The Adoption of Smallholder Rubber Production by Shifting Cultivators in Northern Laos: A Village Case Study

Abstract

Rubber smallholdings are being established by shifting cultivators in Northern Laos, in response to demand from China and encouraged by government land-use policy. This can be seen as part of a general transition from subsistence to commercial agriculture in the uplands – in particular, from shifting cultivation to tree crop production. This study examines the economics of smallholder rubber production in an established rubber-growing village in Luangnamtha Province. Data were obtained from key informant interviews, group interviews, direct observation, and a farm-household survey. The study shows that, given current market conditions and credit support, investment in smallholder rubber production in the uplands of Northern Laos can be economically rewarding. Hence rubber can be considered one of the potential alternatives for poor upland farmers, in line with the government policy of stabilising shifting cultivation and supporting new livelihood options for poverty reduction. However, there are risks associated with rubber production and emerging constraints of land and labour, hence government should move cautiously in promoting rubber where farmers are uncertain about reducing their dependence on shifting cultivation or where forests are under threat. The recommended role for government is to ensure provision of support services for rubber development, including adaptive research, technical support, extension, credit, road access, and marketing. In particular, maintaining secure access to the China market will be crucial. If carefully managed, the expansion of smallholder rubber in Northern Laos has the potential to contribute to sustainable rural livelihoods.