Laos exports first 50 tonnes of rice to EU

Laos has exported its first 50 tonnes of rice to the European Union, giving farmers new hope of boosting their incomes and earning more foreign currency for Laos.
The first shipment of the Thadokkham-8 (TDK8) rice variety is being sold to Belgium by Champahom Trading Import-Export Sole Co., Ltd., according to Lao National Television.
The sale is part of a project to promote rice production for commercial purposes under the Ministry of Agriculture and Forestry, supported by a loan from the World Bank.

“I have observed the potential for the cultivation of rice for export, particularly Thadokkham-8, which can be grown in both the wet and dry seasons,” Champahom Director Mrs Bounhieng Phommisay told the media.
The 50 tonnes of rice being sold to Belgium is valued at US$29,000. The company encouraged farmers to grow TDK8 rice in Pakngum and Xaythany districts of Vientiane on a total area of 600 hectares.
Mrs Bounhieng said the company planned to work with all the relevant sectors to encourage farmers to grow more rice and increase their yields so they could export more.
This is aimed at increasing the amount of rice exported to 3,000 tonnes a year. Deputy Minister of Agriculture and Forestry Dr Bounkhuang Khambounheuang told Vientiane Times on Monday that many European buyers want to buy rice from Laos because of the country’s clean agriculture.
However, one of the main challenges is for farmers to produce rice that meets the rigorous standards required by EU countries.
“We have to follow all the procedures recommended by importers, starting from planting the seeds to transplantation, harvesting, drying and milling the rice,” he said.
“Thadokkham-8 should not be mixed with other grains. We have to train more farmers and producers how to ensure the quality of rice grown for export.” 
Dr Bounkhuang said Thadokkham-8 can be grown in the central and southern provinces, particularly Savannakhet and Champassak.
It is essential to set up groups of producers and farmers to ensure the quality of rice and secure export markets, he added.
Mrs Bounhieng said the opportunities for Lao producers and businesses would improve significantly after the Laos-China railway becomes operational in December this year. However, Lao entrepreneurs need to be well prepared if they are to boost exports along the Laos-China economic corridor.
Laos has huge potential to produce rice for export to China, a market of 1.4 billion people.
To be successful, the relevant government sectors need to work as a team to identify which crops are required by the EU and Chinese markets, the quality required, and how Laos can supply sufficient crops to meet the needs of these markets.

By Somsack Pongkhao
  (Latest Update October 5, 2021)