Drink producer to increase domestic supply
Drink producer to increase domestic supply
Lao Agro Industry Company (LAICO), a major local drink producer, plans to improve its sweetcorn milk production line in order to enlarge supply, after seeing the increasing demand for the milk each month.
“We expect to complete the improvements within the next two years, after which we will have the production capacity to supply about 300,000 bottles of sweetcorn milk per month or about 10,000 bottles per day,” said Mr Chanin Awakulpanich, a senior company official.
LAICO started production and supply of sweetcorn milk in 2010. Their output was not great in the first two years, producing only about 20,000 bottles per month.
However supply was increased to about 30,000 bottles per month last year; and to about 50,000 bottles per month earlier this year.
“Currently the supply is about 70,000 bottles per month,” Mr Chanin said, “and we expect that it will grow up to about 100,000 bottles per month within the next three months.”
The product is sold in plastic bottles containing 320cc of sweetcorn milk. The retail price of one bottle varies between 5,000 kip to 6,000 kip in Vientiane and the provinces of Luang Prabang, Xieng Khuang, Vientiane, Borikhamxay, Khammuan, Savannakhet and Champassak.
The company started supplying the provinces earlier this year, and provincial sales now account for about 60 percent of trade, with the remaining 40 percent sold in the capital Vientiane.
Mr Chanin said the sweetcorn milk is produced solely for the local market because it has a shelf life of only two weeks; however it is fresh, full of vitamins and has a natural flavour and smell.
“We can make it have a longer shelf life, but we do not do that because the product quality will be low; it will lose the freshness, vitamins and natural flavour,” he said.
“Once we complete the production system upgrade, we will also have new products, including concentrated juice, which will be made of pineapple and passion fruit for the local market.” LAICO was established in 1994 and cans sweetcorn as well as pickled garlic and cabbage, rambutan in syrup, baby corn in brine, bamboo shoots, sweetcorn milk and palm seeds on its five hectare site in Thoulakhom district, Vientiane province.
It sources most of its raw materials from forests and local farms, although some vegetables are imported.
It can produce an average of 3,600 tonnes of canned or bottled fruit and vegetables each year, with about 5 percent sold on the domestic market, while the remaining 95 percent is exported.
It is preparing to upgrade its production line and improve efficiency. The project will cost about 24 billion to 32 billion kip (US$3 million to US$4 million). It hopes to lower ongoing production costs as it expects to face more competition in the years to come.
It has a large number of foreign clients in both the EU and Asean countries, including the UK, France, Germany, Poland, Vietnam and Thailand, while it is focusing on finding more buyers in Asia.
When there is a large supply of raw materials it employs around 300 people, the workforce comprising both permanent and temporary staff.
It is the first fruit and vegetable processing factory in Laos. It has three international accreditations which certify production and product quality, namely Good Manufacturing Practice, Hazard Analysis and Critical Control Point and British Retail Consortium.
vientiane times
