The Financial Impact of Maize Export to China for Farmers in Xiengkhuang, Laos

Abstract

Aims: Corn has become an important cash crop in Laos, mainly grown in the northern mountainous areas and used for various industrial products as well as food. The corn value chain plays a key role in employment and poverty alleviation in the country's rural areas. Study Design: This study is based on both quantitative research method, with one study enabling in-depth interviews with key informants and conducted in Xiegkhouang province. Targeted spot checks were used to select districts based on maize cultivation. Random sampling was conducted to obtain household surveys that have benefited from exporting corn to China, and each group received 12 respondents from two districts, for a total of 120. Methodology: This study uses both primary and secondary data. Primary data are obtained from the field in a number of ways, namely (i) by direct observation; (ii) in-depth interviews with key informants; and (iii) focus group discussion with local stakeholders.Descriptive statistical package and gross margin analyzes were used to determine the profitability levels of corn farmers and corn traders in the study area. Results: The assessment results showed that corn exports to China had a positive and significant effect on farmers' incomes in Xiegkhouang Province. The average increase in the net income of the farmers surveyed was significant. The study also found that corn exports to China had a positive impact on provincial employment opportunities and additional job opportunities. Conclusion: The study found that while exports to China increased farmers' income, they also increased input and labor costs, and therefore the macroeconomic impact was not as positive as initially expected to help farmers increase their income and benefit from corn exports.