White charcoal maker extends mai tiew plantation
White charcoal maker extends mai tiew plantation
BKN Company, which manufactures white charcoal, in collaboration with authorities in Hinheub district, Vientiane province, last week planted mai tiew trees ( Cratexylon prunitfolium ) to mark Arbor Day and secure a future supply of raw material for the charcoal industry.
BKN Company is one of the largest producers of white charcoal for export to the Japanese market. They are now expanding their mai tiew plantations and are preparing millions of mai tiew seedlings for local farmers to plant under the 2+3 policy.
The policy 2+3 refers to a framework where farmers provide their land and labour while investors provide the funds, technical support and a ready market for the tree growers.
The planting ceremony was held on May 29 in Phonesung village, Hinheub district. It was attended by Hinbeub Deputy District Governor, Mr Khamla Bounyasing, Head of the Hinheub Agriculture and Forestry Office, Mr Phansamay Latthichak, and Director of BKN Company Ltd. Mr Bounoum Phanthapanya, along with several hundred villagers.
Mr Bounoum said the event marked Arbor Day and the company was planting 1,000 mai tiew trees as a contribution to their milestone of planting at least 1,800 hectares of mai tiew trees by 2018. The plantations operate under the 2+3 policy, which is a government initiative that encourages investors and land owners to partner and develop industrial tree plantations.
Mr Bounoum said that by 2018 the goal was for many land owners throughout the country to have participated in the project by planting out 1,100 hectares, and 159.5 hectares in Vientiane.
He said the demand for white charcoal in Japan has increased rapidly over the past few years where it is used in restaurants for grilling and barbequing.
Japan needs 200 tonnes of white charcoal a month but the company is only able to produce about 150 tonnes. The main challenge is the supply of raw materials which fluctuates because villagers are primarily engaged in rice farming and often work on their own farms.
He also said other companies were in competition with them. In the past they had a market share of 95-100 percent but this has dropped to 60-70 percent because there are more investors from China, Korea and Japan investing in the same industry in Laos for export to those countries.
