White charcoal farmers rewarded for their work
White charcoal farmers rewarded for their work
BKN Company, a white charcoal manufacturer, plans to grow a few thousand hectares of mai tiew trees (Cratexylon Prunitfolium) nationwide over the next five years in order to contribute to forest cover in Laos and secure raw materials for the industry.
The company, which is one of biggest producers of white charcoal for export to the Japanese market, recently held a handover ceremony in Thaphabath district of Borikhamxay province to reward local farmers for their excellent work in growing the trees under the 2+3 policy.
Director of BKN Company Ltd, Mr Bounoum Phanthapanya said that the policy 2+3 was initiated in 2007 in Thaphabath district, Borikhamxay province, commencing with only seven families.
Since then the policy has been extended to other areas including the capital Vientiane, along with the provinces of Vientiane, Savannakhet, and Saravan.
According to its annual plan for 2014-2015 the company shall prepare millions of mai tiew seedlings for local farmers to grow on a land area of over 1,100 hectares.
Recently, the BKN Company organised a ceremony to handover rewards of more than 19 million kip to thank villagers for their diligent work in growing the trees under the policy.
The 2+3 policy is a government initiative which encourages investors and land owners to partner and develop industrial tree plantations.
The policy refers to a framework where farmers must provide the land and the labour force; while investors provide the funds, technical support and a ready market for the tree growers.
Mr Bounoum said that the policy will also play the main role in encouraging the private sector to contribute to the commitment of the Lao government to increase forest cover to 70 percent by 2020, with current forest cover estimated at only around 49 percent.
Japan is the main purchaser of white charcoal and orders have increased rapidly over the past few years, as the charcoal is widely used in restaurants for grilling and barbequing in that country.
BKN's Japanese buyers require around 200 tonnes of white charcoal per month however currently the company can produce about 150 tonnes.
The main challenge for BKN Company is that the supply of raw materials can rise or fall depending on the number of farmers whose tress have matured and been harvested.
Hence, to this end, it aims to expand its plantations so that it can fill current orders and then expand supply.
