Benzoin production benefits local farmers
Benzoin production benefits local farmers
Lao benzoin production has been generating income for farmers in the northern provinces and also contributed to government revenue streams.
Due to the high market demand for benzoin and the good prices available, it has provided an annual average of 2.16 million kip per family or about 17 percent of their total income, according to the National Agriculture and Forestry Research Institute (NAFRI)'s study.
Lao benzoin also contributed about US$2.5 million in a 10 year cycle or average of US$0.25 million per year. Most benzoin farmers are in Phongsaly, Huaphan, Oudomxay, Xieng Khuang and Luang Prabang provinces.
Lao benzoin is a local specific resource, which has an ecological area in five northern provinces of the country, covering 17 districts, and 240 villages on an area of 1.92 million hectares.
The main production areas are currently located in the three provinces of Huaphan, Luang Prabang and Phongsaly, in 15 districts, 201 villages and 3,685 hectares of area.
In the future, officials would like to expand benzoin production to five provincial areas. Benzoin trees occur only in natural habitats and are integrated into the traditional practice of shifting cultivation.
The production yield is about 203 grammes per tree. Young trees about 5-7 years provided a lower production average of about 160 grammes per tree.
Prices that farmers receive can range from anywhere between 60,000 kip per kg to 120,000 kip per kg depending on the local conditions and arrangements.
Benzoin production in three provinces between 2006 and 2015 reached about 499 tonnes or an average of 48 tonnes a year. Most Lao benzoin is exported to European markets with an average export value of US$1.46 million per year.
Lao benzoin resin is of high quality and is used mainly in the manufacture of fine fragrances.
The study identifies a need for land zoning for sustainable benzoin production and the proper management of collection activities.
The government should be involved in price control to ensure fairness for both collectors and traders as well pay more attention to promoting benzoin production for export and increase the value of Lao benzoin production.
Benzoin production is important for poverty reduction; if households are able to increase benzoin production by about 10 percent, it should help reduce household poverty by 3.19 percent.
The study also found that selling benzoin under contract farming agreements is an important factor in creating income for poor families as these agreements are better than other selling methods.
Such agreements have helped farmers enjoy a stable market, fetch reasonable prices and earn a sustainable income.
