Laos earns US$1.4 billion from agricultural exports in 2023

Source:  Vientiane Times, February 2, 2024

Laos earned more than US$1.4 billion from the export of agricultural produce last year, exceeding the target for 2023 by 20.18 percent.

Reporting on developments in the sector, Deputy Minister of Agriculture and Forestry Mr Thongphat Vongmany said the value of production in agriculture and forestry grew by 3.4 percent in 2023, accounting for 21.4 percent of gross domestic product.

Some 9.74 million tons of crops were harvested, exceeding the target by 3.7 percent, with potato yields increasing by 28.62 percent, coffee by 7.5 percent, bananas by 16.7 percent, and sugarcane by 10.1 percent.

There are currently 2,261 livestock farms with more than 6.5 million animals, an increase of 123 farms compared to 2022. The number includes 55 cattle farms, 34 pig farms, and 18 poultry farms, which supply 41 percent of the country’s meat.

The government has continued trade negotiation on the export of agricultural produce and is now able to export 64 types of products, 16 more than in 2022.

Of these, 33 types of product are exported to China, of which 30 are plants and crops and three comprise animals.

Laos also sells 16 types of crops and plants to Vietnam and 15 types of crops and plants to Thailand. The European Union accepts all types of agricultural products but these must comply with EU import regulations.

In terms of imports, plants and plant products worth US$109 million passed through quarantine checkpoints in 2023, an increase of US$22.7 million and 26 percent over the figures for 2022.

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

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, fertiliser and animal feed has risen sharply because these items are imported and must be paid for in foreign currency, which is costly because of the continuing depreciation of the kip.