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Chinese group signs feasibility study on purchase of Lao fruit

Buyers from Sichuan province in China are expected to import up to 50 tonnes of fruit from Laos each year including bananas, pineapples and passion fruit.

Lao and Chinese businesses have agreed to further cooperate in conducting a feasibility study on the export of agricultural products to China, with Lao farmers able to sell quality green and clean produce.

A cooperation agreement was signed after the two sides held business matching discussions during the 1st Lao International Food Expo in Vientiane, which ended on Tuesday.

The agreement was signed by Huaye Group board chairman Zhang Qiang and Patuxay Co Ltd president Somsanook Saysanavongphet. Daoheuang Group managing director Sisouphonh Sihalath also signed another agreement with the Huaye Group.

Acting Director General of the Trade Promotion Department under the Ministry of Industry and Commerce, Xaysomphet Norasingh, witnessed the signing.

Speaking to Vientiane Times on Tuesday after signing the agreement, Somsanook said the objective was to conduct a feasibility study on the sale of fruit to China.

“The content of the agreement signed today focuses on modern processing and the purchasing of fruit for export. China’s Sichuan province is very interested in buying Lao fruit because it is grown organically and our soil has little chemical contamination,” she said.

She said the feasibility study would begin straight after the agreement was signed.

“We are quite confident about selling fruit to China and one member of the business association is now growing passion fruit on 80ha,” she said, adding that there were challenges and time was needed to address them.

In addition, Sisouphonh said the Chinese market was large enough to accept numerous products from international producers.

“Chinese buyers import coffee, tea and other agricultural products from our company. We are keen to cooperate with the Chinese because our company has its own factory and coffee plantation,” he said.

He said his company’s coffee production capacity was estimated at 8,000 tonnes per year but could be increased in response to market demand.

The Lao government is looking to increase the quality and yields of sweet corn, dried cassava, bananas, watermelons and rice for export to China. This business is expected to increase when the Laos-China railway is completed.

A report from the trade sector noted that bananas were one of the top five agricultural export earners for Laos in 2017 with China being a major market.

The government’s strategy is to expand organic farming up to 2025 as part of its 2030 vision for sustainable clean agriculture production.

Laos has about 50,000ha of land available for clean agriculture, according to a 2018 report from the Ministry of Agriculture and Forestry. VIENTIANE TIMES/ASIA NEWS NETWORK

Source: https://www.phnompenhpost.com/business/chinese-group-signs-feasibility-study-purchase-lao-fruit