chapter 12 agriculture and livestock development development...12.3.3 irrigation potential and...

Volume 2 – Chapter 12: Agricultural and Livestock Development

Nam Theun 2 Project – Social Development Plan March 2005 i

VOLUME 2 – CHAPTER 12 AGRICULTURAL AND LIVESTOCK DEVELOPMENT

Table of Content 12. AGRICULTURAL AND LIVESTOCK DEVELOPMENT....................................... 1 12.1 INTRODUCTION ............................................................................................................ 1

12.1.1 Agricultural and Livestock Entitlements....................................................................................................... 1 12.1.2 Program Components ..................................................................................................................................... 2

12.2 CLIMATIC FACTORS.......................................................................................................3 12.2.1 Rainfall ............................................................................................................................................................... 3 12.2.2 Evaporation ...................................................................................................................................................... 4 12.2.3 Temperature...................................................................................................................................................... 4 12.2.4 Wind Speed ....................................................................................................................................................... 5 12.2.5 Day Length........................................................................................................................................................ 5 12.2.6 Sunshine Hours ................................................................................................................................................ 5

12.3 SOILS AND LAND MANAGEMENT ..................................................................................5 12.3.1 Description of Soils ......................................................................................................................................... 5 12.3.2 Appropriate Cropping Systems and Fertility Management ........................................................................ 6 12.3.3 Irrigation Potential and Limitations - water use efficiencies ...................................................................... 7

12.4 SITE SELECTION AND LAND DEVELOPMENT................................................................7 12.4.1 Site Selection..................................................................................................................................................... 7 12.4.2 Land development ........................................................................................................................................... 8

12.5 CROPPING SYSTEMS AND COMPONENTS.......................................................................8 12.5.1 Irrigated Agriculture on terraces .................................................................................................................... 9 12.5.2 Direct Seeded Mulch Based Cropping (DMC) Systems ........................................................................... 15 12.5.3 Reservoir Drawdown Zone Agriculture ..................................................................................................... 16 12.5.4 Crop Seed and Varieties ................................................................................................................................ 19 12.5.5 Fruit Tree Propagation .................................................................................................................................. 20 12.5.6 Fertiliser Materials .......................................................................................................................................... 20 12.5.7 Pest and Disease Control .............................................................................................................................. 21

12.6 EXTENSION APPROACHES FOR CROP PRODUCTION ................................................... 21 12.6.1 Risks and Assumptions ................................................................................................................................. 23

12.7 PILOT VILLAGE EXPERIENCE TO DATE.......................................................................23 12.7.1 Wet Season Cropping in the Pilot Village................................................................................................... 24 12.7.2 Dry Season Cropping in the Pilot Village ................................................................................................... 25 12.7.3 Fruit Trees....................................................................................................................................................... 25 12.7.4 Livestock in the Pilot Village........................................................................................................................ 28 12.7.5 Problems with Farm Plot Development ..................................................................................................... 28

12.8 LARGE LIVESTOCK RAISING ........................................................................................29 12.8.1 Current buffalo and cattle raising................................................................................................................. 29 12.8.2 Existing Forage Production Potential ......................................................................................................... 30 12.8.3 Potential for improved forage production.................................................................................................. 31 12.8.4 Future Management of buffalo and cattle in the Resettlement Area ...................................................... 35

12.9 OTHER COMPONENTS OF THE LIVESTOCK PROGRAM ................................................36 12.9.1 Animal Health Care ....................................................................................................................................... 36 12.9.2 Housing and nutrition for small livestock .................................................................................................. 36 12.9.3 Animal Breeding Programs........................................................................................................................... 37 12.9.4 Extension Approaches for Livestock Development................................................................................. 37 12.9.5 Risks and Assumptions ................................................................................................................................. 38

12.10 ECONOMIC ANALYSIS AND FARMING SYSTEMS INTEGRATION ...................................38 12.10.1 Activity Model and Gross Margins for Crops............................................................................................ 39 12.10.2 Comparisons of GMs for each crops .......................................................................................................... 43 12.10.3 Gross Margins for Livestock Production ................................................................................................... 44


Nam Theun 2 Project – Social Development Plan March 2005 ii

12.11 WHOLE FARM SCENARIOS...........................................................................................46 12.11.1 Possible Integration of Crops and Forages on Irrigated Plots................................................................. 46 12.11.2 Financial Analysis of Whole Farm Scenarios ............................................................................................. 50

12.12 MARKETS AND MARKETING........................................................................................53 12.12.1 Market Description and Analysis ................................................................................................................. 53 12.12.2 Assessment of Current Market Volumes.................................................................................................... 55 12.12.3 Assessment of Current Prices....................................................................................................................... 56 12.12.4 Anticipated Market Development ............................................................................................................... 57 12.12.5 Nakai Comparative Advantage and Implications ...................................................................................... 58 12.12.6 Market Strategy and Acceleration Program................................................................................................ 59

12.13 IMPLEMENTATION SCHEDULE....................................................................................64

List of Tables Table 12-1: Mean Monthly Rainfall for Nakai Tai Station (1994-2001)..........................................................3 Table 12-2: A Soil Analysis Results from the Pilot Village Area on the Nakai Plateau ................................6 Table 12-3: Factors Considered in the Selection of Prospective Resettlement Sites ....................................7 Table 12-4: Parameters for Design and Construction of Terraces ................................................................10 Table 12-5: Area and Yield of Crops Planted in Nong Boua Pilot Village, Wet Season 2003 ..................24 Table 12-6: Area and Yield of Crops Grown in Nong Boua Pilot Village, Wet Season 2004...................25 Table 12-7: The First Plantings of Vegetable Crops, Dry Season 2003-2004 ..............................................26 Table 12-8: Fruit Trees Planted in Nong Boua Pilot Village, 2003................................................................26 Table 12-9: Technical Plan for Dry Season Cropping, Nong Boua Pilot Village 2004-05. .......................27 Table 12-10: Size and Number of Livestock Owned by each Household, Pilot Village, 2004 ...................28 Table 12-11: Number of Buffalos by Village and Household, 1998 Census..................................................29 Table 12-12: Number of Buffaloes and Cattle sold from the 15 Nakai Villages, 2000-2004. .....................29 Table 12-13: Estimate of Existing Forage Supply and Demand Resettlement Area.....................................30 Table 12-14: Estimate of Potential Forage Availability in Resettlement Area. ..............................................35 Table 12-15: Crops and Livestock for which Activity Models and Gross Margins Budgets have been

generated.............................................................................................................................................38 Table 12-16: Example 1 of Gross Margins Budget: Irrigated Paddy Land, Wet Season (0.16 ha). ............41 Table 12-17: Example 2 of Gross Margin Budget: Peanuts, Dry Season, Stability Phase (0.1 ha). ............42 Table 12-18: Gross Margins for Annual Field Crops (US$ / 0.1 ha) ..............................................................43 Table 12-19: Gross Margins for Vegetable Crops (US$ / 0.1 ha)....................................................................44 Table 12-20: Gross Margins for Livestock Production, at high input levels ..................................................44 Table 12-21: Example 3 of Gross Margin Budget: Buffalo Raising.................................................................45 Table 12-22: Indicative (possible) Whole Farm Scenarios.................................................................................48 Table 12-23: Cropped Areas under each Whole Farm Scenario during Wet Season and Dry Season,

Transition and Stability Phase (m2) ...............................................................................................49 Table 12-24: Financial Analysis for Whole Farm Scenario 1.1 (Intensive Cereal / Legume Wet Season

Cropping with Dry Season Vegetable Production). ....................................................................50 Table 12-25: Summary of Financial Analysis for 11 Whole Farm Scenarios (High and Low Input) – Sum

of Gross Margins for each Component within each WFS (without Labour), US$/HH/Year. .................................................................................................................................51

Table 12-26: Estimated Market Volumes .............................................................................................................55 Table 12-27: Retail and Farm Gate Prices (US$) ................................................................................................56 Table 12-28: Medium Term Market Opportunities, Risks and Production Features....................................61 Table 12-29: Timetable of the Main Activities of the Agriculture and Livestock Development Program.

..............................................................................................................................................................65

List of Figures

Figure 12-1: Summary of Meteorological Data for Nakai Tai (1994-2001) .....................................................4 Figure 12-2: Three Examples of Terraces with 5, 10 and 15 % Degree Slopes. ...........................................12


Nam Theun 2 Project – Social Development Plan March 2005 iii

Figure 12-3: Photos of Contour Terracing in the Nong Boua Pilot Village. .................................................12 Figure 12-4: Photos of Wet Season Cropping, Nong Boua Pilot Village.......................................................13 Figure 12-5: Photos on Dry Season Cropping in Nong Boua Pilot Village...................................................14 Figure 12-6: Direct Seeding through Mulch using a Hand-Jab Seeder; Maize / Sorghum emerging

through Mulch (photos courtesy of CIRAD)...............................................................................16 Figure 12-7: Annual Fluctuations of Nakai Reservoir Surface Water Elevations and Reservoir Surface

Water Areas........................................................................................................................................17 Figure 12-8: Drawdown Areas in Main Reservoir and Areas Close to Resettlement Area. ........................18 Figure 12-9: Comparison of Gross Margins for Annual Field Crops (US$ / 0.1 ha) ..................................43 Figure 12-10: Comparison of Gross Margins for Vegetable Crops (US$ / 0.1 ha)........................................43 Figure 12-11: Example of Sensitivity Analysis for WFS 1.1 (Stability Phase)..................................................52 Figure 12-12: Khammouane Pig 'Exports' by Type 1998-2002 .........................................................................55 Figure 12-13: Seasonal Price Ranges, Thakhek 2002 ...........................................................................................59


Nam Theun 2 Project – Social Development Plan March 2005 1

12. AGRICULTURAL AND LIVESTOCK DEVELOPMENT

12.1 INTRODUCTION

The goal of the Agriculture and Livestock Development Program is to enable resettled households on the Nakai plateau to develop productive and sustainable agriculture and livestock production as a part of their livelihood system, a livelihood system which will also include reservoir fisheries, commercial forestry and various non-farm or off-farm enterprises. The Resettlement Area, on the southern edge of the Nakai reservoir, is on generally poor soils and thus specific cultural practises1 will be developed to ensure sustainable and economically feasible agriculture in the area The adoption of these new forms of sedentary agriculture will take several seasons for full adoption. Achieving this goal will require support during the transition from their traditional rainfed, upland shifting agriculture based systems to IWDC and DMC systems. These new agricultural systems will require the introduction of new crops and breeds of livestock, improved land, soil and mulch cultural practices, some increased use of agricultural inputs and the marketing of surplus produce. The vehicle for providing this support will be an enhanced and strengthened extension service on the Nakai Plateau that can sustain the delivery of inputs and support services to the chosen cropping and livestock systems. - The adoption of irrigated paddy production, for example, would be a new activity for many households, and the use of irrigation for the production of field and vegetable crops in the dry season, and the use of supplementary irrigation water in the wet season, will be a completely new venture. While the villagers will be dealing with familiar crops, it is the adoption of improved practise and varieties together with their culture on terraces or under mulch, and the use of organic and chemical fertiliser, and selected herbicides, which will be new to them.

12.1.1 Agricultural and Livestock Entitlements

Relocated households will, according to the Concession Agreement (see Appendix A1), be entitled to assistance to establish new (although similar) livelihoods at the new locations. Entitlements related to agriculture and livestock include the following; • 0.5 ha of irrigated land will be provided to each household, and up to 0.16 ha of rice land per

household. [In the October 2002 CA, this rice land was to be in an 'off village' location and allocated on a community basis. However, wherever possible, this 0.16 ha will be continuous with the above mentioned 0.5 ha, and thus a total of 0.66 ha of irrigated land will be developed and improved];

• the land will be provided with survey and joint title to husband and wife; • the land will be cleared and prepared for cultivation by the owner, with their own labour paid; • the land will be provided with year round irrigation water; • tools will be provided to work the farm land and the forest land; • planting materials for the first 3 years after preparation of farm lot, including fruit tree saplings, will

be provided, as will fertiliser and other agro-chemicals. [The October 2002 CA provides for fertiliser provision for the first 3 years only, but revised plans envisage support, if required, throughout the transition period];

• training in farming, forest management and fisheries techniques will be provided; • agricultural advice for 5 years after preparation of farm lot will be provided [this entitlement has

been revised to allow provision of agricultural advice for the whole resettlement period of about 8 years, as required];

• access to identified reservoir drawdown areas for grazing of existing animals [this entitlement has been revised to allow also cropping in allocated areas of the drawdown zones];

• training to be provided in household and enterprise budgeting; 1 Some families already practice sedentary agriculture (paddy (wet) rice production, while most practices slash and burn cultivation which, in some cases, is practiced in fairly well defined swidden cycles. The new agriculture systems will include irrigated wet and dry season cropping on formed terraces (IWDC), and rained direct seeded mulch-based cropping systems (DMC).



• Resettlers will have the flexibility to choose from a range of farming options and maintain current livestock numbers; and

• Households without large livestock (about 60% of households) will be eligible for up to two large animals to supplement their livelihoods.

Besides the entitlement to 0.66ha of irrigated agricultural land, it has been decided to allocate two further cropping zones for the purposes of developing and sustaining agriculture production, namely

(a) the reservoir drawdown areas; and (b) 'upland' areas currently under degraded forests (in which DMC systems will be developed).

Following research and development of rainfed agriculture systems, and assuming they are shown to be ecological sustainable and productive, the followings entitlements may be further provided in the two zones, as follows;

(a) up to a further 0.5 ha per resettler family of extra rainfed cropping and grazing area, depending on the labour availability and ability of any family to work the land; and

(b) up to 1 ha for the first new generation from resettler families, which, assuming 4 families are developed for the one original per resettler family.

12.1.2 Program Components

The Agricultural and Livestock Development Program is composed of five main areas components: (a) The timely delivery of relevant inputs

This will be achieved through assisting all the resettled households after choosing their particular livelihood mix to develop their own farm plans, assisting them with the physical layout of the contours and terraces on their farm lots and providing each household with the seed and other agricultural inputs based upon the cropping pattern that they have selected. Continuous support will be provided during the growing season to guide the resettled households in the adoption of improved cultural practices and alternative crops through the provision of all inputs together with demonstration and training. (b) Improving the productivity of livestock raising through improved animal health care and nutrition, and upgrading of the breeding stock.

The traditional forms of livestock raising will be improved by the introduction of more extensive animal health care programs to reduce the level of mortality through enhanced capacity of local veterinary staff as well as training farmers in animal management, disease diagnosis and treatment. Nutrition levels will also be enhanced by increasing and upgrading the grazing resources of the forested areas and exploiting the drawdown areas for seasonal use. An Animal Breeding Centre will provide the focus for improved breeding programs with the acquisition of stock for dispersal to farmers as well as the establishment of AI programs as well as natural breeding. Training will also be provided for farmers on improved animal husbandry and breeding practices. (c) Participatory Research and Extension

Due to the unique and challenging conditions for agriculture in the resettlement area, a parallel program of participatory research and extension will be undertaken to develop appropriate and sustainable forms of land use and management, and soil fertility management, for both soil erosion control and development of sustainable soil fertility enhancement methods, based on the DMC system. This will include use participatory farmer led extension approaches within the resettled villages. Training of all extension staff on the use of Farmer Field Schools will enable this approach to be adopted for all farmer training. This will ensure that the training for farmers is all conducted in the field as a continuous process through the growing season. The approach will enable extension staff to interact much more closely with the farmers. (d) Strengthening the capacity of the DAFO and provision of TA:

To ensure that the delivery of extension services on the Nakai plateau are improved, technical and managerial support will be provided through the NTPC/RO by the hire of local TAs as well as



recruitment of International TAs. Additional field extension staff will be deployed through the District Agriculture and Forestry Office (DAFO) and the office and training facilities upgraded. (e) Development of marketing systems

Nakai Plateau households must be able to dispose of their surplus produce, and they will be assisted in this endeavour by the construction of markets, by the provision of vehicles, and by development of numeracy and marketing skills. A small market information unit will be established in DAFO

12.2 CLIMATIC FACTORS

The climate of the Nam Theun catchment is influenced primarily by the seasonal South West and North East monsoons, the Inter Tropical Convergence Zone and the tropical cyclone disturbances that include tropical storms and tropical depressions. During the WS from mid May to early October the catchment area is normally affected by the South-West monsoon (WS) which predominates when atmospheric pressure is low over Asia. This is a period of frequent and heavy rainfalls over the catchment although there is a dry period of one to two weeks between June and July. After this period the rainfall becomes more frequent, including heavy storms which results from tropical cyclones entering the region from the South China Sea, mostly from September to November. Flooding frequently occurs when two or more of these storms occur in succession or when the ITCZ, which is the forward edge of the SW monsoon, has passed into one of its more active stages, with tropical cyclones following shortly thereafter. There is a transition period from mid-October to early November, which is followed by the colder dry North East monsoon that normally blows from China between October and February. This season is characterised by sparse, relatively light rainfall, lower temperatures and humidity. This North East monsoon is followed by another transition period prior to the onset of the hot weather from March to early May and is characterised by increasing rainfall and humidity. This transition is slower than the transition from wet to cold seasons.

12.2.1 Rainfall

The rainfall in the project area is the highest that occurs in Lao PDR. The South West monsoon produces a warm moist airflow into the area from May to September, and spatial variation of rainfalls is principally affected by orographic effects. The high rainfall occurs where physical barriers cause uplift. The limestone precipices and the main escarpment along the South Western edge of the Nakai plateau provide excellent conditions for orographic intensification of the precipitation. The rugged terrain in the upper parts of the catchment acts as an additional barrier, but much of the moisture is precipitated at the first barrier. Apart from the spill-over effect on the edge of the plateau, the rainfall in the Nakai plateau is likely to be rather less than in the upper parts of the catchment. The monthly rainfall on the Nakai plateau is highly seasonable with 89 percent of the rainfall occurring between May and September. The rainfall is the most important climatic variable in determining the productivity and potential of rainfed agricultural systems. Although total rainfall is high (2,979 mm) and would appear to be more than adequate to support rainfed agriculture from April to October, when rainfall exceeds potential evapo-transpiration, the bimodality of its distribution means that there is normally a high risk of prolonged dry periods, usually in June or July. Although this is not obvious from mean monthly rainfall data (Table 12-1), these period of drought are long enough to induce severe drought stress in rice and field crops.

Table 12-1: Mean Monthly Rainfall for Nakai Tai Station (1994-2001)

Station Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

B Nakai Tai 9.9 17.3 59.6 140.0 389.8 483.8 763.7 619.5 390.0 85.1 13.1 7.2 2,979



12.2.2 Evaporation

Evaporation is closely related to temperature, humidity and wind speed. The rates of evaporation (measured by a Class A Evaporation Pan) that are experienced during the hottest months in March and April are in excess of 180 mm per month. Within the catchment area it is only in the period from April to September that the rainfall normally exceeds the evapo-transpiration rate.

12.2.3 Temperature

Reduced temperatures are experienced from November to February, with a peak before the onset of the South West monsoon in May. Mean temperatures at Nakai vary from 17.3o C in January to 26.1o C in April and an annual mean of 22.6o C. The extremes of temperature show that during the cooler months the minimum temperature may fall as low as 2o C, whilst maximum temperatures have reached 34.9o C, on occasions. Although the frequency of experiencing such minimum temperatures is relatively low, it does have the potential to damage to fruit tree crops.

Figure 12-1: Summary of Meteorological Data for Nakai Tai (1994-2001)

M onthly R ainfall and E vaporation (m m )

0100200300400500600700800900

Jan Feb M ar A pr M ay June July A ug Sept O ct N ov D ec

R ainfall E vaporation

M axim um and M inim um T em peratures (C )

05

10152025303540


A verage M ax Tem p A verage M in Tem p E xtrem e M ax Tem p E xtrem e M in Tem p

Sunshine H ours and W ind Speed

0

2

4

6

8

10


Sun

shin

e H

ours

(h

rs p

er d

ay)

Win

d S

pee

d (

m/

sec)

Sun H rs W ind Speed



12.2.4 Wind Speed

Winds are generally light throughout the year, with some increase in average wind speed during the DS. During thunderstorm activity, convective currents may produce strong surface winds, albeit usually of short duration. The catchment area is at a latitude at which the maximum frequency of typhoon landfalls occurs along the Vietnam coast and these occur mostly between August and October. Although the Anamite Chain presents a barrier to such storms, which usually dissipate rapidly overland, the catchment boundary is only 55 km from the coast and records indicate that three storms retained typhoon strength (>118 km per hr) over the catchment area in the past 40 years.

12.2.5 Day Length

The day length is important in crop growth since it determines the potential amount of solar radiation available for crop growth. Also, many rice varieties, particularly the traditional ones, are photoperiod- sensitive, meaning that they flower in response to day length. The day length is determined by the latitude. The Nakai Plateau is situated 17o North of the equator and experiences noticeable changes in the day length during the year. On the longest day (June 21st) day length is approximately 13 hours whilst on the shortest day (December 21st) it is only 11 hours. This reduction in day length between the summer and winter stimulates the photoperiod-sensitive varieties to flower at a specific time of year with the result that the traditional rice varieties reach maturity at approximately the same time regardless of when they were planted.

12.2.6 Sunshine Hours

The data on average daily sunshine hours demonstrates that the lowest figures are recorded from June to August, corresponding to the peak of the WS. During the DS, despite the shorter day length the number of sunshine hours is still considerably higher. The solar radiation measures the potential energy available for crop growth and the higher sunshine hours during the DS raise the yield potential of crops produced during the dry months. The slight decline in sunshine hours in the month of March is noticeable at other recording stations in the country and is attributed to the amount of DS burning that is taking place in the uplands with the smoke produced reducing the level of solar radiation.

12.3 SOILS AND LAND MANAGEMENT

12.3.1 Description of Soils

The old alluvial soils (Lower Cretaceous Period) found within the agricultural resettlement area are classified predominantly as Acrisols, derived from bedrock of mainly sandstone with some gradation of mudstone and siltstone in places (see EAMP, Chapter 3). These are strongly weathered soils with low base saturation. The soils are podzolic with development of lateritic horizons in some areas and in general are heavily leached and infertile. They occur mostly on old land surfaces with hilly or undulating topography and are commonly encountered in wet tropical, monsoon climates. On the plateau, texture tends to be medium (sandy loams) under the hardwood, broadleaf forest, grading to medium-to-coarse (loamy sands and sands) under pine cover. The A horizons are generally shallow (<30cm) and are relatively structureless. Example soil analysis results2 presented in Table 12-2 indicate that organic matter content, pH and cation exchange capacities are all low, as are the major nutrient availabilities, particularly phosphate. These soils are prone to aluminium toxicity and all have strong P-sorption with a characteristic tendency for slaking and crusting, with high susceptibility to erosion. These factors all impose some severe limitation on their arable land uses. However, recent experience in the Pilot villages has shown that application of both lime and inorganic fertilizer can overcome these fertility limitations, thus making the soils suitable for production of annual rainfed and irrigated field crops only, although the need to maintain such inputs or the need use of suitable crop rotations with appropriate crop residue management practices, is now the issue.

2 Example soil analysis results from the Soil Survey conducted in the area of the Pilot Village Ban Nong Boua. See Appendix K-1 for detailed results.



Table 12-2: A Soil Analysis Results from the Pilot Village Area on the Nakai Plateau

Range LevelTexturepH KCl 4.1 Highly AcidicpH H2O 4.9 Highly AcidicOrganic Matter % 0.9 to 1.8 LowNitrogen % 0.06 to 0.08 Very LowC/N Ratio 8.5 to 12.5 Medium/HighP, total % 0.019 to 0.026 LowP, available ppm 1.4to 1.5 Medium K. total % 0.037 to 0.045 LowK, available ppm 5.3 to 7.3 MediumCEC, total me/100g 6.3 to 8.0 LowBase Saturation, % 13.8 to 16.1 Very LowCa me/100g 0.25 to 0.43 Very LowMg me/100g 0.38 to 0.55 LowK me/100g 0.08 to 0.14 Low/MediumNa me/100g 0.135 to 0.142 Very Low

Sandy Loam

12.3.2 Appropriate Cropping Systems and Fertility Management

Generally, these Acrisols on the Nakai plateau have been used for low yielding subsistence farming, mainly shifting cultivation systems which, provided fallow periods are adequate, have proved to be a moderately sustainable utilisation of these soils. However, farmers remain desperately poor when practising these swidden systems and swidden cultivation will no longer be possible or allowed in the resettlement area due to pressure on land and forest resources. Thus, alternative land management and cropping practices must be developed, aimed at increasing organic matter and cation exchange capacity which are preconditions for cropping these soils and obtaining responses to chemical fertilization. Irrigation on formed terraces and use of composted organic fertiliser

Adapting cropping systems with complete fertilisation and careful management are probably a precursor for productive sedentary farming in this area, and it is likely that low input farming on these soils will not be rewarding. Thus, one way to improve the soils and their productivity is to increase the cropping and management intensity and thus productivity potential of the soils by double or triple cropping with the use of irrigation and organic fertiliser. The villagers have chosen resettlement sites on the shores of the reservoir, and thus pumping the reservoirs water to the resettlement sites is an attractive option. In addition, many of the villagers have requested the provision of irrigation system, which is also necessary for the productive and reliable production of wet paddy rice. However, because of the sloping nature of most of the areas identified for resettlement as well as the irrigation required for dry season crops and paddy production, it will be necessary to establish contoured terraces to stabilise the slopes and allow for the development of adequate organic matter levels in the soils. DMC - direct seeded mulch based cropping

The only alternative to irrigated cropping in the resettlement areas is DMC or direct seeded mulch-based cropping systems in upland rainfed areas . The main principle of these systems is that the soil is no longer disturbed by mechanical action, and is always kept covered by former crop residues and dead or living mulch, and the main intention is to increase organic matter and stop soil erosion. Deep rotting systems of cover crops improve soils structure, increase below ground insects and microbial communities and recycle nutrients deep in the soils. If the quantity of mulch is sufficient then weeds are also controlled and water availability for crops increases. The zero tillage system's are now common in broadacre agricultural areas where machinery has been designed for direct seeding and fertilizing and herbicides used for mulch control. There uptake in less developed small holder systems is less common, but has nee demonstrated to be possible, productive and economic. However, specific systems - and their three main components of (a) soils management and land preparation, (b) crop management techniques, and (c) Thematic adjustments - will have to be developed for the Nakai resettlement area. Challenges in this area include poor soils will make fertility improvements difficult and mulch build up rather slow. However, experienced specialists consider that it can be done, over a 4 to 6 year timeframe to develop the systems.



pH

The low inherent pH of the soils can be ameliorated by the application of lime, at indicative rates of between 2 and 5 tons per ha. Application of ground limestone will raise the pH and improve cation exchange capacity. The objective should be to simply neutralise the exchangeable aluminium, which is the main problem in these acid soils, rather then to bring the soil close to a neutral reaction. In practical terms this implies raising the pH to above 5.5.

12.3.3 Irrigation Potential and Limitations - water use efficiencies

The percolation losses in the soils in the resettlement sites will be a significant part of the water requirements for irrigated paddy production as well as irrigation for other crops. For heavy clay soils within the Mekong Plains, percolation rates of 1 to 3 mm per day are normal, but in lighter well draining soils, such as occur in the plateau, these rates are significantly higher. However, estimating the percolation losses without the results of infiltration rate tests and area field experience is difficult. For example, at the Theun Douan Demonstration Farm the soils are light and dry season rice trials required considerable pumping and achieved only low yields. After taking into account effective rainfall, a moderately high 6 mm per day could be assumed which results in a peak net supplementary IWR of 8 mm per day. After adjusting for the distribution efficiency and field application losses, which would normally be of the order of 60 percent, a gross IWR of 13 mm per day would be indicated. However, there may be lower irrigation efficiencies through higher distribution losses as the water will have to be conveyed between terraced paddies. It is for this reason that the land areas that are planted to irrigated paddy must be on the lower slopes where soils will have a higher clay content and percolation losses will be lower. Another factor will be that the soil water table level may change after the after the Nakai reservoir is filled. At least in the wet season, the water table should be considerably raised, and thus irrigated paddy water requirements in the wet season may be reduced considerably following impoundment of the reservoir.

12.4 SITE SELECTION AND LAND DEVELOPMENT

12.4.1 Site Selection

Nakai Plateau villagers have repeated their preference to remain living on the Plateau rather than moving to the lowland areas, as previously proposed. In response to this preference, studies have been conducted to assess the natural resources in the area above the mean supply level of the reservoir (538 EL). The studies examined the area between the western boundary of the reservoir and the edge of the escarpment to identify suitable areas for the establishment of resettled villages with individual farm plots. Agricultural, social and resource related criteria were given due consideration in selecting prospective resettlement sites (Table 12-3), as described in detail in Chapter 10. Table 12-3: Factors Considered in the Selection of Prospective Resettlement Sites

1. Water supply must be accessible from the reservoir, along with an elevated site for the header tank to allow gravity irrigation to farm plots

2. Slope for the farm plot area(s) should be as gentle as possible and ideally not exceed 15% 3. The soils selected must be capable of providing adequate returns with a potential for the

production of wetland paddy rice wherever possible

Agricultural considerations

4. All farm plots should form 1 contiguous land area wherever possible 5. The resettlement sites should be as near as possible to the old village location

Social considerations

6. Social and cultural factors must be taken into account including the village spiritual areas and customary boundaries

7. Roads or other transportation infrastructure must be sufficiently accessible to ensure access to markets and other support services Resource

considerations 8. Access to the reservoir, drawdown zone, forest and grazing areas should be convenient Potential resettlement sites meeting the above criteria are located along the south-western shoreline of the reservoir, providing water for irrigation, and access to the drawdown zone, grazing and forest land. A significant portion of the land has slopes below 15 percent, which allows large enough areas for the selection of village sites and agricultural land. These potential resettlement areas also largely fell within



existing village customary use areas, thus reducing the potential of social upheaval and the risks associated with acclimatization to a new environment.

Initially, the lands along the reservoir shoreline were divided into 25 potential village resettlement sites. These have now been reviewed by villagers and a each village has chosen, based on its own criteria, indicative sites, as shown in Figure 12-2. Most of the sites are flat to undulating, and a total area of about 750 ha will be developed into terraced and irrigated farm plots, based upon 0.66 ha per household, with an additional 50 ha of land required for the homesteads and associated village facilities. Surrounding these irrigated areas are similar area of upland degraded forest, and these may be developed into rainfed cropping, as described Section 12.5.2. While the villagers’ choice of site often relates to closeness to water and the reservoir, some have also chosen areas where, based on available maps, there may be a large area of drawdown, land between elevations of 538 masl to about 530 masl. Villagers obviously see the potential to utilize such areas for dry season irrigated and early wets season rainfed cropping. A range of cropping options will be made available to each resettled household, and they will have flexibility in their choice of what and how to grow crops on the farm plots. In addition, what they grow on the land will likely change over time, as experience is gained as to what are the best crops and systems for the area, and as markets emerge and change.

12.4.2 Land development

The areas to why the villagers will be relocated and developed as agricultural plots is currently under degraded to medium to good forest. Thus the land will have to be opened up for the farm plots. The establishment and development of these farm plots would require substantial labour inputs at the outset. This would include:

Felling of trees and slashing of vegetation, a task which many of the villagers are accustomed to; While the good trees will be sawn by the NPVFA for sale to NTPC and then used to build villagers

houses, the other vegetation will be burnt on site; and Removal of tree stumps is necessary if the land is to be cultivated, but may not be necessary of the

DMC system is adopted. Stump removal is a difficult task, which cam be undertaken in three ways: (a) slow burning of the tree stump, in situ, which may take some years for the stump to disappear; (b) manual dodging and removal of stump; and (c) mechanical extraction

In most cases, the land opening in the first year will be part of planting a wet season upland rice crops, atypical way that agricultural land is first brought into production in the Lao PDR.

Following this first season’s crop, in the case of the irrigated and terraced areas, the land would be surveyed and terraces started to be formed as explained in Section 12.5.1. This would be conducted in parallel to survey and design of the irrigation system. The on farm development of the irrigation system would, in most cases, begin in the following year. The experience being gained from the Pilot Village and demonstration farm will be used in developing the lands within these farming areas.

12.5 CROPPING SYSTEMS AND COMPONENTS

There are three possible farming (cropping) systems that could be developed in, or in relation to, the resettlement Area, as follows:

(a) irrigated, multiple season cropping, on bench terraces; Irrigated cropping has been tested in the Theun Douan farm and now in the Pilot Village, and has proved to be technically feasible and productive. It is also the system requested by resettlers (farmers). It is thus the main cropping system used in the planning of the agriculture program (until DMC and reservoir drawdown systems are shown to be feasible, and developed).

(b) rainfed cropping in the area currently classified as degraded forest; Non-irrigated cropping of the fragile soils in the area is probably only viable under legume rotations and minimum tillage, the ‘direct-seeding mulch-based cropping’ (DMC) systems.



However, rainfed cropping with legume rotations and minimum tillage will take considerable time to develop as a productive and sustainable system, and at this stage the productivity of its technical components is not known. Thus, it will be part of the participatory research program, but not, at this stage, part of the detailed farm planning and income modelling.

(c) cropping in the reservoir drawdown zone. The extent and type of cropping in the reservoir's drawdown zone is not possible to predict at this stage. It may be possible in some specified areas, especially those areas not subject to wave erosion. Thus, this is not at this stage considered in detailed planning and income scenarios, but villagers will have the full right to pursue cropping in theses areas if and when they become possible and viable. Regulations regarding the use of this area will be established in each village by the DAFO and the village authorities.

12.5.1 Irrigated Agriculture on terraces

The main features of the planned irrigated cropping systems and components which are modelled in the economic analysis (see Section 12.10 and 12.11) include: • An area of 0.66 ha of land per family will be developed and provided with irrigation water to allow

production of wet and dry season crops and forages. • Some households will initially continue to plant upland rice in these areas, but most will gradually

change to production to the irrigated paddy, where technically and economically feasible and especially after the Nakai reservoir in operation. Paddy land will be located on the lower terraces, where slopes are less, and the land contiguous to the drawdown zones where cropping may also be developed, including mid to late dry season paddy rice. Both wet and dry season paddy can be grown or dry season crops such as water melon grown in the formed paddy areas.

• Maize and sorghum will be important crops to be grown in both wet and dry season, intercrop or rotated with legumes such as peanuts, mung beans, black beans and soybeans - could be expanded in both WS and DS, mainly as sole crops but also as an intercrop with maize during the WS.

• Vegetable production will be mainly undertaken in the dry season, with double cropping of vegetables as households further intensify the cropping patterns and gain experience. Vegetable crops will include cabbage and broccoli, cucumber, eggplant, tomato, chillies and garlic, in fact any species which grows effectively in the plateau environment and has a good market.

• Fruit trees are another option that can be planted either (a) on the lower terraces where the water table will be more accessible in the dry season, thus reducing their need for supplementary irrigation, or on the higher terraces. Fruit types will include mango, jackfruit, guava, lychee, tamarind, pomelo, bananas and pineapple.

• Irrigated forage production is another option. On perfectly flat areas these could be developed into grazing fields. However, on areas with any slope, cut and carry systems would be probably be developed to avoid erosion or damage to terracing. Establishment of forages/pastures could also be part of the cropping cycle, with the pastures being returned to crops every 2 years or so.

• Establishment of long cycle industrial type crops is also a possible - tea, coffee, rubber, or whatever is feasible and economically productive.

• Most of the land areas selected for relocation have undulating topography that will necessitate the establishment of terraces along the contours (see Section 12.5.1).

The Irrigation Water Requirements for paddy production will be considerably higher than for the field crops grown on the other parts of the farm lot. Paddy grows best in a standing water depth of 10 to 15 cm, which needs to be maintained throughout the growing season. In addition irrigation water is required to cover evaporation losses from the open water as well as compensate for percolation losses in the inundated fields. Furthermore, there is a substantial water demand to saturate the land to permit the soils to be puddled prior to transplanting. The process of puddling the soil disturbs the fine clay soil particles that move settle between soil particles lower in the profile and hence reduce percolation losses. A dry season paddy crop has been included in the Whole Farm Scenarios following the filling of the reservoir, although this may prove possible in the lower terraces or in certain drawdown zones There are areas within the resettlement sites with higher clay contents, although these are mostly found in the



northern area. However, these soils will still have higher percolation losses than rates than the heavy clay soils normally used for paddy. The effect of puddling the soils will be to progressively change the soil structure and this will in turn progressively reduce percolation losses. Once this occurs then the production of dry season paddy could become more feasible, in the longer term. On the upper slopes non-ponded crops will be grown, because of the higher percolation losses. Although the annual applications of organic manure will improve the physical structure of the soils it will not materially influence the percolation rates. Dry season field and vegetable crops will be probably be grown under two general systems:

(a) on flat ground or in 'holes' in cases where water is provided by sprinkler; (b) on raised ridges or beds where furrow irrigation is possible.

Sprinkler - either semi automatic or fully manual - will be possible were dry season vegetable and field crops are grown on small areas (normally less than 150 sq m). This will substantially reduce the water demand although it will increase the labour requirement. in larger areas, water reticulation in pipes and canals will be the main systems developed (see Chapter 13) Terrace Design and Construction

The work that has been done over the last two years in the Pilot Village has raised some concerns relating to the establishment of terraces and the task of providing irrigation water to these farm lots. Some basic assumptions regarding terrace design that should be applied are: • Terrace vertical intervals must be kept to a minimum to minimize cut and fill topsoil movement.

The greater the vertical interval, the greater the cut and fill earth movement. The maximum vertical interval should not exceed 40 cm (20 cm cut and fill).

• The rise in the interval is not vertical as there is little stone available for stonewalling. Instead the terrace rise should be cut at a slope of 0.5:1 (horizontal : vertical). Consequently some land will be lost by terrace construction.

• At the end of the terrace there should be a small earth bund, 10-cm high. Thus, assuming 1:1 side slopes and 10-cm top width, a strip 30-cm wide will be lost.

• The terraces surfaces must be level to ensure even distribution of irrigation water. Table 12-4 and Figure 12-2 below present guideslines for Bench Terrace Design and Construction, applicable for plot slopes between 2 and 20 %. The table shows the less the vertical interval the more the number of benches that are required and the less total bench width. The recommended maximum vertical interval is 0.4 m with a preferable 0.3 m interval (0.15 m depth cut and fill).

Table 12-4: Parameters for Design and Construction of Terraces

Vertical Interval (m) between terraces No. of benches Total bench width (m)

0.4 25 4 0.3 33 3 0.2 50 2

The preferable method of locating a contour is by the use of a clear hosepipe and water rather than using a conventional “A” frame. The method to be used should be as follows: • Temporary benchmarks are installed at every farm plot. This will require the use of theodolite and a

skilled operator. • Individual plots are surveyed and mapped to determine land slope or slopes. Initially a 20 metre

grid can be used. With experience, it will be possible to decide what density of spot levels is required.



• The existing terrace lines are also located and the existing terrace widths/vertical intervals/land slopes are compared with those in Table 12-3.

• If the existing terrace widths are considered satisfactory, then improving the existing bunds is undertaken using the clear hosepipe and pegs. Set the top of the pegs to the level of the contour. Excavate a trench and build a bund to the top of the pegs and then level the plot behind the bund accordingly.

• If the existing terraces are not considered satisfactory then it will be necessary to re-design the terrace widths using the guideline table in conjunction with the farmer wishes regarding cut and fill depths (some plots may have shallower top soils than others).

Irrigation efficiency will also be determined by the degree of levelling of the terraces to permit an even distribution of the water. If the terraces are uneven larger volumes of water will be required to maintain the minimum standing depths of water for the paddy. Terrace development should, where possible, be done manually, as the use of heavy equipment can result in the disturbance of the sub-soil which if mixed with the top soil can result in areas of the terrace that will have largely sterile soil. The actual construction of the contours and terraces is difficult and can be done by various means, often a combination of the following; • mechanically, by the use of large ploughing tractors or smaller hand tractors to loosen the soils and

effect some levelling of the ground; and • manually, by use of hoes to level the ground and transfer soils for the construction.

Using both these methods, it will take time - 2 to 3 the years - to fully developed the terraces and contours. Thus, there will be a requirement for substantial labour inputs during the first and second years to achieve (the land clearance and then) contouring and terracing, as well as the initial land preparation for cropping. This is estimated at 50 to 70 person days for the 0.66 ha farm lot, at least 60 % of which should take place during the first 2 years. This will be supported by the Project in the form of Food for Work Programs, and is a form of transitional income support. For the smaller households who have labour shortages, this support can also be used to compensate hired labour.

A third method employed for terrace and contour development in more developed countries is the use of laser levelled graders (on very gentle slopes only). This is currently not contemplated to be used in the NT2 Project, but could be an option. Land Preparation

Following opening up the land (see section 12.4.2), and in the early years in parallel to the progressive development of terraces and contours, the land in the irrigated plots needs to be prepared on a seasonal. The most common way to do this is with power toilers, the same tillers used to develop and level the land on the early years. The project will provide one power tillers to an average of 10 families or community groups. These machines, however, are multiple purposes, and when not preparing land are used for the transportation of inputs (fertilisers) and produce to market. Smaller areas, especially for vegetable crop beds, are also prepared by hand, with hoes etc. Following trialling and experience the progressive introduction of DMC systems into the terraced and irrigated areas may also be a possibility, and be especially important for the decrease in reliance on imported fertilisers or fertiliser production materials.



Figure 12-2: Three Examples of Terraces with 5, 10 and 15 % Degree Slopes.

Figure 12-3: Photos of Contour Terracing in the Nong Boua Pilot Village.

Contour bund developed as paddy rice bunds Contour bund planted to pigeon pea



Figure 12-4: Photos of Wet Season Cropping, Nong Boua Pilot Village.

Peanuts, at the stat of the wet season 2003 Ploughing a terraced field with hand tractor

Maize, wet season 2004 Black beans

Terraced fields (planted to maize to maize, early wet season, 03 Rice crop trial site, wet season 2004

Upland rice, wet season 2004 Planting bunded paddy rice, wet season 2004



Figure 12-5: Photos on Dry Season Cropping in Nong Boua Pilot Village

Bananas Mango

Cabbages Papaya

Broccoli Mustard greens

Chillies Tomatoes



12.5.2 Direct Seeded Mulch Based Cropping (DMC) Systems

The only alternative to irrigated cropping in the resettlement areas is DMC or direct seeded mulch-based cropping systems in upland rainfed areas of the resettlement. The main principle of these systems is that the soil is no longer disturbed by mechanical action, and is always kept covered by former crop residues and dead or living mulch, and the main intention is to increase organic matter and stop soil erosion.

Mechanical actions (hoeing, ploughing) are replaced by biological improvement of soil structure by rooting systems of cover crops which improve soils structure, increase below ground insects and microbial communities and recycle nutrients deep in the soils. If the quantity of mulch is sufficient then weeds are also controlled and water availability for crops increases. The zero tillage system's are now common in broadacre agricultural areas where machinery has been designed for direct seeding and fertilizing and herbicides used for mulch control. The uptake of the DMC systems in small holder systems is less common, but has been demonstrated to be possible, productive and economic in the Lao PDR. However, the DMC systems require that the principles are applied creatively within each particular agro-ecosystem. Scaling-up of DMC systems must be based on the understanding of the agro-ecological and socioeconomic conditions under which alternatives are adopted and implemented at the local level. Thus, development of specific systems which are feasible and productive on the Nakai plateau, and especially in the resettlement area, will take time to develop, and will require research and onfarm trials on the main components of the cropping system, which include (a) Soils management and land preparation

The DMC system replaces ploughing and scarification with the production and management of mulches - organic matter covering the ground, which could come from crop residues, or plants established to produce mulch such as grasses - which actually also have a forage function. This mulch management often include the use of a herbicide ('glyphosate') although over time villagers may develop systems which do not require herbicide use. The system replaces convectional planting techniques with specialised planters as shown in Figure 12-6.

(b) Crop management techniques While crop sowing dates and plant density may change only slightly under DMC systems, special emphasis must be given to the development of notational and annual crop sequencing which will enhance mulch management and soils fertility. Crop management will also reduce economic risk and climatic risks Many options are available when using additional crops cover crops) but for smallholders a integrated cropping and livestock system is often mist suitable.

(c) Thematic adjustments Finally, as in conventional systems, an understanding of the best and adapted cultivars must be

developed, and especially the required fertilizer regimes and application methods. Challenges to the development of this DMC system in the Nakai resettlement area include • the paucity of soils nutrients and organic matter means that the DMC systems alone may take time

to show significant improvement in soil fertility . • given the rather poor natural growth of natural vegetation on the plateau, will significant mulch be

able to be develop to prevent erosion ? • the more intensive management - change for villagers ?

On the other hand, shifting cultivators do not plough the soils at the moment, but rather dibble the seed, which is a rudimentary form of direct sowing. In DMC systems, these dibbling systems must be improved, probably by the used of specialised machines. Examples of DMC rotational systems which could possibly be developed in the Nakai resettlement area include:

eg i: Annual crop and forage association: cash crop (maize) associated with forage specie (B. ruziziensis) to increase fodder resource: 2 years of forage and 1 year (wet season) of a maize or sorghum crop.

eg ii: Annual crop and forage association: cash crop (maize) associated with forage specie (B. ruziziensis) to be used as cover crop for the next cycle.



eg iii: two annual crops - early season legume (mung, peanuts) or other crop sesame) followed by a longer an main wet season grain crop - maize or sorghum, to be used later as animal feed.

Figure 12-6: Direct Seeding through Mulch using a Hand-Jab Seeder; Maize / Sorghum emerging through Mulch (photos courtesy of CIRAD).

The main areas or zones where these DMC systems, integrated with cattle grazing of cut and carry forage production, will be tested and developed, and then expanded as appropriate, will be in areas currently under degraded to very degraded forest in the Resettlement Area. There may be between 2,500 to 4,000 ha of such areas in the Resettlement Area (within that approximately 7,000 ha defined as 'degraded forest'). However, there will be competition with other uses of these areas. For example, permanent pasture may be one use (although these could also be used as fallow for annual crops in trhe DMC system), while natural regeneration or plantations of native trees and NTPCs – bong bark and cardamom for example – may be another preferred use. Thus, the uptake of DMC in the rainfed areas of the Resettlement Area and the use of the rest of the currently degraded forest areas will be a matter of trialling and village choice (see Chapter 10 for the on-going FLUPAM process).

12.5.3 Reservoir Drawdown Zone Agriculture

Analysis of reservoir area maps (developed on a based of 5 m contour intervals), and the operation of the reservoir which is predicted to range from a full supply level of 538 masl to 526 masl – or a 12 m drop annually – suggest that a large area of land will be inundated by the reservoir only for some months of the year. These areas are exposed as the reservoir is drawing down in the dry season, or progressively filling up in the wet season. In fact, areas between 538 to around 536 masl will in some years not even be inundated (see Figure 12-7 and 12-6). However, only in that the area above 530 m asal (approximately) is considered as possible to grow crops. While the exact nature of this drawdown zone of the reservoir is difficult to predict, and will only be known after some years of operation of the reservoir, the drawdown zone could include the following types:

(a) areas in the southern edge of the main reservoir which may be subject to erosion, especially in areas of slope > 5 %;

(b) low areas which are very flat and may remain as swamps during the dry season - this would be the case for lower areas, say below 530 masl; and

(c) higher areas of very gentle slope, or areas in the small embayments not subject to wind and wave, which could develop as seasonal grassland, seasonally flooded forests etc.



Figure 12-7: Annual Fluctuations of Nakai Reservoir Surface Water Elevations and Reservoir Surface Water Areas.

524

526

528

530

532

534

536

538JA

N

FEB

MA

R

APR

MA

Y

JUN

JUL

AU

G

SEP

OCT

NO

V

DE

C

JAN

Month

Res

ervo

ir W

ater

Lev

el (

mas

l)

46

86

126

166

206

246

286

326

366

406

446

Wat

er S

urfa

ce A

rea

(km

2 )

Dry Year Level Wet Year Level Average Year Level



Figure 12-8: Drawdown Areas in Main Reservoir and Areas Close to Resettlement Area.



It is this third ecological zone that could be developed for agriculture, in two general seasons and systems, as follows:

1: during the dry season, as the reservoir is receding. Crops could be planted into the wet soils. for short season crops they may mature on wet soils alone. For longer season crops, they could be provided with supplementary irrigation. The most likely crops grown would be short season grain crops, short season legume crops, vegetable crops in small areas, and dry season paddy rice in bunded rice fields. The supplementary irrigation could be provided by: (a) a supplementary pipe or canal from the main irrigation systems - in cases where the

drawdown zone utilised is contiguous with the main irrigated cropping; or (b) small dams or gully stops holding water from the receded reservoir, as is done around the

Great Lake of Cambodia.

2: during the early wet season, before the reservoir is filled again (as it is progressively being filled) there will be large areas of exposed land receiving early wet season rains. In selected and appropriate areas, villages could grow short season crops such as maize, peanuts etc, as they currently do along the banks of rivers before they flood (e.g. the Xe Bangfai) or in their upland fields.

The total area of possible drawdown lands immediately below (contiguous with) the Resettlement Area and which could possibly be utilised in this way has been tentatively been assessed by GIS mapping (see Figure 12-6) to be;

• area of drawdown land between 530 to 535 masl = 1,258 ha • area of drawdown land between 535 to 538 masl = 1,045 ha

For planning purposes, it is assumed that around 60 % will be either too steep, subject to erosion or for some other reason not suitable for copping, thus leaving about 1,380 ha of drawdown zone which may be suitable for cropping.

12.5.4 Crop Seed and Varieties

Seed of improved varieties of all crops will be provided by the Project. Seed of improved selections of legumes and maize will be accessed many sources, including Had Dokkeo Vegetable Research Station, Na Phok National Agricultural Research Station in Vientiane municipality and the new Khammouane seed production station. At Had Dokkeo the maize variety LVN10 has proved successful in achieving yields in excess of 5 tons per ha in field trials. This is a hybrid variety bred at the National Maize Research Institute in Vietnam where they have also developed composite varieties, which would be more suitable since they would avoid the necessity for re-purchasing of seed every year. Priori to promoting any variety, simple on-farm variety trials will be conducted in each village to compare the performance of varieties under the fertility and climatic conditions of the plateau. Examples of current varieties include the peanuts varieties of Mock Kay, Khor Kean and Tong Nang, which have given unshelled yields of up to 2 tons per ha, the mungbean the variety VC 1468 which has yielded from 1.2 to 2 tons per ha, and the soybeans variety Chiang Mai 1 can yield up to 1.2 tons per ha.. Seeds of many vegetable crops and varieties are commercially available in Laos or in Thailand, although most of these are hybrids. They would provide the best yield potential and it will be necessary to ensure that households would have reliable supplies of the seed in future years when they become responsible for providing their own inputs. Rice varieties that are currently in use on the plateau under both upland culture as well as irrigated paddy are all glutinous varieties and most are photoperiod sensitive. These traditional varieties have a low yield potential, although through selection by the farmers they are well adapted to the local growing conditions. In the case of irrigated paddy, they are growing the same varieties in both the wet and dry seasons, although the area planted in the dry season is very small. However, because of the low temperatures in December and January short season cold tolerant varieties should be used. Planting normal varieties



earlier than this and exposing them to temperatures of less than 15o C can result in them not flowering. It will be necessary to test a number of varieties prior to identifying those that should be multiplied. While initially, seed will be purchased, the project will develop its own sown seed production facilities on the plateau.. Aside from the hybrid vegetable crops farmers will need to be encouraged to retain seed of the improved varieties of the field crops from their own crops for use in future seasons.

12.5.5 Fruit Tree Propagation

Local and improved fruit tree varieties have, and will continue to be tested on the plateau to assess their adaptability and productivity on the plateau. Based on these and on farm results and farmers requirements, the project is encouraging the multiplication of fruit trees at the pilot farms and Village and in villages themselves, so that the plateau (and its farmers) become the main source of seedlings of fruit trees for distribution to farmers (as part of their entitlements). Training in nursery management is and will continue to be provided to interested farmers who wish to establish their own nursery.

12.5.6 Fertiliser Materials

Because of the limitation of the soils in terms of their erosion susceptibility, high acidity, poor nutrient content low CEC, high absorption of P they will need careful management during the initial years of development. As the soils have high inherent acidity that will adversely affect crop growth, the Project will provide limestone for the initial treatment of the soil prior to the commencement of land and crop development in the resettlement sites. The extent of the need for further applications of limestone in subsequent years will need to be carefully monitored by soil sampling and pH testing. This District Agricultural and Forestry Office (DAFO) will support this activity by establishment and operation of a simple soils laboratory. However, it is envisaged that the liming treatment will not be required beyond the third year of cultivation so that the input costs of the lime will all be borne by the Project and will not be a burden to the households in the subsequent years. No liming should be necessary on the irrigated paddy land as the anaerobic conditions caused by the flooding of these soils in itself results in a stabilisation of the pH at an acceptable level for paddy production. The use of heavy applications of organic fertiliser will be necessary to build soil organic matter, and to improve the nutrient holding capacity, which in turn will also improve the buffering capacity of the soil to enable the pH to stabilise at an acceptable level. Producing large amounts of organic fertiliser will be a substantial task for the households, and the project will initially produce and provide this fertiliser by the establishment of organic, compost fertiliser factory, similar to that developed in the Pilot Village. If rates of application of at least 1 ton are applied on each 0.5 ha plot this will entail the production of on average over 30 tons of organic fertiliser each year in each village. However, during the first three years higher rates of application, about 2 to 3 tonnes per ha, will be applied. Farm generated animal manures will eventually have to become the main source of organic fertilisers, although the systems whereby villagers raise there cattle and other livestock - extensive, range feed or more intensive and based on the irrigation areas - will largely determine the extent and the way that these animal manures and used and processed before application. As experience and understanding is developed, and soil organic matter and buffering capacity is improved, the use of inorganic fertilisers will be considered. The use of compound inorganic fertiliser will be necessary particularly for paddy, maize and vegetable crops that will counteract the low levels of phosphate as well as supplying additional nitrogen to supplement that supplied by the organic fertiliser. The commercially available 15.15.15 may be appropriate, and rates of application of 50 kg per ha applied as a basal dressing during land preparation would be likely. For irrigated paddy where higher rates of nitrogen would be required to optimise yields a top dressing of 50 kg per ha of urea should also be



applied3. If required during the transition phase, the use of the inorganic fertiliser will be funded by the Project.. Subsequently, if the households revert to lower input levels it has been assumed that they would not maintain the use of chemical fertiliser but would revert to the use of only organic fertiliser. The soils are also low in phosphate, so that significant additions of either rock phosphate or dolomite will be added , either as basal dressing of in-hole applications. The introduction of leguminous field crops, as well as the planting of perennial leguminous species as hedgerows to stabilise the terraces will all contribute to building the nitrogen reserves of the soil. However, careful observation of the nodulation of the legume field crops should be used to determine the need for inoculation of the seed. This applies most particularly to Soybeans where the rhizobium may not be present in soils where this crop has not previously been planted. Incorporation of crop residues into the soil after harvest will also contribute to increasing the inherent soil fertility or alternatively allowing livestock to graze on the harvested areas. However, if livestock are allowed into the area the leguminous hedgerows may prove to be more attractive grazing than the crop residues. The foliage of the hedgerows will be better utilised as a part of a cut and carry system.

12.5.7 Pest and Disease Control

On the plateau there is little if any use of pesticides and in the resettlement sites the crops will, as far as possible continue to be grown without the use of pesticides. The intensification of the cropping patterns inevitably will increase the incidence of crop pests and diseases and this will apply particular to some vegetable crops. However, there are effective IPM approaches that can be effective in controlling particular pests4. There will be programs of farmer training to support the introduction of Integrated Pest Management (IPM) to enable them to minimise pesticide use. The principles of IPM will be taught using the well established approach of Farmer Field Schools, which will be the basis for the delivery of all farmer training whereby an emphasis is placed upon practical based teaching in the field rather than classroom based training. Producing organic vegetables on the Nakai plateau could enable the farmers to sell produce into niche markets in Vientiane or across the border in Thailand. There would be a need for assistance in sourcing and development market linkages and establishing a marketing centre in Nakai where buyers could obtain their produce.

12.6 EXTENSION APPROACHES FOR CROP PRODUCTION

One of the greatest challenges to the intensification of the farming systems and cropping patterns will be the motivation of the farmers to adopt the new forms of (sedentary) agriculture. A wide range of extension approaches and development assistance will be provided to ensure that the resettlers progressively adjust to, and adopt the systems. The extension approach should focus on involving the farmers in a participatory manner so that farmer training and technical inputs are in response to their needs. The extension strategy proposed relies heavily on the use of Farmer Field Schools and the identification of Farmer Leaders, Village Livestock Agents., etc., who can themselves fulfil some of the functions of the field extension staff, and the development of trials and demonstration areas, as described below. Inputs The project will support the following inputs, mainly during the early years after resettlement to enable the households to establish their livelihood on their farm lot and gain experience. The physical inputs will comprise the following:

• seed of improved varieties of all crops will be provided; • agricultural lime will be applied to all farm lots at the time of initial land preparation to counteract

the inherent high acidity of the soils; 3 These rates of application are indicative only, and quite modest. They will effectively supply only 7.5 kg per ha of N, P and K respectively from the 15.15.15 supplemented by 23 kg per ha of N from the Urea topdressing applied to the paddy. There is no precise information on the chemical composition of the organic fertiliser. 4 One example is the control of control of Diamond Back Moth which attacks Brassica crops by the use of the parasitic wasp Trichogramma pretiosum that can be released into the area.



• organic fertiliser materials will be supplied for all crops and chemical fertilisers supplied for specific crops in particular to address phosphate deficiencies;

• provision of hoes and other simple tools; • provision of power tillers, and of direct seeding tools; and

• all of the farm lots will be supplied with irrigation water, and the costs of this support will be borne by the Project including the ongoing maintenance and pumping costs, although after the first three years the villagers will be expected to contribute some nominal fee for use of the irrigation waters.

Technical support The joint support from TAs and trained Provincial and District staff will ensure there is a high level of technical supervision to the agricultural development activities within the resettled villages.

Research and trial areas in each village As discussed previously, the development of the new cropping and livestock systems will present certain technical (and social) challenges. Thus, there will be a need to establish a program of research and trails in range of subjects including;

• crop cultivars; • fertiliser rates; • mulch management etc for DMC; • new types of crops; • methods for terrace management, etc

This program will be managed by TA team, and established in two general ways:

(a) research trails on dedicated research sites, linked closely to selected villages (an example of this is already established within the Nong Boua pilot village ; and

(b) on farm trials, where the various components are tested in farmer fields Demonstrations plots Demonstration plots will be developed on actual farmer fields, with leading or innovative farmers, to provide examples of possible crops, and their main agronomic requirements of them. Such demonstration plots, or model farms, will be developed in each village to provide convincing demonstrations to the farmers of appropriate practices and crop management. These demo plots are also a useful tool for the conduct of these FFSs, with visits to the farmers’ own farm lots being a part of the regular training sessions to discuss particular problems that have occurred alongside the organisation of additional on-farm trials and demonstrations. Farmer Field Schools Farmer Field Schools will be established as the vehicle for providing training to farmers on improved cultural practices, and to ensure that training on particular commodities extends for the duration of the production cycle, with the training being conducted on a regular basis in the field timed to coincide with critical growth stages. This will enable farmers to learn how to achieve optimum plant densities, raising and transplanting vegetable seedlings, fertiliser application, weed control and post-harvest practices. In general FFSs should be conducted with groups of farmers that number less than 25. This is to ensure that there can be good interaction within the group during each training sessions and it is easier to monitor the attendance of all the farmers at each training session. One of the important tasks of the AEWs, who will be the main facilitators of the FFSs, will be to motivate the farmers and seek their continued interest in attending the training sessions. However, the AEWs can use the regular attendance at the training sessions as a condition for the continued release of inputs to the households during the first three years. Normally, each FFS is concluded with the conduct of a graduation ceremony where farmer are awarded a certificate that gives them some prestige as having successfully completed the training. However, the AEWs may wish to keep the groups of farmers from the FFS intact to provide a vehicle to the continued provision of extension support, and also the conduct of other FFS that may deal with other commodities.



A program of Cross Visits for the farmers to other areas will be implemented, although there seem to no other examples of this type of irrigated agriculture on terraced uplands in other parts of Laos at present. However, enabling farmers to visit established resettled villages will be a useful way of introducing them to the approach for the development of the farm lots in their own resettled areas.

12.6.1 Risks and Assumptions

As already described, the introduction of intensive cropping patterns and sedentary agriculture will incur a number of risks: (a) Resettled households may not be prepared initially to adopt the intensive cropping patterns to maximise the utilisation of their farm lots. This is a risk that has been highlighted in the discussion and has been observed in the Pilot Village where there has been a tendency for example to continue to plant upland rice, in some cases as an intercrop with maize. By providing full support to the resettled households in the form of inputs as well as Food for Work Programs as a contribution towards their labour particularly during the initial land clearing and preparation it is intended that households will learn from experience and training programs and be encouraged to intensify their cropping patterns. (b) The optimum levels of inputs that are provided to resettled households through Project support may not be sustained. This is risk that in subsequent years, particularly with respect to the amounts of fertiliser, villagers to not maintain the levels of inputs supported by the project in the transition period. However, in the computations of Gross Margins and subsequent calculation of farm incomes, scenario's has been developed that depicts a reversion to lower input use to assess the impact of this change on the household income. (c) Households are prepared to develop their farm lots and work to improve the soil conditions in order to increase productivity. Applying and incorporating organic fertiliser will be a continuing need for a number of years. Again this is a practice that can be promoted during the initial years when support is being provided but it will require sustained extension efforts in future years to ensure that the households do maintain the practice. Adoption rates will be dependent on the improvement in soil structure and crop productivity that can be achieved during the first three years. (d) Levels of productivity can be achieved for the recommended crops. Assumptions have been made on yields for each of the crops examined. In general these have been kept at a modest level and in the analysis of farm incomes assumptions have been made in relation to a medium level of yield at each level of input usage. The results from the Demonstration Farm and Pilot village have provided some guide to the likely level of yields that can be achieved. (e) Irrigation potential of the soils. Detailed soil surveys have not been conducted in each resettlement area but the results from the Pilot Village indicate that it will be feasible to irrigate dry season crops provided, soil conditions can be improved. In the resettlement areas to the north the soil conditions appear to be rather more favourable for irrigated crop production. In the comparison of the farm incomes for different cropping patterns it has been assumed that there may be a gradual increase in dry season irrigated areas as the farmers gain experience as well as the soils conditions improving.

12.7 PILOT VILLAGE EXPERIENCE TO DATE

Experience gained in the Nong Noua Pilot Village is presented in detail in Appendix C. The following section summarises the results and experience of the pilot village agriculture programme. The development of agriculture in the pilot villages has in summary taken the following course:

2002/03 dry season: clearing of the land and first layout of contouring; 2003 wet season: pilot and limited scale wet season cropping; 2002/03 dry season: pilot vegetable production around a gully stop dam/pond;

preliminary planting of fruit trees etc.; 2003 wet season: first full scale and fertilised wets season cropping; 2003/04 dry season: first irrigated vegetable production using new irrigation system;

follow up planting of fruit tress; 2004 wet season: 2nd wet season of full cropping;



2004/05 dry season: 2nd seasons of irrigated vegetable growing.

12.7.1 Wet Season Cropping in the Pilot Village

The 2003 wet season crop plantings in Ban Nong Boua are presented in Table 12-5, which shows that a total of 1.59 ha of upland rice (13 families), 3.97 ha of maize (all 27 families), 1.83 hectares of peanuts (all 27 families) and 1.82 hectares of black bean (25 families) were planted. Yields were monitored through sampling of four 3m * 3m areas within each farmer’s plot. The average maize yield was 1.7 t/ha, ranging from 1.0 to 2.3 t/ha. With low input medium yields are expected to be around 1.5 t/ha, while high inputs (improved seed, chemical fertiliser and more organic fertiliser) would expect a medium yield of 3.0 t/ha.. Yields for unshelled peanuts were in average 1.1 t/ha and ranging from 0.8 to 1.7 t/ha. In summary, yields of maize and peanuts were only fair, and will have to be improved if the cropping of these crops would prove to be viable alternative to rice growing. One reason for low yields is that farmers planted a mixture of local and improved varieties of corn, and planting in such mixtures crop agronomy is difficult. Peanuts were considerably attacked by soil insects, a problem which should decrease after a couple of years of cropping.

Table 12-5: Area and Yield of Crops Planted in Nong Boua Pilot Village, Wet Season 2003

Upland Rice (mid-late May)

Maize (early to mid May)

Peanut (early mid May)

Black bean (late May, early June) HH

No. Area (ha) Area (ha) Yield (Kg/ha) Area (ha) Yield (Kg/ha) Area (ha)

1 0.06 0.06 1 806 0.06 1 000 0.022 0.12 0.12 1,958 0.03 1,083 0.0753 0.18 1,486 0.03 1,222 0.034 0.18 0.04 1,528 0.06 1,222 0.065 0.04 0.16 1,917 0.03 - 0.0156 0.1 0.32 1,861 0.22 1,222 0.167 0.16 1,389 0.09 1,028 0.098 0.24 1,167 0.08 806 0.039 0.16 1,889 0.1 861 0.0710 0.32 2,083 0.2 833 0.1511 0.12 0.16 1,333 0.12 889 0.1512 0.16 0.16 1,306 0.03 833 0.1213 0.28 0.18 972 0.12 1,028 14 0.15 0.15 1,389 0.05 1,306 0.0115 0.16 1,667 0.07 917 0.0816 0.24 2,167 0.06 972 0.0617 0.03 1,250 0.03 1,264 0.0618 0.15 1,389 0.08 1,653 0.1519 0.15 1,972 0.04 1,000 0.1520 0.16 1,528 0.01 889 0.0421 0.06 0.1 2,306 0.06 1,153 0.01222 0.12 0.12 2,000 0.06 861 0.0923 0.08 0.1 1,778 0.04 1,639 0.0824 0.12 0.12 1,694 0.07 1,333 0.01825 0.07 1,889 0.03 1,417 26 0.07 1,389 0.04 1,222 0.07227 0.09 2,250 0.02 1,472 0.03

Total 1.59 3.97 1,680 1.83 1,079 1.822Note: Yield is only obtained for maize and peanut. Yield is measured by 4 representative sampling areas (@ 3m * 3m) in each farm plot. In the 2004 wet season, many farmers planted large areas of upland rice – 9.8 ha – and 1.3 ha of maize and about 0.7 ha of peanuts, as shown in Table 12-6.



Table 12-6: Area and Yield of Crops Grown in Nong Boua Pilot Village, Wet Season 2004.

Upland Rice Hard (feed) corn Sweet corn1 Peanut HH No. Family Name Area (m2) kg/ha Area (m2) kg/ha Area (m2) kg/ha Area (m2) kg/ha

1 Thao vang 2,012 1,100 175 3,600 200 253.3 200 1,200 2 ChomNgon 2,400 900 333 2,500 333 652.8 660 1,2003 Thao ka 1,493 900 200 3,300 200 551.2 300 4 Nang Say 1,722 800 200 4,900 300 950.4 300 1,400 5 Thao On 1,463 1,600 602 1,483.2 201 6 Kham phong 877 3,650.0 440 1,600 7 Nang Hay 6,336 1,300 8 Thong Dam 2,008 1,600 264 503.2 9 Xieng Non 552 1,000 192 756.0 240 1,300 10 Thao phone 1265 621.5 402 1,100 11 Chansy 2,401 n.a 120 330.0 140 1,200 12 Thone 3,206 1,600 285 342.0 258 1,100 13 Xieng kom 2,578 n.a 450 1,216.0 270 1,000 14 Thao Som 2,750 n.a 246 675.0 150 800 15 Phomma 2,430 n.a 120 378.0 160 900 16 Thao Khem 1,580 n.a 143 333.0 17 Thao vong 3,625 1,300 667 1,050.0 300 750 18 Thao Seng 1,377 1,200 372 588.0 19 Xieng in 1,491 1,600 150 350.0 20 Thao Han 2,828 1,200 320 1,400 320 588.0 380 21 Sysavane ,729 800 537 1,000 250 330.0 250 1,200 22 Thao Khen 1,827 1,000 145 3,700 304 180.0 608 1,100 23 Thao noot 3,992 1,500 460 24 Sing Lak 32,919 1,500 191 56.3 51 25 Boon my than 2,324 1,000 808 281.3 192 1,400 26 Thao oy 5,789 1,800 622 225.0 662 27 Thao pe 1,345 1,800 725 125.0 322 1,100 28 Thao et 2,086 1,900 750 186.0 486 1,200 29 Chan pheng 2,814 1,900 30 Xiengsong 1,200 900 350 210.0 Total - ha 9.83 ha 0.19 ha 1.11 0.74 ha

1 Yields of sweet corn is based on ‘dry matter’, not fresh cobs.

12.7.2 Dry Season Cropping in the Pilot Village

The dry season on the Nakai plateau starts late September or early October and extends to late March or early April. At this stage, vegetables rather than field crops are normally grown during this dry season, and for many vegetables it is possible to plant and harvest two crops over the duration of the dry season. Table 12-7 provides details of the number of vegetable seedlings planted by each family in the first round of vegetable planting in the 2003-2004 dry season. This was the first season that vegetables have been grown on Ban Nong Boua Pilot village by utilising the newly constructed irrigation system. The main vegetables planted were cabbage, chilli, tomato, cucumber and eggplant, with smaller quantities of broccoli, kale, lettuce and herbs also grown. Table 12-9 presents the technical plan for 2004-05 dry season cropping.

12.7.3 Fruit Trees

While some fruit trees were planted in 2002, most trees were planted in 2003, and all households planted various quantities of a number of fruit trees, including pomelo (total of 325), lychee (total of 178), lime (total of 302), jack fruit (total of 135), mango (total of 194), rose apple (total of 18) and longan (total of 16), as detailed in Table 12-8. The average number of trees planted is about 43 trees per family, considerably less that the 72 trees per family that was envisaged in the earlier RAPs. This is because the profitability of fruit trees is not yet fully understood or proven, and thus the plantings to date are more trial plantings. If, over the years, any family considers that fruit trees are suitable in terms of labour requirements and profitability, then they will have the option to plant more trees and manage their farm plot as an orchard.



In addition, most households planted pineapple, while only a minority of households planted banana, rose apple and longan. These fruit tress were planted from end of April to mid June. Table 12-7: The First Plantings of Vegetable Crops, Dry Season 2003-2004

HH No Cabbage Chilli Egg plant Papaya

Water melon Tomato Cucumber Long bean

1 180 300 20 20 22 60 602 100 300 20 20 20 20 60 3 150 482 60 20 25 40 20 4 360 300 20 20 36 80 60 605 165 300 40 20 20 20 6 540 536 50 20 50 80 80 607 162 310 80 20 20 60 60 608 222 300 30 20 20 60 60 609 150 300 20 20 21 60 60 6010 417 430 220 30 20 30 80 11 278 947 85 45 32 30 80 12 339 300 45 38 22 22 50 13 265 550 40 45 34 35 14 125 265 20 25 20 32 30 15 335 400 20 25 20 30 16 235 273 125 30 19 35 80 9017 320 300 60 20 26 60 60 6018 125 250 80 20 20 60 60 6019 460 300 50 20 18 80 60 20 200 300 20 30 60 60 6021 228 600 60 40 20 101 22 330 400 30 35 20 54 80 5023 223 325 30 40 20 58 90 7024 266 300 50 30 20 30 80 25 120 300 20 10 20 30 30 2026 467 646 107 50 20 70 80 3027 301 417 98 50 20 60 80 50

Total 7,063 10,431 1,500 763 605 1,357 1,460 790

Table 12-8: Fruit Trees Planted in Nong Boua Pilot Village, 2003 HH No. Pomelo Lychee Lime

Jack fruit Mango

Rose apple Longan Banana

Pine-apple Chilli Asparagus

1 8 5 8 8 10 5 69 400 1002 4 5 9 17 7 5 49 100 300 3 10 10 10 10 10 56 300 200 4 10 10 5 13 10 3 64 250 100 5 5 9 6 5 12 65 200 150 6 8 10 10 10 20 4 112 686 200 3007 15 6 15 5 5 5 51 250 200 8 10 6 15 5 56 300 200 9 10 5 10 4 5 69 200 100 10 38 8 20 11 3 114 300 200 11 10 6 10 5 4 4 45 210 250 12 15 5 10 5 5 45 200 200 13 10 5 10 5 2 70 150 110 14 15 5 10 5 70 200 100 15 15 5 10 3 5 52 280 16 10 5 10 6 65 200 150 17 10 7 15 8 4 45 250 270 18 7 10 15 6 45 200 100 19 17 10 13 14 51 577 300 18920 24 7 13 5 10 45 656 100 28721 10 5 10 8 48 200 150 22 12 5 17 2 7 57 300 180 23 10 5 10 1 10 61 250 100 24 10 7 10 2 5 4 51 200 100 25 9 6 11 4 6 45 100 26 10 5 10 5 9 45 195 150 27 13 6 10 4 8 79 130

Total 325 178 302 135 194 18 16 1624 6774 4520 776



Table 12-9: Technical Plan for Dry Season Cropping, Nong Boua Pilot Village 2004-05.

Distance of planting Fertilizer application Methods of planting Seed/rate with in Row b/w rows type kg/1600m2 Time of fertilizer application Maturity/day

No Type of crops type No kg/1600 m2 cm cm

Field crops 1 Corn direct seeding 2-3 seeds/hole 5 kg 30 70 15-15-15 30 Before planting 80-85/95 -120

organic 300 2 time, before planting 150 kg and 2 weeks after planting 150 kg/rai

2 Sweet Corn direct seeding Seeding 2 - 3 seeds/hole 5 kg 30 70 15-15-15 30 Before planting 80-85/95 -120

organic 300 2 time, before planting 150 kg and 2 weeks after planting 150 kg/rai

3 Peanut direct seeding Seeding 2 - 3 seeds/hole 7 kg 30 60 15-15-15 30 Before planting 90-120

organic 150 Before planting

4 Black bean direct seeding Seeding 2 - 3 seeds/hole 5kg 30 60 15-15-15 30 Before planting 90-95

organic 150 Before planting Vegetable crops

1 Cabbage Transplanted Seedling

3 - 4 weeks transplanting 150 g 40 40 0rganic 400 2 time, before planting 200 kg and 2

weeks after planting 200 kg/rai 60-90

2 Broccoli Seedling Seedling, 3-4 weeks, 150 g 50 60 0rganic 400 2 time, before planting 200 kg and 2

weeks after planting 200 kg/rai

3 Chinese kale Broadcast/hole 3kg/800g 20 20 0rganic 400 2 time, before planting 200 kg and 2 weeks after planting 200 kg/rai 45-60

4 Mustard green Broadcast/hole/ seedling

Seedling, 3-4 weeks,

2kg/800g/ 200g 50 60 0rganic 400 2 time, before planting 200 kg and 2


5 Carrot Broadcast on the line 1.2 kg 10 30 0rganic 400 2 Time, before planting 200 kg and 2


6 Chinese radish Broadcast on the line 1.8 kg 20 20 0rganic 300 Before planting 150 kg and 3 weeks after planting 150 kg/rai 45-60

7 Lettuce Seedling Seedling 4-5 weeks 1.2 kg 25 30 0rganic 300 2 Time, before planting 150 kg and 3


8 Bunching Onion Broadcast on the line 1kg 5 10 0rganic 300 2 time, before planting 150 kg and 3 weeks after planting 150 kg/rai 50-60

9 Long bean direct seeding Seeding 2 - 3 seeds/hole 4 kg 50 80 0rganic 400 2 time, before planting 200 kg and 2-3

weeks after 200 kg/seedling 60-90

15-15-15 20 Before planting

10 Cucumber direct seeding 1--2 seeds/hole 2kg 40 100 0rganic 400 2 time, before planting 200 kg and 2-3 weeks after 200 kg/seedling 60-90

11 Tomato Seedling 4 weeks, transplanting 400 g 50 100 0rganic 400 2 time, before planting 200 kg and 2-3


12 Pepper Seedling 4 - 6 weeks, transplanting 150 g 50 100 0rganic 400 2 time, before planting 200 kg and 2-3

weeks after, 200 kg/seedling 70-90


13 Eggplant Seedling 4 - 6 weeks, transplanting 150 g 80 100 0rganic 400 2 time, before planting 200 kg and 2-3





12.7.4 Livestock in the Pilot Village

The villagers in Nong Boua have generally fairly low numbers of domestic animals (see Table 12-10), with buffalos being the most important. 15 families have buffaloes, while the remaining 13 families do not have any buffaloes. Of these 15 families with buffaloes, the average ownership is 15 head per family. 6 families have significant numbers, 20 or more head of buffalo. Only 2 families have cattle - cows - and these are all from the Project. Thus, pre relocation, none of the families had cows. Only 12 families have pigs, and 9 of these received their pigs from the project.

Table 12-10: Size and Number of Livestock Owned by each Household, Pilot Village, 2004

HH No. No. HH members Cow Buffalo Horse Goat Pig Duck Chicken 1 4 2 3 2 4 2 3 3 7 2 4 3 8 10 5 4 2 6 10 29 2 10 7 8 19 8 11 37 10 9 4 1 10 11 5 2 12 12 3 2 10 13 5 2 14 3 9 15 16 3 2 10 17 10 50 18 3 4 2 19 8 20 2 4 20 8 2 2 21 12 4 22 10 5 23 6 6 6 24 6 3 25 1 4 6 26 6 21 27 6 9 28 1

Total 169 4 223 0 0 28 0 91

12.7.5 Problems with Farm Plot Development

Within the Pilot Village Irrigation Scheme there are 29 farm plots already established varying in size from 5,380 to 7,000 m2. The excess land is absorbed for the construction of terraces. However, the plots vary in shape and only 14 % of them are roughly square to rectangular. About 58 % of the plots are irregular and about 28 % are long and narrow. Such variation, due to the topographic variations in the size, presents problems for farm plot development. There have been additional problems in preparing designs for bench terracing, in construction of terraces and the irrigation water distribution within individual the farm plots. Apart from varying in shape, the plots also vary in slope. The maximum slope is around 15 %, most are in the range of 6 to 10 %, although some plots are relatively flat. In addition, the slopes can also vary within an individual plot, and the soils in the area are very light and sandy. These physical characteristics have created two major problems: • The occurrence of soil erosion (although still rather limited) on the steeper slopes; and • Supply of irrigation water to the bottom of the longer plots.



In recognition of the importance of bench terraces for (a) dry season irrigation of the farm plots, and (b) development of paddy rice, the 2003/04 dry season saw a dedicated effort to better development of the bench terraces and formation and compaction contours.

12.8 LARGE LIVESTOCK RAISING

12.8.1 Current buffalo and cattle raising

The best estimate of cattle and buffalo populations and ownership in the 17 villages comes from the 1998 census, when it estimated that the total number of buffalo was 4,300 and for cattle 351 (see Table 12-11). While the average buffalo ownership was 3.6 per household some villages like Bang Nong Boua and Ban Done reporting 18.5 and 12.4 per household respectively. Buffalo ownership is highly skewed with about 60 % of households having no large livestock, while some individuals have very large herds (see Chapter 2). Data collected by Nakai district in 2002 reflect similar gross numbers (4,168 buffaloes in total).

Table 12-11: Number of Buffalos by Village and Household, 1998 Census

Village No.

buffalos No. HH in

Village No. HH with

buffalos % HH with

buffalo No. Cattle No. HH Khonken 164 37 20 54 0 0Don 1,076 89 69 78 0 0SopOn 166 66 33 50 2 1KaOy 38 26 9 35 0 0Ponsawang 77 25 11 44 0 0Sopma (HKP & KY) 93 47 22 47 0 0Sopphene 188 43 30 70 0 0Bouama 304 55 31 56 1 1

NongBoua 140 8 6 75 SaiLom 47 13 4 31

Pamanton 16 7 6 86 Nong Boua 203 28 16 57 0 0PonPhanpeak 138 85 28 33 0 0Oudomsouk 56 285 31 11 244 44Nakaitai 1,123 147 107 73 10 1Nakai Neua 384 67 47 70 9 2Nong Boua Kham 4 42 2 5 52 16Talang 51 52 10 19 6 2SopHia 73 37 17 46 0 0Nam Nian 8 16 3 19 27 4

Totals 4,146 1,147 486 42 % 351 71

Buffaloes are kept largely as a store of wealth for use in times of need, or for sale to enable purchase of larger items (motorbikes, hand tractors etc.) rather than as a commodity managed for regular income. A small proportion of adults are used for draft purposes in those villages which have permanent rice fields. Nonetheless, livestock play an important role as a source of income contributing 36% of total cash income in 1996 and in 2002.

Table 12-12: Number of Buffaloes and Cattle sold from the 15 Nakai Villages, 2000-2004.

2000 2001 2002 2003 2004 Buffaloes 404 492 537 530 641 Cattle 9 18 23 19 35



At present these animals are able to graze over an area of at least 57,000 ha5 with a stocking rate of 1 animal to 12.2 ha. This level of stocking is certainly sustainable, based upon visual observation of both pasture condition and stock condition as of mid dry season. A shortage of feed is reported by some farmers from March through May corresponding with the middle to the end of the dry season but this appears to be as much a function of how far the farmers are prepared to graze their animals from the village as it is an absolute shortage of feed.

12.8.2 Existing Forage Production Potential

The inundation of the Nakai plateau to form the Nakai reservoir will result in the loss of 45,000 ha of prime grazing and other habitat for buffalos. Due to this inundation, it is generally assumed that buffalo raising in the future will be restricted to a smaller area and thus it will be difficult to raise the same or more buffaloes than currently raised. This assumption, however, may not be correct. An estimate of the current forage in the resettlement area was made in 1997 (Margules Poyry) whose data is set out in Table 12-13. This table estimates the current forage potential of the resettlement area without pasture improvement interventions.

Table 12-13: Estimate of Existing Forage Supply and Demand Resettlement Area

Area Dry Matter Production

Feed Supply in forest cover category Ha DM/ha (kg) Total Mt % of total

• Upper Dry Evergreen Mixed Deciduous (10,010) 0 0 0 %

• Mixed Deciduous & Conifer, Canopy Density <40 % 1,890 1,500 2,835 19 %

• Mixed Deciduous & Conifer Canopy Density 40 % - 70 % 4,080 1,250 5,100 34 %

• Mixed Deciduous & Conifer Canopy Density >70 % 4,470 1,000 4,470 30 %

• non forest (urban and agriculture) 1,260 1,750 2,205 15 %

• Grassland 130 2,500 325 2 %

• Urban 60 0 0 0 %Total 11,830 14,935 100 %

Feed Demand head Kg/head Buffalo 4,184 2,738 11,454 Cattle 297 2,190 650

Total 4,481 12,104

Surplus 2,831 Source: Margules Poyry (1997) and Current Demand Estimate from NTPC. This estimate does not include the use of the drawdown zone of approximately 9,600 Ha. Note: Animal Numbers vary with other Tables due to use of 1996 Census The table shows that while the grazing conditions and area in the Resettlement Area will be more limited than at present, the area may still be able to carry the current herd sizes, although there may be other factors, especially water availability, which, if undeveloped, will limit the carrying capacity in this area. Thus, the livelihood strategy, in recognition of the social and economic significance of the buffalo, the Resettlement area will be developed to allow both intensive livestock raising (in conjunction with the development of the more intensive farming systems which have been described in the previous section) and extensive livestock grazing in the general resettlement area. Most resettlers should be able to retain their current herd size, although it is expected that those families with very large herds currently will have to decrease the size of their herds immediately after inundation until such time as the actual grazing potential and management systems, are more clearly understood or developed.

5 This area includes the main plateau - and future reservoir area - and the gentle uplands which will become the Resettlement Area on the SW side of the reservoir, but excludes the 10,010 ha of upper dry evergreen and mixed forest types. The area on the NE side of the reservoir has been excluded from the calculation since it is more densely forested and provides little grazing and its utilisation is constrained by the adjacent NPA.



12.8.3 Potential for improved forage production

The grazing potential of the resettlement area and thus stocking rate of the order suggested by Table 12-13 will be close to the sustainable long term carrying capacity of the area. Thus, if: • the forage potential predictions are overly optimistic; and/or • the total number of large animals raised needs to be increased so that the resettlement area can not

only 'feed' the current numbers of buffalo but an increase total numbers due to the provision of cattle to resettlers who currently have no buffaloes (as an entitlement),

... then there would be a need to develop the forage production of the Resettlement Area. A number of possible methods for increasing the production of improved forage have been identified, such as: • Establishment of intensive cut-and-carry forage plots, mainly in the irrigated area; • Utilisation of the reservoir draw-down areas for grazing of natural pasturage growth, or of semi-

aquatic plants planted by the project; • Improved pasture production from the agro-forestry areas, for the upland areas in the Resettlement

Area; • Establishment of tree and shrub legumes in the agro-forestry areas of the Resettlement Area; • The use of Urea treated rice straw, placement of urea blocks and development of watering holes or

points to enhance utilisation of forages. Intensive forage production in irrigated farm plots

There are two scenarios that will be considered for the production of forage in the irrigated farm plots;

the establishment of perennial swards; and

the planting (cropping) of annual or semi-annual forage crops. In both cases, the utilisation will be mainly by cut-and-carry in order to maximise dry matter production and stand life, and to avoid erosions or other problems due to animal trampling. Free range but manage grazing, may, however be possible in very flat areas of irrigated pasture. For the establishment of a perennial sward, the best option in terms of yield and quality is likely to be Braciharia sps, and Elephant or Napier Grass (Pennisetum purpureum). Other options include Gamba Grass (Andropogon gayanus) and Guinea Grass (Panicum maximum). It would be desirable to include legumes in the sward and the best alternatives to initially consider would be Greenleaf Desmodium (Desmodium intortum), Stylo (Stylosanthes guianensis), and Lablab (Lablab purpureus). Other legumes that may have application in a mixed sward include Glenn American Joint Vetch (Aeschynomene americana), Murray Phasey Bean (Macroptilium lathroides), and Centrosema (Centrosema pascuorum) types such as Cavalcade and Bundey. However, none of these types have been evaluated for the suitability to the local environment.. For the Elephant Grass, the establishment would be by vegetative cuttings, and using seed for the other species planted or sown into a well prepared seedbed treated with basal applications of lime and phosphate. Nitrogen use could also be economic, but the rate of application should be related to the legume composition of the sward. However, there are two situations where annual forage crops may be preferable to perennials grass swards. Firstly, when it is necessary to establish a bulk of forage quickly at the start of the resettlement process while the perennial stands of grasses or legumes are establishing. Secondly, during the cooler months (November to March) the production of grass and legume perennial swards may be insufficient to meet requirements. The establishment of the annual forage crops would be by seed sown into a well prepared seedbed treated with basal applications of lime and super phosphate with nitrogen applications (or organic fertiliser).



Using the above scenarios the production of 15,000 to 20,000 kg DM/ha/year would be quite feasible under irrigated and fertilised conditions. The production would peak during the warmer summer months although the inclusion of the cool season forage as annual crops would provide compensation for this during the colder months. The main constraint to ensuring this level of productivity would be related to the reliability of the irrigation water supply during the dry season as well as the availability of fertilisers and the willingness of the farmers to purchase these for the production of non-food crops after the Project withdraws direct support after the transition period. Stall feeding of cattle and buffalo would also represent a shift in the style of management for some resettled households, involving a shift from relatively extensive to intensive production systems. Labour demands associated with stall feeding can be considerable.

Reservoir drawdown zone forages

The drawdown areas may have potential for two type of forage: (a) those that grow naturally; and (b) those that are planted and established.

Obviously, the higher areas, areas which are inundated for less period of time (say, above 530 or 535 masl) may have better potential for plant survival. Thus, this forage would be available primarily from the mid dry season - as the reservoir level drops and drawdown areas become exposed - to the early to mid wet season before the reservoir fills up again. This would coincide precisely with the time of the year when feed in the dryland areas (especially good quality feed) is most scarce and animal live-weights are declining during a period when nutrition is below maintenance levels. Thus, this drawdown area may provide a very important and high potential contribution to animal production. The extent to which the drawdown area can be utilised for grazing will depend on two main factors. Firstly, the aquatic and semi-aquatic varieties will not survive in more than 3 to 4 m of water of standing water. If the usable drawdown area is restricted to the area between 538 and 535 m, the available area reduces to only 9,600 ha and most of this area will be exposed for at least 3 to 4 months of the year during the mid to late dry season. Secondly, the areas on the far side of the reservoir will be inaccessible as grazing land for the resettled villages aside from their proximity to the NCBA which further complicates the utilisation of that side of the reservoir. If a radius of 9 km from the resettled areas is introduced the potential area of drawdown grazing area will reduce to approximately 4,500 - 5,000 ha. Based upon research that has been conducted6 the possible aquatic and semi-aquatic grasses that couldbe introduced and thrive in the drawdown zone include Hymenachne acutigluma, Para Grass (Bracharia mutica) and Aleman Grass (Echinochloa polystachya). Hymenachne can survive prolonged periods of immersion in water up to 4 to 5 m deep. Aleman Grass will perform best in depths of less than 3 m. Para Grass is likely to be the most suited to areas immediately below the FSL that are waterlogged for relatively short periods of time. Most of these forages can be relatively easily established by vegetative means. Stock will need to be excluded during establishment to prevent damage to the young stand and this may take several years. Also the grazing should only take place during the mid to late dry season. Grazing during the wet season or too early in the dry season, when the ground is still excessively wet, may result in damage to the stand. However, during these periods the areas which support growth of naturally occurring swards could be grazed. Thus, the utilisation of any forage grown in the drawdown areas will need to be carefully managed to prevent overgrazing and to ensure that the pastures are not excessively damaged or destroyed. This will not be an easy task since there will be no individual ownership of the drawdown areas and this form of grazing control will be a totally new concept to the resettled households. The use of single strand electric tapes to keep cattle off wet shoreline areas of the reservoir that have been planted with improved forage may be one approach that could be piloted but there would remain a need for community support for the concept.

6 Conducted by the Primary Industry Services, DBIRD, Northern Territory, Australia. See Appendix K-3 for further details.



Assessing the potential contribution of the drawdown areas for increased forage production before the reservoir has been filled is not an easy task. The main constraints to either the development or utilisation of the drawdown areas will include:

(a) low inherent fertility of the soil and the low base nutrient status of the reservoir water; and (b) wave action causing in some areas, and deposit of silts in other, quieter area.

However, even where stands can be successfully established, or natural swards are established in the medium to long term, production is unlikely to exceed 2 to 3,000 kg DM/ha/year. Also, given that none of these forage species are currently growing in the area, it will be necessary to establish some small-scale evaluation trials7. It will be necessary to compare the species under various ratios of immersion and exposure to evaluate their survival rate but using cut-and-carry to estimate productivity rather than in-situ grazing trials.

Forages in upland open and degraded forest areas

The total area of the proposed resettlement site is 21,900 ha. Within this area 20,540 is forested out of which approximately half of the area consists of upper dry evergreen, upper mixed deciduous or mixed deciduous forest types. These forest types are generally denser and less suitable for grazing and should be managed solely for timber and NTFP production, with grazing livestock excluded. These denser forests types and also some other areas are too steep for grazing and herd management, a total of about 6,000 ha Thus, while only surveys and experience will tell us accurately, the upland open forest or degraded forests areas that may be suitable for grazing may be around 6,000 ha This grazing area includes the mixed deciduous/pine forest type, unstocked areas of degraded forest and existing grassland. Aside from their utilisation for grazing, the forest areas will also be managed for timber production on a sustainable yield basis. This may involve natural, unassisted regeneration or enrichment planting which will be carried out during the early years of the Project in order to improve the basic condition of the forest. Protection will be needed to be given to young saplings while they are still within the browse height of the cattle. This could be achieved most effectively by separating the forest to be managed by each village into compartments and grazing each compartment in turn for several years to allow undisturbed growth of the seedlings. Again this arrangement would require careful community management to ensure success. The available forage comprises a mix of native grasses, sedges, low shrubs and bushes. Dry season quality is generally low, providing not much better than a maintenance ration, but improves during the wet season. Quality shows a marked improvement in areas that have been recently fired, especially where Pek Grass (Pennisetum alopecuroides) is dominant. However, invasion by Imperata cylindica and other relatively hard species of low palatability is apparent in areas that have been repeatedly fired, especially on the poorer sites under pine forest. The forest areas would be utilised for grazing during the wet seaspn when drawdown areas are inaccessible (from June to December). This seasonal utilisation should enhance total production and the persistence of any improved varieties that can be established, although it would be desirable if some degree of within-season rotational grazing could be introduced also. The project will improve the productivity of these grazing areas by the establishment of dryland forage species. The most likely grass and legume species that may have application under the mixed deciduous/pine forest include Guinea Grass (Panicum maximum), Gamba Grass (Andropogon gayanus), Setaria (Setaria sphacelata), Plicatulum (Paspalum plicatulum), Ruzi (Bracharia ruziziensis) and Signal (Bracharia decumbens). The most promising legumes to consider would include Stylo (Stylosanthes guianensis), Bracharia spp (Bracharia sp) and Centrosema (Centrosema pubescens). Experience in similar environments indicates that establishment by over-sowing may not be successful. Thus, some initial soil cultivation may be required to incorporate the seed into the soil. Establishment without fertiliser may be feasible in localised areas with better soils, but in general, and particularly under stands of pine where the poorer soils tend to occur, establishment without fertiliser is likely to prove 7 The experience gained on other similar project should be sought and the Ubolratana Dam in NE Thailand, which has similar characteristics to the Nam Theun 2 Reservoir, would be a useful site to visit. Appendix K-4 documents the experience of the UNDP/UNDAC/IFAD Project in Xieng Khouang Province.



difficult. Areas where improved varieties are sown will be protected from grazing until plants are well established. In selected areas, and following trials, the establishment and use of forages will be integrated with DMC systems of rainfed cropping (see Section 12.5.2). The main constraints to forage productivity will be the low soil fertility as well as the difficulty of ensuring within-season rotational grazing. Thus, the potential for improving forage production from the forest areas may be limited without on-going inputs of phosphate and possibly also lime. Production is projected to increase by perhaps only 250 kg DM/ha/year, although this will only be verified by trials and experience to evaluate the productive potential grass and legume varieties for use under the mixed pine/deciduous areas, and in DMC systems.

Leguminous fodder shrubs

There are a range of shrub and tree legumes that can be grown satisfactorily in the Project area, potentially supplying a protein-rich supplement for feeding to livestock. This will be particularly valuable in the mid-to-late dry season. Farmers will be encouraged to establish tree-shrub legumes around the periphery of the farm lots, the forage production areas and along the contour strips that are established on the terraces of the sloping lands. Species that will be used include Calliandra calothrysus, Femingia macrophylla, Glicidia sepium and Leucaena sp. Successful establishment will require the application of small amounts of phosphate and they can be used for judicious feeding to the highest return stock, which would normally be the fatteners, late pregnancy and lactating females as well as sick animals.

Urea treated rice straw

Fermentation of rice straw with urea (UTRS) is a well proven and relatively inexpensive technique for improving the quality of rice straw for feeding to cattle and buffalo. The key limitation on applying this technique in the Resettlement Area will be the supply of rice straw, its availability being dependent on the areas that are developed for irrigated paddy. Where this potential does exist, then UTRS will be promoted to farmers. The contribution to feed supply would be likely to be of the order of 2 to 3,000 kg DM of reasonable quality feed for each hectare of paddy grown.

Mineral supplementation (mineral licks)

Severe phosphorous deficiency in cattle and buffalo has been reported in the pine tree savannah grasslands of Xieng Khouang, which has resulted in lameness of animals, low productivity, and in extreme cases sudden death. Dramatic responses to feeding of bone meal and or TSP has been demonstrated. Although clinical symptoms of this nature are not reported within the Project area, there is a potential risk particularly in relation to the doubling of the stocking rate that will occur after the reservoir has been filled, and that the forage under the pine forest will constitute a far larger proportion of the total diet than at present. Responses to sodium, iodine and sulphur supplementation are also possible.

Project Feed Balance for Forage Improvement in the Project Area

The Project will support various forage development activities which have been described above, and in summary these programs may provide the following forage production: • Establishment of irrigated cut-and-carry forage plots that have the potential to produce 15,000 kg

DM/ha/year, which from an area of 60 ha would produce 900 tons DM/year8; • Establishment of semi-aquatic pastures in the drawdown zone, which over an area of say 2,000 ha

with a potential productivity of 2,500 kg DM/ha/year, representing a total production 5,000 tons DM/year;

• Establishment of improved forage production in the forest areas producing an incremental production of 250 kg DM/ha/year, which from 6,000 ha would produce an extra 1,500 tons DM/year (in addition to the current estimated 14,000 tons produced per year on these areas).

The results of the combined strategy are summarised in Table 12-14, which shows a potential for a total increase of 7,400 Mt of forage or approximately 50 % more than the present carrying capacity. However, 8 Assumes that 10 % of households (approx. 120) adopt the intensive buffalo/cattle production Combined Household Livelihood Model that develops the whole 0.5 ha area for cut-and-carry forage production in combination with 0.16 ha irrigated paddy.



this analysis is very sensitive to the success of the drawdown area strategy, which contributes 68 % of the increase in potential forage. This indicates a potential productivity of the areas that could be utilised and improved by the project, could be up to 22,000 tons DM/year. As discussed in a previous section the total DM feed requirement for the existing herd of 4,481 buffalo/cattle is estimated at 12,100 tons DM/year9. At the existing levels of stocking this implies that there should not be an immediate constraint on the availability of forage. However, this forage production depends on:

(a) the development of forages in the drawdown areas, which may not be developed immediately; and (b) the development of grazing management and facilities in the rained upland and semi-forested areas,

which is required in order to realize the potential grazing productivity of this area.

Table 12-14: Estimate of Potential Forage Availability in Resettlement Area.

Proposed Forage Improvement Strategy

Production/ha/year (kg) Hectares

Mt Produced Remarks

Current potential:

Upland 'Resettlement Areas' 1,262 11,830 14,935 Dependant on development of water sources, mineral licks, fencing for herd management etc.

Future potential: 0

Cut & Forage 15,000 100 900 If developed in irrigated areas, and will not be available in 11 villages until COD.

Drawdown 2,500 2,000 5,000 Depends on productivity of the drawdown, etc., and only available after COD.

Additional Upland 250 6,000 1,500 Viability may be questionable.

Total 22,335

12.8.4 Future Management of buffalo and cattle in the Resettlement Area

In order to: (i) realize the grazing potential of the rainfed areas (open forest and degraded forests) of the

Resettlement Area; and (ii) avoid degradation of the natural resource base in the area,

… it will be essential to develop (a) provide grazing management and livestock raising facilities, (b)

improve mechanisms for monitoring and managing the total livestock numbers, and (c) improving the ecological condition of the forest areas being grazed. The shift of the herds away from the more suitable habitats on the lowlands of the Nam Theun river will take place over at least five years as the reservoir slowly fills so that more intensive forage production can be introduced as is considered necessary by individual villages. Decisions will need to be made about paddock management at the village level. The maximum carrying capacity of the area surrounding each resettlement village will be assessed in consultation with the villagers, and periodically reviewed on the basis of the monitoring data. Equitable mechanisms for restricting the number of buffalo or cattle owned per household may also need to be investigated. Of particular importance will be some form of control on the number of animals that are brought onto the Plateau from outside areas. As the resettlers gain experience and knowledge of which systems are better suited to the specific environment in the vicinity of their villages they may also wish to use more intensive forage production and increase or decrease the size of their herds of larger livestock in relation to local carrying capacities. The project will assist on this process by undertaking the following activities:

9 This is computed as an average of 250 kg LW Buffalo and 200 kg Cattle and a daily DM requirement of 3 % of LW.



• development of water sources: One of the main determinant of cattle productivity is availability of drinking water. Thus, while forage may be available in the resettlement area forests and degraded forest, cattle will be restricted to those areas with water. Thus, the project will develop watering points, by either/or (a) gully stop type dams on small creeks (which can also be used by buffalo, or (b) windmill type bore wells;

• the design and management of herds, possibly as large paddocks, and thus the provision of fencing;

• mineral licks: which are discussed in Section 12.8.3 above; • development of a range of forage sources, which are further discussed in section 12.8.3; • animal health, to reduce the current problems associated with parasites, liver fluke and worms,

which is further discussed in Section 12.9.1.

12.9 OTHER COMPONENTS OF THE LIVESTOCK PROGRAM

12.9.1 Animal Health Care

While the native breeds of livestock that are raised on the plateau, notably the pigs and poultry, are well adapted to the poor standards of animal husbandry, they are not very productive and even these stocks sometimes suffer from high mortality rates due to disease. Strategies for improving animal health will include: • Training of selected farmers in the administration of vaccinations and drugs treatments who can act

as Village Livestock Agents (VLAs), charging nominal rates for their services from farmers. • Supply of a basic kit of veterinary tools as well as supply of glass syringes in the form of veterinary

boxes to all VLAs together with basic training on vaccination and drugs administration for all classes of livestock.

• Improvement of the facilities within the DAFO for storage of drugs and vaccines and a diagnostic laboratory.

• Supply of small refrigerators to all VEOs for the storage of drugs and vaccines for use by the Livestock Extension Workers (LEWs) and ultimately the VLAs.

Farmers will have to be convinced of the benefits from improved livestock health care, and thus demonstrations in selected villages will be organised to focus subjects including: • Calf worming: Farmers are generally reluctant to worm young calves that are still suckling, yet the

high calf mortality experienced is most likely due to very high worm infestations. A simple program to worm calves from two weeks, and again at six weeks, three months and then regularly thereafter, would reduce calf mortality rates.

• Pig vaccination: High levels of mortality of pigs can be caused by the incidence of Swine Fever and Pastruella (Haemorragic Septicaemia). This can be reduced by the use of vaccines provided these are stored adequately under refrigeration. Although the DAFO has a program for the regular vaccination of pigs their limited operational funding results in a very low rate of vaccination on the plateau.

• Chicken vaccination: A dramatic improvement in the health management of poultry can be achieved by the introduction of the Heat Resistant Newcastle Disease (HR-ND) Vaccine that is commercially available from laboratories in Vietnam. The use of the vaccine needs to be demonstrated to show its effectiveness in selected villages. Being an oral treatment it avoids the necessity for vaccination of poultry and does not require cold storage to retain viability.

12.9.2 Housing and nutrition for small livestock

Improving the nutrition levels of small livestock, pigs and poultry, will need to precede any efforts to promote an improvement in the breeding stock. In the case of pigs this will include the utilisation of grains and legumes that are produced from the farm lots. For the poultry, protein nutrition will be improved by incorporating legume seeds, which must be boiled prior to feeding, and the use of fish meal.



All small livestock will need to be provided with improved housing as an alternative to the present practice of allowing the animals to forage around the homestead. This will be particularly important in the case of poultry in order to successfully raise day old chicks. This will be done simply and effectively by the construction of small bamboo cages, elevated above ground level, in a protected or sheltered area close to their house, together with a 40W incandescent bulb to supply heat. Providing this form of supplementary heat will be important for the first week, most especially during the cooler months of the year. Similar cages could be used for day old ducklings. At six weeks the chicks need to be treated for ND and at seven weeks they can be released. At thirteen weeks they can be sold or consumed by the household, or kept for breeding. In the case of poultry, the Tam Hoang breed from Vietnam has proved productive in neighbouring provinces provided there is adequate attention to their feeding regime and health care.

12.9.3 Animal Breeding Programs

Once significant progress has been made with improvement of the animal health care, alongside improved nutrition, then the productivity of small livestock will be improved by breeding. The main focus should be on pigs, poultry and promoting duck production for some areas where suitable conditions exist. The activities should include the following:

• Establishment of an small number of Animal Breeding Centre in the Resettlement Area, probably one in the northwest and one in the southeast. These will include: (a) maintenance of male Landrace, Large and Chinese type Boars that will either for hired out to

farmers or for semen collection for direct AI services by the LEWs; (b) establishment of a small poultry hatcheries for cross breeding of appropriate chicken breeds

with local breeds (for both meat and egg layers), the progeny (day old chicks) being distributed or sold at subsidised prices to villagers; and

(c) breeding of aquatic species such as frogs, and eels. • The small breeding centres will be provided with appropriate equipment, including liquid nitrogen

and flasks for storage of semen.

12.9.4 Extension Approaches for Livestock Development

The provision of support services to livestock production is the responsibility of the DAFO in Nakai town, and the NT2 project will improve and upgrade the services provided by DAFO by the provision of equipment, training, and technical and managerial advice. Substantial improvements in the provision of animal health care will be effected, as well as direct support of physical inputs to households to promote improved nutrition and management of their livestock. The following will be key elements in the extension program for livestock development: • Improving Animal Health care by training of LEWs together with a selected livestock raiser in each

village, who will be trained as a Village Livestock Agent (VLA). The VLA will coordinate farmers’ requests for routine vaccination of their calves, piglets and chicks to reduce mortalities.

• Training farmers on improved livestock husbandry through the conduct of FFSs in same way as for crops through regular training sessions.

• Establishment of demonstrations, managed by farmers, for pigs, poultry and ducks in selected villages to provide the venue for the conduct of the FFSs that also feature enhanced feeding regimes including the introduction of improved pasture and fodder production.

• Identification of households to act as bull caretakers who can receive payments from farmers for servicing their cattle.

• Development of procedures for a livestock dispersal system for cattle and pigs where farmers must attend training prior to becoming recipients of animals and must make a commitment to re-disperse an agreed number of offspring to other farmers in return, who in turn have also undergone training. This process would enable a progressive dispersal of improved breeds throughout the resettled villages.



Another feature of the extension program for livestock will be an emphasise on the integration of crop and livestock production so that (a) crop by-products can be utilised for livestock feeding, (b) the use of the manure is maximised on the farm lot, and (c) forages can be used in DMC cropping systems. Thus, farmers will receive training on Integrated Irrigated Upland Diversified Cropping.

12.9.5 Risks and Assumptions

The intensification of the livestock production systems may entail a number of risks: (a) Farmers may not be receptive to the concepts of improved animal health care and willing to pay for vaccinations. Improving animal health care must be the precursor to any attempt to improve nutrition and particularly the upgrading of stock and introduction of breeding programs. Convincing farmers of the need for regular vaccination, and particularly drenching of calves, can only be achieved through the extension service using farmers who agree to better health care for their livestock to demonstrate to others the benefits that are gained. Getting farmers to pay for vaccinations in the long term may prove difficulty and the provision of subsidies for the vaccines may be an option to ensure their wide scale use. (b) Adequate supplies of vaccines can be supplied. Although there appear to adequate facilities at provincial level for storage of vaccines and sufficient supplies of vaccines are available the increase in demand that will result from a more effective extension program may result in shortages developing. There may be a need to source vaccines and drugs from private sources of supply either in Laos or in Thailand may become a necessity. (c) Farmers are willing to be trained as VLAs. The approach of using farmers as veterinary agents has been adopted successfully in other parts of Laos and should be equally acceptable on the Nakai plateau. The key to success is ensuring that the VLAs are able to receive some payment for the treatments that they provide so that the approach can be sustainable.

12.10 ECONOMIC ANALYSIS AND FARMING SYSTEMS INTEGRATION

In order to:

(a) present a summary of the production system by which a particular crop could be typically grown;

(b) to compare the relative profitability of producing a range of crops in a typical irrigated farm plot; and

(c) to compare the effect of a range of input levels and prices, and a range of production outputs and market prices, and as such provide sensitivity analysis.

… a series of individual Activity Models and Gross Margins Budgets (AMs-GMBs) have been

prepared that feature a total of 26 different annual and tree crops, and 3 animal raising activities, as listed in Table 12-15 and presented in detail in Appendix D-5.

Table 12-15: Crops and Livestock for which Activity Models and Gross Margins Budgets have been generated.

Annual Field Crops Vegetables Fruit Trees Industrial Crops Livestock

Irrigated paddy (WS and DS) Cabbage (WS and DS) Mango Coffee Buffalo / cattleUpland rice / local maize (WS only) Broccoli (DS) Linchee Tea Pigs / chickenMaize (WS and DS) Chillies (DS) Jackfruit DucksMaize / black beans Carrot (DS) GuanaPeanuts (WS and DS) Eggplant (DS) PineappleSoybeans (WS and DS) Tomato (DS) BananaMungbeans (WS and DS) Cucumber (DS)Black beans (WS and DS) Water melon (DS)

Garlic (DS)Onions (DS)



12.10.1 Activity Model and Gross Margins for Crops

As an example of the way that the Activity Models and Gross Margin Budgets have been developed, typical AMs-GMBs for wet season paddy and dry season peanuts, for Stability Phase10 are presented below in Table 12-7 and Table 12-8. Appendix D-5 provides details of all individual GMBs generated to date, i.e. for all crops mentioned in Table 12-15. The Gross Margin Budgets/Activity Models have been developed in a format similar to the FARMOD application (FAO). In order to construct the AMs-GMBs a number of assumptions have been made, as follows:

Scale: All of the GMBs (aside from the livestock models) have been based upon an area of 0.1 ha. Those for irrigated paddy have been based upon 0.16 ha since this is the standard area that is to be given to each household.

Input Costs: Price estimates have been made for the prices of seed, fertiliser materials, labour, irrigation costs, animal feeds, veterinary supplies and other equipment, based on information as of 2003, from Project staff and market research in Thakhek, Vientiane and in Thailand.

Varieties: These were identified through consultations with local research institutions as well as information from local staff on the availability of improved varieties for annual crops as well as vegetables and fruit trees.

Fertiliser Materials: Although it is proposed that there is to be a considerable reliance on the use of organic fertiliser materials for all crops there will be a need for the judicious use of inorganic fertiliser materials in particular to address phosphate deficiencies as well as soil acidity. Limestone will also be provided in the early years, but this has not been reflected in the Activity Models. The use of organic fertiliser during the subsequent years should improve the buffering capacity of the soil and enable the pH to stabilise.

Input Levels: In order to determine the range of productivity that might be achieved two input levels have been selected for the calculation of the Gross Margins.

The Low Input Level involves (a) low application of inorganic fertilisers, (b) general use of local varieties and (c) less labour inputs for crop maintenance during the growing season.

The alternate option - High Input Level - uses higher levels of organic fertiliser (applied as a split application), inorganic fertiliser used generally as a top dressing, improved varieties adopted where these are available and higher labour inputs for crop maintenance.

Production Levels: The yields have been based upon reports from local staff and farmers, yields obtained generally in the Lao PDR, with the data from the Demonstration Farm and Pilot Village providing corroborating evidence. For both the Low and High Inputs three yield levels have been used to determine a range of potential Gross Margins.

Labour Cost and Usage: While labour has been included in the Activity Models, two types of Gross Margins have been calculated, i.e. one with and one without the cost of labour. As for hire of draft animals / machines, this has been included for irrigated paddy (where it is assumed to be used) and excluded for all other crops, as it is anticipated that families will make use of animal draft power – either their own or provided through soft loans from the Project.

Imputed Income: It has been assumed that some proportion of each commodity will be consumed by the household. The actual proportion that is assumed will be consumed is documented within each of the Gross Margin Budgets. The proportion of the production that is consumed is regarded as Imputed Income in the subsequent preparation of the combined Whole Farm Scenario.

Project Support: The Gross Margins have been prepared in two ways. Firstly, on the assumption of full Project support for all inputs (seed, fertiliser materials, irrigation costs, animal health care, etc.) during Years 1 to 3. Secondly, without Project support in the Post-Project period (Years 4 to 6)

10 the term Stability Phase, explained in detail in Chapter 25, refers to cropping system after the Nakai reservoir is full and in operation, and cropping systems have been developed over a number of years



when the households would have to demonstrate self-reliance and the ability to generate sufficient income from their farms as a contribution to sustaining their livelihoods.

Risk Analysis: In order to determine the element of risk involved in each commodity two alternative scenarios have been constructed based upon 10 and 25 percent reductions in Farm Gate prices and upon 10 and 25 percent increases in Input Costs.

The GMBs in Table 12-16 and Table 12-17 are presented each with a low and a high input level and with three levels of productivity (low, medium and high yield). For each scenario, the GMB is given with and without material cost (as the Project is paying for these the first three years) and with and without costing family labour.



Table 12-16: Example 1 of Gross Margins Budget: Irrigated Paddy Land, Wet Season (0.16 ha).

Unitcost Low Medium High Low Medium High

Scale: 0.16 ha Unit (US$) Yield Yield Yield Yield Yield Yield1. PHYSICAL INPUTS/OUTPUTSOutputs

Paddy kg 0.13 150 225 300 300 450 600

InputsMaterial InputsSeed kg 0.36 7.5 7.5 7.5 7.5 7.5 7.5Organic Fertiliser kg 0.10 150 150 150 300 300 30015.15.15 kg 0.27 7.5 7.5 7.5Urea kg 0.22 7.5 7.5 7.5Water ls 40.00 0.16 0.16 0.16 0.16 0.16Sacks pc 0.10 3 5 6 6 9 12Labour pdays 0.90Draft Inputs 1 ha 6.40Seedbed Preparation/Sowing pdays 1.0 1.0 1.0 1.0 1.0 1.0Ploughing ha 1.5 1.5 1.5 1.5 1.5 1.5Organic Basal Fertiliser Application pdays 1.5 1.5 1.5 1.5 1.5 1.5Harrowing ha 1.5 1.5 1.5 1.5 1.5 1.5Transplanting pdays 3.0 3.0 3.0 3.0 3.0 3.0Top Dressing Fertiliser Application pdays 0.0 0.0 0.0 1.5 1.5 1.5Irrigation pdays 3.0 3.0 3.0 3.0 3.0Crop Maintenance/Weeding pdays 5.0 5.0 5.0 8.0 8.0 8.0Harvesting pdays 3.0 3.5 4.0 4.0 4.5 5.0Threshing pdays 1.5 2.0 2.5 2.5 3.0 3.5Drying pdays 2.0 3.0 4.0 4.0 5.0 6.0Hauling (to Market) pdays 0.0 0.0 0.0 0.0 0.0 0.0

Sub-total (Labour) pdays 17.0 22.0 24.0 28.5 30.5 32.5Sub-total (Draft) ha 3.0 3.0 3.0 3.0 3.0 3.0

2. FINANCIAL INPUTS/OUTPUTS US$Outputs

Value of Paddy $18.75 $28.13 $37.50 $37.50 $56.25 $75.00Inputs

Material InputsSeed 2.70$ 2.70$ 2.70$ 2.70$ 2.70$ 2.70$ Organic Fertiliser 15.00$ 15.00$ 15.00$ 30.00$ 30.00$ 30.00$ 15.15.15 -$ -$ -$ 2.03$ 2.03$ 2.03$ Urea -$ -$ -$ 1.65$ 1.65$ 1.65$ Water -$ 6.40$ 6.40$ 6.40$ 6.40$ 6.40$ Sacks 0.30$ 0.50$ 0.60$ 0.60$ 0.90$ 1.20$ Sub-Total 18.00$ 24.60$ 24.70$ 43.38$ 43.68$ 43.98$ Labour InputsFamily Labour 15.30$ 19.80$ 21.60$ 25.65$ 27.45$ 29.25$ Draft 19.20$ 19.20$ 19.20$ 19.20$ 19.20$ 19.20$ Sub-Total 34.50$ 39.00$ 40.80$ 44.85$ 46.65$ 48.45$

Total Costs 52.50$ 63.60$ 65.50$ 88.23$ 90.33$ 92.43$

>With Project Support [c]Gross Margin -$15.75 -$10.88 -$3.30 -$7.35 $9.60 $26.55Gross Margin (ex labour cost) $18.75 $28.13 $37.50 $37.50 $56.25 $75.00

Return to labour (per day) $1.10 $1.28 $1.56 $1.32 $1.84 $2.31Proportion cash income 0% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Proportion imputed income 100% $18.75 $28.13 $37.50 $37.50 $56.25 $75.00

>Post ProjectGross Margin -$33.75 -$35.48 -$28.00 -$50.73 -$34.08 -$17.43Gross Margin (ex family labour cost) -$18.45 -$15.68 -$6.40 -$25.08 -$6.63 $11.83

Return to labour (per day) -$1.09 -$0.71 -$0.27 -$0.88 -$0.22 $0.36Proportion cash income 0% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Proportion imputed income 100% -$18.45 -$15.68 -$6.40 -$25.08 -$6.63 $11.83

3. RISK ANALYSIS (Post Project) US$Gross Margin (ex family labour cost)Decrease in Output Price

by 10 % -$20.33 -$18.49 -$10.15 -$28.83 -$12.25 $4.33by 25 % -$23.14 -$22.71 -$15.78 -$34.45 -$20.69 -$6.93

Increase in Input Prices by 10% -$22.17 -$20.06 -$10.79 -$31.33 -$12.91 $5.51by 25% -$27.75 -$26.63 -$17.38 -$40.72 -$22.34 -$3.97

[a] Low Input Level assumes Organic Fertiliser applied as Basal Dressing at a rate of 1.0 tones per hectare and no Inorganic Fertiliser and reduced labour inputs for Maintenance/Weeding of crop

[b] High Level assumes Organic Fertiliser applied as Basal Dressing at a rate of 2.0 tonnes per hectare together with 15.15.15applied a rate of 50 kg per ha and Top Dressing of 50 kg per ha of Urea together with increased labour inputs for maintenance/weeding.

[c] Assumes that Project provides all seed and fertiliser requirements together with pumping costs for Years 1 to 3

Low input [a] High input [b]



Table 12-17: Example 2 of Gross Margin Budget: Peanuts, Dry Season, Stability Phase (0.1 ha).

Unitcost Low Medium High Low Medium High

Unit (US$) Yield Yield Yield Yield Yield Yield1. PHYSICAL INPUTS/OUTPUTSOutputs

Unshelled Peanuts kg 0.25 100 150 200 200 300 400

InputsMaterial InputsSeed - Local kg 0.20 5 5 5Seed - Improved kg 0.80 5 5 5Organic Fertiliser kg 0.10 100 100 100 200 200 20015.15.15 kg 0.27Urea kg 0.22Water ls 2.50 0.1 0.1 0.1 0.1 0.1 0.1Sacks pc 0.10 2.0 2.0 2.0 2.0 2.0 2.0Labour Inputs pdays 0.90Ploughing pdays 2.0 2.0 2.0 2.0 2.0 2.0Organic Basal Fertiliser Application pdays 0.50 0.5 0.5 0.5 0.5 0.5Harrowing pdays 1.0 1.0 1.0 1.0 1.0 1.0Planting pdays 1.0 1.0 1.0 1.0 1.0 1.0Top Dressing Fertiliser Application pdays 0.5 0.5 0.5Irrigation pdays 4.0 4.0 4.0 4.0 4.0 4.0Crop Maintenance/Weeding pdays 3.0 3.0 3.0 6.0 6.0 6.0Harvesting pdays 2.0 2.5 3.0 3.0 3.5 4.0Drying pdays 2.0 2.0 2.0 2.0 2.5 3.0Hauling (to Market) pdays 0.0 0.0 1.0 1.0 1.0 1.0

Sub-total pdays 15.5 16.0 17.5 21.0 22.0 23.0


Unshelled Peanuts $25.00 $37.50 $50.00 $50.00 $75.00 $100.00Inputs

Material InputsSeed - Local $1.00 $1.00 $1.00 $0.00 $0.00 $0.00Seed - Improved $0.00 $0.00 $0.00 $4.00 $4.00 $4.00Organic Fertiliser $10.00 $10.00 $10.00 $20.00 $20.00 $20.0015.15.15 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Urea $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Water $0.25 $0.25 $0.25 $0.25 $0.25 $0.25Sacks $0.20 $0.20 $0.20 $0.20 $0.20 $0.20Sub-Total $11.45 $11.45 $11.45 $24.45 $24.45 $24.45Labour Inputs

Family Labour $13.95 $14.40 $15.75 $18.90 $19.80 $20.70Total Costs $25.40 $25.85 $27.20 $43.35 $44.25 $45.15

>With Project [c]Gross Margin $11.05 $23.10 $34.25 $31.10 $55.20 $79.30Gross Margin (ex labour cost) $25.00 $37.50 $50.00 $50.00 $75.00 $100.00


>Post ProjectGross Margin -$0.40 $11.65 $22.80 $6.65 $30.75 $54.85Gross Margin (ex labour cost) $13.55 $26.05 $38.55 $25.55 $50.55 $75.55


3. RISK ANALYSIS (Post Project) US$Gross Margin (ex labour cost)Decrease in Output Price

by 10 % $11.05 $22.30 $33.55 $20.55 $43.05 $65.55by 25 % $7.30 $16.68 $26.05 $13.05 $31.80 $50.55

Increase in Input Prices by 10% $12.41 $24.91 $37.41 $23.11 $48.11 $73.11by 25% $10.69 $23.19 $35.69 $19.44 $44.44 $69.44

[a] Low Input Level assumes Organic Fertiliser applied as Basal Dressing at a rate of 1.0 tones per hectare and no Inorganic Fertiliser and reduced labour inputs for Maintenance/Weeding of crop

[b] High Input Level assumes the introduction of improved varieties, split dressing of Organic Fertiliser applied at a total rate of 2.0 tonnes per hectare together with increased labour inputs for maintenance/weeding

[c] Assumes that Project provides all seed and fertiliser requirements together with pumping costs for Years 1 to 3

Low input High input



12.10.2 Comparisons of GMs for each crops

In order to assess the relative profitability of the range of crop commodities a comparison of the Gross Margins has been made (see Figure 12-9 / Table 12-10 and Figure 12-10 / Table 12-19). From this analysis it is apparent that the vegetable crops offer considerably greater profitability than most of the annual field crops. Annual field crops doing well include peanuts, mungbeans, black beans, whereas the most profitable vegetables are garlic and water melon. The calculations assumes that the Project is bearing the cost of seed, fertiliser and pumping, which will be the case for the first three years after relocation. The figures further exclude the cost of family labour.

Figure 12-9: Comparison of Gross Margins for Annual Field Crops (US$ / 0.1 ha)

0

50

100

150

Irrigated Paddy Upland Rice /Local Maize

Maize Peanuts Soybeans Mungbeans Black Beans

Gro

ss M

argi

n (U

S$ /

0.1

ha)

Low Input Low Yield Low Input Medium Yield Low Input High Yield

High Input Low Yield High Input Medium Yield High Input High Yield

Table 12-18: Gross Margins for Annual Field Crops (US$ / 0.1 ha)

Input level

Output level

Irrigated Paddy

(0.16 ha) Upland Paddy Maize Peanuts Soybeans

Mung beans

Black Beans

Low Low 18.75 10.00 10.00 25.00 18.75 36.00 30.00

Low Medium 28.13 15.00 15.00 37.50 25.00 48.00 45.00

Low High 37.50 20.00 20.00 50.00 31.25 60.00 60.00

High Low 37.50 20.00 20.00 50.00 37.50 72.00 60.00

High Medium 56.25 30.00 30.00 75.00 50.00 96.00 90.00

High High 75.00 40.00 40.00 100.00 62.50 120.00 120.00

Figure 12-10: Comparison of Gross Margins for Vegetable Crops (US$ / 0.1 ha)

0

50

100

150

200

250

300

350

400

Cabbage Broccoli Chillies Eggplant Tomato Cucumber Garlic Water Melon

Gro

ss M

argi

n (U

S$ /

0.1

ha)



Table 12-19: Gross Margins for Vegetable Crops (US$ / 0.1 ha)

Input level

Output level Cabbage Broccoli Chillies

Egg plant Tomato

Cucum-ber Garlic

Water Melon

Low Low 44.00 30.00 50.00 40.00 40.00 40.00 120.00 60.00

Low Medium 58.80 40.00 62.50 50.00 50.00 45.00 150.00 80.00

Low High 73.50 50.00 75.00 60.00 60.00 50.00 180.00 100.00

High Low 88.50 60.00 100.00 80.00 80.00 80.00 240.00 120.00

High Medium 118.00 80.00 125.00 100.00 100.00 90.00 300.00 160.00

High High 147.50 100.00 150.00 120.00 120.00 100.00 360.00 200.00

12.10.3 Gross Margins for Livestock Production

Four case study AMs-GMBs have been prepared for semi-intensive and intensive (not range raised) livestock using similar assumptions to those applied in the case of the crop commodities They have been projected over a six year period to give an indication of the profitability of potential livestock enterprises (see Table 12-20). Appendix D-5 provides details of these GMBs.

Table 12-20: Gross Margins for Livestock Production, at high input levels

1 2 3 4 5 6+Intensive buffalo / cattle fattening

(incremental production from 2 fatteners with forage production)Extensive buffalo / cattle rearing

(incremental production from 2 fatteners without forage production)Pigs and chicken

(1 pig breeding and fattening, 15 chicken)Ducks

(15 ducks)961.53 992.2727.37 310.78 710.94 932.15

179.65 179.65

56.50 56.50 56.50 24.50 24.50 24.50

62.05 124.10 124.10 179.65

Year

93.08 310.25 372.30 353.30 352.80 353.30

The data presented in Table 12-20, which relates to the high input levels being maintained for the entire six year period, indicates that there are large differences between the various livestock options. The buffalo raising is largely based upon existing practices, but with improved health care. The pigs and poultry enterprises have remained as largely backyard activities, although with inputs to improve feeding and health regimes. The most promising enterprise is undoubtedly duck raising. However, this will only be feasible for a limited number of households. A GMB of buffalo raising (2 fatteners) is presented in Table 12-21. The buffalo fattening is based on forage production, and GMB is given with production cost (the first three years, as the Project is paying these) and without production cost (from year four onwards) and with and without costing family labour. The implication for those farmers who retain their buffalo herds and continue their extensive grazing practices is that returns to individual households will be in proportion to the size of the herd and also dependent on the number of animals sold during a given year. Given to potential for current and future forage production it appears to be feasible to maintain the current level of annual sales of 641 heads (2004, see Table 12-12).



Table 12-21: Example 3 of Gross Margin Budget: Buffalo Raising.

Units Unit Year cost 1 2 3 4 5 6+

Incremental Production from 2 Fatteners (US$)1. PHYSICAL INPUTS/OUTPUTSOutputs

No. of animals fattened 1 2 2 2 2 2ADG per animal kg/hd/day 0.15 0.25 0.30 0.30 0.30 0.30Total LW gain kg LW 1.70 55 183 219 219 219 219

InputsMaterial InputsDM yield b/

Elephant Grass kg DM 3750 3750 3750 3750 3750 3750Forage Legumes kg DM 500 500 500 500 500 500

DM requirement [c] kg DM 2053 4106 4106 4106 4106 4106Forage Production

Poles (Napier Grass) pc 0.02 25000Seed (Forage Legumes) kg 0.10 5 5 5Organic Fertiliser kg 0.10 125 125 125 125 125 125

Mineral Blocks pc 3.00 1 2 3 3 3 3Animal Health

Vaccinations doses 0.75 3 6 6 6 6 6Drugs ls 2.00 1 1 1 1 1 1

Labour Inputs pday 0.90Land Preparation and planting 10 0 2 0 2 0Cut and Carry 6 30 30 30 30 30Animal Care 24 24 24 24 24 24

Sub-total 40 54 56 54 56 54


Total value of production $93.08 $310.25 $372.30 $372.30 $372.30 $372.30Inputs

Material InputsForage production[d]

Poles (Napier Grass) $500.00 $0.00 $0.00 $0.00 $0.00 $0.00Seed (Forage Legumes) $0.50 $0.00 $0.50 $0.00 $0.50 $0.00Organic Fertiliser $12.50 $12.50 $12.50 $12.50 $12.50 $12.50

Animal HealthVaccinations [e] $2.25 $4.50 $4.50 $4.50 $4.50 $4.50Drugs [f] $2.00 $2.00 $2.00 $2.00 $2.00 $2.00

Sub-Total $517.25 $19.00 $19.50 $19.00 $19.50 $19.00Labour Inputs

Family Labour $36.00 $48.60 $50.40 $48.60 $50.40 $48.60Total Costs $553.25 $67.60 $69.90 $67.60 $69.90 $67.60

>With Project [g]Gross Margin $57.08 $261.65 $321.90 n.a. n.a. n.a.Gross Margin (ex labour cost) $93.08 $310.25 $372.30 n.a. n.a. n.a.

Return to labour (per day) $2.33 $5.75 $6.65 n.a. n.a. n.a.Proportion cash income 90% $83.77 $279.23 $335.07 n.a. n.a. n.a.Proportion imputed income 10% $9.31 $31.03 $37.23 n.a. n.a. n.a.

>Post ProjectGross Margin n.a. n.a. n.a. $304.70 $302.40 $304.70Gross Margin (ex labour cost) n.a. n.a. n.a. $353.30 $352.80 $353.30

Return to labour (per day) n.a. n.a. n.a. $6.54 $6.30 $6.54Proportion cash income 90% n.a. n.a. n.a. $317.97 $317.52 $317.97Proportion imputed income 10% n.a. n.a. n.a. $35.33 $35.28 $35.33

3. RISK ANALYSIS (Post Project) US$Gross Margin (ex labour cost)Decrease in Output Price

by 10 % n.a. n.a. n.a. $316.07 $315.57 $316.07by 25 % n.a. n.a. n.a. $260.23 $259.73 $260.23

Increase in Input Prices by 10% n.a. n.a. n.a. $351.40 $350.85 $351.40by 25 % n.a. n.a. n.a. $348.55 $347.93 $348.55

[a] Based upon 200 kg LW steer, fattened for 1 year, 90 - 100 kg LW gain over 1 year periodAssumed that 250 kg LW steer requires 7 kg DM per day

[b] 15000 kg DM production/ha/annum from fertilised Napier Grass or similar2000 kg DM production/ha/annum from Stylo or similar forage legume

[c] Average LW 250 kg x 3 percent of LW/day x 75 percent of total requirements from from Cut and Carry; balance from outside feeding[d] Half of 0.25 ha planted with Napier Grass poles at spacing of 50 cm x 20 cm

Half of 0.25 ha planted with Forage Legumes at 50 kg/ha.[e] Each animal vaccinated for HS (2x/year) and BL (1x)[f] Each animal drenched 2x/yr @US$0.50 plus misc costs of US$0.50 per head[g] Assumes that Project provides all planting material and fertiliser together with vaccines and drugs during Years 1 to 3



In the analysis of Whole Farm Scenarios numbers 1-4, there is an assumption made that each household would graze two buffalo and/or cattle using the traditional practices of extensive grazing. Those households without large livestock are to be given two animals as part of the project entitlement. Consequently, to obtain a total household income for the households retaining more than 2 animals, incomes would need to be increased in proportion to either their herd size and/or annual sales. As the household herd size is highly skewed some households and villages will have substantially higher total incomes than others. This is discussed in more detail in Chapter 16.

12.11 WHOLE FARM SCENARIOS

12.11.1 Possible Integration of Crops and Forages on Irrigated Plots

In order to make plans for the possible ways in which villagers may integrate cropping on their irrigated plots and raise their livestock in relation to these plots, a series of potential Cropping (and livestock) Systems have been developed for the 0.66 ha farm lots, and these are termed Whole Farm Scenarios. They are intended to represent a range of ways in which resettlement families may use the 0.66 ha of irrigated land allocated to them. A total of 11 Whole Farm Scenarios (WFSs) have been developed, and these can grouped into six general groups. They are briefly presented below, whilst a more detailed description of each WFS is provided in Appendix D-6. Labour requirements by months are presented for each of the WFS in Appendix D-7.

WFS 1: three variants - 1.1, 1.2 and 1.3: Cereal/Legumes with dry season Vegetable Production.

These three WFSs represent a progressive intensification of the cropping pattern with increasing areas of legumes being grown and an increasing area planted to Vegetables in the dry season, with the eventual introduction of double cropping of dry season vegetables.

WFS 2 two variants - 2.1 and 2.2: Fruit Production with Cereal/Legumes and dry season vegetable Production

These two WFSs feature increased areas planted to fruit trees alongside double cropping of DS vegetables.

WFS 3 two variants - 3.1 and 3.2: Industrial Crops with Cereal/Legume Production

These two WFSs are based upon a coffee and tea, which are provided as examples only of perennial semi industrial crops, intercropped with legume production in the wet and dry season..

WFS 4 two variants - 4.1 and 4.2: Irrigated Paddy with Legume/Vegetable Production

Two WFSs based upon larger areas of irrigated paddy production, with or without water melon production in the dry season, together with wet season legume and dry season vegetable production. These WFSs would only be feasible on farm lots where the soil and topography favour an expansion of the irrigated paddy land.

WFS 5: Pasture and Field Crops in Support of Intensive Buffalo/Cattle Production

This WFS is based upon the establishment of pasture and legumes on the farm plot for use as cut and carry feeding of buffalo and/or cattle. The annual cropping is confined to the production of irrigated paddy.

WFS 6: Intensive Duck Raising with Cereal/Legume/Vegetable Production

This WFS considers the possibility of duck raising as the primary activity of household alongside annual cropping of maize on the WS and legumes and vegetables in the DS. This WFS would be suitable for households that have access to open water areas that can be enclosed and used for herding the ducks.

Irrigated farming in most villages will not be feasible until after filling of the reservoir (see to Section 12.13). Thus, most of the above Whole Farm Scenarios will only be applicable after that date. However, WFS 1.1, 1.2 and 1.3 (with rice, maize and legumes as dominant crops) and 6 (rice, maize and duck



raising) will be feasible without irrigation (in what is know as the transition phase - see Chapter 16). The 4 WFS for the transition phase and 11 WFSs for the stability phase are presented below in Table 12-22 and Table 12-23 with indications of land area planted to each crop, as well as the total cropping intensity for each of the wet and dry season. While these WFSs present what may happen in the 0.66 ha of irrigated cropping land, many families are entitled to 2 buffaloes or cattle, 1 pig and 15 chickens. These livestock are not included in the WFS, as it is assumed that they will be raised partly by remaining forage from irrigated plots, and from crops grown around houses, and in the rainfed land of the village as a whole.



Table 12-22: Indicative (possible) Whole Farm Scenarios Model

Description % of area CI b/ Description % of area CI b/

TRANSITION:

ALLc/ 100

Upland Rice 80Maize 20Upland Rice 50Maize intercropped with Black Beans 50Upland Rice 38Maize 38Legumes (Peanuts and Mungbeans) 15Vegetables (Cabbage) 9

6. INTENSIVE DUCK RAISING WITH CEREAL/LEGUME/VEGETABLE PRODUCTIONUpland Rice 50Maize 50

STABILITY:

ALLe/ 100 0.16 ha Irrigated Paddy grown on lower terrace, or dedicated paddy area 100

Maize 30 Maize 10Upland Rice 30 Legumes (Peanuts and Black Beans) 10Legumes (Peanuts and Black Beans) 30 Vegetables (Cabbage, Chillies and Cucumber) 1 cropping 10Fruit Trees 10 Fruit Trees 10Maize intercropped with Black Beans 20 Maize 10Legumes (Peanuts, Mungbeans and Soybeans) 70 Legumes (Peanuts and Mung Beans) 20

Vegetables (Broccoli, Eggplant, Tomatoes, Cucumber & Garlic) in 1 cropping 10Fruit Trees 10 Fruit Trees 10Maize intercropped with Black Beans 20 Maize 10Legumes (Peanuts, Mungbeans and Soybeans) 50 Legumes (Peanuts and Mung Beans) 20Vegetables (Cabbage) 20 Vegetables (Broccoli, Eggplant, Tomatoes, Cucumber & Garlic) in 2 croppings 20Fruit Trees 10 Fruit Trees 10

2. FRUIT PRODUCTION WITH WS CEREAL/LEGUMES AND DS VEGETABLE PRODUCTIONMaize 30 Maize 10Legumes (Peanuts and Mung Beans) 40 Legumes (Peanuts and Mung Beans) 10

Vegetables (Broccoli, Eggplant, Tomatoes, Cucumber & Garlic) in 2 croppings 20Fruit Trees 30 Fruit Trees 30Maize 10 Maize 10Legumes (Peanuts and Mung Beans) 30 Legumes (Peanuts and Mung Beans) 10

Vegetables (Broccoli, Eggplant, Tomatoes, Cucumber & Garlic) in 2 croppings 10Fruit Trees 60 Fruit Trees 60

3. INDUSTRIAL CROPS WITH CEREAL/LEGUME PRODUCTIONCoffee 70 Coffee 70Legumes (Peanuts and Black Beans) 30 Legumes (Peanuts and Mung Beans) 30Tea 70 Tea 70Legumes (Peanuts and Black Beans) 30 Legumes (Peanuts and Mung Beans) 30

4. IRRIGATED PADDY WITH LEGUME/VEGETABLE PRODUCTIONIrrigated Paddy 60 Water Melon 30Legumes (Peanuts and Black Beans) 30 Vegetables (Cabbage, Eggplant and Tomatoes) in 2 croppings 30Fruit Trees 10 Fruit Trees 10Irrigated Paddy 60 Irrigated Paddy 60Legumes (Peanuts and Black Beans) 30 Legumes (Peanuts and Black Beans) in 1 cropping 30Fruit Trees 10 Fruit Trees 10

5. PASTURE AND FIELD CROPS IN SUPPORT OF INTENSIVE BUFFALO/CATTLE PRODUCTION Improved Grass based pasture - for cut and carry 50 Improved Grass based pasture - for cut and carry 50Improved Legume based Pasture - for cut and carry 50 Improved Legume based Pasture - for cut and carry 50

6. INTENSIVE DUCK RAISING WITH CEREAL/LEGUME/VEGETABLE PRODUCTIONIrrigated Paddy 50 Legumes (Peanuts and Mung Beans) 20Maize 50 Vegetables (Cabbage, Eggplant, Tomato and Cucumber) in 1 cropping 20

Notes:

b/ CI - Cropping Intensity - percentage of land utilisation in WS or DS. Calculated separately for the lower terrace/paddy land and upper terraced farm lot.c/ Except for WFS 1.3 which has no paddy.d/ WFS 1.3 has all land on the upper terraces.e/ Except for WFS 4.1 which has no irrigated paddy in DS.

0.16 ha Paddy grown on lower terrace, or dedicated paddy area

0.16 ha Irrigated Paddy grown on lower terrace, or dedicated paddy area

1.1 100

1.2

1.3 d/

100

100

100

UPPER TERRACES (0.5 ha Farmlot)1. INTENSIVE WS CEREAL/LEGUMES WITH VEGETABLE DS PRODUCTION

a/ It is assumed that the DS Crop Areas represent the full development stage reached by year 3. There is a gradual expansion of irrigation during the DS as farmers develop skills in the use of the irrigation water.The percentages relate to the area of upper terraces planted to each crop or combination of crops.

1.3

100

4.2100

4.1100

100

90

3.2 100 100

100 100

100

100

100 50

1.1

90

1.2

100 60

3.1 100 100

2.1

100

2.2

70

April / October (Rainfed Crops with Supplementary Irrigation)

100 40

LOWER TERRACES/PADDY LAND

UPPER TERRACES (0.5 ha Farmlot)1. INTENSIVE WS CEREAL/LEGUMES WITH VEGETABLE DS PRODUCTION

November / March (Irrigated Crops) a/

LOWER TERRACES/PADDY LAND



Table 12-23: Cropped Areas under each Whole Farm Scenario during Wet Season and Dry Season, Transition and Stability Phase (m2) Whole Season Fruit Forage TotalFarm a/ Upland Maize Maize/ Peanuts Mung Soy Black Cabbage Broccoli Chillies Carrot Eggplant Tomato Cucumber Garlic Water Coffee Tea Trees Prodn

Scenario Rice Black Beans Beans Beans Melonb/ (Lower) (Upper) Beans

Transition:WS 1600 4000 1000 6600DS1 0DS2 0WS 1600 2500 1500 500 500 6600DS1 0DS2 0WS 2500 2500 500 500 600 6600DS1 0DS2 0WS 1600 2500 2500 6600DS1 0DS2 0

Stability:WS 1600 1500 1500 750 750 500 6600DS1 1600 500 250 250 200 150 150 500 3600DS2 0WS 1600 1000 1500 1000 1000 500 6600DS1 1600 500 500 500 100 100 100 100 100 500 4100DS2 0WS 1600 1000 1000 1000 500 1000 500 6600DS1 1600 500 500 250 250 100 100 100 100 100 500 4100DS2 100 100 100 100 100 500WS 1600 1500 1000 1000 1500 6600DS1 1600 500 250 250 100 100 100 100 100 1500 4600DS2 100 100 100 100 100 500WS 1600 500 750 750 3000 6600DS1 1600 500 250 250 100 100 100 100 100 3000 6100DS2 100 100 100 100 100 500WS 1600 750 750 3500 6600DS1 1600 750 750 3100DS2 0WS 1600 750 750 3500 6600DS1 1600 750 750 3100DS2 0WS 1600 3000 750 750 500 6600DS1 500 500 500 3100 500 5100DS2 500 500 500 1500WS 1600 5000 6600DS1 1600 5000 6600DS2 0WS 1600 5000 6600DS1 1600 5000 6600DS2 0WS 1600 2500 2500 6600DS1 1600 2500 500 500 250 250 250 250 6100DS2 0

Note: a/ DS1 corresponds to October/December cropping period. DS2 corresponds to January/March cropping period.b/ Only 4 Whole Farm Scenarios are anticipated feasible during Transition when irrigation is not available in most villages.

6

1.3

1.2

1.1

6

4.2

5

3.2

4.1

2.2

3.1

1.1

1.2

1.3

2.1

Vegetables Industrial Crops

Paddy

Cereal Crops Legumes



The actual adoption by a household of any particular WFS will in reality be determined by: (i) the household’s labour resources; (ii) the household’s past experience with similar agriculture experience; (iii) the skills gained in the past and during the resettlement program; (iv) other resources available in that part of the resettlement area allocated to the village; and (v) the market situation.

12.11.2 Financial Analysis of Whole Farm Scenarios

A financial analysis for all the 11 WFS is presented in Appendix D-8. An example for Intensive Cereal / Legume Wet Season Cropping with Dry Season Vegetable Production (WFS no 1.1) is presented in Table 12-24, a scenario in which high inputs are used in all the years.

Table 12-24: Financial Analysis for Whole Farm Scenario 1.1 (Intensive Cereal / Legume Wet Season Cropping with Dry Season Vegetable Production).

Commodity Season %Cash

Income Area Gross Area Gross Area Gross Area Gross Area Gross Area GrossMargin Margin Margin Margin Margin Margin

sq.m. US$ sq.m. US$ sq.m. US$ sq.m. US$ sq.m. US$ sq.m. US$Input Level a/

A. Agriculture Crop ProductionIrrigated Paddy WS 0% 1600 56.25 1600 56.25 1600 56.25 1600 12.58 1600 12.58 1600 12.58

DS1 0% 1600 18.83 1600 18.83Upland Rice WS 0% 4000 120.00 4000 120.00 4000 120.00 4000 28.20 1500 10.58 1500 10.58Maize WS 50% 1000 30.00 1000 30.00 1000 30.00 1000 7.15 1500 10.73 1500 10.73

500 3.45 500 3.45Peanuts WS 80% 750 38.10 750 38.10

250 12.64 250 12.64Black Beans WS 80% 750 50.93 750 50.93

DS1 80% 250 16.91 250 16.91Cabbage DS1 90% 200 19.08 200 19.08Chillies DS1 90% 150 15.34 150 15.34Cucumber DS1 90% 150 11.12 150 11.12Fruit Trees n.a. 90% 500 0.00 500 0.00

Total Cropped Area WS 6600 6600 6600 6600 6600 6600DS 0 0 0 0 3600 3600

Cropping Intensity 100% 100% 100% 100% 155% 155%

Livestock ProductionBuffalo/Cattle n.a. 0% 62.05 124.10 124.10 179.65 179.65 179.65

Pigs/Poultry n.a. 0% 56.50 56.50 56.50 24.50 24.50 24.50

Gross Margin (exc. Labour cost) 324.80 386.85 386.85 252.08 424.42 424.42 Imputed Income 309.80 371.85 371.85 248.50 293.32 293.32 Cash Income 15.00 15.00 15.00 3.58 131.10 131.10

B. Labour Requirements (person days per annum)Land Clearance/Terracing b/ 30 20Agriculture 184 184 184 184 265 267Total 214 204 184 184 265 267

Notes:a/ Irrigated Paddy grown on 0.16 ha of lower terrace WS: Maize and Upland Rice as separate crops on 60% of upper terraces, with legumes (Peanuts and Black Beans) grown on 30% and Fruit Trees in remaining 10%. DS: Maize grown on 10% of upland terraces with legumes (Peanuts and Black Beans) on 10%, vegetables in one cropping on 10% (and Fruit Trees on 10%) from Year 5 Yields assumed at Medium Levels (Model assumes Project Support for all Material Inputs is provided in Years 1 to 3 and farmers maintain high input levels in subsequent years) Total area of farm plot 0.66 ha DS cropping on upper terraces is assumed to be introduced progressively from the fourth or fifth year as reservoir is filling up b/ Land Clearing, Contouring and Planting of Hedgerows assumed to require 50 person-days for the 0.50 ha upper terraces with Food For Work compensation paid at US$0.90 per day equivalent

3 4 5 6+

High HighHigh High High High

Year1 2

Table 12-25 presents and compares the financial analysis for all 11 WFS through the first years of project support as well as the years after project support. Whereas the input level supported by the project is high, it anticipated that some households might opt for a lower input level, once they have to bear the cost of the inputs.



Table 12-25: Summary of Financial Analysis for 11 Whole Farm Scenarios (High and Low Input) – Sum of Gross Margins for each Component within each WFS (without Labour), US$/HH/Year.

Input level High High High High High High Low Low LowWFS Year 1 2 3 4 5 6 4 5 6

1.1 389 564 636 417 482 510 292 348 364 1.2 526 736 815 584 648 676 378 434 450 1.3 582 831 951 693 757 785 429 485 501 2.1 391 644 758 493 687 771 301 610 655 2.2 318 627 766 437 825 993 237 575 666 3.1 430 618 648 487 535 632 354 383 421 3.2 396 510 578 514 538 562 365 389 413 4.1 652 1,135 1,302 1,000 1,064 1,092 572 628 643 4.2 351 670 670 334 334 334 248 248 248 5 206 486 548 409 409 409 331 332 332 6 303 840 1,334 1,198 1,228 1,228 552 524 524

With project support Without project support Without project support

For each Whole Farm Scenario a sensitivity analysis is carried out for the gross margin based on changes in input prices and output prices. The following four dimensions are therefore applied to the analysis: • Input level: High and low • Input price: Medium and high • Yield: Medium and low • Output price: Medium and low

An example for WFS 1.1 for Stability Phase is presented in Figure 12-11. The sensitivity analysis for the 4 WFS in the transition phase and the 11 WFS in the stability phase are presented in Appendix D-9. Current input and output prices are defined as medium; scenarios include sensitivity for a 25 % increase in input prices and a 25 % decrease in output prices. All crops and most livestock calculations include high and low input levels; for pig / chicken, however, only one input level is used for all calculations. For annual field and vegetable crops there are two levels of yield (medium and low). For fruit trees, coffee, tea and livestock only one yield scenario has been included for all gross margin calculations. The gross margin calculations for the whole farm scenarios are based on various combinations of crops for 0.66 ha and livestock, suitable for the resettlement areas. These are further combined with other economic activities (forestry, fisheries, small scale business and wage labour) in Chapter 16, where scenarios are also presented for various household types. It is intended that the transition whole farm scenarios will be introduced progressively over the first two to three years. The areas planted to DS cropping in particular will only be increased slowly. It is not intended that there will be any DS cropping in the first year after relocation of each village. Three villages (Nong Boua, Boua Ma and Phonsavang (Theun Douane area) will have access to irrigation by the second year, and half of the targeted area will be planted with DS crops. Full development of the irrigated area for the remaining villages will only take place once the reservoir is filling by COD-1. As the project assistance is progressively withdrawn, resettlers will have to be come increasingly responsible to ensure the investments required to produce the crop animal products.



Figure 12-11: Example of Sensitivity Analysis for WFS 1.1 (Stability Phase). Input level:Input price:

% Cash Yield:

Commodity Season IncomeArea (m2) Output price: Medium Low Medium Low Medium Low Medium Low Medium Low Medium Low Medium Low Medium Low

Crop ProductionIrrigated Paddy WS 0% 1600 -6.63 -20.69 -25.08 -34.45 -22.34 -31.61 -40.72 -45.29 -15.68 -22.71 -18.45 -23.14 -26.63 -33.66 -27.75 -32.44

DS1 0% 1600 -0.38 -16.00 -21.33 -31.64 -11.29 -31.72 -32.17 -47.28 -12.55 -20.36 -22.98 -28.13 -18.70 -31.31 -29.08 -39.03 Upland Rice / local maize WS 0% 1500 41.93 30.68 21.83 14.33 33.28 14.16 13.22 -0.84 21.26 15.64 8.40 4.65 16.95 7.39 4.13 -2.25 Maize WS 50% 1500 10.73 -0.53 -4.13 -11.63 2.16 -9.09 -12.66 -20.16 6.60 0.98 -0.75 -4.50 2.63 -3.00 -4.69 -8.44

DS1 50% 250 1.73 -0.15 -0.75 -2.00 0.28 -1.59 -2.19 -3.44 2.26 0.10 -0.19 -0.81 0.36 -0.58 -0.86 -1.48 Peanuts WS 80% 750 38.10 24.04 19.35 9.98 33.56 19.50 14.81 5.44 19.73 12.69 10.35 5.66 17.63 10.59 8.25 3.56

DS1 80% 125 6.32 3.98 3.19 1.63 5.55 3.21 2.43 0.87 3.26 2.08 1.69 0.91 2.90 1.73 1.34 0.55Black Beans WS 80% 750 50.93 34.05 28.50 17.25 46.78 29.91 24.38 13.13 36.00 16.31 13.58 7.95 22.50 14.06 11.34 5.72

DS1 80% 125 8.46 5.64 4.72 2.84 7.76 4.95 4.02 2.15 4.09 2.69 2.23 1.29 3.71 2.30 1.85 0.91Cabbage DS1 90% 100 9.52 6.52 6.57 4.32 8.89 5.89 5.96 3.71 6.20 3.23 3.25 2.13 4.41 2.91 2.94 1.81Chillies DS1 90% 75 7.67 5.33 5.80 3.93 7.24 4.90 5.38 3.50 3.85 2.68 2.93 1.99 3.64 2.47 2.72 1.78Cucumber DS1 90% 75 5.56 3.87 4.85 3.35 5.26 3.58 4.56 3.06 2.35 1.50 2.06 1.31 2.09 1.25 1.83 1.08Fruit Trees n.a. 90% 500 85.63 58.75 85.63 58.75 80.16 53.28 80.16 53.28 54.26 37.76 54.26 37.76 51.33 34.83 51.33 34.83

Total Cropped Area WS 6600DS 2850

Cropping Intensity 143%

Livestock ProductionBuffalo/Cattle (2 fatteners) 90% 179.65 133.11 179.65 133.11 178.03 131.49 178.03 131.49 179.65 133.11 179.65 133.11 178.03 131.49 178.03 131.49

Pigs (1) / Poultry (15) 50% 24.50 10.38 24.50 10.38 16.50 -1.05 16.50 -1.05 24.50 10.38 24.50 10.38 16.50 -1.05 16.50 -1.05

Gross Margin (ex. family labour cost, US$) 463.70 278.97 333.30 180.14 391.82 195.80 261.70 98.56 335.78 196.08 260.54 150.56 277.34 139.42 217.87 97.05 Imputed Income (US$) 102.96 33.14 24.64 -26.70 55.80 -23.61 -22.31 -81.92 46.96 2.88 8.54 -23.29 14.66 -36.86 -18.98 -59.95 Cash Income (US$) 360.73 245.83 308.66 206.84 336.02 219.41 284.01 180.48 288.82 193.20 252.00 173.86 262.67 176.28 236.86 157.00

Notes:Input level: see Appendix K-5 for details on input level for each crop. Input price: Medium refers to the current price levels; High refers to a 25 % increase of all inputs (excluding family labour).Yield: see Appendix K-5 for details on different yield levels. The present calculations have made a conservative estimate with medium and low yieldsOutput price: Medium refers to the current price levels; Low refers to a 25 % decrease.

Gross Margin Budgets for normal input and output price levels (US$) Gross Margin Budgets for 25 % increase in input prices and normal output prices (US$)

High Low High LowMedium 464 336 M 392 277 Low 333 261 L 262 218

Gross Margin Budgets for normal input prices and 25 % decrease in output prices (US$) Gross Margin Budget for 25 % increase in input prices and 25 decrease in output prices (US$)

High Low High LowMedium 279 196 M 196 139 Low 180 151 L 99 97

Input level

Yield

Input level

Yield

Input level

Yield

Low

High LowMedium High Medium High

Medium MediumLow MediumLow

Input level

Yield

Low Medium

HighLow

Medium

Low

333

261

464

336

-

100

200

300

400

500

Gro

ss M

argi

n (

US$

)

Input level

Yield

HighLow

Medium

Low

262

218

392

277

-

100

200

300

400

500

Gro

ss M

argi

n (

US$

)

Input level

Yield

HighLow

Medium

Low

180151

279

196

-

100

200

300

400

500

Gro

ss M

argi

n (U

S$)

Input level

Yield

HighLow

Medium

Low

9997

196

139

-

100

200

300

400

500

Gro

ss M

argi

n (U

S$)

Input level

Yield



12.12 MARKETS AND MARKETING

The progressive liberalization of economic policy and associated implementation of free market mechanisms has resulted in a largely free market occurring in most sectors of agricultural and fisheries trade in Laos. Consumer demands are largely being met year round. Previously and to date much of the market for out-of-season produce in both Thakhek and Vientiane has been satisfied through importation from Thailand. However, this appears to be changing as the internal trade in fruit and vegetables accelerates and different areas of Laos exploit their specific climatic conditions to meet market demands.

12.12.1 Market Description and Analysis

Marketing channels vary by commodity; these channels are not static and change in nature in response to external factors (including policy) and market forces. Field crops in small quantities are produced and sold within Khammouane province principally for the local market. Most of the maize produced in Khammouane is for the fresh food market and dried maize is not found in any Thakhek market. Small quantities of peanuts are also produced for the local market but no soybeans are sold in Khammouane. Larger areas of cultivation of these grain legume crops are usually only associated with contract farming type arrangements that have to date in Khammouane proven to have had mixed success. In Bolikhamxay, closer to Vientiane processing plants, contract farming appears to be operating at a greater level and with more success which is attributed to the proximity to processing plants. Local production of peanuts and soybeans faces competition from imports from both Vietnam and Thailand. Field crops appear to have the lowest market potential for the Nakai because of high competition from lowland areas and relatively lower levels of seasonal price fluctuation. Peanuts appear to have relatively good farm gate prices (US$ 0.40 to 0.60 per kilo dried and shelled) with the Thakhek market for peanuts currently being largely met from Vietnam. Another market opportunity may be the production of fresh maize or sweet corn for the fresh food market in Thakhek if off-season production is possible. Vegetables and Fruit which is sold at markets can be classified into two broad groups. The first are predominantly small scale producer/sellers who are likely to also be selling a range of NTFPs and who may purchase from neighbours for market sale. This group of traders are by far the most numerous. They usually sell on the edge of the market with their produce displayed on tarpaulins laid on the ground. Volumes traded by such sellers are small with average daily sales in the region of US$ 5 to 25. The second and smaller group of vegetable sellers trade in higher value goods with a higher proportion of these being sourced outside the immediate market location (e.g. from other districts, provinces or countries). They have much high levels of stock and their wares are displayed on tables. This second group of sellers have highly organized market linkages and usually place orders two to three times a week, frequently by mobile telephone. They have linkages with a large number of traders operating from different areas and will compare prices between traders prior to placing orders. Vegetables are usually delivered the following morning and such sellers have average daily sales ranging from around US$ 20 to 80. Small traders (meh kai mera’gang) are the backbone of the vegetable trade in Laos. Typically women, they frequently own their own 3 tons trucks and buy directly from producers around their home for sale elsewhere. They have strong local producer knowledge and are fully aware of what is ready for harvest in their area. Such traders have initially started their operations by focusing on a single product widely grown in their area for which there is a reliable market. Over time as these traders develop their networks and contacts they start to diversify a range of vegetables and fruit. While much of the vegetable trade is by order frequently orders are insufficient for a full load so additional vegetables are taken on and sold on an impromptu basis as required. Such traders will always seek to carry goods back to their point of origin even if the profit margins involved are very low to try to cover fuel costs. As trade from an area become more widely recognized traders from outside start to enter the area to exploit the trade opportunities that exist. The altitude and temperature on the Nakai plateau seems to provide the opportunity for high value off-season vegetable production. The Bolovens plateau in Champassak is currently the dominant source of such vegetables in Central and Southern Laos but it would appear that Nakai production could effectively



compete for the Thakhek market for both white and Chinese cabbage. Similarly Nakai appears to be well positioned to compete with Lak Sao’s Chilli production supplies to Thakhek and Vientiane. Off-season tomato production also appears to be a strong market opportunity with retail prices during the wet season reaching US$ 1 per kilo. Opportunities for the production of high value cold season crops such as asparagus and broccoli also exist and while levels of demand in Vientiane remain modest (less than 5 tons and 20 tons, respectively) farm gate prices are high. In all cases, however, production quality (i.e. fit with consumer demand) and seasonality are critical. Considerable quantities of Thai fruits are imported but the recent establishment of a number of commercial farms suggests that this is largely a temporary phenomenon. Oranges and pomelo are largely imported from Thailand with limes being traded from Champassak as well as Thailand. Price trends for oranges are particularly strong with prices rising by some 30% over the last three years in Thakhek. Prices for Limes appear to be falling slightly over the same period but remain reasonable with farm gate prices of between US$ 0.15 and 0.45 per kilo. Pineapple production in Lak Sao is substantial with apparent significant over supply at peak production time when farm gate and retail prices are reported to have fallen as low as US$ 0.03 per fruit. Unless the Nakai peak production period is significantly different to that of Lak Sao it does not appear that pineapples have significant market promise. Livestock have three principal marketing systems for large ruminants: • Local and Vientiane abattoir owners frequently have a number of agents located at district level who

will arrange for livestock purchases on the abattoir’s behalf, which the abattoir will then transport. • In a number of districts, including now Nakai, the rights to the exclusive trade of livestock from the

district are auctioned (or sold directly) to a legally registered trading company or individual11. • Private traders will purchase livestock directly from farmers on a daily basis and pen these animals

until a sufficient number have been accumulated. At this point they will then either hire or use their own truck to transport these livestock to market, in the case of Gnommalath District, and almost exclusively Vientiane abattoirs. These traders are required to pay a head tax to the District.

Buffalo comprise the single most valuable traded product from villages on the Nakai in terms of value and in 2002 this trade earned Nakai villagers an estimated total of US$ 250,000 (farm gate). Cattle are not present nor traded in large numbers but appear to be preferred by farmers for a variety of reasons, not least their faster reproduction. Goat numbers are low but market demand appears to be growing, the goat in Thakhek is largely supplied by stock sourced from Sepon District, Savannakhet. In the case of small livestock no immediate problems are anticipated in the marketing of livestock with the possible exception of local breed pigs. This market appears to have suffered fairly significantly from the introduction of commercial pig farms in the province which appears to have resulted in a decline in demand for local pigs and reportedly, a drop in farm gate prices. The livestock trade in Laos is perhaps the most sophisticated encountered during the study. At its most developed the principal Vientiane Abattoir has production contracts in place with commercial pig farms and uses its own vehicles for the transport of these livestock. In addition a number of small scale district based livestock traders sell directly to abattoirs who arrange transportation. Similar arrangements exist in contract farming relationships in a number of provinces, including Khammouane. Despite the start up of commercial chicken farms in Khammouane, demand for local breed chickens remains strong with such chickens commanding a substantial price premium. Traditional ‘free range’ pig and chicken raising at the household level using local breeds and available feedstuffs has traditionally supplied urban centre’s with pork and chicken. Sophisticated trade networks and large numbers of private traders were involved in this key trade in Khammouane. In recent years however this trade has been altered and in the case of pigs, appears to have reduced. Trade volume in local pigs appears to have reduced as a result of increased local competition from small scale intensive pig raising units located in Thakhek and Nongbok districts (see Figure 12-12). Additionally, there has been increased government

11 In the case of Nakai this is the recently established Nakai Abattoir Supply Association which acts as the agent fort the Vientiane abattoir.



emphasis on attempting to reduce the spread of infectious livestock diseases through requiring all livestock exports from a district to have veterinary certification. Traders reported that small quantities of such livestock (e.g. two pigs or less than twenty poultry) are informally exempted from these new regulations. As a result it appears that the trading systems for small livestock and poultry has re-structured away from larger scale traders towards larger numbers of smaller scale and more village based traders operating at lower individual commodity volumes.

Figure 12-12: Khammouane Pig 'Exports' by Type 1998-2002

Mahaxai serves as a trade node for poultry in the wet season for some villages in Mahaxai, Gnommalath and Boulapha Districts. During this time traders from Thakhek come to old Mahaxai and purchase chickens from farmers or village based traders for sale in Thakhek. These trading chains can be complex; chickens can pass through up to five separate traders before reaching the Thakhek market. There are five to six traders who regularly come to Mahaxai during the wet season for this trade. It is reported that total daily sales in Mahaxai to these traders is relatively low, perhaps averaging 100-200 birds per day.

12.12.2 Assessment of Current Market Volumes

An assessment of market volumes in Thakhek and Vientiane was undertaken; these estimates are shown in Table 12-26 below. Estimates are likely to be low because they are solely based upon the market trade and as such exclude street retailers.

Table 12-26: Estimated Market Volumes

Estimated Monthly Market Size (Tons) Volume 0-5 5-10 10-50 50-200 200-500 500-1000 1000+

Glutinous Rice (all grades) THK VTE Peanuts THK VTE Soybeans THK VTE Maize (dried) VTE Fresh Maize- In season only THK THK VTE Cassava THK VTE White Cabbage THK VTE Chinese Cabbage THK VTE Fresh Chilli THK VTE Dried Chilli THK VTE Broccoli (Dok Pak'at nar) VTE Asparagus (Nor Falang) VTE Pumpkin THK VTE Tomato (large and small) THK THK VTE Pineapples - In season est. THK VTE VTE Banana THK VTE

0 2000 4000 6000 8000

10000 12000 14000 16000 18000 20000

1998 1999 2000 2001 2002

Source: Provincial Commerce Department

Head Farmed Pig

Local Pig



Estimated Monthly Market Size (Tons) Volume 0-5 5-10 10-50 50-200 200-500 500-1000 1000+

Mangoes - In season est. THK THK VTE Jackfruit - In season only THK VTE Pommelo THK VTE Orange (all grades) THK THK VTE Lemon THK THK VTE Natural Fish THK VTE Farmed Fish THK VTE Native Chicken THK VTE Farmed Chicken THK VTE Ducks THK VTE Pork THK VTE Cattle THK VTE VTE Buffalo THK VTE VTE

12.12.3 Assessment of Current Prices

Retail and farm gate prices for a variety of produce are shown below, in Table 12-27:

Table 12-27: Retail and Farm Gate Prices (US$)

Retail Farm Gate Product Unit High Low Unit High Low Notes

Glutinous Rice (all grades) kg 0.24 0.16 kg 1.70 0.80 Farm gate price is paddy

Peanuts kg 1.00 0.70 kg 0.60 0.40 Lao and Vietnamese varieties available.

Soybeans kg 0.90 0.70 kg 0.30 0.20 Trader purchase price range 3500-4500 (Lao product), prices peak in WS.

Maize (dried) kg 0.20 0.15 kg 0.075 0.06 Dried maize not found in Thakhek market. Farm gate price as per contract farming.

Maize (fresh) 10 cobs 0.20 0.10 Sack

(50kg) 5.00 2.00 Only sold in-season (WS) as snack food.

White Cabbage kg 0.03 0.15 kg 0.15 0.06 Pakse Trader source Cassava kg 0.30 0.10 kg n.a. n.a. No trade, producer sales only Chinese Cabbage Kg 0.50 0.20 kg 0.25 0.15 Pakse Trader source Fresh Chilli Kg 1.50 0.60 meun 6.00 3.00 Vientiane farm gate prices Dried Chilli kg 2.00 1.50 kg 1.60 1.40 Vientiane farm gate prices Broccoli (Dok Pak'at nar)

kg 1.00 0.40 meun 10.00 4.00 Vientiane farm gate prices

Asparagus (Nor Falang)

kg 25.00 2.30 kg n.a. n.a. Procured in Thailand

Pumpkin kg 0.30 0.15 kg 0.10 0.50 Lak Sao prices.

Tomato kg 1.00 0.05 kg 0.50 0.05 High seasonal price variation, Thakhek prices.

Pineapples kg 0.60 0.20 fruit 0.30 0.03 Strong seasonality to prices because of seasonal 'gluts', sig. Lak Sao Prod.

Banana bunch 0.25 0.l0 tree 0.75 0.35 Prices here for 'narm' variety.Farm gate price for tree bunch.

Mangoes kg 0.80 0.30 kg n.a. n.a. Prices highly seasonal

Jackfruit kg 1.00 0.30 fruit 1.50 0.60 Only available during season, no out-of-season imports, no trade.

Pomelo fruit 0.90 0.70 fruit n.a. n.a. Procured in Thailand

Orange (all grades) kg 1.30 0.60 kg 0.80 0.30 Largely procured in Thailand, range of grades/prices.

Lemon fruit 0.07 0.01 kg 0.45 1.50 Season and quality dependant, assumes 30 fruit/kg

Natural Fish (Bar Tamasaart)

kg 2.50 0.30 kg 1.20 0.20 Price heavily dependant upon size and type.

Farmed Fish (Bar Le'an)

kg 1.60 0.80 kg 1.40 0.60 Seasonality impacts price, less natural fish increases demand for farmed.

Native Chicken head 2.50 2.00 head 2.00 1.20 Price size and farm location dependant. Farmed Chicken kg 1.80 1.40 kg n.a. n.a. No data on prices paid to commercial



Retail Farm Gate Product Unit High Low Unit High Low Notes

chicken farms Ducks head 7.50 1.50 head 3.50 1.30 Upper price for large muscovy ducks.

Pork (farmed) kg 2.00 1.80 kg 1.00 0.875 Live weight price, 80-100 kgs per head, av. meat yield 70kg

Pork (Ladt) kg 1.95 1.75 kg 0.70 0.575 Live weight price over 10kgs,

Beef kg 2.50 2.20 head 150.00 100.00 Price per head, size and condition dependant

Buffalo kg 2.30 1.90 head 250.00 150.00 Price per head, size and condition dependant

12.12.4 Anticipated Market Development

Both qualitative and quantitative data seems to indicate that there has been a considerable acceleration of internal trade in agricultural products in the last 5 years. Most of the traders met during the study had been in the trade for less than this period. The reasons for this are many but include: • A substantial expansion in access to relatively cheap 3 tons trucks, which are well suited to small

scale vegetable and fruit trade. • Improved road access from the South to Vientiane along route 9 and associated improvements to

secondary roads. • Policies encouraging import substitution and increased rigor in the control of informal cross border

trade. This trend looks set to continue and accelerate further. The relative proximity of upland areas of Laos – with their distinct production potential – to Thai markets makes it likely that Lao agricultural exports will expand in the short to medium term. The balance of trade in such products that has appeared until recently to have been in Thailand’s favour is thus set to reverse or has done so already12. In the medium term it is likely that seasonal price variations will reduce somewhat as the opportunity that this offers for off-season producers is increasingly exploited. The current large volumes of fruit imports from Thailand are also likely to reduce as newly established commercial scale Lao fruit plantations come into production (e.g. Paksan Orange farm). It is likely, but not inevitable, that these commercial scale fruit farms will be followed by smallholder production of similar fruits in the same area as technical and market knowledge from these farms diffuses. In crops with low entry barriers and relatively easy production significant seasonal gluts are already being experienced. Pineapples are perhaps the classic case where in production areas prices seasonally have fallen as low as 300 kip per fruit (Lak Sao). This was also the case in 2003/2004 with in-season tomato production in Khammouane where prices fell as low as 500 kip/kilo. As the production potentials to meet market demands become better understood it is likely that many areas will become specialized in single crop production. This is already the case in Southern Sayabouly where maize is now perhaps more widely grown than rice. The current internal trade in fruit and vegetables is characterized by large numbers of relatively small volume traders, mostly operating from production locations. Trader numbers in the short to medium term will increase as new areas enter market production and identify their production niche’s. However, in the medium to long term (10 plus years) it is likely that there will be a consolidation of this industry with fewer larger traders involved and these most likely be market, as opposed to production area, -based. The market for meat will remain strong and prices are set to continue to rise along the same patterns as has been the case to date. The opportunity for the establishment of seasonal feedlots for cattle and buffalo clearly exists given dry season weight decline but as yet does not appear to have been exploited. Given the scale of the opportunity that this presents it is likely that such feedlot operations will establish in the short to medium term. If the current policy environment, which makes livestock export to Thailand problematic, should change this would further boost the development of this agro-enterprise. The 12 Because of high volumes of unrecorded border trade, official data on balance of trade in such goods cannot be considered reliable.



potential for similar types of activities at a household level would also appear to exist13. Similarly, the potential for expansion of local chicken production remains strong because of the strength of consumer preference for this type of poultry. One possible exception to the strong opportunities that exist within the livestock sector is that of farmed pork where prices appear to be slowing somewhat and production levels may have reached or surpassed levels of market demand. Pig farmers are reporting a slight drop in live-weight prices over the past few months and this may be indicative, similarly while this industry continues to grow in Khammouane the rate of growth appears to have peaked. Predicting future market volume sizes and demand is not possible because of the wide range of factors likely to influence such outcomes. However three broad scenarios of overall demand levels are presented below: • The current balance between production and consumption remains broadly the same but

increasing in line with population growth. The impacts of rising wealth levels are also likely to increase demand for out-of season vegetables and other ‘luxury’ food products. As such farm gate prices remain broadly the same or rise.

• The risk of overproduction as road networks improve and market forces penetrate deeper, market orientated production increases substantially to an extent that farm gate prices remain static or decline.

• Growth of new markets or further developed of existing markets and thus absorb increased Lao production.

All of these three scenarios can occur to varying extents depending upon the particular product. Already, in some crops at peak season the effects of scenario (b) are being felt in some areas (e.g. pineapples). In general, however, it appears most likely that a combination of scenarios (a) and (c) will prove to be dominant. At present there are significant opportunities for import-substitution driven production of certain vegetables and many higher value fruits. These opportunities have been exploited for a number of years on the Bolevens and are also emerging elsewhere (e.g. fruit orchard establishment). In the longer term as ASEAN develops and border trade restrictions fall, Lao products will become increasingly sold in Thailand where they are already seen as being more ‘natural’ by consumers. At present, however, it appears that the reverse situation is occurring with an increased emphasis by GoL authorities on the control of Unrecorded Border Trade in the interests of expanding taxation revenues. In some areas it appears as through efforts are being made centrally to discourage trade in products for which there is a perceived shortage in Laos. Thus it was reported that livestock exports to Thailand from Thakhek are not being encouraged because Vientiane’s demand is so considerable. Thailand’s demand for livestock is considerable and given Laos’ low population densities and large areas suitable for grazing, the country appears to be well placed to continue and expand its response to this market opportunity. Similarly it is likely that Laos will increasingly be in a position to take advantage of its highland areas in central and southern regions to supply fruit and vegetables to adjacent areas of Thailand.

12.12.5 Nakai Comparative Advantage and Implications

Even with the anticipated road improvements the Nakai Plateau will remain relatively remote. Soils on the Plateau are poor and the resettler population’s major market linkage to date has been through the livestock trade. To date their production has been largely subsistence focused with major sources of cash income being livestock and NTFP sales. However, Nakai has obvious comparative advantages over districts such as Nongbok which is just south of Thakhek. Nongbok district has rich, deep alluvial soils, and its farmers have many years of experience in using available irrigation infrastructure. A high proportion of agricultural production in that district is for market sale both to Thakhek and Thailand. Farmers are market attuned and are using relatively high levels of agro-chemical inputs and sophisticated production techniques Due to the altitude of the Nakai Plateau it is significantly cooler than lowland districts and the cool season is reportedly of longer duration. As such, production seasons for cool season vegetables on the Nakai will

13 The extent to which this is an opportunity that could be exploited on the Nakai will depend in large part on the extent to which the draw down zone offers grazing potential.



be longer than in lowland districts. The presence of NT2 and the assistance that will be provided to resettler communities in the first 3-5 years following construction to enable them to produce dry season vegetables. Although dry season irrigation is now fairly common in lowland areas of Khammouane, upland irrigation on the scale that will be created will be unique in the province. The combination of altitude and irrigation thus offers significant production potentials. A possible fourth, but as yet unproven advantage, is that of the very large annual draw down zone of the lake. This may result in a number of very specific production opportunities. However, not until the scheme is operating is it likely that the opportunities, if any, offered by this zone will be understood. There are substantial seasonal price variations in vegetable prices in Thakhek and as such off-season production offers potentially high farm gate prices as well as, presently, lower production competition. Figure 12-13 provides some examples. In addition, there are a number of cool season high value vegetables, such as broccoli that are currently only available during the cool season. The potential for longer cool season growing seasons on the Nakai must, from a marketing perspective, be exploited to its fullest extent if vegetable production is to effectively compete with that from lowland districts.

Figure 12-13: Seasonal Price Ranges, Thakhek 2002

0

2000

4000

6000

8000

10000

12000

Tomato Cabbage FreshOnion

Source: CPI Data, NSC

Kip

/ K

g

In-Season

Off-Season

A number of field crops such as peanuts and soybeans could be cultivated on the Nakai and there is a local market for these products. However, from a marketing perspective it is unclear what Nakai’s advantage is in the production of such crops unless the quality of produce is high. A summary of the short to medium term market opportunities, risks and production features required to exploit these opportunities are presented in Table 12-28.

12.12.6 Market Strategy and Acceleration Program

Marketing channels for Nakai production will, over time, emerge spontaneously as they have elsewhere in Laos. However, such a process will take time and traders from the Nakai are likely to focus, in the short to medium term at least, on areas of high return and low risk, this is likely to be fish production. A number of measures will be undertaken to accelerate the development of marketing channels (traders) sourcing products from the Nakai. However, such measures will be futile unless the production that is promoted on the plateau is attuned to market demand.



Production promotion

The success of these measures is conditional upon a Production Promotion Strategy that is closely linked to current market demands, (primarily in Thakhek and secondarily in Vientiane) and Nakai’s comparative production advantages. The following points guide this: • The construction phase of NT2 will generate a substantial demand for fresh food. The obvious

short term opportunities that are presented by this market should not be ignored. However, this period will also be used to develop the Nakai’s reputation for the production of particular crops and/or livestock for which it appears to have a comparative advantage.

• During this period traders from Thakhek and elsewhere supplying construction sites with food are likely to be interested in having commodities for transportation on their return trip. This opportunity will be exploited and traders made aware of production that is available for sale on the Plateau.

• Rigorous production trials will be undertaken for off-season (or extended season) vegetable production and high value fruit types suited to the Nakai’s climate. If necessary NTPC will invest in hardware (e.g. greenhouses) required to enable such production to occur.



Table 12-28: Medium Term Market Opportunities, Risks and Production Features

Product Type Market Context & Opportunities Market Risks Required Production / Marketing features

Large livestock

Strong market demand, established traders in Nakai. Opportunity for seasonal feedlot operations to take advantage of cheap, low weight livestock available during DS. Scale: Medium-High

Risk of monopolistic trading association being continued possibly reducing farm gate prices. Scale: Medium-High

No specific features required.

Small livestock

Decline in market demand for traditionally raised pigs. Increasing demand for goat, potential to compete with Sepon for Thakhek and Vientiane Market. Scale: Medium

Low trader interest in purchase of local pigs and/or low prices. Scale: Medium-High

Levels of goat production would need to be relatively high to ensure stable supply of sufficient quantities to warrant Vientiane traders shifting from Sepon purchase area.

Poultry

Strong Thakhek demand, high farmgate/retail price differentials, strong price trends. Scale: High-Medium

No significant market risks Scale: None/Low

Problems of seasonal epidemics would need to be reduced for production levels to be sufficient to generate significant trader interest.

Fruits

Good market demand for citrus, largely currently met from Thai and Pakse. Scale: Medium-High

Risk that commercial farms recently established meet Thakhek market demand. Scale: Low

Quantity and quality (market favoured varieties) of production must be sufficient to generate trader interest.

Vegetables

Significant opportunity for off-season vegetable production; esp. Cabbage, Chilli, Broccoli, Tomato and Asparagus. Scale: High

Vientiane market production (Asparagus, Broccoli) will be difficult because new, unknown production area and high transport costs. Scale: High

For Off-season production quality and quantity needs to be sufficient to generate trader interest. For Broccoli and Asparagus NTPC may need to be pro-active in marketing.

Field Crops

Scale of production on Nakai and location unlikely to be attractive to commercial consumers (i.e. Contract farming unlikely). Scale: Low-Medium

Without contract farming, marketing likely to be difficult, will require significant volume of production. Scale: Medium-High

To compete effectively Nakai production will need to be of lower farm gate price or sig. better quality.



Market acceleration

Market acceleration may occur as a natural phenomenon so that in some areas of production it is likely that no external assistance will be required. The Livestock Marketing Association established on the Nakai is likely to continue in operation and it is not envisaged that there will be any problems with the marketing of these large livestock. The marketing of small livestock is also not expected to be a problem and will occur as volumes of production warrant. However, apart from those trading in livestock and NTFP’s there are no existing traders based on the Plateau exporting Nakai agricultural produce (crops, vegetables, fruits). Therefore, a number of interventions will be undertaken to accelerate the natural development of the trade sector in this area. Without such acceleration it is likely that opportunities will be missed and many households will abandon (or not adopt in the first place) commercial production because of the lack of buyers. The following measures should be undertaken to accelerate market development: • In order to foster Thakhek based trader interest it is proposed that traders supplying construction

sites are invited to the Nakai on a regular basis by NTPC to understand the production that is being undertaken there and the market opportunities that will thus result.

• Cross visits by Nakai farmers to Nongbok farms will be undertaken both for technical production reasons but also, critically, to develop Plateau residents appreciation of the opportunities (and risks) associated with market oriented production. Such visits will be timed to coincide with critical production periods as well as at time of harvest and sale.

If the production of quality, high value, niche market vegetables (e.g. asparagus and broccoli) does prove viable it may be necessary to engage directly in the marketing of this produce at least initially until Nakai or Thakhek based traders are convinced of the viability of such trade. This engagement should be as minimal as possible and be limited to the provision of trade subsidies where NTPC would part-fund the capital outlay required for such trading trips. Such subsidies will be available only during the initial production season of such crops and be reduced each trip. Such subsidies will reduce the risks faced by traders in entering new and specialist markets. It is anticipated that a maximum of US$ 5,000 would be required for this purpose. For niche market production such as asparagus and broccoli more detailed market assessment is required as to volumes of demand and critically institutional buyers (hotels, etc) to enable the effective marketing of this produce. In addition it appears as through there is a significant market opportunity for dry season14 cattle and buffalo fattening for sale. This requires further assessment to be conclusive but a partnership with the Nakai Livestock Marketing Association to undertake such activities holds significant promise. Such assessments, and that for other possible niche crops will be ongoing during the support period. Fostering the establishment of contract farming agreements between Plateau residents and traders and/or processors is the strategy most likely to ensure that resettlers have a market for their produce. The opportunities for establishing such relationships appear to be limited but will be explored fully both in Laos and, if appropriate, Thailand. To enable the implementation of these measures and, if necessary, to play a direct marketing role, two staff will be recruited. One Marketing Officer, ideally an existing trader (probably female and Thakhek based) will have responsibility for developing and maintaining contact with Thakhek based and other traders as well as implementing the measures listed above. S/he will be supported by a vehicle and a driver. Marketing support

Marketing support will be required in the early stages. Because of the poor road conditions the villages on the plateau have to date been comparatively weakly integrated into the Lao market economy. Apart from buffalo, cattle and some NTFPs there are no formal trading systems established for the ‘export’ of plateau produce. With road improvements Nakai’s market integration will change rapidly. Even without any external assistance it is likely that traders will, over time, identify products from the area with market 14 When cattle and buffalo are at their thinnest and command lowest prices.



potential and seek to exploit these. Existing market traders in Nakai and members of the newly established Livestock Trading Association are all potential future traders from the area. The markets generated during the construction phase are likely to attract traders from Gnommalat and other districts to supply these markets. Such traders will want to seek back-loading of their trucks and could become potential buyers for produce from the plateau. However, the constraints is that the produce is not being delivered to the district centre at Nakai at present so these potential buyers would be unable to easily access the supplies of fresh produce. There are a number of interventions that will be supported by the Project to improve the marketing situation:

• Establish close marketing contacts between buffalo and cattle producers on the Nakai with Construction Camp Servicing Companies. There is potential for improved local marketing and use or development of local health certified abbatoir outlets

• The Demonstration Farm as well as the Pilot Nursery are each producing significant volumes of fruit and vegetables. NTPC will encourage the marketing of these products by the villagers from the area. This could be done in the local market in Nakai where there is currently a dearth of fruit and vegetables being offered for sale. This will assist the development of private market channels and would represent a first step in enabling villagers to learn more about local market demands and preferences.

• Only two villages are likely to be resettled prior to commencement of dam construction, when the demand for fruit, vegetables and meat will begin to escalate. NTPC will encourage the production of goods on the Nakai for which the area has a comparative advantage. This entails encouraging farmers to market fruit and vegetables that they are already producing as well as promoting greater vegetable production in villages that will not yet have resettled. This process will help catalysing the process of establishing a local market during the construction period and would help establish a reputation for these products.

• NTPC will also organise a trade fair in Nakai and invite traders from Thakhek to see for themselves the production that is being promoted. This can only take place when sufficient production has commenced to warrant their making buying trips to the plateau.

• NTPC is considering promoting the establishment of a Fruit and Vegetable Growers Association and financing the establishment of cool storage facilities in Nakai to which farmers could deliver their produce and traders could purchase from.

Marketing of produce

The cropping patterns that have been developed feature a number of crops that can generate cash income for farmers. It is assumed that all of the rice produced will be consumed by the household together with a large proportion of the grain maize, whilst a larger proportion of the legumes and high proportion of the fruits and vegetables will all be sold. Of these the field crops may have the lowest potential because of high competition from the lowland areas and relatively low levels of seasonal price fluctuation. However, peanuts have relatively good farm gate prices with the Thakhek market for peanuts being largely met by imports from Vietnam. Another market opportunity may be the production of fresh maize or sweet corn for the fresh food market in Thakhek by off-season production in the dry season. The climatic conditions on the plateau should provide good opportunities for the production of high value vegetable crops during the dry season. Currently the Bolovens plateau in Champassak is the dominant source of such vegetables in central and southern Laos but it would appear that Nakai production of white and Chinese cabbages could compete for the Thakhek market. Similarly, Nakai appears to be well positioned to complete with the production of chillies from Lak Sao which supplies Thakhek and Vientiane. Off-season tomato production also appears to a strong market opportunity with high retail prices in the dry season. Opportunities for the production of broccoli, and possible also asparagus, also exist and although levels of demand remain relatively low the prices are high. However, in all these cases, production quality and seasonality remain critical factors in determining the ultimate profitability of the enterprise.



Account should also be taken of the impact that the construction period will have on the demand for food on the plateau. The Whole Farm Scenarios featured in Models 1 and 2 will be targeting the likely demands that will arise during the four year period when construction is on-going. The construction period is estimated to result in the creation of a fresh food market with an annual value of US$ 3.5 million rising to US$ 7 million depending on the size of the labour force and dependants that move to the plateau. This population is likely to be based at a number of different sites thus dispersing the demand into a series of separate geographical markets. This constitutes a major opportunity for resettled households in Nakai and adjacent districts, most particularly Gnommalat where the bulk of the workforce will be based.

12.13 IMPLEMENTATION SCHEDULE

The implementation schedule for the Agriculture and Livestock Program for the Resettlement Phase is presented in Table 12-29 below. The Irrigation part of Program will only start in Year COD-1 when the reservoir starts to fill up.



Table 12-29: Timetable of the Main Activities of the Agriculture and Livestock Development Program.

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

2 Summary schedule of Construcion, and related transformation from Rainfed to Rainfed-Irrigated Agriculture

1 Nam Pan (from Nam Nian, part of Sop Hia)House ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

2 TalangHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

3 SopheneHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

4 SopmaHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

5 Sop HiaHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

6 NongbouakhamHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

7 NakaiDtaiHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

8 Nakai NeuaHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

2004 2005 2006 2007 2008 2009 2010

Activity: Agriculture and Livestockclose of Nakai Dam Commercial

OPlanned Fin. Cose

house construction: preparationhouse construction: buildingirrigation system constructionrainfed agriculture (in new site)rainfed & irrigated agriculture



Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

9 PhonphanpeakHouse Construction: N/AIrrigation ConstructionRainfed Agriculture - Relocated Site

Irrigated/Rainfed Agriculture - Relocated Site10 Nong Boua

House ConstructionIrrigation ConstructionRainfed Agriculture - Relocated Site: N/A

Irrigated/Rainfed Agriculture - Relocated Site11 Bouama

House ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

12 PhonsavangHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

13 SopOnHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

14 DoneHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

15 Khon kheneHouse ConstructionIrrigation ConstructionRainfed Agriculture - Relocated SiteIrrigated/Rainfed Agriculture - Relocated Site

Cropping1 Site assessment and Land use Planning

1.1 Topographic surveys1.2 General soil survey of whole Resettlement Area/Sites1.3 Detailed Soil Surveys of (selected) resettlement sites1.4 Preliminary land and forest use planning1.5 follow up land and forest use planning (post relocation, post DMC testing)1.6 post COD land and forest use planning (post reservoir filling)

20102006 2007 2008 2009

Activity: Agriculture and Livestock

2004 2005



Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

2 Progressive development of irrigated farm lots2.1 Villages with irrigation before main reservoir

b construction of houses (see infrastructure schedule ) a construction of irrigation system (see infrastructure schedule )

2.1.2 Assess and Plan famr plots, terracing requirments (from topo surveys)2.1.2 Draft farm/field layout designs2.1.2 Clearing of land2.1.2 Initial demarcation of farm plots2.1.2 wet season upland cropping (upland rice, maize)2.1.2 final demarcation of farm lots and contour marking2.1.2 Initial ploughing/terracing - early wet season2.1.2 2nd wet season crop2.1.2 final terracing2.1.2 1st dry season crop

2.2 Villages whose irrigation is from main reservoirb construction of houses (see infrastructure schedule ) a construction of irrigation system (see infrastructure schedule )

2.2.1 Assess and Plan farm plots, terracing requirements (from topo surveys)2.2.3 Draft farm/field layout designs2.2.5 Clearing of agricultural land2.2.7 Initial demarcation of farm plots2.2.9 wet season upland cropping (upland rice, maize)

2.2.11 final demarcation of farm lots and contour marking2.2.13 Initial ploughing/terracing - early wet season2.2.15 final terracing2.2.17 1st dry season crop

3 Rainfed Cropping with DMC systems 3.1 establish and operate first set of research/trial sites3.2 establish second set of trial sites3.3 annual reports of progress3.4 recommendations re. feasibility and applicabilityof DMC3.5 expansion of farmer areas of DMC, as appropriate

4 Trials and demonstrations4.2 Nong Boua Project trial area4.2 Nong Boua - on farm trials and demonstration4.2 Bouma, Phonsavang - on farm trials and demonstration4.2 Phonsavang Project Trial area4.2 Other4.2 Establish operate Project trial areas, as appropriate4.2 Establish operate on farm trial areas, as appropriate

5 Provison of Livelihood equipment, other inputs5.1 Purchase power tillers, Ban Nong Boua5.2 Purchase power tillers, Bouma, Phonsavang5.3 Purchase power tillers, Village relocation group 15.4 Purchase power tillers, Village relocation group 25.5 Provide hoes, etc

6 Provison of Seeds6.1 Purchase and distribute seeds, as appropriate and required6.2 Build Nong Boua seed processing facility6.3 Build Sop On seed facility6.4 Build Nakai Tai seed facility6.4 Operate seed processing facility


2004 2005 2006 2007 2008 2009 2010



Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

7 Provison of Fertilisers7.1 Expand Nong Boua fertiliser factory7.2 Build Sop On organic fertiliser factory7.3 Build 2 northern organic fertiliser factories7.4 Operate organic fertliser factories7.5 Develop on farm production of organic fertiliser7.6 Provison of lime7.7 Provision of rock phosphate or dolomite 7.8 Provision of other chemical fertilsers, as appropriate7.9 Purchase or Propagation of biological control agents

8 Development of Extension Facilities8.1 Expansion of DAFO office8.2 Provision of Office Equipment for DAFO8.3 Provision of Laboratory Equipment for DAFO8.4 Purchase of motorcycles8.5 building of village staff house and training centre

9 Training 9.1 Farmer Extension Leader Training9.2 Training on improved rice production9.3 Improved cropping - vegetable growing skills4.4 other training, as required

Livestock raising

1 FORAGE 1.2 Establishment of forage nurseries

1.2.1 Procurement of seed, planting materisl1.2.2 Establish and maintain nurseries1.2.3 Ensure distribution of planting materials to farmers

1.3 establishment of forage - irrigated depots1.3.1 establish grasses on contour bund - selected farmers

1.3.2 establish pastures - selected farmers1.3.3 use plots as FFS and field day sites1.3.4 support the expansion of areas, as rqeuired

1.4 Establishment of forage - upland rainfed areas1.4.1 Survey of potential grazing areas1.4.2 establish trials and demonstration plots1.4.3 use plots as FFS and field day sites1.4.4 develop methods for sward establishment1.4.5 support the expansion of areas, as required

1.5 Establishment of forage - drawdown zones1.5.1 Survey of potential forage areas1.5.2 establish trials and demonstration plots1.5.3 use plots as FFS and field day sites1.5.5 support the expansion of areas, as required

2 TRAINING IN LIVESTOCK MANAGEMENT & DISEASE CONTROL2.1 Training of VLA

2.1.2 training in livestock husbandry: breeding and housing 2.1.2 training in livestock husbandry: forage and feeding2.1.2 training in livestock diseases: diagnosis2.1.2 training in livestock diseases: prevention2.1.2 training in livestock diseases: curative


2004 2005 2006 2007 2008 2009 2010

as required

as required

as required

as required



Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

2.2 Training of farmers - FFS 2.2.1 training in livestock husbandry: 2.2.2 training in livestock diseases: diagnosis and prevention2.2.3 training in livestock diseases: curative2.2.4 training in other subjects as required

3 ANIMAL RAISING TRIALS AND DEMONSTRATIONS3.1 Project trials and demonstrations3.1 establish trials sites for pig raisng3.1 establish trials sites for chicken3.1 establish trials sites for eel, frog, rabbit raising3.2 On-farm trials and demonstrations3.1 select, work with farmers - pig raising demonstration3.2 select, work with farmers - chicken/egg demos3.2 select, work with farmers - eel, frog, rabbit demo3.2 select, work with farmers - other demonstrations

4 BREEDING AND DISTRIBUTION OF (IMPROVED) STOCK4.1 Cows/buffaloes 4.1 purchase of cows4.1 distribution of cows, via subsidised loan shceme4.1 purchase of Bulls4.1 temporary loan of bulls (or AI) for insemination 4.2 Pigs4.2 purchase of sows4.2 distribution of sows via loan shceme4.2 establishment of boar raising centres4.2 temporary loan of boars (or AI) for insemination 4.3 Ducks4.3 purchase ducklings4.3 distribution of ducklings, via subsidised loan scheme4.4 Poultry, and rabbits4.4 establishment of poultry breeding farms4.4 operation of poultry breeding farms4.4 distribution of chicks, via subsidised loan scheme4.5 Frog, eel and other aquatics4.5 Establishment/operate of 'aquatics' breeding farms4.5 Distribute stock

5 PROCUREMENT OF VETERINARY SUPPLIES, LIVESTOCK EQUIPMENT5.1 procurement of veterinary tool kits5.1 establish procedures for distribution and use5.1 manage the distrbution and use of kits5.1 procurement of medicine (tranfer to private)5.1 establish procedures for distribution/use5.1 monitor the distribution and use of medicine5.1 procurement and distribute feed supplements/licks

6 FACILITIES for RANGE GRAZING6.1 Gully Stops6.1 survey areas and sites for gully stop/dams 6.1 organise and support construction of gully stops6.1 develop tenure, and maintainence procedures6.2 Fencing6.2 survey grazing area etc, and plan for fencing6.2 coordinate: village forest and land use committees6.2 progressively develop fencing: temporary - permanent


2004 2005 2006 2007 2008 2009 2010

as required

as required

as required

as required

as required

chapter 12 agriculture and livestock development development...12.3.3 irrigation potential and...

Documents