Small scale agriculture businesses and enterprises will be able to boost production and exports if they implement good planning, processing and manufacturing management practices.
“Agro-processing planning and management are important tools to boost the nation's economic growth,” said a representative from the Ministry of Industry and Commerce, Mr Bounmy Manivong, at a planning and management training course yesterday in Vientiane .
Laos has large areas of fertile land ideal for agricultural production and food processing.
“At the present time, most businesses are just traditional agriculture producers. They need to upgrade planning and management procedures to become more productive,” said Director of the SME Promotion and Development Office's Productivity Division, Mr Sayasith Khamphasith, at the course.
Mr Bounmy said it is vital to exchange experiences and knowledge within the sector and with those from other countries on how to apply planning and management practices to boost productivity in the public and private agro-processing sectors.
“Currently planning and management practices in Laos are at a low level compared to developed countries,” Mr Sayasith said.
The training course covers topics relevant to agro-processing businesses such as market trends, and opportunities and challenges faced by the sector.
Other issues include product development processes, marketing for agro- processing enterprises, agribusiness supply chain management, product quality and safety management, and finance-based decision making for agro-processing enterprises.
Effective management practices are important to ensuring food products are safe and do not contain chemicals. Product labelling, trade marks, and production and expiration dates are also important areas.
“Clear and informative package labelling is essential, including a list of all ingredients,” Mr Sayasith said.
Planning and management practices must be prepared before crops are planted, harvested or processed. The process should cover all aspects including harvesting, drying, processing, storage, and transportation.
To boost sales, enterprises should also get their products tested and certified by food and drug authorities. This is particularly important when exporting to international markets.
“We are encouraging enterprises and family businesses to implement good manufacturing practices (GMP). If they meet GMP standards wholesalers and consumers will have confidence in their products,” Mr Sayasith said.
International businesses often travel to countries manufacturing goods to inspect operating standards before making a decision to import a product. “Overseas exporting is a very different scenario to just selling domestically,” Mr Sayasith said.
Mr Sayasith said several Lao businesses belonging to the Lao Farmers' Product Group export produce such as rice, jam and fruit juice to European countries.
The six-day training course also involves members of the Asian Productivity Organisation from Bangladesh, Cambodia, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand and Vietnam.
