Laos, China eye increased farm production for Chinese market

Lao authorities and a Chinese investor plan to scale up crop cultivation in Laos to increase exports of agricultural produce to China.
On Monday, the two sides signed Memorandums of Understanding at the Ministry of Agriculture and Forestry on two feasibility studies – one concerning mushroom and chilli cultivation and the other on cattle farming, China Radio International (CRI) reported.

Lao and Chinese officials gather for the signing of a Memorandum of Understanding. --Photo China Radio International

Deputy Minister of Agriculture and Forestry Kikeo Singnavong and relevant officials from the two sides witnessed the signing.
Next, the two parties will jointly collect the information needed to carry out the projects, which are planned for Sangthong district in Vientiane.
Officials say that if the projects go ahead, they will enable enhanced capacity in agriculture-related technical and scientific knowhow, and create jobs for local farmers, while boosting crop production for local distribution and export.
Laos has huge potential to grow more crops and raise cattle for sale to China, thanks to trade privileges extended by China to Laos.
Under an agreement signed between the governments of the two countries, Laos has been granted an export quota of 500,000 cattle. But Laos is still a long way from fulfilling that quota, giving the country huge market potential in future years.
The Lao government has instructed the relevant departments to promote cattle farming, encouraging private operators to raise more cattle for export to the Chinese market of about 1.4 billion consumers.
But despite the opportunities, officials say it is challenging for Lao farmers to raise more cattle in sufficient numbers and of the quality required to meet China’s needs.
China has asked for cattle that are four years old or less and weigh at least 350 kilograms, while the average weight of cattle raised in Laos is less. Disease control is another challenge for Lao farmers in meeting export criteria, as herds often suffer from foot and mouth disease.
In addition, an outbreak of lumpy skin disease in 2021 hindered cattle production and export. At least 11,000 cattle and buffalo in 126 villages of seven provinces reportedly contracted the disease, with over 100 animals dying from the virus.
The government has encouraged local farm operators to partner with Chinese businesses to utilise advanced farming technologies in order to produce high quality farm products that meet export criteria.
In addition to cattle, the Chinese market also offers great opportunities for quality fruit and vegetables grown in Laos.
The Ministry of Industry and Commerce signed a Memorandum of Understanding with the Yangpu district government during the 5th China International Import Expo, held in Shanghai in November last year.
Under the agreement, Yangpu authorities will assist with the provision of more quality farm products from Laos for sale in local markets, to meet the demand for fresh produce.
China is the largest market for all types of exports from Laos, particularly agricultural produce. From 2015-19, the value of Laos’ exports to China increased by more than US$100 million a year.

By Times Reporters
 (Latest Update February 22, 2023)