Lao food producer struggles to access finance
Lao food producer struggles to access finance
Amajor local food producer, Sengdeuane Farm, in Vientiane province is struggling to expand its operations because of difficulties in securing affordable capital for the business.
To contribute to sustainable food security in line with the government's policy, Sengdeuane Farm requires more support from authorities so they could access loans at reasonable lending rates to increase the number of sows, the farm's Managing Director Ms Sengdeuane Thedsombandith told Vientiane Times last week.
The farm also plans to improve its pigsties, increase the number of chickens and install new food processing equipment and a high-standard corn drying facility.
The farm currently cannot supply enough pork products to meet customer demand after their pig stocks declined.
The farm also raises poultry and has a fish farming enterprise. They can supply markets with 150 boxes of eggs a day and significant quantities of fish every week.
Ms Sengdeuane said the rising demand for pork and the government's policy to promote commercial agriculture had been fuelling the family's enthusiasm to further expand the business.
However, the farm could not continue to operate sustainably without access to capital, she said.
Sengdeuane Farm is a modern commercial operation able to supply good quality meat to the domestic market and is 100 percent Lao owned and operated with all technical experts and workers being Lao nationals.
“There has been support and good cooperation from the government, especially local authorities, and this has helped to develop the farm step by step. But now we need more assistance so that we can expand further,” Ms Sengdeuane said.
She set up the farm in 2008 with only 400 sows and increased the number to 1,500 sows and is keen to expand operations to service the growing domestic demand for pork.
The farm also has its own pork processing factory which has the capacity to produce 30-40 tonnes of product per day along with an animal feed factory and slaughterhouse.
Food supplied by the farm in recent years has reduced the need for meat and animal feed imports from neighbouring countries.
Aside from supplying pork to markets, Sengdeuane Farm produces piglets for sale to other pig farms.
Access to affordable finance will also improve farming practices as the nation prepares for integration into the Asean Economic Community (AEC) at the end of this year.
Other development requirements for the farm include building a drying oven for maize to supply the animal feed factory, and a warehouse.
Currently, the farm has retail outlets in both the capital and Vientiane province and some in other provinces.
