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Agricultural processing industry gathers momentum
Increased processing of agricultural goods for local supply and export to international markets is a sign of the booming industry in Laos.
“There was only one cassava powder processing plant in Saravan province a few years ago, but there are now four such plants in Laos,” said Minister of Industry and Commerce Dr Nam Vinhaket recently.
“Cassava powder producers have kick-started the agriculture processing industry in the country.”
The plant in Saravan is a Vietnamese investment that can produce about 3,000 tonnes of powder per year. “I always thought it was a large plant,” Dr Nam said.
But a newly opened plant in Champassak province has the capacity to produce about 90 tonnes of powder each day.
Another domestically–owned plant in Pakngum district, Vientiane, produces 320 tonnes of powdered cassava each day, while another in Meun district of Vientiane province also has a large production capacity. A further plant is under construction in Attapeu province.
The plants produce mainly for export to China and Vietnam, with supply to Malaysia and Thailand anticipated in the near future.
Dr Nam said Laos' major sectors are mining and power generation, with the country's capacity for agricultural processing still small.
“The processing of cassava powder is going to be a success story and will provide the backbone for the industry in the future,” he said.
“We will also have a bean processing plant soon, which will be a local investment.”
Cassava powder is in high demand globally. It is an ingredient in noodles, snack foods and seasonings. It is also used in the production of clothes, glue, paint, paper, medicine, false teeth and prosthetic limbs.
China has 1.3 billion people consuming vast quantities of noodles. “That's where the money is. A vast and stable market hungry for supply,” said Lao Indochina Group Chairman Mr Sengmaly Sengvatthana.
In the future the agricultural processing sector will contribute significantly to the national economy “because food prices rarely drop and the world population is increasing. However, land available for agriculture is shrinking,” Dr Nam said.
Dr Nam said Laos has fertile farming lands and the available labour to establish a strong agricultural processing industry. However, investment in the sector remains low, he noted.
The Lao Agro Industry Company produces canned sweetcorn, pickled garlic and cabbage, rambutan in syrup, and baby corn in brine for supply to both domestic and international markets.
It uses materials sourced from local forests and farms and its products are exported to the UK, France, Germany, Poland, Vietnam and Thailand.
vientiane times
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