Govt helps develop animal feed in Oudomxay
Govt helps develop animal feed in Oudomxay
The government agreed to cooperation with Chinese companies to strengthen the animal feed business in Oudomxay province.
After Yunnan provincial Overseas Investment Co. Ltd joined with Fenghuo Lao Co., Ltd to manage the animal feed factory in the province, the govern ment worked on introducing special policies for its promotion.
An agreement was signed in the province last week by the Ministry of Agriculture and Forestry's Planning and Cooperation Department Deputy Director General Mr Somphan Chanphengxay on behalf of the Lao government, the Yunnan provincial Overseas Investment Co., Ltd Managing Director Mr Liu Guang Can and the Fenghuo Lao Co. Ltd Managing Director Mr Wang Tian Can.
The signing was attended by Deputy Minister of Agriculture and Forestry Dr Phouangparisack Pravongvie ngkham along with other relevant government officials and local authorities.
Under the agreement, the government will provide two years of help on a tax policy, domestic services and the encouragement of farmers to grow crops such as sweetcorn and cassava to supply the factory as well as a livestock raising pro motion.
Animal feed production is simple but the market is still limited. To deal with the problem it is necessary to develop and promote animal husbandry in order to ensure the sustainable operation of the facto ry in the future.
Without the cooperation of the government, the companies would find it difficult to create any real progress in the factory.
The two years of cooperation should be sufficient for the companies to develop the business properly.
The factory was originally built by the Chinese government at a cost of more than US$5 million and then donated to the Lao government for agricultural development and to improve farmers' living conditions in the northern provinces.
The goodwill gesture also increased cooperation and the long relationship between the two governments.
However budget constraints for the Lao government meant that they had to offer the facility to be managed and operated by others, either domestic or foreign.
Construction of the factory was completed in 2013 and it is set up to produce feed for pigs, fish and poultry with a total production capacity of 60,000 tonnes annu ally.
It is currently producing only about 400 tonnes which is being sold locally and in the provinces of Luang Namtha, Xayaboury, Luang Prabang and Phongsaly.
Due to a shortage of raw materials for processing, the two companies operating the factory estimate that it is expected to process only 5,000 tonnes of animal feed a year at the beginning, w hile it needs to reach 12,000 tonnes in order to make a profit.
