Xayaboury company's maize exports up threefold
Xayaboury company's maize exports up threefold
Xayaboury province's Keovanxai Trading Export-Import Co. Ltd has turned its attention to China and will export three times the amount of maize this fiscal year as it did last year.
Company Director, Mr Khamnuan Keovanxay, said last year the company exported about 3,000 tonnes of maize to Thailan d but this year its exports were set skyrocket to almost 10,000 tonnes, 90 percent of which will go to China.
Under a contract between Keovanxai Trading Export-Import and farmers in the provinces, the company provides seeds, credit and fertilisers to farmers, then later purcha ses the harvested produce.
Mr Khamnuan said the company supplied about two tonnes of maize seed to farmers in Ngeun and Hongsa districts last year, which had increased to five tonnes this year.
He said the company had started looking north for an export market as Chinese traders were willing to pay more for maize than those in Thailand.
According to Mr Khamnuan, maize from Laos sells at about 1,200 to 1,250 kip per kg in Thailand, whereas China was willing to pay 1,650 to 1,700 kip per kg.
He said Thai government regulations that only allowed Lao traders to sell their products in Thailand from March to June also made exporting difficult.
Maize farmers have faced struggles in exports to Thailand.
Farmers harvest their maize from September until November of December each year but are forced to store the product until March, when they can finally begin exporting.
Poor quality storage barns often result in maize weevils attacking crops and some traders have taken advantage of farmers' circumstances by buying their produce at a low price.
Maize exporters may face an even tougher battle next year under a Thai government proposal that would require all imported products to come with quality certification, according to the Xayaboury Commercial and Industry Department.
The crop is still a major source of income for farmers but small and insecure markets are putting their livelihoods at risk.
Maize pulls in the second highest income among commercial agricultural crops, behind coffee, according to a Ministry of Agriculture and Forestry report released earlier this year.
The ministry collected US$55 million in revenue from maize exports last year, however tens of thousands of tonnes are suspected to have been illegally exported, escaping the ministry's grasp.
vientiane times
