An important development during the implementation of the 2nd Hungarian tied aid loan programme was the upgrading of Nongteng feed mill including the completion of a new fish feed production line. The key machines of the production line are the most modern ones that are used by the aquafeed industry and make possible the production of high quality feed for fish fingerling. The system was design and installed by Hungarian engineers, however Vietnamese experts were also involved in the start up procedure and in the development of feed formula. Thus, the development work is also a good example of inter­regional collaboration.

The development of the new fish feed line at Nongteng feed mill is a part of the long-term agricultural collaboration between Hungary and Laos. The 2nd Hungarian tied aid loan programme provided a good framework for this development that is a component of the complex project aiming at the development of the high quality and save food supply to local and international markets. The programme has three major components according to the followings: (1) establishment of the institutional and legal system of the food chain safety system in Laos; (2) development of national reference laboratories (animal health and animal feed) and support laboratories at main border crossings and some selected sites; (3) development of model production systems to demonstrate the use of the food chain safety system through commercial production of high quality and safe food (focusing on pig and fish).

Following the principle of “from the field to the table” the model systems include the whole value chain: plant production; animal feed production; animal production (pig and fish); slaughtering and processing and marketing. The basic elements of the model production systems are the facilities that have been built in the frame of the 1st Hungarian tied aid loan programme. These facilities are operated by Hungarian-Lao joint ventures companies in the frame of Public Private Partnership (PPP). This is advantageous for the private sector that is able to use modern facilities, while it is also beneficial for the public sector because private companies operate the facilities and provides the running costs. The final beneficiary is the society because certified high quality and safe food is available on local markets. Besides, the farms and companies provide employment and contribute to the national development goals including the commercialisation of agriculture. The project also contributes to human resources development and the strengthening of business culture. The programme is implemented in zthe frame of a commercial contract between the HungarianVitafort Agro Asia Co. and the Department of Livestock and Fisheries (DLF) of the Ministry of Agriculture and Forestry in Laos. 

The new fish feed production line is an important component in the value chain that includes the production feed ingredients (such as corn and soya been), the production of animal feed, rearing of pig and fish, processing and marketing of meat and and fish products following the principle of “from the field to the table”. Fish as important food commodity for the population in Laos and there is great potential in aquaculture development. The Hungarian project assists the exploration of aquaculture potential that requires high quality fish feed. However Hungarian experts also assist aquaculture development through the propagation and rearing of fingerling of indigenous species. A Hungarian-Lao joint venture company, the “Aquatic Development Company (ADC) has also been established that is producing high quality tilapia fingerling mainly for small farmers in a modern fish farm in Namtouan.

The Hungarian tied aid loan programs provide good contribution to the development and commercialization of agricultural in Laos, however Hungarian and Lao experts have long term plans that goes beyond project periods and includes research, development and training activities and also business collaboration. As far as research collaboration is concerned the National Agriculture and Forestry Research Institute (NAFRI) in Laos and the National Agriculture Research and Innovation Center (NAIK) in Hungary signed a Collaboration Agreement in order to run joint research programmes that provide scientific support to agricultural development programmes.

However, an important long term objective of the agricultural collaboration between Hungary and Laos is the strengthening of joint businesses between farmers for their mutual benefit. The establishment of joint venture companies, the mentioned ADC company and the Agriculture and Processing Development company (APD) can only be considered as initial steps and further efforts will be made to explore more business opportunities. A part of these efforts is the visit of a Hungarian expert group to Laos between 23-27 February 2018. The members of the group (about 30 people) are key players in Hungarian livestock sector who are owners of large animal production farms that are applying innovative technologies and producing high quality products even to premium markets. The members of the group are major customers of Vitafort Co. and their visit to Laos may also contribute to the development of future business collaboration through the active involvement of Vitafort in the agriculture development programmes in Laos. The group attends the inauguration ceremony at Nonteng feed mill and will also meet leaders of the Ministry of Agriculture and Forestry and representatives of the agricultural business community in Laos.