Chinese Experts Help Lao Farmers Reach High-End Tea Markets
China’s ancient tea trees are prized for yielding high-end tea, particularly the renowned pu erh varieties. These old trees’ deep roots pull more minerals from the soil, resulting in a tea with a smooth but complex flavor. But while Laos has abundant tea tree resources for high-end — and higher-priced — teas, small-scale tea farmers are unequipped for the type of cultivation, processing and storage needed to export to a growing high-end tea market. This compound problem keeps Lao tea farmers at the low end of the commercial value chain and risks continued unsustainable farming of these precious natural resources.
Understanding of the challenges and opportunities faced by Laos’ tea farmers has been furthered by studies carried out by the Lao Upland Rural Advisory Service (LURAS) project. The project works to improve the livelihoods of smallholder farmers in upland Laos by supporting sustainable farming, fair and profitable market systems, extension services, and knowledge systems for green farming and agribusiness. LURAS is funded by the Swiss Agency for Development and Cooperation and is implemented by Helvetas alongside the Lao government’s Department of Agriculture Extension and Cooperatives.
As part of its work on the Forest Friendly Value Chain, the program has been assisting Lao tea farmers in learning to sustainably cultivate these trees and to market higher-quality, higher-priced teas for more profit. Fostering collaboration with neighboring China’s tea experts is a key part of these efforts. Two studies on Chinese agricultural investments in Laos conducted by the project recommend cooperation with relevant Chinese institutions to promote sustainable agricultural investment in Laos and sustainable use of Laos’ natural resources.
China is Laos’ main agriculture export market and a world-renowned source of expertise in tea cultivation, processing, storage and marketing. However, Lao farmers lack relevant market information and are not well-versed in their neighbor’s market standards. Training on Chinese agricultural technologies and standards is therefore key to improving Lao farmers’ export potential.
To address these knowledge gaps, in October LURAS facilitated the participation of an expert team from China’s Yunnan Academy of Agricultural Sciences in the Lao Tea Alliance Workshop and agriculture fair in Luang Prabang. The team included Mr. Tao Shike, a senior agronomist from the Puer Institute of Tea Science. Mr. Tao presented on trends in the Chinese tea market and opportunities for Lao tea to the assembled international agriculture and agribusiness experts, including Lao government representatives. This was the first time that a tea industry expert from a professional Chinese institute participated in the annual workshop.
Drawing on his 40 years of experience across the full tea industry chain, Mr. Tao shared Chinese planting, grafting and cultivation techniques for production of high-quality tea, such as controlling temperature and moisture levels of soil. He also discussed methods of creating different tea varieties, referencing techniques used in the Laos-China border area of Phonsaly.
Cautioning against the common Lao practice of “slash-and-burn” farming, Mr. Tao told participants that “good practices produce good quality tea and consumer trust.” With improved cultivation and marketing techniques, Laos can meet market challenges, he said, expressing hope to exchange technology, management and marketing experiences with farmers.
Mr. Tao taste-tested 10 growers’ teas. Growers were eager for his assessment and identification of taste and quality issues, as well as to receive his advice on tea picking, processing, storage and packaging.
Following the workshop, the Lao Ministry of Agriculture and Environment, together with fellow Helvetas “Green Cup” project partners, hosted International Coffee and Tea Day at the Luang Prabang Primary School. Green Cup is one of two flagship projects under the umbrella of the Global Gateway Team Europe Partnership with Laos that aims to increase sustainable and inclusive trade, investment and connectivity in the agriculture and forestry sectors. The initiative supports farmers in selling their tea and coffee products at fair prices, accessing sustainable and high-value markets, and adopting good agroforestry practices. Slash-and-burn is still widely practiced by Lao tea farmers. This farming method can contribute to deforestation, soil degradation, biodiversity loss and reduced crop productivity. Global warming and other factors are also making it increasingly unsustainable.
The event featured speakers and coffee and tea booths. Ms. Lanoy, a tea vendor who has been working with LURAS in the Xieng Khouang province for three years said the event is a good opportunity to learn more about marketing and develop product ideas. She hopes to soon add a fifth type of pu ehr tea cake to the products she currently promotes online. The LURAS team trained her in online marketing and sales and assisted her in developing a commercial Facebook page, which has put into practice with good results. Importantly, she said, this has allowed her to cut out middlemen. “I’m proud customers know about our tea. The market now comes to the supplier.” She said she is actively working to develop more sustainable farming practices. Raised in a farming family, she noted that in contrast to the “slash-and-burn” method often used today, “Traditional Lao tea processing is more sustainable.”
A LURAS officer assisting project partners with their booth for the three-day event said, “This event is important for growers to have a vision what’s possible, explore business-to-business opportunities, and compare products. It was also a rare opportunity to network in person.” One attendee said he was impressed by the solidarity of the young farmers.
LURAS is also working to improve the systems environment. The recent policy study “From ‘Guidelines for Them’ to ‘Guidelines from Them’: Exploring the Local Understandings and Practices of Sustainable or Responsible Agricultural Investment” considers how to improve investments in Lao agriculture. The study examines why many Lao stakeholders are unaware of agriculture guidelines and policies and suggests actionable steps to improve the existing framework. This includes initiating dialogue to strengthen collaboration and understanding between and among government and non-government stakeholders. LURAS also partners with the Lao government’s province and district-level Agriculture and Environment Offices to implement the program’s “green extension” approach of supporting sustainable farming. The Lao government’s “Green and Sustainable Agriculture Framework for Lao PDR to 2030” helps to guide planning, implementation of sustainable agricultural practices in the country.
Following the event in Luang Prabang, the Chinese team of experts traveled to Xieng Khouang where Mr. Tao visited a tea garden, processing facilities and LURAS agriculture learning centers. He provided practical guidance on plantation management, pest control, harvesting and the different processing requirements for various types of tea. The field visits confirmed several issues he had identified earlier in Luang Prabang, such as the same picking methods being used for all tea types, and inconsistent standards in processing equipment and procedures. The farmers were greatly interested in learning from him, with discussions going well beyond the planned schedule, sometimes into the evening.
Merging research and technical support, LURAS has assisted northern Laos tea growers in developing more profitable and environmentally sustainable practices through technical support, identifying systemic issues, and introduction to international markets and market standards. Collaboration with experts in China’s ancient tea industry standards and technology is helping to further identify the strengths and challenges of the Lao tea industry — and to propose feasible solutions. LURAS laying this groundwork for further cooperation on sustainable development between Laos and China is good for Lao farmers, good for the environment and good for tea drinkers.
About the Author
Fiona Shukri is consultant with Helvetas’ LURAS program. She is a writer and strategic communications advisor with extensive experience in Southeast Asia, Central Asia and the Middle East.
