Publications

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.

Written by Mekong Institute

Recent research on the controversial topic of contract farming indicate that contract farming may be considered as an effective risk management system for smallholder farmers, enhancing their accessibility to farm inputs, ensuring the more stable prices for produce, and ultimately generating higher incomes to contract farmers. Similarly, even with very few studies of contract farming being carried out in Cambodia, the result show that contract farmers can generate higher incomes when bounding in the contract. However, the numbers of rice contract farmers have increasingly exited from the contract in the last five years.

If contract farming agreement generates higher incomes to contract farmers, why do they exit from the contract? This study aims to assess whether contract farming improve smallholder farmers' incomes and the challenges these farmers face. The study puts forth a set of recommendations on how to improve the rice contract farming model in Cambodia.

The study combines both quantitative and qualitative data sources and includes a comprehensive literature review and information obtained from interviews with concerned individuals through one-on-one sessions, focus group discussions and household surveys.

Results of the contract farming studies in Southeast Asia showed that it is not a group or individual, the oral or written contract per se which structure the outcome, but rather how it is practiced in a given context. In Cambodia, the rice contract farming arrangement has been operated through both verbal and written agreements with NGOs and private companies, respectively.

There was significant different in the mean of gross incomes between rice contract and non-contract farmers. Rice contract farmers have exited from the contract on the one hand regarding two main factors that include the payment which is not according to the predetermine schedule and the using of quality control against farmers. On the other hand, the rice contract farmers have exited from the contract, perhaps, because of no significant difference between engaging and not engaging in the contract. The exiting contract arrangements need to be improved and adherence to the contract guidelines from parties involve need to be enhanced. The study recommended the arrangement of contract farming should involve three parties that include the contractor, smallholder farmers, and local authority.

The contract farming arrangement should be simple and easy to understand, the contract should encourage mutual trust and respect from both parties, the contract should be flexible and negotiable, the contract should clearly state the responsibilities of both parties, and the payment should be made to farmers when the produce is delivered/received.

Written by Mekong Institute

Cambodia is one nation that is most vulnerable to climate variability and change. The effects of climate change– if as severe as predicted – may erode efforts to alleviate poverty and food security of farmers. While climate change vulnerability assessments are considered as a principal vehicle for informing the need for adaptation, there have been few studies on climate change vulnerability at the community level in Cambodia, where these effects are often the hardest. This study aims to address this knowledge gap through a vulnerability assessment study at the grassroots level.

The study seeks to assess vulnerability levels by examining this at the household level, their exposure, sensitivity and adaptive capacities to respond to climate variability and change – particularly drought. Qualitative and quantitative data was used in the study, with information from both primary and secondary sources. One hundred and eighty villagers were involved in the household survey while six participants were involved in the in-depth interviews (Key Informant Interviews).

The study found that Peang Lvea Commune is vulnerable to climate change variability. Most households in Peang Lvea Commune (86.3 per cent) are vulnerable to climate variability – particularly drought –due to a low degree of exposure, medium sensitivity, and low adaptive capacity. They have a low exposure degree because they have never experienced any hazards besides of drought, and drought does not frequently occur in the commune, for example, households only maximally experienced drought for three years since 2005 to 2012. The community has a medium degree of sensitivity to climate variability. Households distribute most of the family labor to the agricultural sector, particular rice production, and source of income generation is also dependent on this climate sensitive sector. In addition, the community has a relatively low ability to adapt to environmental changes. Rural households have insufficient water for agricultural production and domestic consumption, one crop planting habit, low income, lack networking with neighbors and villagers in the commune.

Hence, given that there are five capacities for households to respond to drought hazards, only human capital is the medium while physical, natural, financial, and social capital, is low. Though the commune is not often exposed to climate related hazards like drought, the study indicates that the commune is vulnerable to climate variability due to its medium sensitivity and low adaptive capacity to climate variability.

While the exposure cannot be addressed in the short term, the way to reduce the vulnerability is to decrease sensitivity, and increase adaptive capacity. Improving local livelihoods through livelihood diversification would decrease sensitivity to climate variability. To increase adaptive capacity, adaptive strategies such as development and rehabilitation of reservoirs, irrigation system and water storage facilities, increase of water efficiency in agriculture and promotion of farmers' saving groups or cooperatives is needed.

Written by Mekong Institute

The Mekong Institute conducted a series of value chain studies on potential crops that promote cross-border trade between the twin provinces of the countries in the Economic Corridors in order to upgrade the value chains and address the key issues that smallholder farmers face. The goal of value chain development is to improve household incomes, boost employment, reduce poverty as well as promote food security at the household level. The main objective is to identify the main problems affecting the crop value chain and propose interventions for value chain improvement.

Maize was selected for the value chain study because it is one of the most suitable crops for cross-border trade in the Southern Economic Corridor. Cambodia imports hybrid seeds from Thailand and Vietnam, while Thailand and Vietnam import Cambodia's maize.

The main problems in the maize value chain in Pailin include the decline in production and the lack of formal quality standards. The decline in maize production in recent years is attributed to a number of factors, such as changes in the maize cultivated area, the decline in productivity, and the lower profits from production. The decline in production is also associated with changes in global demand for maize and unstable import from Thailand over the past few years. Other problems include the use of poor quality seeds and agro-chemicals and the degradation of soil fertility. Inadequate farmer knowledge about soil management and the use of traditional production technology also affect product quality and productivity.

The absence of formal quality standards is associated with the lack of awareness among the responsible line agencies, lack of equipment/materials, and problem related to staff motivation and mobility. The lack of awareness is due to poor information flow, lack of capacity development for the staff of concerned agencies and the agency budget constraints.
Two areas of interventions are proposed to address productivity and production decline. Improving farmer's productivity and profit margins can be achieved by the introduction of modern technologies in maize cultivation and the improvement of regulatory measures with respect to input supply and use. Problem areas such as changes in global demand and Thai producer subsidy policies are regarded as temporary constraints.

Similarly, there are two areas of interventions in formalizing quality standards for maize. These are improving the awareness and capacity of the responsible agencies and providing incentives to motivate staff to improve work performance.

Written by Mekong Institute

Longan is the third important crop in Pailin province, after cassava and maize. It has a high growth potential in the years to come. The production area has shown a steady growth over the past five years with annual production output increasing respectively.

In 2012, the total planted area was 425 ha with a production of about 1, 000 tons. Recently, longan producers can receive a considerably higher profit if compared to other crops and they have been able to enjoy fruit-bearing trees in different seasons to secure a higher market price. However, there are many problems in longan production and marketing. To understand the overall situation clearly, value chain mapping and analysis including supply chain were conducted. To identify issues and constraints along the chain faced by value chain actors have been identified and recommend upgrading strategies. Three approaches were employed in data collection namely the structured interviews, key informant interviews and focal group discussions (FGD). The structured interview was conducted mainly with actors in the value chain using a questionnaire developed for each actor. The key informant interviews were conducted with value chain supporters while FGD was used to understand the role of gender in longan cultivation such as labor division, financial decision-making, livelihood strategies, and constraints and issues in longan production.

The core processes of longan value chain in Pailin province is comprised of input provision, production, collection and retailing. There are approximately 165 households growing longan, 60% of which are large privately owned farms of up to 10 ha while the remaining 40% of farms lie between 1 to 1.5 ha. To obtain higher price, farmers use chemical treatments to induce flowering of longan and make the fruit ripe for high demand seasons. It takes about six months from flowering to fruit development, so harvesting is done between 5.5-6.0 months after blooming. Approximately 60% of fresh longan is supplied to domestic markets whereas remaining 40% is collected by Thai buyers through negotiation with the longan farmer cooperative. Thai buyers use Thai quality standards for longan by grading the fruits into three grades, namely A (55-75 fruits/kg or 14-18g/fruit), B (76-80 fruits/kg or 12.5-13.2g/fruit) and grade C which consists of more than 80 fruits per kg. The latter grade encompasses most small fruited seedless types and does not meet export market requirements. There is no existing quality standard for longan in Cambodia and the domestic markets for fresh longan do not require standards.

The relationships between the different actors within the longan value chain and the farmer cooperative is quite dynamic in developing efficient channels to get the product grown and marketed. However, there is little or almost no relationship between actors and government agencies because the development of longan research, education and extension services are weak and there is no effective mechanism to foster these links.

The relationship among farmers is seen in the form of exchanging the production knowledge and agricultural inputs. There is no relationship among collectors while there are some linkages between farmers and collectors or between farmers and exporters in terms of doing supply agreements or providing credits.

The major costs in longan production consist of installing irrigation systems planting, plant husbandry and induced flowering on bearing plants. The basic investment cost including installed irrigation, seedling and land constitute 42% of total production cost in three years. Plant husbandry consists of water management, fertilization, weeding, and pruning. The cost and margin analysis suggests that the cost and net profit are shared more by farmers and retailers although farmers incur the highest percentage of added unit cost.

Farmers have been using advanced cultural practices as well as off-season cultivars for higher productivity, quality and profitability. Some farmers are very experienced in cultivation of longan. Despite some success, farmers have experienced a number of problems such as non bearing-trees, high mortality rate of seedlings, adverse weather conditions, price instability, and large proportion of fruits not meeting quality standards for export market, trade facilitation issues at border, and so on. Nevertheless, farmers remain optimistic as the demand for high quality fruit remains high, especially in the export market. Hence, future intervention should be focused on improving productivityand promoting high quality of longan.

Written by Mekong Institute

Underutilized crops including wild plants for foods represent a rich portfolio of crop genetic resources that are particularly overlooked in the agricultural development agenda. They show significant potential to enhance food security, improve nutrition, diversify income options and recover marginal lands into food production, which strengthen social, economic growth, and ecological services. However, their role is often ignored or underestimated by crops researchers, planners and policy makers, donor agencies, public and private investors, extension services and economists. Therefore, reintroduction, management and promotion of underutilized crops are highly important for future food security, agricultural diversification and economic growth. To fulfill these gaps, crop surveys, including information on ethnobotany and socioeconomics were done together, and the threats and the strategies to safeguard them were identified. There were 50 species of underutilized crops and 32 species of wild food plants documented and their roles in Trang Teh and Romonea were described in terms of food security and economic growth opportunities. Many underutilized crops as well as wild food plants still remain important to these two local communities; however, farmers may no longer be able to grow their own traditional varieties and landraces due to changing climate as shown by recent droughts, pest attacks and crop failure. Together, biodiversity status in the research areas has decreased due to fire, pests and diseases, lumbering, mining encroachment, economic land concession and infrastructure development. Therefore, the conservation of plant genetic resources (PGR) will attempt to provide the background, current research, some approaches to develop potential strategies and to conserve underutilized crops which are the keys for sustainable food security and poverty alleviation.

Written by Mekong Institute

A study on the beliefs and rituals of Khwan in Tai Khoen in Kengtung, Shan State, reflects the relationship of the beliefs, rituals, the way of life, and the social systems in Tai Khoen group. This paper aims to create an understanding of the importance of the belief systems. Khwan is a traditional custom that the Tai ethnic groups share until today. This research made use of a qualitative approach study. The researcher collected the data from four Tai Khoen villages in Kengtung, Shan State which are: Phakham village, Nongla village, Nonghong village (or Nongcha village) and Nongbua village. The researcher collected the data about belief and rituals that concern with Khwan from the target group involved with the culture and rituals on Khwan of Tai Khoen, Kengtung, Shan State. They are the Tai Khoenmonks, Khwan ritual master,Khwan owner in the ritual, people who take part in the ritual, and the Kopaga group committee. This study showed that the roles and functions of Khwan play an important part in Tai Khoen groups social systems and in their culture because of the following reasons: emotional responses, community unity, cultural identity, moral, and education in Tai Khoen community. However, the beliefs and rituals of Khwan in Tai Khoen Community have undergone inevitable change due to society, politics, economy, culture, and in general the way of life.

Written by Mekong Institute

The purpose of this study is to present the problems of Village Development Funds (VDFs) members in terms of borrowing money, repaying loans and saving deposit. It also examined the impact of VDFs on poverty in terms of income, expenditures, and savings by adopting the methods used by Coleman (1999). The survey was conducted on June 2012, with 15 villages at Sukuma district in rural area southern of Laos. All these villages have VDFs which were in operation for various lengths of time. The villagers were allowed to decide for themselves if they wanted to be members or not. The sample was conducted in 361 households which included 113 household members and 248 households non-members. The study found that the main problems of members for saving deposit in VDFs is that they have irregular income and the accounting system of VDFs was not clear. They also found it difficult to borrow money from VDFs because first, the loan size was very small and not enough for generating income or running a business; second, they do not have collateral for loan; and third, the steps to borrow money was very difficult. The main causes of difficulty in paying back loans are first, members in household were sick and there was lack of market demand for products of the household; second, they used enterprise capital on consumption; third, the loan activity was not profitable. To analyze the impact of VDFs on household income, expenditure and saving of members, this study shows that VDFs program does not have significant impact on household income, expenditures, and savings. There were also some problems with management of VDFs. Some of the borrowers took loans for non-productive purposes. Thus, in conclusion, the Village Development Funds program might not reduce poverty in Sukuma District, Champassak Province.