White Gold: The Commercialisation of Rice Farming in the Lower Mekong Basin

This open access book is about understanding the processes involved in the transformation of smallholder rice farming in the Lower Mekong Basin from a low-yielding subsistence activity to one producing the surpluses needed for national self-sufficiency and a high-value export industry. For centuries, farmers in the Basin have regarded rice as "white gold", reflecting its centrality to their food security and well-being. In the past four decades, rice has also become a commercial crop of great importance to Mekong farmers, augmenting but not replacing its role in securing their subsistence. This book is based on collaborative research to (a) compare the current situation and trajectories of rice farmers within and between different regions of the Lower Mekong, (b) explore the value chains linking rice farmers with new technologies and input and output markets within and across national borders, and (c) understand the changing role of government policies in facilitating the on-going evolution of commercial rice farming. An introductory section places the research in geographical and historical context. Four major sections deal in turn with studies of rice farming, value chains, and policies in Northeast Thailand, Central Laos, Southeastern Cambodia, and the Mekong Delta. The final section examines the implications for rice policy in the region as a whole. Rob Cramb is Honorary Professor of Agricultural Development in the School of Agriculture and Food Sciences at The University of Queensland, Australia. He has taught, researched, and consulted on agricultural and rural development in Southeast Asia for over forty years. His previous books include Land and Longhouse: Agrarian Change in the Uplands of Sarawak and (with John McCarthy) The Oil Palm Complex: Smallholders, Agribusiness and the State in Indonesia and Malaysia White Gold The Commercialisation of Rice Farming in the Lower Mekong Basin Foreword Preface Contents List of Figures List of Tables List of Contributors Part I: Introduction Chapter 1: The Evolution of Rice Farming in the Lower Mekong Basin The Lower Mekong Basin Origins of Rice Farming in the Lower Mekong Historical Periods of Surplus Production Recent Changes in the Technology of Rice Farming The Evolution of Rice Value Chains Shifts in Rice Policy References Part II: A Fragrant Aroma Chapter 2: Commercialisation of Rice Farming in Northeast Thailand Rice Production Rice Marketing Rice Policy Land Water Seed Fertilisers Extension Credit Farm Management Marketing and Pricing Changes in Rice Farming in a Village in Khon Kaen Province References Chapter 3: Evolution of Rice Farming in Ubon Ratchathani Province Introduction The Case Study Villages Ban Donmoo Ban Bua Teang Ban Nong Bua Hi Fertiliser Use Labour and Machinery Use Land Preparation Sowing/Planting Harvesting and Threshing Summary Comparative Returns to Rice Production Conclusion References Chapter 4: Farmer Organizations in Ubon Ratchathani Province Introduction Farmer Organizations and Community Enterprises in Thailand Case Studies in Ubon Ratchathani Ban Donmoo Farmer School Group Ban Donmoo Community Rice Mill Group Ban Bua Teang Agro-Tourism Group Ban Donmoo Micro Finance Institute Ban Bua Teang Village Fund Discussion Conclusion References Part III: A Sticky Situation Chapter 5: From Subsistence to Commercial Rice Production in Laos Introduction The Context of Rice Farming in Laos Rice-Based Farming Systems Trends in Rice Production and Marketing Conclusion References Chapter 6: Adapting the Green Revolution for Laos Introduction Setting the Scene: Laos 1975–1990 The Political Context for Rural and Economic Development Early Efforts in Rice Research The Lao-IRRI Rice Research and Training Program, 1990–2007 The (Political) Will to Succeed Developing Research Infrastructure and Capabilities Varietal Improvement and Management Practices Distribution and Use of Seeds by Households Achievements and Legacy of the Lao-IRRI Project Evidence of Project Impacts Use of Improved Varieties in Savannakhet Reflections on the Success of the Lao-IRRI Project References Chapter 7: Rainfed and Irrigated Rice Farming on the Savannakhet Plain The Study Area Village and Household Profiles Rice Production in the Wet Season Rice Production in the Dry Season Household Rice Consumption and Sales Conclusion Chapter 8: The Supply of Inputs to Rice Farmers in Savannakhet Introduction The Fertilizer Supply Chain Actors in the Supply Chain Fertilizer Transactions Constraints and Problems The Seed Supply Chain Origin and Uptake of Improved Varieties Actors in the Supply Chain Problems and Constraints Conclusion References Chapter 9: Rice Marketing and Cross-Border Trade in Savannakhet Introduction The Rice Market Chain in Savannakhet Province Border Trade in Savannakhet Province Conclusion Chapter 10: Economic Constraints to the Intensification of Rainfed Lowland Rice in Laos Introduction Methods Status of Lowland Rice Farming in the Study Villages Adoption of Modern Technology Mechanisation Improved Varieties Fertiliser Use The Economics of Intensifying Fertiliser Use for Rainfed Rice Fertiliser-yield Scenarios Enterprise Budgets for the Four Scenarios Threshold and Sensitivity Analysis Optimal Farmer Strategies Conclusion References Part IV: In Pursuit of White Gold Chapter 11: The Commercialisation of Rice Farming in Cambodia The Rice-Growing Environment History of Rice Production Agricultural and Economic Growth Since 1993 Changes in Rice Production at the Farm Level The Study Area Conclusion References Chapter 12: The Production, Marketing, and Export of Rice in Takeo Introduction Economics of Rice Production The Rice Value Chain Value Chain Analysis Relationships and Governance in the Value Chain Rice Policy in Takeo Conclusion References Chapter 13: The Role of Irrigation in the Commercialisation of Rice Farming in Southern Cambodia Introduction Characteristics of Case-Study Villages Village Settlement and Population Land Resources Water Resources Village Characteristics in Context Comparative Analysis of Wet-Season Rice Production Comparative Analysis of Early-Wet-Season Rice Production Comparative Analysis of Non-rice Crops Comparative Analysis of Cropping Systems in the Three Villages Conclusion References Chapter 14: The Supply of Fertiliser for Rice Farming in Takeo Introduction The Fertiliser Market in Takeo Growth in Farmer Demand Fertiliser Supply Chain Marketing Margins Fertiliser Quality Issues Fertiliser Policy Conclusion References Chapter 15: The Use of Credit by Rice Farmers in Takeo Introduction Overview of Credit Development in Cambodia Credit Provision and Utilisation in Takeo Overview Credit Access by Type of Rice Farmer Impact of Credit on Rice Farmers’ Livelihoods Conclusion References Chapter 16: Contract Farming of High-Quality Rice in Kampong Speu Introduction Understanding the Effects of Contract Farming Research Methods Inclusion of Smallholders Contractual Arrangements Benefits of Contract Farming Access to Market Access to Quality Seeds Access to Technology Access to Credit and Other Benefits Increased Profit Challenges of Contract Farming High Requirement for Varietal Purity Strict Requirement of Moisture Level Limited Access to High-Quality Seed Breaches of Contract Credit Constraints Rainfall Variability Policy Options for Contract Farming Raising Awareness Rice-Drying Technology High-Quality Seed Access to Credit Contract Enforcement Conclusion References Part V: The Overflowing Rice Bowl Chapter 17: Trends in Rice-Based Farming Systems in the Mekong Delta Introduction Geography of the Mekong Delta Profile of Rural Households The Intensification of Rice Farming Diversification of Rice-Based Farming Systems Rice and Upland Crops Rice and Livestock Rice and Aquaculture Conclusion References Chapter 18: The Domestic Rice Value Chain in the Mekong Delta Introduction Methods Overview of the Rice Value Chain in the Mekong Delta Analyzing the Actors in the Rice Value Chain Input and Service Providers Producers Traders Processors Wholesalers and Retailers Marketing Margins in the Rice Value Chain Impact of State Policies on Rice Value Chain Conclusion References Chapter 19: The Cross-Border Trade in Rice from Cambodia to Vietnam Introduction Background Overview of the Rice Trade Between Takeo and An Giang Analysing the Value Chain Actors Producers Traders Paddy Wholesalers Milling/Polishing Companies Rice Wholesalers and Retailers Impact of Cross-Border Trade on the Rice Market in Vietnam Conclusion References Chapter 20: Cross-Border Trade in Sticky Rice from Central Laos to North Central Vietnam Introduction The Study Area Production and Consumption of Sticky Rice in Quang Tri The Cross-Border Value Chain for Sticky Rice Policies Affecting the Production and Consumption of Sticky Rice in Quang Tri Conclusion References Part VI: Conclusion Chapter 21: Issues of Rice Policy in the Lower Mekong Basin Access The Scale Issue in Rice Farming River Management, Irrigation Schemes, and the Small-Pump Revolution Access to Biological and Mechanical Technology Activities Diversification of Rice-Based Farming Systems Specialisation in High-Value Rice Production Appropriation Rice Price Policy in Thailand Rice Price Policy in Vietnam Rice Price Policy in Cambodia and Laos Concluding Remarks References