Biofuels production for smallholder producers in the Greater Mekong Sub-region

Looming concerns on rising food prices and food security has slowed down the impetus in biofuel production. The development of the sub-sector, however, remains an important agenda among developing countries like those of the Greater Mekong Sub-region (GMS) that have abundant labour and natural resources but have limited supply of fossil fuels which continues to serve as a constraint to economic growth. Five crops have been selected to be further developed and used for biofuel production in the GMS, namely sugarcane, cassava, oil palm, sweet sorghum and Jathropa curcas. The expanded use of sugarcane, cassava, and oil palm for biofuel production can cause problems in the food sector. The other two crops, sweet sorghum and J. curcas, are non-food crops but could still compete with the food crops in terms of resource use for production. In all cases, the GMS needs to formulate a sustainable strategy for the biofuel development that will not compete with the food sector but will rather help achieve energy security, promote rural development and protect the environment. Except for People's Republic of China (PRC) and Thailand that already have fairly developed biofuel sub-sector, the other GMS countries are either poised to start ((the) Lao People's Democratic Republic and Cambodia) or ready to enhance existing initiatives on biofuel production (Myanmar and Viet Nam), with support from their respective governments. Biofuel development in these countries has to be strongly integrated with smallholder producers in order to have an impact on improving livelihood. At this initial stage, the sub-sector does not need to compete on a price basis but should rather aim to put up small-scale biofuel processing plants in remote rural areas that can offer an alternative to high-priced diesel and kerosene for local electricity grids serving homes and small enterprises. The social and economic multiplier effects are expected to be high when farmers that produce the energy crops also produce the biofuels to generate affordable and reliable energy. To make this happen, there is a need for conscious effort and investment support from development agencies and the government working in partnership with the private sector, research institutions and the farmers. (C) 2009 Published by Elsevier Ltd.