Lao-Chinese joint venture to boost agricultural industry
VIENTIANE (Vientiane Times/ANN) - The State Enterprise for Agricultural Service (SAS) of Laos has inked an agreement with China’s Guangzhou Zhongheyuan Agriculture Development Co., Ltd. (GZAD) and UAB Global Ltd (UAB) of Hong Kong for cooperation in investments in the agricultural industry and market development.
The agreement on establishing the joint venture CSU Agricultural Innovation Co., Ltd. (CSU) was signed in Vientiane last week by the Managing Director of SAS, Mr Viengthong Phommahaxay, GZAD’s Managing Director Mr Zhong Ming, and UAB Chairman and CEO Ms Wu Hui Tzu.
The ceremony was attended by the Deputy Minister of Planning and Investment, Ms Khamchanh Vongseneboun, Deputy Minister of Agriculture and Forestry, Dr Bounkhouang Khambounheuang, other government officials and private sector representatives.
The objective of the joint venture is to develop and improve agricultural industries in Laos, including those dealing in livestock, especially pigs, cattle and goats, grass growing, organic vegetables and other agricultural produce to be supplied to the Lao, Chinese and other international markets.
CSU aims to create jobs, market opportunities and sustainable income generation for people in Laos, and to produce and supply safe and high-quality agricultural products for Lao, Chinese and international consumers at a reasonable price.
The cooperation is expected to help livestock farmers and improve the farming system in Laos with the use of new technology and standards and through training and technical assistance.
GZAD is a leading agricultural development company in China, and has a large number of experts and modern technology and equipment.
The demand for pork and beef in China has increased, and the price of pork and beef products in that country is higher than in Laos.
As a neighbour of China, Laos has strong potential in the field of agricultural products, particularly organic produce.
The two sides will ensure that the new cooperation project will help in supplying pork, beef and organic agricultural produce to the Chinese market.
However, most of the cattle raised in Laos are local breeds raised by smallholder farmers.
The project will help to support large numbers of farmers through sustainable income generation by developing cattle production and supply chains. It aims to sell millions of head of cattle and other agricultural products to China and other international markets.