Lao-Indochina Intertrade Company opens cassava power factory

(KPL) Lao-Indochina Intertrade Company opened its first cassava power
production factory named "Lao-Indochina Tapioca" on 19 June, is located at
KM47, Ban Nasone, Pakngeum district, Vientiane Capital.

Joining to cut the ribbon for opening the factory was Vice President of
National Assembly, Mme Pany Yathortu in the presence of a number of invited
guests.

The Lao-Indochina Tapioca Factory is a sole local private investment with a
US$5 million of legislated investment which covered by eight hectares. The
factory has been equipped with state-of-the-art machines importing from
China.

The factory started to trial production activity last month, which demanded
raw material about 200-300 tonnes of cassava everyday, for producing cassava
power around 50-100 tonnes per day.

Mr Sengmala Sengvattana, Chairman of Lao-Indochina Intertrade Company said
that the cassava power is a high market's demand of China according to
company's feasibility study.

Three years ago, the company purchased dried cassava from farmers in
Bolikhamsay province, military units and people as well as dispatched
technical staff to provide cassava technical plantation to local growers, so
far. However the company has met difficult because the goods was low
standard and higher cost of transport caused by lagging competitive capacity
in international market.

This is caused by the company has established this factory with an aim to
distribute in domestic market and export.
At present, the Nayobay Bank is an important company partner releasing more
than 10 billion kip of loan to cassava growers. This is thanks to the
low-interest loan of bank farmers have grown about 3,500 ha in this month
and farmers will further to plant cassava more than hundred hectares. It
expected to be enough the factory demand.

The mobilising campaign on cassava plantation for factory is a new option
and activity for farmers that will lead to stable income for farmers.
Besides the company also focuses on providing technical plantation, how to
make plan and get access to fund resource from the Lao Development Bank.

The most important thing is to support the farmers' yield in this case the
factory confirmed to guarantee price of cassava by purchasing 300,000 kip
per tonne but now the factory has purchased cassava with worth of 400,000
kip per tonne.

There are two main markets are high demand of cassava power from the
factory, it is not only China but also United Nations, Europe, Japan and
other country which would be main market of the company in the future.