The Korean-owned Maru Industry Plantation in Vientiane expects its fruit plantation project to become profitable this year.
The company established a banana plantation on 12 hectares of land in Sangthong district last month and a sweet melon plantation on 0.5 hectares in Xaythany district this month.
“We will begin selling melons in the next three months and bananas in the next ten months,” said company president Ms Kim Ji Young last Thursday.
The company expects to earn about 180 million kip (US$22,000) from initial sales this year. “However, the plantations will increase in size each year and so will income,” Ms Kim said.
The company already has established markets, mainly mini-marts, fresh food markets, restaurants and hotels in Vientiane.
Maru Industry Plantation general manager Mr Kiseum Xanaphanh said “The fruit will be labelled with our company brand.”
The sweet melon pilot project will be expanded to a larger area in Sangthong district next year if it proves successful.
Mr Kiseum said the company has access to a total 1,087 hectares in the district, but has only used just over 400 hectares so far.
“The remaining area will be used for a mix of fruit and industrial trees,” he said.
The company established an industrial tree plantation in 2005 and has invested about 13 billion kip (US$1.5 million) to plant rubber, teak and agarwood trees.
Some 163 hectares of agarwood, 228 hectares of teak and 16 hectares of rubber have been planted and the trees are growing well. However, they are yet to turn a profit for the company.
“Plantations require long-term investment without any income in the short term,” Ms Kim said.
However, the company does earn some money from selling saplings.
“We've prepared over 80,000 saplings for sale and to plant this year,” Mr Kiseum said.
The company is now seeking buyers for the trees, as well as partners to cooperate with the company to process timber products.
Ms Kim said many businesses in Thailand and Vietnam have expressed interest in the company's teakwood.
The company expects Korean companies to be interested in agarwood, while rubber trees will prove attractive to Thai investors.
About 200 local people are employed on the plantations. The company provides farmers with saplings and teaches them how to care for the trees as they grow.
Ms Kim first came to Laos in 2004 to investigate the potential for tree plantations after studying environmental protection.
