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Published on July 24, 2007

President and CEO Adirek Sripratak said the US$5-million (Bt168 million) plant in Vientiane would focus on producing feed meal for fish.

The strengthening baht has prompted CPF to accelerate its investment abroad, in order to capture benefits from the exchange rate. As well, Laos has long been targeted for business expansion, he said. The plant's production capacity will be 6,000 tonnes a month.

CPF has also taken over chicken and pig farms in Laos covering just over 32 hectares. However, its investment focuses on encouraging Lao farmers to concentrate more on fish-farming.

"We foresee high potential for fish-farming in Laos, thanks to the country's plentiful water resources. We believe we can develop this potential for export markets in the future," he said, adding that maize growing for

the local market and for export - particularly to Thailand - was another important area. Rising prices in the world market will make Lao maize production a win-win benefit for both Laos and Thailand.

Adirek said it would take four or five years for CPF to break even in its Lao venture. It has set up wholly owned subsidiary CP Laos to oversee the operation.

Vientiane Mayor Sinlavong Khoutphaythoune said CPF's investment would encourage the Lao government's efforts to solve poverty in the country by 2020. These efforts include the development of more land and water resources and increasing the yield of upland farmers.

So far, few Thai companies have invested in the Lao agricultural sector. They have focused more on energy and mining.

Sinlavong said the Lao government would provide tax privileges

to foreign investors, particularly those whose products were for export.

Foreign investors from China, Vietnam, Japan, France and Thailand invested a combined $2 billion in Laos last year. Foreign direct investment is expected to reach $2 billion again this year.

Sakol Cheewakoset, CPF's senior vice president with responsibility for the Lao operation, said the Vientiane feed plant was expected to employ 10,000 people.

CPF's agricultural production will not be limited to its own farms, but rather the company will also contract individual farmers, promoting maize crops in particular. Currently, Laos exports 300,000-400,000 tonnes of maize to Thailand annually and has the potential to increase that to one million tonnes.

Achara Pongvutitham

The Nation

Vientiane