Improved production can boost Lao coffee industry
Improved production can boost Lao coffee industry
Laos is aiming to boost the coffee industry by developing farmers' crop production techniques in line with international standards.
More than 50 percent of Lao coffee producers are lacking education on production management and marketing and suffer from a lack of access to finance.
Champassak provincial Agriculture and Forestry Department Director Mr Soupany Silipounyo told Vientiane Times that in order to develop commercial crops the government, private sector businesses and the growers need to boost promotion efforts and increase collaboration.
Mr Soupany said this development would help the country join the International Coffee Organisation (ICO) at an earlier date.
A major challenge the country is currently facing was that most local farmers are still producing their crops using traditional methods, he said.
The Lao Coffee Sector Development Strategy is a great opportunity for Laos to easily access the international markets after the government announced its approval this year.
The aim of the strategy is to develop the Lao coffee industry and expand its system and sustainability, increase access to the international market, improve the business environment for competitiveness and reduce costs.
It also aims at securing producers' land rights, zoning and land use planning, along with strengthening the capacity of the institutions and organisations concerned with the industry.
The strategy is designed to protect producers and entrepreneurs, as well as to enhance the Lao coffee sector's contribution to the national socio-economic development goals of poverty alleviation and economic growth.
Mr Soupany said if Laos became an ICO member, it would open up many opportunities for coffee producers and entrepreneurs to gain international knowledge and experience.
He added that it would allow them to discuss the techniques of coffee processing and how the coffee industry could develop value-added products.
It will also open many opportunities for the country to increase its market share in the region and internationally, while also being able to gain sufficient financial assistance.
According to the Lao Coffee Association, the amount of Lao coffee exports has increased over time.
In the 2011-12 fiscal year, the country exported a total of 20,000 tonnes of coffee beans worth US$66 million.
In the 2012-13 fiscal year, this increased to 27,000 tonnes worth US$67 million, while the first six months of this fiscal year has seen 21,800 tonnes exported worth US$47 million.
This commercial crop has created permanent jobs for around 20,000 families and has also generated indirect jobs for some 300,000 people.
Champassak, Xekong and Saravan are the main provinces of Laos which produce coffee for export, with the Lao Coffee Association now planning to promote the product in five northern provinces and central parts of the country.
Coffee is the highest value agricultural commodity exported by Laos and it contributes to improving the trade balance and generating incomes, particularly for smallholder farmers who are responsible for the majority of the coffee crop.
vientiane times
