Comparing investments in the Lao Tea Sector: Concessions, contracts, and outcomes for smallholder farmers
Most tea in Laos is produced by smallholder farmers, who benefit from highly suitable growing conditions and strong demand for sought-after varieties from the vast Chinese market. However, the sector faces many challenges to achieve its full potential. A key barrier in the northern provinces has been the tendency towards monopsony trade concessions, in which the production of a whole district can be under exclusive control of one buyer.