Small-scale Agro-enterprise Development in the Uplands of the Lao PDR - SADU III

SADU III is funded by the Swiss Agency for Development and Cooperation (SDC), and is implemented by the International Centre for Tropical Agriculture (CIAT) in a research-for-development partnership with agencies within the Ministry of Agriculture and Forestry (MAF). The key MAF partner at the national level is the Agriculture and Forestry Policy Research Centre (AFPRC) of the National Agriculture and Forestry Research Institute (NAFRI). The project is also pursuing opportunities for a strengthened partnership with the National Agriculture and Forestry Extension Service (NAFES). At the provincial and district level the project is linking with MAF through the Provincial Agriculture and Forestry Offices (PAFO) and the District Agriculture and Forestry Offices (DAFO). In the coming year the project is also undertaking an effort to strengthen engagement with the provincial and district Industry and Commerce Offices.

SADU’s management and governance structure allows for a strong ownership by the national partners. The established National Steering Committee in which all national partners are seated, has in principle a strong say in the direction and course of SADU III. At the implementation level, national-led execution and ownership is fostered through the establishment of Provincial level Steering Committees. Moreover, the Provincial and District Agricultural Offices have assigned substantial numbers of staff (4 per District and an additional 3 at PAFO level) to SADU and planning and decision making at activity level is largely decentralized and localized.

The Project Development Goal of SADU III is “To improve livelihoods of marginalized smallholder farming households, especially ethnic minority groups, women and the poor, in upland areas of Northern Laos through increased market chain efficiency”.

SADU III has three outcomes which drive the implementation of the project:

Outcome 1: In selected market chains the private sector has taken advantage of opportunities and the Provincial and District Government have addressed local market constraints, supporting smallholder integration into markets.

Outcome 2: The policy environment is more conducive for integration of smallholders into market chains.

Outcome 3: Project partners working with market chains scale-out poverty impacts, through integration of smallholders into markets.

SADU III is currently active in 6 districts in Xieng Khouang (4) and Luang Prabang (2) Provinces. Further expansion of the project area to at least 5 new village clusters (Kum Bans) in existing target districts is foreseen in the coming year. In the 3rd quarter of 2010, the project will on request of the PAFO in Luang Prabang assess the potential and feasibility to add a third target district to the Luang Prabang project area, bringing the total number of Districts in which the SADU project is active to 7.