The terms of reference of this consultancy addressed the following issues:
Overall impact and sustainability of the project in terms of a) extension services approach (methodology of model farmers, farmer organizations), b) income generation for farmers, c) institutional capacity building (technical, managerial, extension services).
The soundness of the technical approach (hatcheries, fingerling distribution, raising, post harvesting, marketing).
The major constraints and opportunities for further development of the fisheries sector in the context of rural development and poverty elimination.
The impact of LAO/89/003 can be measured quantitatively by the numbers of target farmers formed during the course of the project, numbers of staff trained, increases in fry production and increases in fish production. One can also consider its impact from the general effect it has had on the development of fish culture in the country through the introduction of appropriate technology and the strengthening of concerned institutions.
The sustainability of fish culture in the long term rests with the private sector's ability to increase fry supply and spread good fish culture practices. In a more immediate context, say within the next 3 to 5 years, the capacity of the extension services to train and monitor fish farmers and supply quality fry through the government's provincial fish farms will be crucial to maintain the momentum generated by LAO/89/003.
The extension approach involved 5 steps, to wit: identification of suitable villages and target farmers in the targeted provinces through a rapid rural appraisal, training, providing fry for the first stocking monitoring and information dissemination.
The criteria used to select target farmers included the following:
The success with which target farmers implemented polyculture testifies to the effectiveness of these criteria. Frequent monitoring by government extension agents and project UNV's helped target farmers maintain culture protocols. Field observations by this consultant indicate the target farmers have been very effective in spreading the principals of scientific fish culture, if not the full implementation. Individual target farmers reported that from 3 to 15 farmers took up fish culture as a result of having seen their operations. Some target farmers visit and advise their contacts who have started fish culture. During the course of LAO/89/003, 401 target farmers were identified, trained and monitored. The Livestock and Fisheries Division estimated an additional 2,333 farmers took up fish culture through contacts with target farmers, or about a five fold multiplier effect.
Monitoring target farmers is a crucial component of the technology transfer process. Fortnightly visits ensure adherence to culture protocols and are particularly important during major events in the culture cycle (pond preparation, stocking, growout and harvesting). There are indications that some farmers tend to revert to traditional practices or stock unsuitable species when monitoring is inadequate. The sustainability of the culture system would be called into question in the absence of monitoring since the target farmers are the key element in dispersion of the technology.
There are now an additional 2000 fish farmers as a direct result of the demonstration effect provided by the project's 401 target farmers. However, very few, if any, of these “secondary” farmers have been monitored to evaluate their adherence to culture protocols and the evaluate the results they are obtaining. Even under LAO/89/003 the budget for monitoring by project staff was inadequate to ensure proper coverage of target farmers.
A challenge facing future fish culture extension projects will be reaching the rural poor. Although a few target farmers were low income, most are best described as middle to upper middle income. The project document envisioned the formation of farmers' groups which could serve as the extension mechanism for accomplishing the transfer of fish culture technology to low income farmers as well as a channel for credit. Women's groups were to have served a similar function. This is one of the few areas where the project might be faulted for a lack of emphasis. However, now that the appropriateness of polyculture has been amply demonstrated, farmers' groups formation can be incorporated in future projects.
Conceptually, these groups appear to be an appropriate strategy for introducing fish culture to low income farmers, including women, and as a vehicle for delivery of credit, but it remains to be demonstrated as an effective extension methodology for fish culture. In view of the lack of experience with credit to farmers' groups it is also not clear how this mechanism for credit delivery will function.
The project produced 6 brochures, 5 in full color, and one pamphlet dealing with various aspects of polyculture. All of these materials were published in Lao. This was the first time such materials were made available to the general public. Brochures were distributed to trainees, women's and youth associations, hospitals, the military and schools. Of 15,000 printed, 10,000 have been distributed.
Television and radio were also used to publicize the project's activities, but the effectiveness of the broadcast media hasn't been evaluated. Some of the non-target farmers contacted provincial extension officers after viewing TV segments about the project, but there has been no quantification of this effect.
The income generating potential of fish culture depends on adherence to polyculture protocols because this is the technology which maximizes production and revenue with minimum cost.
The major investment cost is pond construction. Poor target farmers usually construct ponds with their own labor and that of family members and friends, while middle income farmers often avail themselves of bulldozers engaged in road construction adjacent to their farms or hire labor. Ponds range in size from 0.01 ha to 0.5 ha. with the median around 0.06 ha. All ponds in lowland areas are rainfed, while in the uplands spring and stream fed ponds are common. Most of the rainfed ponds are too shallow and dry up by the end of the dry season. The growing season in these ponds is truncated and carryovers of slower growing fish are not possible.
Fish fry and fingerlings are the most significant variable cost, followed by nutrient inputs consisting of animal manure, rice bran and chemical fertilizers. A tendency to overstock reduces growth and survival, further reducing revenues. The customary stocking of tilapia also negatively impacts production of carps.
Local shortages of fry force farmers to purchase low quality fry from Thai private hatcheries. The high mortality of these small fry and the admixture of extraneous species lead to extra costs. In Xiengkhuang province, fingerlings of grass carp and silver carp are imported from Vietnam, but are expensive.
Nutrient inputs are low cost. Manure is usually obtained from the farmer's cattle and poultry in the case of pond culture, while fertilizer and manure used in paddy cultivation provides the basic nutrient input for rice-cum-fish culture.
Fish culture is a family business based on family labor. Female household members play a major role in both culture and marketing. In fact, marketing in the village or in local town markets is almost exclusively the province of women. No detailed followup studies have been done to trace the economic benefits of fish culture, but it appears raise the nutritional level of the household while the added income benefits the entire family. The project trained 22 women, although this was only 4% of the 563 farmers trained throughout the 10 target provinces. Most of the women were in the low to low middle income group.
Examples of annual partial budgets for pond fish culture, rice-cum-fish culture and integrated aquaculture are shown in Annexes 5,6 and 7. In many cases the impact of fish culture on family income was dramatic. When target farmers followed culture protocols, income rose spectacularly over a 2 to 3 year period. Examples of specific farmers in the northern, central and southern areas are shown in Annex 8 and may be considered representative. In general, income from fish culture among target farmers increased from an average of 40,000 K/yr to 270,000 K/yr, or 576%!
A small number of farmers have taken up fry production, along with fish culture, which has excellent potential for additional earnings. A few private hatcheries are operating in Vientiane Province. Hatcheries offer an opportunity for the small business sector and are urgently required to overcome fry shortages.
Most fish farmers stock small fry, 3 – 5 cm due to the scarcity of fingerlings in the 5 to 10 cm size range. This particularly impacts production and revenue in fish-cum-rice systems. Mortality is significantly higher for the smaller fry and there is insufficient growing time for the fish to achieve their potential weight gain. In irrigated areas, fish can be held over from one rice crop to another, provided the paddy is properly trenched.
Three critical institutional components of fish culture development in Lao PDR are the extension service of the Livestock and Fisheries Section, responsible for fish seed supply via provincial fish seed farms and credit delivery courtesy of the Agriculture Promotion Bank (APB). A fourth component important in the dissemination of fish culture are the NGO's involved in rural development.
Upgrading of policy and program development capabilities at the national level were also addressed by the project.
3.1.3.1 Extension services
Historically, the Department of Livestock and Veterinary Services had little expertise in fish culture. This capability was generated through the training activities of LAO/89/003 directed at staff of the Livestock and Fisheries Section (formerly Livestock and Veterinary Section) of the department. During the course of the project 47 officers at national, provincial and district level participated in study tours and TCDC in Thailand, Vietnam and Myanmar (Annex 11). Of these, 25 were provincial and district level officers who are responsible for fish culture extension. One national level officer completed a master's degree course in aquaculture at Hanoi University.
Training of extension agents was effective as indicated by the rapid uptake of fish culture technology by target farmers. Problems in the extension service arise from insufficient extension officers and shortage of national funds to carry on extension work after the termination of LAO/89/003. Ceilings on government employment are likely to severely restrict the ability of the Department to hire new extension staff at the district level. In view of the scarcity of national funds for fisheries work, the extension services developed under LAO/89/003 cannot be sustained. Moreover, most extension agents are not specialized in fish culture and must do livestock and fish culture extension, further restricting their ability to adequately monitor target farmers. On the other hand, extension staff turnover at provincial and district levels is low so that the skills imparted to extension staff through project training activities are likely to be retained in the provinces.
Given the government's financial constraints, it will be impossible to continue monitoring at anywhere near an adequate level. Even under LAO/89/003, funds for this purpose were inadequate. As mentioned previously, the multiplier effect of target farmers has been extraordinary, but these secondary farmers have never been monitored to assist them with the implementation of proper culture protocols.
The youth and inexperience of many extension agents may be somewhat of a constraint, but has never been evaluated. Judged by the rapid uptake of fish farming technology by farmers, it does not appear to be a serious obstacle.
However, at the provincial and district level, extension services still serve a dual role in livestock and fisheries. Budget constraints are likely to prevent a separation of these functions.
3.1.3.2 Policy and programming
Prior to the project, fisheries had no emphasis within the Department of Agriculture and Forestry at the national level. It was included in the Fisheries Adaptive Research and Extension Programme under the Small Animal and Fisheries Division of the Livestock and Veterinary Dept. At the suggestion of the project, the Livestock and Veterinary Dept. was reorganized as the Livestock and Fisheries Dept. to give emphasis to fisheries. Aquaculture now falls under the Fisheries Development Division. Two units within the FDD deal with aquaculture, the Aquaculture Research Unit and the Fisheries Extension Unit. The reorganization facilities policy and program focus on aquaculture and fisheries management. Top program priority is now accorded to aquaculture.
National level staff were able to familiarize themselves with the potential for aquaculture development through study tours to Thailand, Viet Nam and Myanmar. Nineteen divisional staff members participated in these activities.
3.1.3.3 Provincial fish seed farms
Many provincial fish seed farms were established more than 20 years ago. Some of these were rehabilitated under LAO/82/014. Subsequently, training under LAO/89/003 contributed significantly to the production capacity of these farms. Every one of the farms in the 10 target provinces has shown significant increases in production subsequent to this training. Total fry production from the provincial fish seed farms increased from 4.5 million in 1989 to 6.5 million in during the 1993 – 94 season.
In spite of assistance through LAO/82/014 and LAO/89/003, most of the fish seed farms produce well below capacity due to inadequate hatchery water supply, poor brood stock development and insufficient nursery pond capacity. In some of the farms, improvements could still be made in nursery pond management. The farms could also be strengthened as components of the extension system, since so many farmers purchase seed from them.
The same financial constraints impacting extension services affect the ability of provincial fish seed farms to supply quality fry to fish farmers, a crucial function in view of the continuing shortages of fry. Much of the equipment supplied by the project needs replacement. Stocks of expendibles such as water quality monitoring chemicals, and especially hormones used for inducing spawning are almost exhausted. If fish seed farms are forced to use fish pituitaries to induce spawning, fry production will drop precipitously.
3.1.3.4 Credit delivery
Institutional capacity to supply credit to low income fish farmers will be an important component of any aquaculture development plan within the framework of rural poverty alleviation. Recognizing this need, the project document envisioned the development of a credit scheme for small farmers. Although a credit consultancy was apparently undertaken, no output from this consultancy is available. Consequently, the credit requirements of low income fish farmers remain unclear.
The Agriculture Promotion Bank was established in 1994 to encourage agriculture development through low cost credit. The APB offers 3 loan facilities for fish farmers. Two of these are directed at individual borrowers: investment loans of 3 years duration at 8% and working capital loans repayable in one year at 12%. Investment loans require collateral of twice the loan amount. The third facility is that of loans of up to 500,000 Kip to individual members of fish farmer groups. The groups may consist of 7 to 15 members. These loans are granted on the credit worthiness of the members and do not require collateral. They are working capital loans for 1 year at 10% interest. Very few of these loans have been disbursed. Default rates for both individual loans and group loans are extremely low.
The APB could be an effective credit institution for small fish farmers, but needs to better inform farmers of its loan facilities. Extension officers also need training by the APB in application procedures. In Xiengkhuang, the bank did not yet have funds available for investment loans, although there is a demand in the province for these loans from middle income fish farmers. In most provinces, the APB works closely with the Livestock and Fisheries Section in the evaluation of fish culture loan requests. The training provided to provincial level APB staff by LAO/89/003 has improved the bank's capacity to deliver credit to fish farmers.
Credit may be available from commercial banks, but the interest rates are double those of APB and they have no expertise for evaluation of fish culture loan applications or for monitoring performance.
3.1.3.5 Non governmental organizations.
Various associations of youth and women are active in community development issues in the country. In addition, quite a number of international NGO's are working in the country, addressing problems of nutrition and food security. Some training and monitoring has been given to members of youth and women's associations.
NGO's working in rural development offer an excellent opportunity to extend fish culture, provided their national staff are adequately trained. In view of the limited extension capacity of the government, every opportunity should be taken to include NGO staff in training programs sponsored by future projects. Technical advise and fingerlings were supplied to OXFAM and World Vision with followup monitoring.
Seven students from Savannakhet took advantage of on the job training. This is another area that can be expanded - involving institutes of higher education such as Nabong Technical College - in fish culture extension. Training students in the more technical aspects of fish culture such as hatchery operation could open up economic opportunities for them after graduation. Students can undertake research projects in support of fish culture extension. This also might stimulate academic interest in addressing some of the technical uncertainties of fish farming.
3.1.3.6 Other donor funded projects.
Project staff provided training for farmers participating in the AIT outreach program. The outreach program is promoting the culture of hybrid tilapia, which are bred at the Savannakhet provincial fish farm. The project also assisted with fry transport from the fish farm to participants' farms.
Collaboration with the IDRC indigenous species breeding project included training and monitoring of participating farmers and induced breeding of several species at Savannakhet and Champassak provincial fish farms.
Project staff provided training inputs to farmers organized by the Savannakhet provincial education office under the sponsorsh-p of CIDSE of Canada.
The technology “package” for fish culture extension by LAO/89/003 included the following elements: hatchery, nursery and growout. These key elements were tied to the concept of polyculture as alluded to in section 2.4. Polyculture has been very successful in Bangladesh, India and China. The latter has a history of 4,000 years of fish culture! Nevertheless, adaptations to local conditions were imperative during the implementation of LAO/89/003.
The implementation of the polyculture concept was affected principally by the availability of fry of the component species, but traditional culture practices also had some influence.
Estimating the present demand for fry is difficult since the total area of ponds and rice fields used for fish culture is not known with any degree of confidence. Predicting future requirements is complicated by the possible mix of systems that might develop. Just as an example, suppose 40% of the required fish production in the year 2000 of 112,000 tons (MRC 1992) is fulfilled by pond production. If the average production is 1.2 tons/ha, 27,300 additional ha of ponds must come into production. Assuming a stocking rate of 5000/ha, 137 million fry will be required. If the survival rate from egg to fry remains at 32%, 427 million hatchlings will have to be produced. While only a crude estimate, it indicates the enormous potential for hatchery development.
3.2.1.1 Provincial fish farms
After training, staff of most provincial fish farms in the provinces targeted by the project were able to produce fry of common carp, Indian major carps (mrigal and rohu), silver barb bighead and silver carp. Production of grass carp fry was limited to a few provinces such as Xiengkhuang where climatic conditions are more favorable.
The technology used by the provincial fish farms was adequate for the project's goal of supplying target farmers with fry. However, the existing facilities are in urgent need of improvement if the provincial fish farms are to play their due role in supplying quality fry and fingerlings and serving as demonstration and extension centers. Under existing conditions, they are unable to reach their production capacity. The problems are as follows:
Insufficient brood stock. During the period when the provincial fish farms were operated as state enterprises, much of the brood stock was sold, particularly just before the farms reverted back to government control. Broodstock nutrition needs to be improved on many of the farms. Brood fish are often quite small so time will be required to rebuild stocks. Care also needs to be taken to maintain genetic diversity and avoid excessive inbreeding.
Poor water supply. All of the hatcheries are supplied with surface water, either from the Mekong, small streams or ponds. Surface water is turbid and contains zooplankton which will damage or prey on eggs and hatchlings. Some of the hatcheries were equipped with pressure sand filters, but these are frequently out of service. Subsurface water should be supplied via tube wells. The water can be stored in overhead tanks (see below).
Inappropriate hatchery facilities. Lacking adequate water pressure and flow to operate circular “eco-hatcheries,” or jar hatcheries, most of the farms hatch eggs in happas placed within rectangular, flat bottomed tanks. Egg mortality is very high under such circumstances and may exceed 50%. These hatcheries require overhead tanks with sufficient capacity for their eco-hatcheries. Several fish farms lack eco or jar type hatcheries altogether.
Poor hygiene. Some of the hatcheries lack adequate shelters to prevent the entry of poultry, dogs, etc. In some instances, earthen floors surround hatching tanks. Accumulated debris and sediment was observed in several instances in hatchery tanks. The hatchery in Xiangkhuang is totally exposed to the elements.
Insufficient nursery pond capacity. In some cases there is not enough space to expand, but management can be improved to obtain higher survival. The encouragement of private fingerling production would lead to faster turnover in the government hatcheries at the same time reducing their operating costs.
Some hatcheries lack access to electrical power due to funding constraints.
Budget allocations are inadequate to remedy infrastructure problems at the provincial fish farms. External funding will be required to implement improvements necessary to bring fry production up to capacity.
3.2.1.2 Fry production by target farmers
A few target farmers have taken up induced breeding of Indian and Chinese carps. Many target farmers are producing tilapia, silver barb and common carp fry. In upland areas like Pak Song and Xiengkhuang, farmers take advantage of running water in which the common carp breeds naturally, without hormone injection. Carp fry are hatched in happas and although mortality is high, this is a very appropriate method for farm level hatcheries and needs to be encouraged. No hatchery structure with its attendant water supply system is necessary. Material for happas is readily available and inexpensive. Hormones are expensive and must be purchase in Thailand or from secondary sources which import from that country. Target farmers who produce Indian and Chinese carp fry usually have some sort of small nursery pond system. Tilapia are prolific breeders in ponds and paddy fields, so their fry are easily collected by the farmers for sale.
3.2.1.3 Private sector hatcheries.
There are few private hatcheries in the country. The two we observed use eco-hatcheries but have the same water supply problems as the government farms. If appropriate models are provided along with training, private hatcheries could develop rapidly as they are very profitable. However, these hatcheries are already making a significant contribution to fry supply. Including production by target farmers, DL&F estimates they produced 3 million fry in 1993–94.
Normally fry of 3 to 5 cm are sold to farmers by provincial fish seed farms and private hatcheries. This size is adequate for pond fish production, but too small for rice-cum-fish farming. Provincial farms and most farmers producing fry do not have sufficient space for fingerling production, which should be encouraged in any subsequent project. It is a good business in and of itself. Input costs are low and the farmer can purchase fry at 20 Kip for sale after 6 to 8 weeks (5 – 10 cm) at 50 to 100 Kip each. Farmers benefit from the greatly enhanced survival of fingerlings. Because of the higher survival (90%), it is also easier to control stocking density. Rice-cum-fish farmers are able to achieve higher yields, as well.
The technology of fry and fingerling distribution is very simple. The small fish are packed in plastic bags with oxygen. The farmer must have access to bottled oxygen and plastic bags, both of which are readily available in major towns.
Polyculture as introduced by the project is a very productive system which project staff and farmers have successfully adapted to growing conditions in Lao PDR. With the exception of limited fry supply, all other inputs are readily available and cheap.
The system can be adapted to the 3 agro-climatic zones of the country by modifying the species mix according to temperature tolerance and water supply conditions. In some upland areas like the Bolevens Plateau and Xiengkhuang, perennial water supplies are readily available and irrigated rice farming is wide spread. On the Mekong plains, dependance on rainfall limits the growout period to 185 days in shallow ponds.
LAO/89/003 promoted three polyculture systems: pond, rice-cum-fish and integrated aquaculture. Although target farmers readily took up the technology, several problems constrain the attainment of higher production.
3.2.3.1 Pond culture
Pond culture can be done in each of the 3 agro-climatic zones, but in upland areas sufficient flat land has to be found, preferably near the homestead. Perennial water supplies in upland areas enables year round fish culture and facilitates the production of common carp fry. The major problem in non-irrigated areas is the shallowness of ponds.
Few ponds were excavated to a sufficient depth to retain water year-round. This was a particular problem in the plains along the Mekong. The cost of pond construction may deter some low income farmers.
3.2.3.2 Rice-cum-fish
Fewer fish species are stocked in rice fields, but it is a technology of very wide applicability in Lao PDR. Pesticide use is not wide spread, favoring the spread of rice-cum-fish farming. Good results depend on proper trenching of the paddy field, which we observed was commonly inadequate or lacking, even in target farmers' fields. Productivity is also reduced by the lack of fingerling supplies. However, some of the smaller fish harvested from paddy fields can be stocked as fingerlings in fish ponds.
3.2.3.3 Integrated aquaculture.
Raising fish together with poultry or hogs can be very profitable. Both spilled feed and manure provide feed and nutrients for fish. However, this system did not seem to catch on as readily as pond and rice-cum-fish farming. The cost of building an animal pen over the pond, feed costs and the risk of diseases may deter farmers. Rice bran is one of the main ingredients of animal feeds and in some areas it is in short supply and consequently expensive.
The farmer sees the benefits of polyculture after the first harvest. Most of the target farmers were “culturing” fish simply by impounding whatever wild species were available before receiving training by the project. Production gains through the application of polyculture are 2 orders of magnitude greater and readily apparent to the farmer.
Further evidence of the appropriateness of polyculture is exhibited in the rapidity with which it has spread from target farmers to secondary farmers.
Stocking tilapia, as previously mentioned, reduces the productivity of the polyculture system. Although the project advises against it, farmers continue the practice due to the availability of the fry and the popularity of tilapia as a table fish.
While the productivity (kg/ha) of target farmers is below the high levels achieved in other countries, the improvement over traditional methods is of several orders of magnitude. At this point it is more realistic to note the achievement of greatly increased productivity over previous traditional methods rather than comparisons with integrated aquaculture in dissimilar economic and climatic conditions.
A key constraint is the shortage of fry and fingerlings of polyculture species such as grass carp, rohu, mrigal, silver and bighead carps. Unable to stock the best species mix, farmers are cannot maximize their production.
At this point in time, technological interventions do not appear appropriate for the marketing of farmed fish. Most cultured fish are consumed by the farmer or sold at pond bank as fresh fish. Only very limited quantities reach town markets. The market chain is so short that fish maintain their quality.
In the future, as production expands, live fish marketing might be explored. Live fish prices are usually higher than fresh fish, but trials would have to be conducted to ascertain the profitability of live fish marketing. It is likely to be applicable only to the larger urban markets such as Vientiane, Savannakhet and Pakse. It would also mean the intervention of a broker or might be done through farmers' groups or associations. The group would have it's tank and portable aerator which could be transported on a tuk tuk.
