LBC agrees to buy rice from processing companies
LBC agrees to buy rice from processing companies
The Lao Brewery Company Limited (LBC) agreed to buy a total of 26,000 tonnes of white rice, worth 103 billion kip to be used in the brewery's production from now until April next year.
As LBC foresees the advantages of local raw material su ppliers, the deal between the company and rice processing businesses has come into effect.
The event was witnessed by senior officials from the Ministries of Industry and Commerce, Agriculture and Forestry, and Vientiane relevant sectors.
LBC has signed agreements with a total of nine companies from Vientiane and several companies from the provinces in a bid to supply rice for the beverage production of LBC.
Lao Agro 2000 Co., Ltd is one of the companies that will take part in the deal as it has been given the quota of 1,000 tonnes of rice during the fiscal year 2016-17, or within one year and four months, in accordance with agreements.
“We are given the figure of 1,000 tonnes for supplying white rice to LBC because it depends on our supply capacity and the of the rice mills. LBC staffers have already inspected our company before reaching an agreement with us,” the company's Deputy Director Ms Avonechith Vongsipasom told Vientiane Times yesterday.
She also said that LBC agreed to buy rice from her company at 3,700 kip per kg and that the price was issued by the buyer.
A recent statistic shows that about 75 percent of Lao people are heavily dependent on rice production and crop plantation, which contributes a total of 25 percent to Gross Domestic Product (GDP).
As a result, the signing of agreements to buy rice is part of promoting domestic raw materials and encouraging local rice growers to grow rice for commercial purposes and earn sustainable incomes.
Last year, LBC also agreed to buy Khao Kai Noi rice from Xieng Khuang and Huaphan provinces.
The agreement stated that LBC is set to buy 800 tonnes of Khao Kai Noi every year for the production of its new Beerlao Gold brand.
The price of Khao Kai Noi rice also includes the delivery charge and value added tax at a cost of 8,030 kip per kg.
The Xieng Khuang State Enterprise Import-Export and Development is responsible for supplying t he Khao Kai Noi rice to LBC.
For this year, white rice purchasing agreements have been arranged with nine companies and rice mill enterprise groups to supply the rice for LBC production.
Currently LBC is not only boosting production capacity for regional business competition and connection; human resource development is also a key priority, a senior company official said recently.
