Lao egg producers face uphill battle in AEC competition

Sep 12th at 14:07
12-09-2013 14:07:23+07:00

Lao egg producers face uphill battle in AEC competition

The high costs involved in the production of eggs and chickens continues to pose a challenge to Lao chicken farmers, especially in Vientiane, and will make it tough for them to compete in regional markets when Laos joins the Asean Economic Community in 2015.

Most chicken farmers struggle to repay the high interest on bank loans and have the added burden of expensive feed products, Head of the Lao Chicken Farm Group, Mr Phouvong Phongphansay, told Vientiane Times on Tuesday.

There is not much that farmers can do about buying expensive chicken feed from neighbouring countries, he said, but suggested the government could help them to negotiate lower loan interest payments.

Banks in Thailand and Vietnam charge about 3-5 percent interest annually on loans issued to farmers, but banks in Laos impose a rate of 13-15 percent a year, he said.

This issue has been a problem for Lao chicken farmers since 2010 and there is still no solution in sight, Mr Phouvong said.

While the market price of eggs remains low compared to other food items, the cost of chicken feed rises every year, he added.

Some traders boost their earnings by selling illegally imported eggs when the price of Lao eggs increases.

Some farmers have turned to other work after finding they cannot make a profit and have run out of money, Mr Phouvong said.

At the start of last year, the Lao Chicken Farm Group collectively owned 700,000 chickens but the number fell to 500,000 by the end of the yea r.

However, Mr Phouvong said he thought the number would rise again this year because the price of eggs had risen in the last five months.

The price of eggs at the farm is currently 23,000-25,000 kip per box of 30 eggs depending on , but traders sell them for 28,000-30,000 kip per box.

Director of the Vientiane Foodstuff State Enterprise, Mr Khamla Saengdara, said the main focus for Laos should be to improve product quality to international standards. To achieve this it is essential to strengthen regulations and ensure the relevant personnel are properly trained.

Agribusinesses still mainly produce goods for sale in local markets, but they lack coordination and do not incorporate new technology into their operations. This means they do not produce on a commercial scale that enables them to export, he said.

Eggs producers in Thailand have recently been affected by a fall in the price of eggs as markets have been oversupplied.

To solve the problem, the Thai government has ordered farmers to supply only 37,000 million eggs a day down from the current 34,000 million eggs, according to local media reports.

vientiane times



NEWS SAME CATEGORY

Black rice offers regional market potential

Kaysone Phomvihane district, Savannakhet province: The production of black rice offers strong potential for Laos when the country competes with other nations for...

Indian bike dealer woos male riders

Bajaj Auto Limited has recently opened its doors in Laos to introduce an exciting new range of motorbikes which they hope will appeal to male customers in...

Vientiane sees surge in vehicle imports

Laos has imported more vehicles than ever this year, with the category featuring high on the list of imports overall, according to a government report.

Fisheries inspection standard in the pipeline

The livestock and fisheries sector is drafting a quality control standard to ensure that fish products imported into Laos are safe for use.

Beef price remains high in Vientiane markets

The cost of beef in Vientiane markets has not dropped despite attempts by the relevant sectors to rein in prices over recent months.

Farmed fish prices rise as operators struggle to stay afloat

The cost of tilapia farmed on the Mekong River in Vientiane has risen now that many farmers have packed in their operations because of the rising river level and...

Xaythany district exceeds meat production targets

Xaythany district authorities expect to supply more than 3,400 tonnes of meat, aiming to satisfy the high demand of Vientiane markets over the next six months of...

DK Lao becomes sole Mitsubishi forklift dealer in Laos

The DK Lao Trading Sole Company Limited (DK Lao), a privately-owned company, formally unveiled its brand new DKwick Service Centre on Saturday in Vientiane, as the...

Gold rush as Lao prices drop

The recent drop in gold prices on the Lao market has brought buyers out in droves to purchase gold jewellery while it remains cheap.

Vehicle sales expected to drop this year

Vehicle sales in Vientiane will not be as high as in previous years despite strong economic growth, according to motor dealerships.


MOST READ


Back To Top