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Source:

Central Committee for Drug Abuse Control
Lao National Commission for Drug Control and Supervision
Office of the Narcotics Control Board

Opium Poppy Cultivation in the Golden Triangle:
Lao PDR, Myanmar, Thailand

October 2006

Contents

Preface
Fact Sheet - Golden Triangle Opium Surveys 2006
Executive Summary

Introduction
Coping With Change in the Golden Triangle - The Impact of Opium Poppy Elimination on Rural Livelihoods
Methodology and Data Sources
Changes Since Opium Reduction
Vulnerabilities: Households at High Risk of Poverty
Coping Strategies: How Upland Farmers Make a Living in the Post-Opium Poppy Environment
Targeting Vulnerable Households
Future Risks and Challenges

Laos Opium Survey 2006
Executive Summary
Introduction
Findings
Methodology

Myanmar Opium Survey 2006
Executive Summary
Introduction
Findings
Methodology

Thailand Opium Survey 2006
Introduction
Findings
Methodology

All images: Figures,Maps,Pictures

Preface

The Golden Triangle ­ where Lao PDR, Thailand and Myanmar meet ­ has long been synonymous with opium production and drug trafficking. Those days may soon be over.

Since 1998, opium poppy cultivation in the region decreased from an estimated 157,900 hectares to only 24,160 hectares in 2006. The Golden Triangle's share of world opium poppy cultivation has fallen from 66% in 1998 to only 12% in 2006. Laos and Thailand are almost opium free.

That said, Myanmar remains the world's second largest opium poppy grower after Afghanistan. More progress is needed, especially by local authorities in the Kachin and Shan States where opium poppy cultivation is concentrated.

It is also essential to ensure that the remarkable progress that has been made in the region is maintained. That will require greater investment in poor and often remote rural communities that have been affected by the elimination of opium poppy crops. Farmers need to feel confident that alternative livelihoods are sustainable. Otherwise the temptation to return to opium poppy farming will be too great.

We therefore stand at a significant yet fragile threshold where major development assistance and the resolve of the states concerned can enable the Golden Triangle to turn its back on opium.

If the current trend continues, there will soon be only one heroin producing country left in the world ­ Afghanistan. And it could learn some important lessons from the Golden Triangle.

Antonio Maria Costa
Executive Director
UNODC

Fact Sheet - Golden Triangle Opium Surveys 2006

1 These figures differ slightly from those published in the World Drug Report 2006, which subsumes Thailand under the category of "other countries".
2 As reported by the Government of Thailand.
3 Surveyed areas of 2005 and 2006 are not comparable.

Executive Summary

The Golden Triangle region in Southeast Asia, which comprises parts of Lao PDR, Myanmar and Thailand, was once notorious for its high opium production. In order to assess the scope of opium poppy cultivation and opium production, UNODC has been carrying out opium surveys in cooperation with the respective Governments, in Laos since 1992 and Myanmar since 2002, whereas Thailand has established its own monitoring system. This reports contains the results of the UNODC supported opium poppy cultivation surveys in Laos and Myanmar as well as results from the opium poppy surveys implemented by the Thai Office of the Narcotics Control Board.

Opium poppy cultivation in the Golden Triangle

Opium poppy cultivation in the Golden Triangle region decreased from a total estimated 157,900 hectares[4] cultivated in 1998, the year of the United Nations General Assembly Session on Drugs, to only 24,160 hectares in 2006, which corresponds to a reduction by 85% in only eight years. This is a remarkable and so far unmatched success in the reduction of illicit crops and an important step towards the goal of eliminating the cultivation of illicit crops worldwide.

4 Source: World Drug Report 2006.

Figure 1: Opium poppy cultivation in the Golden Triangle (hectares), 1998 - 2006

[twice the size]

The largest reduction in absolute terms took place in Myanmar where opium poppy cultivation decreased from 130,300 ha in 1998 to 81,400 in 2002 and only 21,500 ha in 2006 (minus 83% from 1998-2006). In Laos, the area under opium poppy decreased from 26,800 ha in 1998 to 14,100 ha in 2002 and to only 2,500 ha in 2006. This is a reduction by 93% between 1998 and 2006, the largest proportional reduction among the three countries. Thailand reports a reduction of its opium poppy cultivation area from 1,486 ha in 1998 to only 157 ha in 2006 (minus 89%), thereby almost matching Laos' reduction rate in relative terms. Laos and Thailand have both reached such low levels of opium poppy cultivation that they do no longer produce for the international opium market.

Figure 2: Global opium poppy cultivation (hectares), 1990 - 2006*

[twice the size]

* Data for 2006 for Rest of the World are based on preliminary estimates.

Despite years of decreases, Myanmar still is the second largest opium poppy grower in the world after Afghanistan. However, its share of the world opium poppy cultivation fell from 63% in 1998 to only 11% in 2006. This large proportional decrease was caused by a decrease of opium poppy cultivation in Myanmar in combination with a large increase in Afghanistan. Laos, which in 1998 still had a share of 11% of the world opium cultivation, now accounts for only about 1%. The Golden Triangle has clearly ceased to be the largest opium poppy cultivating region. Its share of the world opium cultivation fell from 66% in 1998 to only 12% in 2006.

Map 1: Opium poppy cultivation in Golden Triangle (hectares), 2004 - 2006

[twice the size]
Sources: Governments of Lao PDR, Myanmar and Thailand, national monitoring systems supported by UNODC in Lao PDR and Myanmar The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations

Opium poppy farmers in Laos, Myanmar and Thailand are ethnically diverse and live in remote, mountainous regions. In these upland areas, difficult agricultural and geographic conditions contribute to high levels of poverty. Opium poppy is currently cultivated in Kachin and Shan States in Myanmar, in the six northern-most provinces of Laos and in the 10 northern provinces of Thailand. Those regions have produced most of Southeast Asia's opium over the last fifty years or more. Motivated by a desire of modernization and poverty alleviation, the government of Laos, Myanmar and Thailand made the commitment to end opium cultivation in these areas by the year 2000 for Thailand, by 2006 for Laos and by 2014 for Myanmar.

Eradication

Official reports from the Governments of Laos, Myanmar and Thailand indicate that a total of 5,641 hectares of opium poppy were eradicated in 2006. This is a 14% decrease compared to 2005 when 6,592 ha where eradicated. A total of 1,518 ha were eradicated in Laos (84% of cultivated opium poppy), 3,970 ha in Myanmar and 110 ha in Thailand.

Opium poppy planted in contour lines in Kachin State, Myanmar [twice the size]

Map 2: Opium poppy eradication in the Golden Triangle (hectares), 2004 - 2006

[twice the size]

Opium yield and production

Opium poppy in South East Asia is mostly cultivated on steep hills with poor soil and no irrigation facilities. Opium yields are much lower than in Afghanistan where the crop is often cultivated on good soil and irrigated land. In 2006, opium yields were estimated at 9.5 kg/ha in Laos, 14.6 kg/ha in Myanmar and 15.6 kg/ha in Thailand.

The total potential opium production in South East Asia has decreased from an estimated 1,435 mt in 1998[5] to only 337 mt in 2006. This is a decrease of 77%. South East Asia's Golden Triangle, which was producing 33% of the world opium production in 1998, is now producing only about 5%. The Golden Triangle, once notorious for being the world's largest opium producing region, has ceased to play a major role as an opium production area. In 2006, total potential opium production in the Golden Triangle has remained at the same level as in 2005. This is due to increases in opium poppy cultivation in Laos (+39%) and Thailand (+34%), and higher opium yields in Myanmar, which offset the reduction in area under cultivation in the latter. Myanmar is still the second largest opium producer worldwide, however, its share of the world opium production fell from 30% in 1998 to only 5% in 2006.

5 Source: World Drug Report 2006.

Opium yield survey in Kachin, Myanmar [twice the size]

Map 3: Opium production in the Golden Triangle (metric tons), 2004 - 2006

[twice the size]
Sources: Governments of Lao PDR, Myanmar and Thailand, national monitoring systems supported by UNODC in Lao PDR and Myanmar The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations

Figure 3: Opium production in the Golden Triangle (metric tons), 1998 - 2006

[twice the size]

Figure 4: Global opium production (metric tons), 1990 - 2006*

[twice the size]

* Data for 2006 for Rest of the World are based on preliminary estimates.

Farm-gate prices

Opium prices in the Golden Triangle have increased over the past years. However, there are pronounced price differences between countries as well as between regions in countries. In 2006, the average farm-gate price for one kilogramme of opium at harvest time was highest in Thailand (US$1015), second highest in Laos (US$550), and lowest in Myanmar (US$230).

The steep price upsurge in Laos by 240% between 2002 and 2006 reflects the scarcity of opium in the country, which turned from an opium exporter to a net importer within a few years. In Myanmar, by far the largest producer, prices rose as well but much slower. Here, the opium price doubled from US$115/kg to US$230/kg in the same period. Prices in Thailand remained for a second year at a comparatively high level of over US$1000/kg.

Figure 5: Opium production and price in Lao PDR and Myanmar, 2002 - 2006

[twice the size]

Household income from opium

The contribution of opium sales to the household income of farmers varies considerably. In Myanmar, opium sales constitute about half of the annual household cash income and is mainly used to cover food shortages. In comparison, in Laos and Thailand income from opium represents only 10% of total cash income.

Higher opium prices in 2006 pushed incomes of opium poppy farmers up by 50% compared to the previous year. In Myanmar, 43% of the average yearly household income (US$437) of opium cultivating households was derived from opium sales in 2006 in contrast with 10% of US$300 annual cash income in Thailand. Since a large proportion of the household cash income is generated by opium, farmers in Myanmar are vulnerable to opium price fluctuations and possible decreases in production, whether caused by drought, disease or law enforcement. Such changes can have a serious and immediate impact on household food security. In Special Region 2 (Wa) in Myanmar where local authorities enforced an opium ban in 2005, farmers have lost up to 70% of their cash income. In Laos, where opium cultivation was at lower levels and elimination has been more gradual, farmers are better off in terms of food security. In Thailand, opium elimination has taken place over more than 30 years with sufficient alternative livelihood provided to farmers who lost their opium income.

Map 4: Farm-gate opium prices in the Golden Triangle (USD/kg), 2006

[twice the size]
Sources: Governments of Lao PDR, Myanmar and Thailand, national monitoring systems supported by UNODC in Lao PDR and Myanmar The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations

Opium abuse

In Southeast Asia, opium addiction is mostly found in places where opium poppy is cultivated. Since opium cultivation has declined rapidly in the last five years, the cost of opium has increased greatly. This has encouraged many users to try to stop, either by self-treatment or through treatment programmes. The number of opium addicts in Lao PDR has declined from 20,160 in 2005 to only 11,201 addicts in 2006, a reduction of over 50%. The addiction rate decreased similarly from 1% to 0.58%. In Myanmar, opium addiction remains high in places of opium production, ranging from 0.60% of the total adult population in Shan State to 0,72% in Kachin States and up to 0,83% in the Wa region, which was the main area of opium production in the country up to 2005. In Thailand, opium and heroin addiction has become mainly an urban problem with very few opiates abusers being reported by the government.

The impact of opium poppy elimination on rural livelihoods

Rural households that abandoned opium poppy cultivation have reported both positive and negative changes as a result. Positive impacts include the rehabilitation of addicts, lightening of women's workload, and the opportunity to diversify out of an unreliable cash crop. Negative impacts include shortage of food and cash, increased debt, and stress. To cope with food shortages, some households had to borrow rice, consume less preferred and less nutritious food, and reduce food intake.

Households, which are especially vulnerable to poverty include those with opium addicts, those that lack land, labour, or access to markets and credit, and those who have been resettled without adequate support. These households experience an erosion of household livelihood assets, resulting among others in poor health and reduced education levels (school drop-outs). As a result, resumption of opium poppy cultivation and migration of family members for labour may occur. A survey on coping strategies in Laos and Myanmar found that households have adopted certain strategies in response the opium poppy reduction:

Expansion of area of upland farmed: Nearly all households are expanding the area of upland rice and/or corn, but even so, not all households are able to achieve food security.

Collection of non-timber forest products: This is one of the most widespread coping strategies, but the level of income varies. Some villages have successfully increased income while others have not.

Sale of livestock: This strategy is especially important in Laos, but to a lesser extent also in the Wa region, Myanmar.

Increased work as unskilled daily wage labourer: Wage labour is increasingly important as an income source in Wa (Myanmar), where it is the major annual income source for some households; but less so in Laos.

Agricultural diversification: Is successful under certain conditions that include access to: markets and transportation, capital, materials and technology, and land. Most households in the opium poppy regions, however, lack several of these assets.

Emergency, rehabilitation and development assistance is urgently needed, especially in those areas, where opium poppy as a source of rural income was reduced within a short period of time .

This assistance should provide food aid, promote agricultural improvements, and target specifically those households with a high degree of vulnerability. Comprehensive development assistance, with long-term commitments, is necessary to sustain achievements in livelihood security.

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