Research on World Agricultural Economy

Mapping the Coffee Value Chain in Lao PDR: Issues, Insights, and Strategies

Piya Wongpit

Faculty of Economics and Business Administration, National University of Laos, Vientiane, P.O.Box 7322, Lao PDR

Pakaiphone Syphoxay

Faculty of Economics and Business Administration, National University of Laos, Vientiane, P.O.Box 7322, Lao PDR

Bounthom Sisoumang

Faculty of Economics and Management, Champasak University, Champasak, 16000, Lao PDR

Sengsulixay Sykhanthong

Faculty of Economics and Management, Champasak University, Champasak, 16000, Lao PDR

DOI: https://doi.org/10.36956/rwae.v4i4.891

Received: 10 July 2023; Received in revised form: 14 September 2023; Accepted: 28 September 2023; Published: 13 October 2023

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Abstract

Coffee is a major agricultural export product that generates foreign currency for Lao PDR. While several studies have been conducted on coffee in Lao PDR, none have focused on the value chain. This research seeks to fill that gap by analyzing the coffee value chain in Laos. The study uses both quantitative and qualitative methods, such as interviews, value chain mapping, and value-added estimation, to examine the structure, roles, activities, and performance of the value chain actors. The study finds that coffee farmers have the highest value-added, but they are facing various issues of pests and disease, low productivity, and limited access to finance. Laos has a high export potential for coffee, especially to European markets, but also faces constraints such as limited market access, transportation costs, and non-tariff measures. The study provides recommendations for improving the coffee value chain in Laos, such as strengthening farmer groups and cooperatives, enhancing quality and certification standards, and diversifying markets and products.

Keywords: Value chain; Export potential; Non-tariff measures

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