The Agriculture Value Chain Facility (AVCF) is a matching grant facility for agribusinesses under the Lao PDR Agriculture Competitiveness Project (LACP), financed by the World Bank and implemented by the Ministry of Agriculture and Forestry (MAF) in partnership with SNV Netherlands Development Organisation. AVCF provides free technical assistance to agribusinesses, supports the preparation and appraisal of their business proposals, provides matching grants for upgrading postharvest handling and processing facilities.

The financial support can also be used to improve the management capacity, enhance product quality, increase operational efficiency, reduce physical losses, and link farmer groups to improve the marketing of farm products. Targeted agribusinesses are: rice millers, maize millers, horticulture processors or traders registered in Lao PDR and operating in Khammouane, Bolikhamxay, Xayaboury, Vientiane Province and Vientiane Capital.

AVCF’s purpose is to extend technical and financial services to agribusinesses. The subcomponent aims to improve operational standards and efficiency of agribusinesses operating in rice, maize, and horticulture value chains, thereby increasing their competitiveness to meet the market demand. This subcomponent will focus on:

• Providing technical assistance to agribusinesses, including preparation of business proposals, business plans, business plan implementation support, and M&E of the results.

• Providing matching grants to selected agribusinesses to upgrade their processing and postharvest handling facilities and their management capacities to improve product quality. Also, to increase operational efficiency, reduce physical losses, and link with farmer groups to improve marketing of the farm produce.