Non-Timber Forest Products Marketing: Trading Network of trader and Market Chain in Luang Namtha Province, Lao PDR

Abstract

Non-Timber Forest Products are important export products of the Luang Namtha province. Because of the development of roads and bridges in the region, mobility of NTFP traders have greatly improved in tandem with the rapidly growing economies of China and Thailand. As a result, these once relatively localized resources are now increasingly accessible to national and international markets. The study on the marketing of NTFPs was carried out in Luang Namtha province in 2011. The main aims of this study are (1) to study the development of the NTFPs marketing with collaboration between farmers/collectors and traders, (2) to provide a general view of NTFPs marketing system, (3) to identify of the route of the NTFP from the collectors to the final market and (4) to study the business relationship between collectors and traders. The outcome from the study showed that there is an increased demand for NTFP products from Luang Namtha in the cross-border markets of China and Thailand, which has led to rapid depletion of some forest products (food, medicines, fibers, extracts and ornamentals products). Currently, farmers’ initiatives to increase production of NTFPs thorough cultivation in gardens and increasing the plantation areas of NTFPs, as well as reducing soil erosion and bringing improving land productivity. The export value of NTFPs in Luang Namtha to China and Thailand is increased but income from NTFPs marketing has not increased for traders. Although many NTFPs are of considerable commercial importance, Luang Namtha is losing much needed foreign exchange by allowing NTFPs to illegally pass borders unprocessed and undocumented. The prices remain low as products are mainly exported raw to neighboring countries as there are little initiatives to add value through quality improvement or processing. There is an urgent need to establish partnerships with organizations in neighboring countries, to collect and disseminate NTFPs market system, and to inform individuals and organizations in these countries who deal with marketing development and market information about the situation in Luang Namtha province.