Laos earns over US$1.4bil from export of agricultural products in 2023

farmers and producers in Laos are severely hampered by steep rises in production costs, mainly due to the spiralling price of fuel. - VT

VIENTIANE: Laos earned more than US$1.4 billion from agricultural exports in 2023, exceeding the target for the year by 20.18 per cent.

The value of production in agriculture and forestry grew by 3.4 per cent in 2023, accounting for 21.4 per cent of gross domestic product (GDP), Lao National Radio reported on Tuesday.

The main farm products exported were bananas, rubber, cassava, sugarcane, cattle and buffaloes, with China being the largest purchaser.

In 2023, some 9.74 million tonnes of crops were harvested, with potato yields increasing by 28.62 per cent, coffee by 7.5 per cent, bananas by 16.7 per cent, and sugarcane by 10.1 per cent, said the report.

There are currently 2,261 livestock farms with more than 6.5 million animals, an increase of 123 farms compared to 2022, which supply 41 per cent of the country's meat.

The Lao government has continued trade negotiation on the export of agricultural produce and is now able to export 64 types of products. Of these, 33 types of them are exported to China, 16 types of crops and plants to Vietnam and 15 types to Thailand.

However, farmers and producers in Laos are severely hampered by steep rises in production costs, mainly due to the spiralling price of fuel.

In addition, the cost of machinery, fertilizer and animal feed has risen sharply because these items are imported and must be paid in foreign currency, which is costly because of the depreciation of local currency kip.

The Lao government is keen to minimise importing products that can be produced domestically, especially agricultural produce, to help boost domestic production while also tackling inflation.

Meanwhile, the government is encouraging farmers and producers to supply more goods to the domestic market and to produce more for export to bring in much-needed foreign currency and help reduce high foreign exchange rates. - Xinhua