Xayaboury palm oil plantation to expand
Xayaboury palm oil plantation to expand
The Lao Agro Tech Co., Ltd will expand its palm tree plantations in Xayaboury province to increase palm oil production for the bio-diesel industry in Laos.
The company has joined with the Douangdeth Agriculture Promotion Import and Export Co. in Xayaboury province to encourage provincial farmers to grow palm trees for supply to the processing factory in Vientiane.
The provincial governor has agreed to the companies using around 3,000 hectares of land in Nam Song village in Phiang district after completing a review of studies undertaken in recent months by provincial authorities and the companies.
The area is mainly a reed growing scrubland that local villagers have been using for their upland rice cultivation and other crops but it can be used to plant commercial crops and industrial trees, Douangdeth Company Director Mr Noynouan Douangdeth told Vientiane Times yesterday.
To achieve the true potential of this area, the government has decided to encourage investors to produce industrial trees to help the local people earn a better income, he said.
The project will begin to promote growing palm trees this year but the company is not sure when the plantation will be finished, said Mr Noynouan.
The Lao Agro Tech company will supply the palm saplings, technical assistance and marketing, while the Douangdeth Company will be the coordinator to encourage the farmers in the area, he explained.
According to the studies, Nam Song village covers around 3,100 hectares of reed growth, some of which will be divided up to allow the local people to grow their agricultural produce and provide space for their livestock breeding.
In Phieng district there are currently about 12,350 palm trees which were planted two years ago by the district farmer's group.
The project is one of the provincial priority projects in promoting commercial products and green areas, said Mr Noynouan.
The Lao Agro Tech company was established in 2008 and currently the company has helped people to grow more than 200 hectares of palm trees in Vientiane and some other provinces.
Lao Agro Tech's factory is currently able to process around 20,000 litres of B100 palm oil and 400,000 litres of B5 bio-diesel a day.
The company is aiming to expand its production area to 2,000 hectares over the next three to five years.
vientiane times
