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Thailand And Laos Will Discuss Contract Farming Cooperation Next Month

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Thailand and Laos will discuss contract farming cooperation next month

The Ministry of Agriculture and Cooperatives will hold a discussion with the Lao counterpart early next year on contract farming cooperation with a view to boosting bilateral investment.

Agriculture and Cooperatives Minister Thira Sutabutra (ธีระ สูตะบุตร) said the discussion is scheduled in response to the visit to Thailand early this week of Lao Prime Minister Bouasone Bouphavanh to hand over Lao Garden being displayed at Royal Flora Ratchaphruek 2006 to the Thai Government. During the visit, the Thai and Lao delegations discussed two major agricultural issues, namely the future agricultural market or contract farming and joint production of vegetable and flower seeds.

In the initial stage, both sides agreed in principle to such cooperation. Details of both projects will be discussed between the Thai and Lao ministers in January 2007.

According to Minister Thira, the Thai private sector has paid much interest to the tentative conclusion of an MOU on the future agricultural market and the production of vegetable seeds in Laos. He said Lao terrains are very suitable for the latter project due to geographical location, with colder climate and vast fields of agriculture.

However, as a landlocked country, the cost of transportation in Laos is quite expensive. If a memorandum of understanding on the aforementioned issues can be concluded, Mr. Thira said it will benefit agriculture and downstream industries of both sides.

Source: Thai National News Bureau Public Relations Department - 21 December 2006

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