The Golden Mountain Garden Group in northern Laos’ Xieng Khuang province is now looking to export its organic rice to Chinese market. The company is now on track to prepare sufficient products to meet demand, which is increasing every year, particularly from China where there is a high demand for products such as khao kai noi (namely “small chicken rice”, kind of indigenous rice largely used for brewing beer) and black rice, local daily Vientiane Times reported Wednesday…Full Article: June 2016

Key Points

  • In June 2016, The Golden Mountain Garden Group signed a rice export agreement with a Chinese buyer. The agreement was made during the 2016 China-South Asia Exposition was held in Kunming, Yunnan Province, from June 12 to 17, 2016. The expo was sponsored by the Yunnan Provincial People’s Government. In addition to Laos, Malaysia’s Deputy Chief Minister led a business delegation from Penang to the 2016 China-South Asia Exposition, while Pakistan’s Minister of Commerce hoped to export rice and fruits to Yunnan Province and led a delegation to expo.
  • Xiangkhouang Province, northern Laos, produces approximately 40,000 MTs of ‘khao kai noi’ rice per year, with 80% (~32,000 MTs) consumed provincially and the remaining 20% exported (~8,000 MTs).

ChinaAg Comments

  • In December 2015, Laos exported its first rice shipment to China from Savannakhet Province, southern Laos.
  • In October 2015, China’s Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) granted its approval to Xuanye (Lao) to export Laotian rice.
  • In March 2015, China’s National Development and Reform Commission (NDRC) granted permission to Hunan’s Xuanye (Lao) to export Laotian rice to China (quota of 8,000 MTs). The company was the first and only enterprise granted permission to export Laotian rice to China.
  • In 2013, Laos produced approximately 3.4 million MTs of paddy rice (e.g. unhusked).
  • Founded in 2013 and headquartered in Changsha, Hunan Province, Hunan Xuanye Ecological Agriculture Development Co., Ltd. is an investment company that focuses on grain (e.g. rice) production and marketing. Its subsidiaries include Hunan Xuanye Trading Co., Ltd., Xuanye (Lao) Sole Co. Ltd. and the Laos Rice Research Center. The company operates 20,000 ha in Laos’s top grain producing region of Savannakhet Province. The company also produces Laotian honey and mushrooms.
  • In 2012 and 2013, China purchased more than 1.6 million MTs of rice per year from Vietnam and roughly 500,000 MTs per year from Pakistan. The vast majority of these imports (80% by volume) were funneled in via the southern Chinese ports of Shenzhen, Huangpu, and Hong Kong.

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