressive stages: a) "Learn to do" – training on concepts, techniques and tools; b) "Do to learn" – participants are required to apply what they have learned in given exercises and group assignments with proper coaching from Resource Persons and facilitators; and c) "Share to learn" – participants had an opportunity to present their group works and share their learning experiences and lessons learned.
There are two sets of Resource Persons who contributed to the design and delivery of the lectures, workshops and structured learning visits, namely:

A. Lecture Resource Persons

• Dr. Nigel Banks, Postharvest Expert of Postharvest. Co Limited, New Zealand
• Assoc. Prof.Dr. Sungcom Techawongstien, Lecturer of Horticulture Division, Faculty of Agriculture, Khon Kean University, Thailand
• Assoc. Prof. Dr. Manit Kosittrakun, Lecturer of Department of Biology, Faculty of Science, Khon Kaen University, Thailand

B. Field Visit Resource Persons

• Mr. Setthapat Choobut, Assoc. Manager of Talaad Thai Wholesale Market, Thailand
• Ms. Paphavee Suthavivat, Managing Director of SWIFT Fruit and Vegetable Processing Company, Thailand
• Dr. Apita Bunsiri, Ph.D, Researcher of Postharvest Technology Center, Thailand

The training course was comprised of five interrelated modules. Module 1 on "A Better World through Postharvest Systems" introduced the participants to current levels of postharvest losses in different parts of the world. Module 2 on "Delivering Perfect Eating Experiences" delivered the knowledge on dimensions of quality in harvested fresh produce and ways in which quality can be managed to secure high performing batches of products. Module 3 on "Postharvest Physiology" introduced key physiological processes in harvested produce. Module 4 on "Postharvest Technologies" illustrated dimensions of postharvest technology. Module 5 on "Indigenous Postharvest Practices in Thailand" demonstrated best practices in postharvest handling employed by product handlers.

The evaluation conducted throughout the course confirmed that the objectives were achieved and the learning program was successful. Most of the participants were very satisfied with the program as shown in the total average rating by participants on the usefulness of the learning program at 4.27 and the overall assessment at 4.67. Using a scale of 1 to 5, this indicated that participants found the training program "very useful" and they were "very satisfied" with the program contents and overall training management.

Written by Mekong Institute

Under the Cooperation Agreement among Thailand International Development Cooperation Agency (TICA), New Zealand Ministry of Foreign Affairs and Trade (NZ-MFAT) and the Mekong Institute (MI), the twelve-day training course on "Agriculture Sector Value Chain Analysis and Promotion" was conducted by MI from August 19 - 30, 2013. Twenty- three government officials and NGO staff from Afghanistan, Cambodia, Lao PDR, Myanmar, Thailand and Vietnam attended the training course. The course aimed at developing the participants' professional capacity and broadening their horizon on the features, usefulness and benefits of the Value Chain Approach to local, national and regional economic development. The course was held at the MI Residential Training Facility in Khon Kaen with structured learning visits to rice and vegetable value chains in Khon Kaen, Thailand.

The training course was designed and delivered using the modular training approach, of which, all participants went through three progressive stages: a) "Learn to do" – training on concepts, techniques and tools; b) "Do to learn" – participants are required to apply what they have learned in their work assignment with proper coaching; and c) "Share to learn" – participants had an opportunity to present their group work outputs and share their learning experiences and lessons learned.

The Mekong Institute worked closely with the Resource Person from New Zealand in the design and delivery of the training program. The training program was designed into 2 parts. The theoretical part was handled mostly by Dr. Sandra Kathleen Martin, Adjunct Associate Professor, Department of Accounting, Economics and Finance, Faculty of Commerce, Lincoln University, New Zealand and Assoc Prof. Nongluck Suphanchaimat, Department of Agriculture Economics, Faculty of Agriculture, Khon Kaen University. The practical part which exposed the participants to actual rice and vegetable value chain was facilitated by MI staff and Thai Resource Persons from the field visit sites.

The training course was comprised of five interrelated modules. Module 1: "Overview of Value Chain" introduced the participants to the definition, characteristics, core concepts, and the need to adopt the Value Chain Approach. The benefits and importance of the value chain analysis were also presented. Module 2: "Value Chain Promotion as an Approach to Pro-Poor Economic Development" deepened their knowledge on the background of value chain promotion. It illustrated the role of value chain analysis as a useful tool for promoting sustainable rural development and poverty reduction. Module 3: "Tools in Value Chain Analysis" translated the concepts of value chains into practice, particularly in the agriculture sector, by using different case studies in Thailand. Potential intervention areas, to increase competitiveness in each case study, were formulated as well as the sharing of best practices in agriculture value chain development in other countries. Module 4: "Role of the Public Sector in Promoting Value Chains in the Agriculture Sector" illustrated the elements of an enabling environment which include, inter alia, policy and regulation, infrastructure, and availability of essential financial and business development services needed by enterprises. Such an "enabling environment" needs to be tabled and developed at a multitude of levels, including the local levels where real enterprises physically locate and operate, as well as at the national level. Module 5: "Role, Significance and Trends of Cross-Border Agricultural Trade" discussed the state of cross-border trade in the GMS and identified the corresponding constraints and key successful factors in promoting agricultural trade in the region.

The evaluations conducted throughout the course confirmed that the objectives were achieved and that the learning program was successful. Most of the participants were very satisfied with the program as shown in the total average rating by participants on the usefulness of the learning program at "3.7" and the overall assessment at "4.27". Using a scale of 1 to 5, this indicated that the participants found the training program "useful" and were "very satisfied" with the program contents and overall training management.

Written by Mekong Institute

This study examined household saving patterns, its determinants and contribution to the development of rural livelihood in Luang Prabang province. The data of 312 households was collected by structured questionnaires and interviews in 2013 by adopting a simple random technique. Using descriptive statistics, OLS regression and the Likert rating scale, the results show that the majority of rural households tend to save more in forms of cash at home and village savings group than other patterns. Many factors were also found to influence rural household savings. Males and non-farm household heads significantly rise household saving, whereas, household size significantly reduces savings level of households. The study supports the existence of the life cycle hypothesis in savings pattern. Moreover, household saving was found to contribute to the improvement of health status, and agriculture production investment, but is less important to children education and agricultural modernization.

Written by Mekong Institute

Foreign Direct investment (FDI) is considered to be significant capital sources to support social economic development in Laos, and it becomes a crucial factor to stimulate an economic growth. The aim of this research is to access the impact of FDI for both aggregate and disaggregate levels and some macroeconomic variables on real economic growth. The multiple linear regression is applied to estimate the significant factors influence on economic growth, during the period from 1990-2011. Last two decades Lao government has highly attempted to improve Investment law in order to attract large amount FDI inflows to Laos.

As evidenced by allowing 100% foreign ownership of investment in 1988, it followed by extending of investment concession from 20 years in 1999 to 99 years in 2009, establishing the special economic zones, granting import duties free and income taxes exemption, which depends on promoting zones and investment areas. As a consequence cause FDI inflows to Laos has rapidly increased from US$ 58.54 million in 1991 to US$ 1.16 billion in 2011, the FDI inflows to Laos is dominated by hydropower and mining sectors, which accounted for 70% of total FDI during the period 2006-2011. While major sources of foreign investors are from China, Vietnam and Thailand, the three countries covered for 78.26% of the total FDI in during period 2001-2011.

The findings suggest that FDI inflows in manufacturing sector have played a crucial role to support economic growth. Then, the higher real trade openness and labor force are important components to stimulate economic growth. In addition, we also find that a booming of FDI inflows in mining sector can lead to the issues of Dutch disease. Real exchange rate might be makes domestic production costs increase and lead to a slowly economic growth.

Written by Mekong Institute

This study examined the effect of trade liberalization on Myanmar foreign trade with selected Asian countries namely Singapore, Thailand and China from 1989-2010. The paper also analyzed trends of foreign trade volume between its major trade partners and the effect of trade liberalization on trade flow with ASEAN Member States (AMS), particularly Singapore and Thailand.

The main objectives of this research are to study the status of Myanmar Foreign Trade after joining ASEAN and to analyze the effect of trade liberalization on Myanmar Foreign Trade. The impact of trade liberalization can be seen as significant and vital to overall exports and imports. Myanmar export/import and volume of trade have increased year by year due to the government practicing a market-oriented system since 1988 and is encouraging the development of the private sector. The government is facing a trade surplus after 2001 due to allowing imports and high export earnings. The government is attempting to uplift participation of the private sector by reducing trade by the government sector. The trade sector which has been liberalized has been performing very well in both exports and imports

Written by Mekong Institute

This research analyzes the status and relationship of financial development, trade openness and economic growth by the ARDL approach of the Cambodia-Laos-Vietnam Development Triangle area or CLV. This group of countries has developed a finance sector and opened trade within the same period between the second half of the 1980s and the first half of 1990s. This period of time has seen a changed system from central economic planning to a marketoriented economy system open to more trade and investments compared to the past.

This change has lead to higher economic growth in the CLV countries compared to other member countries in ASEAN. CLV also has comparative advantages in attracting more foreign direct investments in the agriculture and industry sectors. Currently, the number of banks and financial institutions of each country have increased in terms of quality and quantity and play an important service role in the financial sector in the economy of the countries.

The ratio between the money supply as a component of GDP is rising and the volume of trade in each country tends to also increase in spite of the effects of the global financial crisis. However, the increase of such a level of financial development and trade openness is still not having a positively affect with regards to economic growth with the exception of some countries. For examples, in Cambodia, the long term financial development has an effect on real income per capita. However, in Laos, the openness of trade has a relationship with real income per capita or the growth of economy in both short and long terms. The reason for this is that fundamental and economic structures in each country are different.

Written by Mekong Institute

The Mandarin orange (Citrus reticulata Blanco) is one commercially important species of citrus and a potential important agriculture commodity that may drive rural economic growth in Myanmar. The objectives of the study are (1) to develop a mandarin value chain map, (2) to identify the major stakeholders in the mandarin value chain and (3) to determine the problems, constraints, strengths and weakness faced by marketing participants at each level of the value chain for mandarin oranges. The research questions are (1) What is the value chain of mandarin in Myanmar? (2) Who are the major stakeholders in the mandarin value chain? and (3) what are the problems/constraints faced by various stakeholders within the value chain of mandarin? The qualitative method was applied by using in-depth interviews and semi-structure interviews to collect the primary data, while the quantitative method was used to estimate the cost and margin, and profits of actors at each level of the value chain.Marketing margin analysis and SWOT analysis were used in this study.

It was found that there were many actors in the mandarin value chain such as input providers, growers and wholesalers. The major constraints for mandarin growers are diseases, insects, lack of technical knowledge, and high price of inputs, lack of market information, unorganized marketing and high transportation costs. The major constraint for wholesalers was low access to financial possibilities. Therefore, financial constraints need to be simultaneously solved at all levels of the value chain. The study showed that mandarin farming is a profitable and potential business in the study area. It can conclude that there is an immense need for facilitators (NGOs and other agencies) to increase productivity, improve the quality of the production system and marketing through the cooperative society for efficient marketing.

Written by Mekong Institute

Sesame is economically important not only for producing edible oil but also for export crops in Myanmar. The objectives of this study are to map actors and to analyze the value chain of sesame, to identify the issues and constraints in the value chain of sesame in Magway Township and to look for necessary conditions in order to promote the sesame value chain in Magway Township. The research questions are (1) what are the challenges and constraints at each level of the sesame's value chain in Magway Township? and (2) what are the necessary conditions to improve the value chain as well as the sesame production to reach its potential capacity in Magway Township? Qualitative methods were applied by using in-depth interviews and semi-structure interviews to collect the primary data, while the quantitative method was used to estimate the cost and margin, and profits of actors at each level of the value chain. Marketing margin analysis and SWOT analysis were used in this study. It was found that there were many actors in the sesame value chain such as input providers, farmers, wholesalers, millers, processor and exporter. Among the actors in the value chain for sesameseed, the sample wholesalers received the highest percentage of profit (70.66%).

The percentage of marketing margin of farmers (71.48%) was the highest among actors. The wholesalers received the largest profit because they bought the sesame directly from the farmers and store the product for approximately 6 months before selling to the exporters. For sesame oil, the sample wholesalers also received the highest percentage of profit (66.84%) and the farmers again occupied the highest percentage of margin (64.94%). In this case, if the millers could buy the raw sesame seed directly from the farmers, more profit could be allocated to farmers and millers. For sesame brittle, the sample processor gained the highest percentage of profit (84.99%) and the farmers received the lowest percentage of profit (3.94%).

Therefore, there is need to improve the efficiency of sesame value chain in the study area. It was also found that there was unequal marketing margin among actors along the value chains. The major constraints for sesame farmers were a lack of technology, low access to credit, lack of knowledge concerning quality of inputs and products. The major constraint for wholesalers, millers, processors and exporter was low access to financial possibilities. Therefore, financial constraints need to be simultaneously solved at all levels of the value chain. There needs to be promotion of farmer organizations (cooperatives) which can play a very important role in improving the bargaining position of the producers. It is also necessary to adopt standardization for the production, processing, marketing and exporting in order to improve the competitiveness of sesame in Myanmar.

Written by Mekong Institute

This study focuses on the constraints faced by all the stakeholders of the current pomelo value chain process: growers, collectors, wholesalers and retailers, particularly the smallholder farmers and their access to the modern markets to achieve proper value chain in Yangon Region, Myanmar. Within recent years, pomelo has become a potential export item in Myanmar. Yet the current value chain process of pomelo from growers to export market has several constraints and is underdeveloped. Accordingly, this study explores the internal and external factors affecting the production and distribution of each stakeholder, their costs and profit margins. From this study, retailers incur the highest costs while the wholesalers gain the largest profit margin among stakeholders. For development of a proper value chain in the pomelo export market in Myanmar growers play the vital role. Improving technology, knowledge, collaboration, access to markets and access to financial capital for the growers are indispensable.

Written by Mekong Institute

Over 80 percent of Cambodian famers cultivate rice, primarily through traditional farming practices. For farmers, rice is the major source of income and sustenance. Rice is also the main source of crop that is value added and a major driver of agricultural growth. However, farmers are not aware well of the value chain of their rice and because of this they have lost out on the benefits they can acquire from this added value. This study on the rice value chain in Saang district, Kandal province Cambodia, will describe the rice value chain to determine the opportunities and constraints, and to recommend value chain upgrading strategies to promote benefits to various actors. Both primary and secondary data were used in this study that includes quantitative and qualitative data. Data was collected by using questionnaires, guide question, focus group discussions and key informant interviews.

The results reveal that rice growing was the main source of household income in the study area. Even though rice growing was very important for farmers, their land holding was only 0.85 ha (rainy season rice land) and 0.96 ha (dry season rice land) which was less than one ha. The majority (93%) of rice farmers used fertilizer and pesticides to improve their rice productivity. Credit both on-cash and in kind were very important for farmers to purchase agricultural inputs for their rice production. Rice collectors (47.4%) were the main actor who provided the rice market information on price and demand to farmers. The distribution channel of the rice production were rice farmer producers, collectors, rice millers, traders, wholesalers and retailers that together formulated the various marketing channels. For rice pattern in the household, the average selling was 58% (rainy season rice) and 73% (dry season rice), average seed keeping was 3% (rainy season rice) and 12% (dry season rice), and the average household consumption was 39% (rainy season rice) and 15% (dry season rice).

Rice millers also played a main role in collecting rice from farmers. The results also demonstrate the constraints affecting the rice farmers associated with lack of capital, insufficient knowledge about fertilizers and chemical use, lack of knowledge on modern production techniques and post harvesting practices, and absence of storage facility. Rice collectors and rice miller constraints were associated with a lack of working capital to upgrade their production.