Kuwait eyed as potential export market for Lao farmers

Kuwait eyed as potential export market for Lao farmers

There is huge potential for Laos to export organic fruit and vegetables to Middle Eastern countries such as Kuwait, according to a senior official at the Lao National Chamber of Commerce and Industry.

“Lao agricultural products would be competitive in Kuwait if they were organic,” the chamber's Secretary General, Mr Khanthanvong Dalavong, told Vientiane Times after meeting with the Kuwaiti Chamber of Commerce in Kuwait City last week.

He said Kuwaitis who liked to buy organic fruit and vegetables had high incomes, and Laos would not encounter any problems with market demand.

India, Bangladesh and Nepal have already entered the Middle East fruit and vegetable market, but Mr Khanthanvong said these countries did not sell organic produce, so there was an opportunity for Laos to fill this niche market.

Mr Khanthanvong said some Lao farmers had found business partners for the export of organic crops to the Middle East. But among the challenges to be overcome were packaging and logistics.

“We have to ship produce to Thailand first before it can be transported to the Middle East.”

Mr Khanthanvong said the government of Kuwait planned to provide financial backing for Lao businesses to grow organic crops for Middle Eastern countries, adding that loan arrangements were now in progress.

The Kuwaiti government announced last week that it would provide seed funding of US$300 million to set up a development fund for non Arab countries in Asia, as part of efforts to help least developed countries alleviate poverty.

Laos is qualified to access the development fund, which will be administered by the Asian Development Bank.

Lao Ambassador to Kuwait, Mr Thongphachanh Sonnasinh, said that because of the prevailing desert conditions in the country, few crops could be grown, so the demand for agricultural products was high and the sale price was very attractive.

“One kilo of bananas costs about US$3 here,” he said, adding that such prices would be a strong incentive for Lao farmers.

He said the Kuwaiti government had made a commitment to help Lao businesses export agricultural products to the oil rich nation, adding that the Lao Chamber of Commerce and Industry should send some produce to Kuwait for market trials.

Mr Thongphachanh said relations between Laos and Kuwait had strengthened since the two nations opened embassies in each other's country. Laos opened its embassy in Kuwait in 2009.

vientiane times