Lao PDR

Boosting peppercorn exports in Southeast Asia

Mr Souliya Souvandouane, Director of the Plant Protection Centre at the Department of Agriculture in the Ministry of Agriculture and Forestry of Lao People’s Democratic Republic, highlights how helping smallholder farmers meet quality and safety standards for peppercorns can raise their income and assist them in reaching new markets.

Mr Souliya Souvandouane, Director of the Plant Protection Centre.

How did the initiative get under way?

Back in 2020, we wanted to identify key challenges holding back the commercial production and export of peppercorns in Cambodia, Lao PDR and Viet Nam. So, with the support of the Standards and Trade Development Facility and the Centre for Agriculture and Bioscience International (CABI), we assessed the situation.

What kind of challenges did you discover?

  • Poor farm management practices
  • Food safety and hygiene issues, especially related to microbial contamination
  • A complex supply chain with limited traceability

These factors made it difficult for smallholder farmers to meet the standards required for export, especially in international markets.

What did you do to address these issues?

We designed a project to improve productivity, safety and market access for smallholder pepper growers and processors. One of our key innovations was introducing the Participatory Guarantee System (PGS), a community-based approach that helps farmers ensure compliance with quality standards. We focused on three main activities:

  • Developing a regional code of practice for peppercorn production and processing
  • Testing the code in all three countries to ensure practicality, then translating and adapting it to local contexts
  • Training and outreach – we created manuals, posters and guides to make the standards accessible to local farmers

What were some of the steps taken to support farmers?

In Lao PDR, we trained 300 participants and created PGS groups so farmers could monitor and support each other in applying the code of practice. We also organized cross-country exchanges – including farm visits and knowledge-sharing sessions – between Cambodia, Lao PDR and Viet Nam. These allowed farmers to learn from each other’s successes and challenges in implementing the code of practice.

In addition, we hosted a trade fair in Viet Nam, creating a direct platform for farmers to meet potential buyers. This was a crucial step in unlocking access to new markets.

What were the results in Lao PDR?

Our efforts led to a 10 to 30 per cent improvement in the quality of peppercorns produced. Use of chemicals and fertilizers declined, leading to a 30 per cent reduction in costs. Farmer incomes increased from around US$ 50 to US$ 70 per week during peak season (July to December). In addition, some exporters began shipping peppercorns to Viet Nam.

And what about Cambodia and Viet Nam?

Cambodian exporters reached a new market – China – exporting over 30 tons of peppercorn. In the first quarter of 2024, these exports generated US$ 10 million, resulting in a 30 per cent income boost for Cambodian farmers. In Viet Nam, the improved production process enabled producers to fully comply with the European Union’s export requirements, marking a significant achievement.