Pakse, Lao PDR – In Lao PDR, coffee is the third-largest agricultural export product, with exports to more than 26 countries across Asia, Europe, and North America. Therefore, coffee has a great potential for value, since it is the main cash crop for many small-scale farmers.
Following the launch of the Lao PDR Coffee Sector Export Roadmap last year, the Ministry of Industry of Commerce (MOIC), Ministry of Agriculture and Forestry (MAF), the Lao Coffee Association and key coffee stakeholders gathered in Pakse to monitor the implementation, report progress, and discuss challenges and way forward of the coffee roadmap.
According to a study by the International Trade Centre, Lao PDR’s coffee industry faces challenges such as low farm productivity, low market access, and the underperformance of specialty coffee, along with the inability to collect and utilize business-relevant information. There are also challenges related to market access and limited sector organization, such as a lack of minimum quality standards, high transportation costs, and a lack of minimum quality standards.
The Roadmap outlines increased productivity and sustainability in production and processing, while enhancing the capacity of Lao exporters, improving the Lao economy and securing better lives of the rural citizens.
By offering appropriate tools, the roadmap provides guidance for improving quality to meet with international standards, fostering dynamism, and connecting to global markets. Moreover, small producers and businesses to benefit from capacity building, organization, and trade information.
“We need the Lao coffee sector to become more competitive on the exporting market. In the future, policy makers in central and local government agencies should reframe our national policy to support production and promote exports of coffee more effectively.” Said Xaysomphet Norasingh, Director General of the Department of Trade Promotion, MOIC.
The workshop was attended by over 50 participants. They were divided into four groups to discuss the roadmap’s four main objectives. Group members came up with solutions to challenges, priorities, and future action plans for effective implementation of the roadmap by 2025.
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About ITC – The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations’ Sustainable Development Goals.
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