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Lao-Indochina Group to resume production, export
The major national cassava powder producer, Lao-Indochina Group (LIG) Co Ltd, will resume production on October 1 after it halted operations over two months ago to service its machines, perform maintenance and train staff.
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Mr Sengmaly Sengvatthana
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“Farmers can now harvest their crops and supply our factory as normal,” LIG Chairman Mr Sengmaly Sengvatthana said last week at a press conference on a cassava purchase announcement to farmers.
The company's tapioca factory is in Pakngum district, Vientiane, and has 294 local employees.
Another reason the factory stopped production was because cassava is of poor quality in the wet season and only yields a small quantity of powder at this time of the year, Mr Sengmaly said.
It is very difficult for farmers to harvest cassava in the wet season due to muddy conditions and transport problems and it is the time to plant cassava crops.
Currently, there are many farms in Vientiane - in the districts of Xaythany, Hadxaifong, Naxaithong and Pakngum - that have cassava for supply to the processing plant, for which LIG pays 500,000 kip per tonne.
“I think there will be at least 300 tonnes of raw cassava to supply the plant each day initially. Then the supply will increase to between 1,000 and 1,200 tonnes per day, which is the plant's capacity,” he said.
When the plant becomes operational, LIG will start to export the powder to China immediately “because customers are waiting for our product now,” Mr Sengmaly said.
LIG will sign an agreement with a Chinese company next month to establish a dealer or distributor in China.
Initial production will use small cassava because there are still roads in some areas that are flooded or too muddy, which makes transport of the crop difficult.
LIG currently has 7,689 hectares of cassava crops, “including over 200 hectares that are flooded and we plan to grow 10,500 hectares next year,” he said.
Another tapioca factory in Champassak province, the KPN Tapioca Factory, halted production and supply almost three months ago because it faces similar problems to the Pakngum factory.
KPN will resume production by November with the capacity to process 400 tonnes of raw cassava a day, producing about 90 tonnes of powder. The factory employs 70 local people and its plantations cover 1,369 hectares.
LIG is providing employment opportunities for more than 1,220 families. Some 90 percent of its products are exported to China while the rest is sold locally.
Other factories producing cassava powder in Laos are located in Lau-ngam district in Saravan province and Meun district in Vientiane province and produce for both local and overseas customers.
Cassava powder is an ingre dient in noodles, snack foods and seasonings. It is also used in the production of clothes, glue, paint, paper, medicine, false teeth and prosthetic limbs.
vientiane times
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