Pineapple jam exports to EU market decrease
Pineapple jam exports to EU market decrease
Sales of locally made pineapple jam bound for export to the European market have declined even though production capacity has been increasing each year.
President of Lao Farmers Products (LFP), Dr Sisaliao Svengsuksa explained recently that farmers could currently grow pineapples for jam processing and the local market but orders for the sweet spread have fallen since earlier this year.
Dr Sisaliao explained that jam exports fell because the Lao product was now higher priced than similar offerings from neighbouring countries.
For example, a bottle of Lao jam uses imported raw materials in the production process, which causes the price to be more expensive than product from Thailand which already possesses these materials.
The kip currency started to strengthen three months ago which is also helping to drive up the price of the local pineapple jam, so European buyers are sourcing cheaper product from other countries.
Lao pineapple jam recently increased by 20 percent compared to the same product from neighbouring nations, but the local spread boasts that farmers produce their pineapples naturally without the use of chemicals to artificially force growth as other countries have done.
However, the drop in jam exports will not directly affect Lao pineapple farmers as they still can also sell their crop on the domestic market as well as to LFP to fulfil export orders.
Dr Sisaliao detailed that processing pineapple jam helped farmers at times of significant production when the local markets were over supplied. The presence of the processing facility would also ensure the local pineapple price did not drop excessively.
LFP is currently looking for o ther overseas markets such as Australia and neighbouring countries with the coming of the Asean Economic Community at the end of this year while encouraging pineappl e farmers to ensure they have a sustainable supply of the crop.
Exports to Europe accounted for around 80 percent of the plant's output with 20 percent for the domestic market but Dr Sisaliao was confident other markets would be found for the jam.
