Borikhamxay cassava growers lack markets
Borikhamxay cassava growers lack markets
C assava growers in Borikhamxay province are abandoning the crop due to unstable markets and a price slump.
They have called on the government to find stable markets so that they have a reliable source of trade and income.
The price of dried cassava last year was about 1,200-1,300 kip a kg but this year it has fallen to 800-900 kip, according to the provincial domestic trade section.
Anouphab Agricultural Promotion Co., Ltd., which is the largest buyer in the province, has stored about 4,000-5,000 tonnes of dried cassava in its warehouses, hoping to export the crop when the price rises.
Most of the cassava farmers are in Borikhan and Borikhamxay districts, company manager Ms Noy Khantiphongsavanh told Vientiane Times yesterday.
Growers have been asking the company to buy their dried cassava but all of the warehouses are full, she said.
Farmers are currently struggling with Vietnamese traders who drive a hard bargain. They will only buy dried cassava for a cheap price and will take only good quality products, she added.
Many farmers have been reluctant to harvest their cassava and dry it before selling the crop but they have been forced to in order to gain even a modest income, while some farmers owe money to banks.
This is the first year the company has encountered this problem after carrying out the business for six or seven years, Ms Noy said.
The company normally sells the cassava to a Thai company, so things are difficult when that company refuses to buy the crop or will only pay a low price, she added.
Last year, the Thai company paid seven baht per kg of dried cassava but this year they would pay only five baht, Ms Noy said.
The Thai company has also bought millions of tonnes of dried cassava product from Myanmar this year.
If Anouphab Agricultural Promotion Co., Ltd. signs an agreement with a foreign company to buy dried cassava directly from them, farmers would earn more money from their crop.
China is the biggest market in the region for cassava, which they buy to process into other products. Ms Noy called on the government to encourage Chinese companies from these countries to draw up contracts with Lao companies to buy the crop for a stable and guaranteed price.
Because of the slump in price, the number of cassava fields and crop yields has declined significantly, according to the provincial agriculture section.
In 2014, the area under cultivation was 13, 945 hectares with yields exceeding 400,000 tonnes. But last year the cultivation area dropped to 11,700 hectares with a yield of about 300,000 tonnes.
