Cattle production in Laos rises on demand from China

Laos, the smallest supplier of cattle in the Chinese market (1%), plans to expand the national herd of cattle, as the neighboring country has already provided a quota for the supply of 500,000 cattle. In addition, a railway between the two countries is scheduled to open in December, which will boost the EXPORT of livestock. The Lao government is encouraging farmers in all 18 provinces of the Southeast Asian country to raise cattle for export due to growing demand from CHINA , local daily newspaper Vientiane Times reported last week .

Recently, the Livestock Division of the Laos Ministry of Agriculture held a virtual meeting to discuss livestock projects with officials and businessmen across the country. Department DIRECTOR Vilayfon Woraphim told the meeting that the Lao government plans to raise at least 50,000 HEAD of cattle annually. In June, the Ministry of Agriculture ordered relevant departments to do more to develop livestock, encouraging private operators to raise more cattle for export to China .

Currently, one of the main problems for the Lao government's plan to increase cattle production is the regular outbreaks of livestock diseases, especially foot and mouth disease, which is common in Laos. During the summer, a network of rural veterinary services was set up across the country to teach farmers and producers how to vaccinate their livestock and meet all established production standards.

Live cattle exports have become a hot topic for some of the main suppliers in the Chinese market - New Zealand and Australia - and shipments from New Zealand are expected to end in 2023, while Australian livestock exports are slowing due to animal welfare concerns. The decision to stop livestock exports announced by the New Zealand government could benefit other countries such as Uruguay. According to a BLOOMBERG interview with Agriculture Minister Carlos Maria Uriarte, the South American country could take New Zealand's market share in the Chinese market. “Despite the fact that we are much further away, which reduces our competitiveness, the export of live animals, in particular to China, has grown significantly over the past year. We will have new opportunities,” he said.

For the last 5 years, Turkey, Iraq and Egypt have been the main markets for Uruguayan cattle. Exports peaked at $271 million in 2018 but have since fallen by 50%.