Blog Post #17 - Organic Conversion of Smallholder Farmers

******* The following research is credited to Hystra Consulting and is based on a report they created in July 2015 entitled "Smallholder Farmers and Business - 15 pioneering collaborations for improved productivity and sustainability" *********

In addition to summarizing some of the amazing research that Hystra conducted, I have added my own interpretations and pictures for the context of organic Khao Kai Noi (KKN) farming in Laos.

Khyati Foods, in India, has successfully supported the certification of 9000 smallholder farmers, and is in the process of certifying 6000 more. Farmers are motivated to participate in the organic program because they save input costs on fertilizers and pesticides. Organic production also improves soil quality and can generate higher yields by 5-10% over the three-year conversion period.

On the flip side, organic adherence on average adds an additional five hours of labour each week for a two acre farm. These extra hours can be attributed to activities like preparing vermi-compost or cow dung fertilizer.

Water buffalo fudge +.....

Cow gravy =....

.....pleasant barrel of fertilizer ready for stir

This additional time commitment is actually a large risk to Xiengkhouang province farmers achieving organic certification. Xiengkhouang farmers have experienced labour shortages with many youth moving into the city. Initiatives for mechanization (to alleviate labour shortages) are also difficult in Xiengkhouang because the land is very uneven and hilly. Tractors are not only expensive for these poor farmers, but are largely ineffective to achieve desired productivity improvements.

I cannot imagine myself being too productive with this back breaking work

I am too much of a princess to even know which end of the tool to hold

While priority for these social enterprises is of course the farmers themselves, Khyati Foods and SAEDA also need to make money to reduce reliance on grants and become self-sufficient. Khyati Foods primarily generates revenue by purchasing organic produce from farmers at standard market price and selling it under their own brand at an organic premium of 20%. They also offer a variety of value-add services for farmers. 

An organic market in Xiengkhouang, spearheaded by SAEDA

We are evaluating the capability of SAEDA to offer a similar set of services. They not only create opportunities for revenue diversification, but also would improve the economic security of Lao farmers participating in the program. With growing concerns of climate change and adverse weather that may impact rice yields, the farmers need alternatives to guarantee stable livelihoods.

The KKN is looking good this year, but Mother Nature offers no guarantees next year

Little irrigation potential in Xiengkhouang makes natural water availability a pressing concern

Do you think you have what it takes to farm organic Khao Kai Noi, or does the thought of those fertilizer bucket smells make you want to take a shower?