CP Laos set to boost pig production this year
CP Laos set to boost pig production this year
CP Laos Co., Ltd is set to increase pig breeding stocks at commercial piggeries in Laos from some 7,000 to more than 12,000 this year in a move to boost the number of piglets born at the pig breeding operations.
The move comes in response to an increased demand for pork at local markets in Vientiane.
Company Senior Deputy Manager Thamnong Phonthongmak told a local newspaper yesterday that throughout nine years of business operation in Laos, it has observed that on average its operations have grown by 20 percent year on year.
So this year the company has set a target to boost production of pig breeding stocks at Vientiane farms from 7,000 to 12,000 pigs. This expansion should see the numbers of piglets born increase from160,000 to 260,000.
This would see Vientiane farms be able to accommodate some 50 percent of market demand in all of Laos at the moment, he added.
Mr Thamnong said in the meantime that the poultry farming business has also seen constant growth. Currently there are over 100 farmers in Vientiane as well as the provinces of Savannakhet, Champassak and Khammuan which have joined CP’s contract farming arrangements.
Under the arrangements, the company takes the role of breeding management while farmers will own the farms.
He noted that the company plans to expand its business into food processing by starting with the development of a pork separating house.
When compared to Thailand however, Laos is small market with a population of about 7 million and most areas are mountainous and difficult, Mr Thamnong noted.
Most people rely mainly on goods and processed foods from neigbouring countries, so any local business operation needs a suitable and proper location with consideration to reducing transport costs.
Mr Thamnong said the company will choose big cities like Vientiane and Champassak as its main production bases before distributing goods to the other provinces.
CP Laos also plans to increase animal feed production from 100,000 tonnes to 140,000 tonnes per year in response to the market demand by upgrading to modern machine technology at the plant in Xaythany district, Vientiane.
The animal feed distribution is focused on the domestic market, which shall see 60 percent of animal feed distributed to CP partner farms while the remaining 40 percent shall be sold on the open market to independent farms.
Ahead of the opening of the Asean Economic Community at the end of this year, CP Laos sees an advantage to be gained over the competition because Laos has quality raw materials, especially corn and cassava.
These will help support the company’s animal feed production in the longer term, Mr Thamnong said.
