Animal feed factory opens in Oudomxay
Animal feed factory opens in Oudomxay
Commercial operation of an animal feed factory in Oudomxay province has now commenced following the establishment of a joint venture between Lao and Chinese companies.
Oudomxay provincial authorities allowed the Chinese company to construct the animal feed factory in Xay district in 2012, utilising grant aid from China worth over 40 billion kip (over US$5million).
The construction of the facility was completed in 2013 and it has a production capacity of 60,000 tonnes per year.
Produce shall be used for supplying local farmers in nine northern provinces of Laos and for export to China and other Asean countries.
However this year the factory planned to produce only 15,000 tonnes of animal feed to supply domestic demand.
Deputy Prime Minister in charge of economic affairs Mr Somsavat Lengsavad visited the factory on Saturday as part of his tour to push for improved productivity in the northern region.
The Chinese company told the Lao Deputy PM that they will further increase the production of animal feed in line with demand.
The company has so far invested over US$400,000 in the manufacturing process to ensure the effectiveness and efficiency of the product.
The raw materials for the factory are mainly supplied by local farmers in nine provinces who have a tradition of producing high volumes of corn for commercial purposes.
Mr Somsavat said the economic growth in the northern region is quite slow compared to the growth recorded in other parts of Laos; therefore the government of Laos mobilised funding from China to build this animal feed factory to boost the productivity of local farmers for commercial purposes and reduce the import of animal feed from neighbouring countries.
The Deputy PM called for the relevant sectors to manage and inspect the quality of this factory before exporting as well as helping villagers to make contracts in regards to the price of corn to supply the factory and ensuring that they receive reasonable compensation for their produce.
The Deputy PM said the project not only aims to encourage local farmers to produce and supply raw materials to the factory but generate job opportunities for local people to alleviate their poverty.
Oudomxay Provincial Department of Agriculture and Forestry reported that prior to the operation of the animal feed factory, most animal feeds used in the province had to be imported from neighbouring countries like Thailand and China.
The construction of the factory means local farmers in the northern provinces will have adequate feed for their animals and fish.
Prices for the animal feed have yet to be set but the provincial authorities aim to ensure that the feed sells for less than that imported from neighbouring countries.
Currently the feed being produced is being distributed to local officials and farmers so they can test the quality control of the factory.
The country currently produces enough animal feed to supply about 60 percent of domestic demand, so the country still needs to import to satisfy the market.
By increasing of the number of animal feed processing factories and sweet corn plantations in Laos, it is believed that the country will be able to produce sufficient animal feed to meet all its needs by 2018.
