The Lao Coffee Association is urging coffee growers, processers and retailers to work together to help Laos gain membership in the International Coffee Organisation (ICO).
The three sectors of the industry each play an important role in promoting and improving the quality of Lao coffee to international standards, association President Mr Sinouk Sisombath told Vientiane Times on Tuesday.
He said growers, processers and sellers must do their utmost to help the association to improve all aspects of the industry to boost demand and increase export figures.
“The problem in the past has been that some growers formed their own collective groups and other groups processed coffee individually and these groups didn't work together with the association,” said Mr Sinouk.
If all parties work together under the same grouping it will improve access to markets and allow for better management of the industry, thus making it easier for Laos to become an ICO member.
To address the issue, the association plans to ask district governors in Pakxong in Champassak province, Lau-ngam in Saravan province, and Thataeng in Xekong province, where coffee cultivation is prevalent, to encourage coffee farmers to join groups connected with the association.
District officials will also be asked to inform farmers about government policies and association rules relating to the coffee industry in Laos.
The association will also encourage the establishment of processing and retailing groups which will buy raw coffee from association-linked farming groups, Mr Sinouk said.
This system will help to develop the quality of Lao coffee, improve access to regional and international markets and allow farmers to earn higher incomes.
At present, there are more than 30 separate companies in Laos that produce coffee for export, as well as eight coffee processors. These enterprises have also set up large growers' groups within the country, he said.
“So, we have to divide each part of the process in order to support and expand the industry, but also ensure the separate groups are working together,” said Mr Sinouk.
He said this year is the first time Laos has exported the Arabica coffee blend for prices higher than the world average. The standard global price is US$3,000 per tonne, but Lao produced Arabica is currently fetching US$3,100 a tonne.
However, the price of Lao grown Robusta blend remains lower than global averages.
According to the association, total exports of Lao coffee in 2009 were set to reach 13,000 tonnes.
Total annual production capacity remains below 20,000 tonnes, according to Mr Sinouk.
Companies from other countries, particularly Vietnam, Singapore and Thailand, have invested in coffee plantations in Laos in recent years
