China to establish modern agriculture development zone in Savannakhet
China to establish modern agriculture development zone in Savannakhet
Lao and China have agreed on establishing a modern agriculture development zone in Savannakhet province to produce quality rice products for export to the Chinese market.
The memorandum of understanding (MoU) on establishing the modern agriculture development zone was signed yesterday in Vientiane between the Lao Ministry of Agriculture and Forestry's Agriculture Department, Savannakhet provincial Agriculture and Forestry Department, and Xuanye (Lao) Sole Co., Ltd.
The event was witnessed by Deputy Minister of Agriculture and Forestry Associate Prof. Dr Khamphad Sourinphoumy and Hunan province's Commerce Department Director General Mr Xu Xiangping.
Delegations from the two parties were satisfied with bilateral cooperation in recent years between the ministry and Hunan province, particularly the rice production project between the provincial Agriculture and Forestry Department and Xuanye (Lao) Sole Co., Ltd.
Xuanye is a subsidiary of Hunan Xuanye Ecological Agriculture Development Co., Ltd, and has 2,000 hectares as an agriculture production base, in a 3+2 model (financial, technical, marketing + labour, land) in Champhone district of Savannakhet province.
As a result, the Chinese government agreed to provide a quota of 8,000 tonnes of rice for the company in 2015-2016.
The company is now preparing to supply rice seeds and fertiliser for farmers in the project area to ensure rice production meets the quantity required during the upcoming wet season.
To guarantee production and comply with quality export standards for the Chinese market, China expressed the desire to establish a modern agriculture development zone in Savannakhet province.
The zone will include the examination of new rice seed varieties, demonstrations of planting techniques and the use of agricultural machinery, grain drying and selection, processing, packaging, warehousing, goods transit along with services for export.
The governments of Laos and China agreed that the establishment of a modern agriculture development zone in the province would help develop industrial rice production as part of a quality exports value chain.
According to the MoU, the tripartite agreed on principles for establishing a modern agricultural development zone, with the integration of proc essing, maintenance, distribution of agriculture products, agricultural machinery servicing and trading, and an exchange centre of quality agricultural products to service exports to China.
Tech nical teams from Laos and China will together identify potential areas then draft an economic feasibility study and submit it to the governments of the two countries for consideration.
The Lao Ministry of Agriculture and Forestry's Agriculture Department will be responsible for coordinating and providing convenience for the relevant sectors in submitting documents for approval.
Savannakhet provincial Agriculture and Forestry Department will together implement the project with Xuanye (Lao) Sole Co., Ltd and be responsible for coordinating with local authorities in the project area and providing convenience to Xuanye.
In addition, the provincial department is responsible for following up the project and reporting the progress to government.
Meanwhile, Xuanye is responsible for surveys and the economic feasibility study, designing basic infrastructure and seeking funds to support the project.
