Lao furniture maker finds success in foreign market
Lao furniture maker finds success in foreign market
Burapha Agro-Forestry Company Limited, a plantation wood processing company based in Laos, expects to earn US$700,000 from exporting products to European and American markets this year but is also eyeing increasing demand on the local market.
“We hope that the income to be earned by company next year will be almost the same as this year because the company has a contract with foreign buyers from year to year,” the Chairman of the Burapha Board Mr Peter Fogde told Vientiane Times last Friday.
Despite the fact local buyers are seeking to buy expensive woods from the forest some customers who are concerned about environmental issues also want to source sus tainable plantation timber instead, Mr Fogde said.
Various different species of wood are being planted by the company, including eucalyptus, teak and acacia varieties. The company has plantations in several provinces including Luang Prabang, Savannakhet, Xayaboury and Vientiane capital.
However the shortage of raw materials remains a problem for the company, which currently has to import raw eucalyptus trees from Thailand to boost supply to its factory. In order to address this issue, Burapha is currently in the process of expanding its plantation assets in Laos.
“Our company planted a lot of trees on a total of 1,000 hectares this year, which is also boosting employment prospects for local farmers in the provinces,” Mr Fogde said.
In 2012-13, the company earned an income of US$650,000 from exporting wood products to various foreign markets in Europe, America, the Republic of Korea and Thailand.
Meanwhile it is also eying local markets with a view to offering furniture products sourced from sustainably managed plantations to conservation conscious buyers who do not want to support the clear felling of the nation's forests.
The company produces different types of wooden chairs, tables and other wooden goods. Most of the timber is sourced from plantations in Laos with some imported from Thailand as well.
About 4,000 to 6,000 cubic metres are required by the company to be used in the processing factory and currently it cannot source enough domestically.
“Not only the price of transportation is high but the import of raw materials from Thailand also comes at a high price as well,” Mr Fogde said, explaining that they want to source more plantation timber in Laos.
When asked about how much the onset of the Asean Economic Community at the end of 2015 will benefit for the company, he said he hopes it will help in terms of eliminating unnecessary import and export processes at the borders.
vientiane times
