Cattlemen look to imports to meet growing demand for beef

Vietnamese cattlemen have requested the Vientiane Cattle Breeding and Entrepreneurs Association to supply up to 400 head of cattle per day to meet the increasing consumer demand for beef.

This request comes on the heels of the Association signing a contract under which it agreed to supply beef cattle to the Vietnamese cattlemen, Mr Viengsavanh Southivong of the Association told reporters on May 22. 

The problem is that Association has entered into an agreement that it is currently not prepared to fulfil, said Viengsavanh, noting the 27 Lao members need more time to come up with a plan to meet their commitment.

To start a cattle ranch the Association and its members are currently seeking equity capital to purchase the equipment, grass, seeds, and cattle it needs to get it up and running, said Viengsavanh.

The Association has plans to import 2,000 animals from Australia to use in Vientiane as breeding stock.

Nor does the Association have the technical skill and staff or the land and natural resources needed, he said. We hope to establish collaborative agreements with Thailand ranchers to supply some grass seeds, technology, and vaccines among other things.

With support from the government and the assistance of local residents, we are hoping to find 1,500 hectares of land along the That Luang marsh channel to establish a cattle ranch.

This year, the Association also plans to purchase 300 hectares of land for cultivation and will further expand when the ranch gets up and running with visible progress.          

The farmland is in the district of Xaysettha in the villages of Phonthong, Na Pien, Doung, Kharm-ngoy, Na Xangphay and Haykham.

As we learned from the mistakes of a foreign business entrepreneur in the province of Xieng Khuang, we must prepare meticulously before importing the cattle, said Viengsavanh.

The number of head of cattle currently being reared by the members of the Association are still insufficient to meet the current commitments it has already made to supply the domestic market.

The Association needs more than 500 cattle to meet its obligation to supply local slaughterhouses daily and is currently bringing in cattle from other provinces like Saravan and Attapeu to do so.

The supply issue has caused beef prices in Vientiane to spike, while pork has remained relatively inexpensive in comparison. 

Most startling is the fact that Viengsavanh acknowledged that the Association members are still lacking in the expertise to operate a cattle ranch and compete with their peers in the Lao marketplace.

This situation highlights the importance of Vietnamese businessmen being careful in entering contractual agreements with foreigners in Laos.  In this situation clearly, the Association is not prepared to meet its end of the bargain.

In English, one would say the Association clearly put the ‘cart before the horse.’ But in any event, it looks like the Vietnamese cattlemen will need to look to other suppliers to meet the rising demand for beef by Vietnamese consumers.