Lao fruit and vegetable products boost exports to EU
Lao fruit and vegetable products boost exports to EU
The Lao Agro Industry Co. Ltd, which is the first fruit and vegetable processing factory in Laos, is planning to export 10,000 tonnes of its product to the European market this year.
The factory is located at Ban Kern in Thoulakhom district, Vientiane province. The main products it produces include sweet corn milk, pickled garlic, and baby corn in brine along with sugar palm seed in syrup, packaged in a rectangular can.
Last year, the company exported only around 3,000 tonnes, but with higher demand from the market this year Lao Agro has had to increase the total number of exports almost five times, according to company president, Mr Loumkham Vongxay.
“About 5 percent of our products are sold on the domestic market, while the remaining 95 percent are exported,” Mr Loumkham told Vientiane Times yesterday.
“Our main export markets in Europe include England, Germany, The Netherlands, along with Russia and also exports to Asean countries, such as Thailand and Vietnam,” he said. The company has three international accreditations which certify production and product quality, namely: Good Manufacturing Practice, Hazard Analysis and Critical Control Point and British Retail Consortium.
Agri-business operations in Laos are currently still obstructed by several issues, especially the fact that the capital cost of developing products is still high and the lack of government promotion in the field, he commented.
Almost all of the agricultural raw material including seeds and fertilisers are imported from neighbouring countries without strict price management.
The government also lacks plans to coordinate finance between the bank and business entrepreneurs.
“This issue is the reason why the agriculture sector in Laos is slow to expand, with a lack of domestic and foreign investors,” he explained.
“The capacity of Lao workers in this area is still limited and entrepreneurs are also struggling with high interest loans from the banks.”
Laos became a member of the World Trade Organisation (WTO) last year and will integrate with the Asean Economic Community next year and many things remain to be done.
Numerous Lao agri-business entrepreneurs have commented that Laos will need to meet major challenges without delay in order to solve these issues.
More than 70 percent of the Lao population still makes a living from agriculture and many areas of Lao land are suitable for crop production and livestock breeding.
Therefore, Lao agri-business entrepreneurs have called on government organisations to increase their responsibility in managing this sector and to promote human resource development in order to boost agricultural exports.
vientiane times
