Chinese banana growers reap high yields from Lao crop
Chinese banana growers reap high yields from Lao crop
Chinese companies are exporting thousands of tonnes of bananas grown in Oudomxay province in the north of Laos to their major market, China.
Oudomxay is one of the big banana producers in the north besides Luang Namtha and Bokeo provinces.
According to an official of the provincial Agriculture and Forestry Department, now is the time for harvesting and so far investors have already exported more than 46,300 tonnes with a value of more than 69.4 billion kip (over US$8.6 million).
It is projected that about 100,000 tonnes of bananas will be harvested and shipped to Chinese markets this year, a slight increase on last year. In 2014, investors exported about 99,000 tonnes of the fruit.
There are 13 Chinese companies involved in the project in Oudomxay province with a total investment of more than US$8.1 million. They hold concessions on 2,867 hectares of land, of which only 10 hectares are set aside for locals to grow the crop. The companies started working on the banana plantation project in 2000.
Most of the plantations are in Houn, Beang, Namor and Xay districts. The project covers 38 villages in total and 44 families are involved.
The official said the companies had signed land concession agreements with the provincial authorities, but they have to rent the land from local people. The leasing cost depends on the negotiation, but mostly people charge 8 million to 12 million kip per hectare per year, the official said.
Currently, the investors have planted bananas on 1,094 of the 2,867 hectares and are preparing new areas to plant more of the crop.
Local people are continuing to lease their land to investors and work in the banana plantations because the combined income gained from leasing the land and providing labour is better than growing other crops such as rice and sweetcorn by themselves.
For example, if a family chose to grow maize they could expect to harvest four tonnes per hectare with a total revenue of only five million kip per year, but if they rent out their land to an investor and work in the banana plantation they can earn about 30 million kip per year.
Despite the banana plantations providing good benefits and helping the provincial economy, they do have some negative effects as well, such as the leeching of chemicals into rivers and water sources. The careless disposal of plastic sheeting and bags used to protect the fruit is also having an impact on the environment.
The provincial sector concerned is working with the companies and not allowing them to plant bananas near rivers, irrigation systems or on flat land, the official said.
Officials from the provincial environmental sector are also coordinating with investors to deal with environmental issues.
Besides Oudomxay, Luang Namtha and Bokeo provinces, investors are also interested in banana plantation investment in Xayaboury province.
Xayaboury prov incial authorities have recently approved three companies for banana investment in the province.
Two companies are from China while one is a domestic concern. They are currently cooperating with the provincial Agriculture and Forestry Department and local authorities to study areas for plantations.
