Understanding the dynamics of smallholders growing teak in northern Laos

Soytavanh Mienmany, Hilary Smith, Peter Kanowski

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Teak growing by smallholder farmers boomed in parts of northern Laos in the 1980s and 1990s, promoted by the government and accelerated by peer influence. Most growers initially viewed tree growing as an opportunity to acquire land, planting and managing teak as a low-labour green bank, with minimal inputs and as-needed harvesting. These teak plantations were geographically dispersed, with growers relying on local traders to access neighbouring countries’ markets for unprocessed logs or rough-sawn timber, and to supply domestic markets for low-quality timber products manufactured through value chains dominated by micro-, small- and medium-sized enterprises (mSMEs). Government promotional policies and support mechanisms for these low-value markets were not sustained. Recent national regulations are aimed at protecting natural forests, developing domestic processing, increasing value retention in Laos, and improving regulatory compliance. Unfortunately, the new policies have failed to account for smallholders and their operating contexts. Consequently, new boom crops with quicker returns and fewer regulatory constraints are displacing teak on more accessible and productive sites. The mismatch of new legality and certification requirements with famers’ motivations and capability, competition with other crops, and low institutional capacity now limit the appeal of teak growing to smallholder farmers, paradoxically undermining what should be their comparative advantage. Thus, teak has proved to be both ‘green gold’ and fool’s gold for farmers in northern Laos. While the area of teak in northern Laos remains relatively stable despite the lack of policy support, if smallholder teak growers and mSMEs are to flourish, renewed policy attention is required.
Original languageEnglish
Title of host publicationRaising trees and livelihoods
PublisherAustralian Centre for International Agricultural Research
Chapter4
Pages73-98
ISBN (Print)978-1-923261-03-7
DOIs
Publication statusPublished - 2024

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