Saravan to double coffee exports

Saravan to double coffee exports

Saravan province has doubled its coffee export target for next year, hoping to benefit from surging global demand.

The province has exported 4,210 tonnes of coffee so far this year worth 56 billion kip and plans to export 8,000 tonnes next year, according to the provincial Industry and Commerce Department.

This year's exports are four times greater than last year, department official Mr Somsong Meuangchan told Vientiane Times last week.

Although farmers have run into problems with some traders cheating them, the number of growers has increased.

Last year the province's farmers planted 19,031 hectares of coffee, increasing the area to 19,375 hectares this year, according to the provincial agriculture section.

The price of coffee beans remains fairly strong at about 3,000 kip a kg, though it tends to drop when supply exceeds demand.

Saravan enjoys a favourable climate and fertile soil suitable for growing coffee, with other plantations in Champassak, Saravan, Attapeu and Xekong provinces.

But most growers still lack experience in the production process and in marketing.

To improve matters, the department is working with the private sector and government organisations to provide training and market-sourcing.

In the first six months of this year, Laos earned about US$16 million from coffee exports including beans and finished products, according to the Agriculture Department.

Most products are exported to Sweden, Belgium, Switzerland and Japan.

Last year, coffee was the top commercial crop and brought in more for Laos than any other crop.

Coffee cultivation boosts the country's socio-economic development and improves the living standards of rural growers .

Laos produces around 40,000 tonnnes of coffee annually, which is less than some countries in the region, but the quality is considered to be better, according to the Lao Coffee Association.

In fiscal year 2011-2012, Laos exported 20,000 tonnes of coffee beans, worth US$66 million. In 2012-2013 this increased to more than 27,000 tonnes, worth US$67 million, with exports this year expected to be about US$70 million.

Laos' first Coffee Festival took place in Pakxe district, Champassak province, from October 24 to 26, aiming to publicise the special attributes of Lao coffee to potential domestic and foreign markets.

The event will link the coffee and tourism industries by emphasising the special nature of coffee products to Lao and overseas tourists.

vientiane times