Planned mega project eyes export of cattle to China
           
A planned multimillion-dollar farming project, financed by the ministry and a local company, aims to export cattle and processed cattle products to China as well as meet the demand for beef in Lao markets.
The Agriculture Production Department under the General Logistics Department of the Ministry of National Defence and Chang Jiang Investment Lao Sole Co., Ltd. on Tuesday signed a joint venture deal on the project.

Under the agreement, the two parties will form a joint-venture company for comprehensive agricultural production for the export of cattle to China – the main market for Lao cattle.
The partners plan to invest US$300 million in total through three phases of the 30-year joint-venture project.
The scheme includes the establishment and operation of a cattle farm, animal quarantine centre, animal disease prevention and control centre, modern slaughterhouse, processing plant, market for cattle sales, and an animal husbandry and agriculture demonstration centre.
The goal of the project is to sell 400,000 head of cattle to China annually.
The Ministry of National Defence holds a 20 percent stake in the project and Chang Jiang Investment Lao Sole Co., Ltd. owns the remaining 80 percent. The project can be extended for another two terms of 30 years each.
After signing the joint venture agreement, the two parties will submit investment proposals to the relevant departments including registration of the joint venture company.
Speaking at the signing ceremony, the President of Chang Jiang Investment Lao Sole Co., Ltd., Ms Khonsavanh Sengvilay, said Laos has the potential for agricultural production and the project will build a modern farm, a quarantine centre, modern slaughterhouse, and a processing plant to maximise this potential.
Given this potential and the huge market demand, especially from China, the company decided to invest in the project, she added.
Deputy Director General of the General Logistics Department, Brigadier General Bounsoung Yathotou, said there were four outstanding areas of potential leading to the decision to invest in and operate the project. These were the availability of land, agricultural experts to provide technical knowhow, the availability of capital, and the presence of a huge market for cattle raised in Laos, especially in China.
China has offered a sizeable annual export quota for cattle raised in Laos but Laos is currently unable to meet this quota.
“This is the potential we have,” Brigadier General Bounsoung said at the signing ceremony.
Chang Jiang Investment Lao Sole Co., Ltd. had assured him it had sufficient finances to carry out the project, he added.
China is the largest market for all Lao exports, including quotas for 50,000 tons of rice and 500,000 cattle annually, according to a previous report.
Among those attending the signing ceremony were the Director General of the General Logistics Department, Major General Vongkham Phommakone.
On September 28, 2020, the two parties signed a Memorandum of Understanding on the cattle farm and processing project.

By Souksakhone Vaenkeo
(Latest Update January 28, 2021)