Impact of Commercial Tree Plantations on Smallholder Live-stock Farmers and Their Livelihoods in Lao PDR

Abstract

We investigated how commercial tree plantations under Lao forest restoration plan toward 2035, influence socio-economic conditions of household. We also seek to calculate environmental income of rural households in Laos. The questionnaire survey was conducted at two villages (Ban Hinheup and Ban Thoulakhom) from Vientiane province (the central) and two villages (Ban Luangnamtha and Ban Viengphoukha) from Luangnamtha Province (the north). Our survey results showed that the economies of the two study villages in central Laos relied moderately on cash and subsistence value of the environment while this only contributed slightly to the other two villages in the north. Villagers around the plantation concession boundary in the plantation village tends to receive benefits from tree plantations while the richest households from Ban Thoulakhom obtained a major proportion of their total household income from rice and livestock production. Several farmers in study area select eucalypt and/or rubber species, which offer profitable and sustainable land-use choices. Our results also revealed that perception towards the effects of Eucalyptus plantation tends to differ from those towards rubber plantations. Rubber plantations in Luangnamtha Province were found to have a higher economic contribution to local livelihoods, but Eucalyptus plantations were perceived to have a less negative environmental impact and could provide more opportunity for local farmers to either inter-crop their annual crops in the plantations or obtain income from the plantation employment activities. Given the rapidly dynamic policies, executing complex policy change needs sustained effort, and the related state organisations need to be pro-actively involved in dialogue with industries and the communities to be more effective. Future policy options for sustainable planted forest development in Laos should ensure that commercial forest plantations offer the pathway for economic, environmental, and social benefits for rural communities.