Plantation venture cooks up opportunity for charcoal exports

An agreement on the land concession was signed recently in Vientiane between the company’s Director Dala Phuannavong and the Lao National Veteran Federation’ Office Deputy Head Bounkeo Lasa.
The event was witnessed by Federation President, Brigadier General Somphone Keomixay.
Under the agreement, the federation agreed to provide a land concession of about 90 hectares with 25 year period to Borikhamxay White Charcoal Co Ltd to grow mai tiew trees in order to secure raw materials for exports.
EISEI Corporation from Japan will provide financial support to the project development.
The project site is located in Phonsavanh village, Thaphabath district in Borikhamxay province.
Director of EISEI Corporation Yasushi Seura said the company will provide fund to develop this mai tiew tree plantation project to become a green and relaxing place and to promote and tighten good relations between two nations as well.
In previous years Borikhamxay White Charcoal Co Ltd has encouraged local people to grow and restore mai tiew trees on more than 50 hectares under a so-called two-plus-three policy in Thaphabath district.
The two-plus-three policy is a government initiative which encourages investors and land owners to partner and develop projects such as industrial tree plantations.
Fundamental to the policy is a framework where farmers must provide land and labour force while investors provide the funds, technical support and a ready market for the product.
The company will continue to cooperate with local people and various government and private sectors in growing and restoring mai tiew trees more and more, he said.
Charcoal from the tree produced in Laos is especially well regarded for its intense flame with no sparking.
Nowadays, the quality charcoal is popular with customers at barbeques, restaurants, hotels, food processing companies as well as for use in the copper industry in Japan and elsewhere.
The company’s white charcoal is mainly exported to Japan, South Korea, Thailand and China markets, Dala said
Demand for Lao charcoal is expected to increase in the future so the local company is planting more trees.
However, local producers still had to understand the overseas market otherwise customers could go to Vietnam where the charcoal price was lower, she added.
Mai tiew trees help people earn an income because they are able to sell them to the company which processes the white charcoal.
One of the main challenges was guaranteeing the supply of the raw materials so it was encouraging local people to grow more mai tiew trees under a two-plus-three policy.