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Rainy season halts production at sugar factory
Savannakhet sugar producer Mitr Lao Sugar Co Ltd has temporarily halted production and supply to the EU due to a sugarcane shortage.
The factory, in the province's Xayboury district, ceased production after being unable to source raw materials during the wet season, provincial Industry and Commerce Department official Mr Thonekeo Phouthaxayalath said yesterday.
A Mitr Lao Sugar representative said “It's currently planting time for sugarcane farmers, and the crop is too young to harvest. We will resume production in November.”
The factory normally operates six months a year, from November to April, during the dry season.
Other sugar factories in Laos and neighbouring countries have also stopped production due to the sugarcane shortage and will instead “use the time to check machinery and equipment ready for when production resumes,” the company official added.
Although Mitr Lao Sugar has stopped exports to the EU market, it will continue exporting to Vietnam because “we still have several tonnes of sugar in the warehouse,” the company representative added.
“Exports to the EU will resume at the same time as production,” he said. Most of the sugar produced in Laos is exported to the European Union.
Rice and other crops in Savannakhet province have been flooded because of the rain, but sugarcane farms have not been so badly affected “because most are on high ground,” Mr Thonekeo said.
He was unaware of any sugarcane growers in Savannakhet being affected by the recent floods, saying rice farmers appear to have taken the brunt of the disaster.
Many other factories in the province are operating normally despite the floods, including garment factories, vehicle assembly plants, furniture makers, and two other sugar processors.
Mitr Lao Sugar is a subsidiary of the Mitr Phol Group, which operates sugarcane businesses in Thailand.
The company uses the same advanced production technology as many of the world's leading sugar producers and currently produces 310,000 tonnes of sugarcane and about 36,500 tonnes of refined sugar each year.
Mitr Phol broadened its production base to include Laos with an initial investment of 598 billion kip (2.3 billion baht), according to the group's website.
The group was awarded a 40-year concession for a sugarcane plantation and the construction of a sugar mill in March 2006 under the name of Mitr Lao. The concession can be extended for an additional 20 years.
vientiane times
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