Japanese company supports commercial cultivation in Xekong
Japanese company supports commercial cultivation in Xekong
MSI BK Limited has provided funding of US$2 million to the Lao Arrowny Corporation to encourage farmers in Xekong province to grow commercial crops for export to Japan.
The trading agreement was signed in Vientiane on Saturday by the Director of the Lao Arrowny Corporation, Mr Khamsavang Mingboubpha, Lao Arrowny Corporation President, Mr Ishii Masato and MSI BK Limited Marketing Director, Mr Kenji Suzuki.
The ceremony was attended by the Deputy Minister to the Government Office, Mr Phetsakhone Louangaphay, Xekong provincial authorities and representatives from the relevant sectors.
The crops to be promoted will include sesame, beans, rice and coffee, which are all high potential crops to be grown under the two plus three system, where the company provides crop seeds, training in farming techniques and marketing, while the farmers provide the labour and land.
The company hopes that through the project, it will begin to export its first sesame next year, followed by coffee and other crops.
To guarantee the farming area required to produce crops for export, MSI BK Limited has offered 20 million kip the provincial authorities to undertake a feasibility study before promotion commences.
“Under the project we will focus on creating business units, processing factories and faming contracts within the province,” said Mr Khamsavang, the Lao Arrowny director.
Xekong is one of poorest provinces in the country and is a priority area for the government with the company's venture looking set to improve incomes and livelihoods in the region.
Under the agreement, the company should export around 1,000 tonnes of packaged crops to MSI BK Limited per annum, once operations are up and running.
MSI BK Limited can take an unlimited amount of produce due to the of the Japanese market, and it is only a question of how much Lao Arrowny can supply. It will also purchase commercial crops from other provinces around the country in cooperation with local business units, based on the produce available.
Laos has good potential to grow various different commercial crops for export but there is still a lack of funding to support farmers' commencing commercial cultivation.
vientiane times
