Benefit-Cost Ratio (BCR) Analysis of Agroecological Trials in Attapeu Province, Lao PDR: Interim Results from the First Year of Operation of Two Pilot Systems

Kotchofa, Pacem; Chanthalath, Ammala; Xaydala, Viengxay; Dubois, Mark

Benefit-Cost Ratio (BCR) Analysis of Agroecological Trials in Attapeu Province, Lao PDR: Interim Results from the First Year of Operation of Two Pilot Systems

Autores

Editor

International Water Management Institute

Descripción

This report reviews the economic and technical outcomes of agroecological innovation trials in Attapeu Province, Lao PDR, as part of the CGIAR Multifunctional Landscapes Program in May 2025. The trials evaluated Red Rice (RR) and Integrated Rice-Fish Culture (IRFC) compared to conventional systems (Loum Pa and rice monoculture) using one-season benefit-cost ratio (BCR) data, along with broader sustainability and food security aspects. Key Results: • Red Rice (RR): Shows strong market potential with higher yields (up to 5 t/ha) and nearly double the price of local varieties. Adoption among trial farmers reached 100%. First-year BCRs are below 1 due to high initial investments, but most farms become profitable when excluding these fixed costs, suggesting good medium-term prospects. • IRFC & Loum Pa: Offer ecological benefits like nutrient recycling and biodiversity, but lower BCRs result from high operational costs, technical challenges, and capacity gaps. Adoption is limited. • Rice Monoculture: Provides the highest short-term BCR (up to 3), emphasizing the trade-off and policy actions between profitability and sustainability. Key Insight: Single-season BCRs may underestimate the long-term value of agroecological systems with high upfront costs. Action Points: • Support upfront investments for RR and IRFC through financing or subsidies. • Expand extension services, especially for aquaculture and integrated crop-aquaculture systems (IRFC). • Develop value chains and contracts to secure price premiums for RR and minimize risks. • Use multi-season, technical, and environmental indicators alongside BCR to better assess system value.