Provide Microfinance to Disadvantaged Laos Farmers
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Index of Updates from the Field
SEDA Provides Disadvantaged Farmers in Rural Laos with Seedlings and Training
By Souly Quachangkham - Founder/Director, July 28, 2008 06:51 PM
This summer SEDA and the Lao Science Team have produced more Jatropha Curas and Agarwoods seedlings for disadvantaged farmers in rural Laos. Last year, SEDA was only able to produce 150 seedlings. This year SEDA expects over a thousand seedlings and new SEDA members. SEDA will support coffee, tea, and fruits farmers, as well as farmers of herbal plants. SEDA and the Lao Science Team plan to provide farmers with seedlings, as well as microcredit and microfinance programs. In some villages, the farmers have already planted the Agarwood tree seedlings SEDA provided. SEDA will provide these farmers with the proper training to improve the quality of the trees and instruct them in how to operate their own social enterprise, such as equipping them with the skills to operate an independent business or farm. SEDA and the Lao Science Team have prepared thousands of seedlings and cash crops to be provided to the farmers by the end of the year.
This summer is monsoon season, which prevents SEDA staff from travelling to rural areas. By the end of October, SEDA plans to visit many rural villages in order to provide more seedlings to farmers, and provide training on farming, business, and marketing. SEDA will provide more Jatropha Curas, Agarwood, and herb plants seedlings, as well as cash crops like rice and beans.
At this stage, the farmers do not have enough crops to sell at the market, so SEDA will continue to focus on the farmers skills and provide seedlings. Until the farmers are on their feet, SEDA will help the farmers to sell their crops to both manufactures and at the market at fair trade prices.
To learn more about SEDA, please visit: www.seda-laos.org or email: info@seda-laos.org
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Lao Science/SEDA Trials Agarwood Trees for Laotian Farmers
By Souly QuachAngkham - Founder/Director, June 20, 2008 06:58 PM
The Lao Science/SEDA Research project has planted 15 Agarwood trees as a trial. The trees are roughly three and a half to four years old. The three year old trees do not produce enough fruit to be profitable, but in the fourth year they produce more fruits and we will see more seeding fruit years to come.
The origin of the Agarwood tree has been traced back to before Hinduism. It produces a strong resin and is a non-chemical plant. Agarwood is very sensitive and needs special care. In Laos it is called Ko Ketsan and its Latin name is Aquilaria. Laotian farmers and investors are still trying to find solutions on how to cultivate, produce more fruits, and improve the quality of the resin. The Agarwood seeds are gathered from the wild and will only survive three or four days if not planted.
The price of the Agarwoord resin is very high on the black market. The wild Agarwood tree became so valuable that it was logged to sell for its resin. Loggers often damaged Agarwood trees that had no resin in their search for this valuable commodity. Today ,there is an international law protecting the wild Agarwood. Destroying the tree could result in a fine of US$10,000 and up. Interested investors can purchase legal Agarwood through local farmers or coordinate with SEDA.
The market demand comes from the Middle East, Asia, Europe, as well as for relegious ceremonies in Islam, Buddhism, Catholicism, and bio-medical and cosmetic companies. The resin in the market ranges from low to high quality and sells from $5000 per/kg up to $25,000k.
The SEDA project is teaching local farmers how to protect the Agarwood trees and cultivate them for the next generation.This is a long term investment and will provide a permanent income to farmers after three or four years. Farmers can also sell the seedlings in order to generate income. Each seeding trees price can be ranges from $1 and up based on the size of the seedling tree.
In Laos, local farmers travel to the jungle to search for wild seedlings and transfer the plants to their farm. They are very difficult to transfer since the Agarwood tree is very sensitive. Lao Science/SEDA is supporting technical experts to train the farmers. The farmers are eager to learn how to protect the trees and expand their agriculture practices as as a long term solution to reduce poverty.
Meet SEDA's newest member
By Marian Reid - Communications volunteer for SEDA, March 27, 2008 06:56 PM
Tit Phua is an 87-year-old Jatropha Curas farmer on the outskirts of Vientiane city. Old he may be, but Tit Phua is healthier and stronger than most 60-year-olds. He has a wife 30 years his junior and a teenage daughter to support. He needs to keep working to ensure a future for his family.
Tit Phua started his Jatropha plantation on his own 2 years ago with just 3 kilos of Jatropha seeds he saved up to buy. From the initial harvest, which generated 3 kilos of seeds, he expanded the plantation. The second harvest generated 20 kilos; some he sold for less than US$1.50 per kilo and some he planted out. His 3.5 hectare plantation now has about 1500 trees. From the third harvest at the end of 2008 it's estimated he will produce around 100 kilos of seeds for the entire plantation, which he can sell for between US$1.50 and US$3 per kilo on the market (prices subject to change). It will be his first income in 2 years and not nearly enough to ensure a stable future.
Tit Phua is a good farmer he does everything right based on his experience. However, with the right knowledge and growing conditions, he could actually generate up to 100 kilos of quality seeds per tree, and this is where SEDA wants to help him.
As a member of SEDA's microfinance program, Tit Phua will have access to agricultural advice from bio-fuel experts from the University of Florida. The information will allow him to use organic-only methods, such as specialized compost and organic fertilizer, to improve his harvest and the condition of the trees. SEDA will then buy the seeds from him at fair-trade prices up to US$17 per kilo. The purchased seeds will be given to other farmers who are members of the program so that they can establish similar income-generating crops. In this way, Tit Phua will be producing more seeds and receiving a good price for them, adding to SEDA's seed bank to benefit other farmers and have access to as much farming information as he needs.
Before planting Jatropha, Tit Phua used this land for cash crops. He farmed fish in dams and tried growing banana trees, among other ventures. However, free-ranging livestock damaged many of his crops and the fish did not do well. His Jatropha trees, however, have been a booming success.
Tit Phua spent much of his life in the Lao PDR military. When he retired he received a house and an income of $55 a month from the government. While this may not seem bad in a developing country and he is luckier than many, living costs are high. They must pay $35 a month for electricity and water which leaves them with $20 a month for food, clothes, education for their daughter and emergency and medical funds. Like most people in rural Lao, this leaves them living on less than $2 a day.
Participating in SEDA's microfinance program will provide Tit Phua's family with the security they need to know that after he is gone they will be able to survive. It will also mean that Tit Phua has the best chance of becoming an independent entrepreneur, setting an example in social enterprise for his community.
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The Jatropha project is underway!
By Marian Reid - SEDA volunteer - media and communications, March 10, 2008 06:41 PM
This project officially started in 2006 when SEDA was approached by the farming community we are now working with. With financial support from Bread for the World (Vietnam) SEDA undertook an intensive feasability study to determine how well a Jatropha plantation would grow here. The soil was deemed ideal and trial seedlings were planted.
In late 2007 the first 150 trees were planted. All are growing well and more farmers have approached SEDA asking to become members of our microfinance program and the farmer cooperative.
SEDA has also been approached by villagers who trade in textiles, weaving and produce. We are now looking at expanding the microfinance project to accommodate their small businesses.
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