Chinese businessmen mull over purchase of Lao coffee

(KPL) According to the Lao Coffee Association, Chinese businessmen were thinking of buying coffee from Laos after they had tasted Lao coffee at the 6th Annual China-ASEAN EXPO, held in Nanning, 20-24 October.

Mr Sinouk Sisombat, President of Lao Coffee Association told KPL News last Tuesday that delegates from the Lao Coffee Association recently met 10 Chinese companies during this EXPO and they discussed topics related to the export of Lao coffee to China, such as cost of transportation and capacity supply.

He also said that the Chinese wanted to order as much as 20,000 tons of coffee per year but the association would have to study such a proposal.

Mr Sinouk cautioned that as Laos is a landlocked country so that the transport cost of Lao coffee from the point of production to its destination in China is high.

“We will continue to discuss with Chinese businessmen on the processes of export in the future and if both parties come to an agreement soon we can start to export in 2010. The snag in the negotiation is over the cost of transportation and as it is high, it pushes up the price of coffee, so that we are not sure if they will buy our coffee”, he said.

Officials from this body said that they were planning to transport the coffee by using road no. 13 but they were apprehensive on delivery deadlines, delays, high capital and problems related to road conditions of this road.

KPL Lao News Agency