Laos is Expecting to Export Citrus Fruits Worth USD 50 Million to China in 2022

Fresh Lemon

Published Jan 6, 2022

Laos - a small country in Southeast Asia is targeting to export 50,000 tons of citrus fruit which would be worth USD 50 million in 2022. The news comes into light after China's General Administration of Customs announced that citrus fruit varieties, such as mandarins, pomelos, and lemons, could only be exported from Laos to China if certain phytosanitary requirements are met. Laos has prior experience in exporting citrus to countries like Vietnam, Thailand, Japan, and European countries like Germany, France, and Poland. The trade link between Laos and China is already very strong as 80% of Laos agricultural exports are destined to China. The trade links are likely to become even stronger with the opening of the China-Laos Railway which has reduced the distance between the two countries.

Laos is a small landlocked country in the northeast-central of Southeast Asia with China bordering its north end. Lao produces and exports a variety of tropical agricultural products to China, with China accounting for approximately 80% of Laos agricultural exports. Laos exported over USD 800 million worth of agricultural products during the first 10 months of 2021 which is a year-on-year increase of 29%. Exports from Laos were driven by a cooperation agreement with Chinese companies which took place in May 2021 to make trade between the two countries more seamless. The agreement involved the export of large volumes of peanuts, cassava, frozen and dried beef, cashew nuts, durian, bananas, mangoes, soybeans, and sugar from Laos to China over a period of five years starting from 2021 to 2026.

On 28th December 2021, China’s General Administration of Customs announced that only mandarins, pomelos, and lemons (citrus fruit varieties) from Laos which meet the stipulated phytosanitary requirements could be exported to China. The Chinese customs implemented a few specific requirements for citrus planting and processing and released a list of quarantine pests that need to be handled. As per China’s requirements, Pomelos should be bagged on the trees for at least two months before harvest and any pomelos in the broken bags would not be fit for export to China. Furthermore, fresh mandarins and lemons destined for China should be subjected to cold treatment for 18 consecutive days. Fresh mandarins need to receive cold treatment at temperatures of less than 1.67 degrees Celsius and lemons must receive treatment at less than 3 degrees Celsius.

Around 3,600 hectares of land across nine provinces in Laos have been dedicated to the cultivation of citrus fruits. Out of the total volume of fruit harvested, around 70% of the total crop is destined to overseas markets. Laos has experience in exporting citrus to countries like Vietnam, Thailand, Japan, and European countries like Germany, France, and Poland in the past years. In 2019, the country exported 1,990 tons of citrus fruits worth USD 1 million to these countries. However, in 2022 Laos is expecting to ship over 50,000 tons of citrus fruits to China alone which will be worth USD 50 million. To tap into the Chinese citrus market efficiently, the Laotian Ministry of Agriculture and Forestry is in continuous coordination with the farmers and traders to ensure that China-mandated sanitary and phytosanitary procedures are followed.

Source: Tridge, Trade Data.

As of January 2022, there are a number of agricultural products from Laos which have officially been approved for import into the Chinese market, including rice, corn, bananas, watermelons, cassavas, sweet potatoes, fresh beans, passion fruit, and now citrus fruits. Laos is also working towards securing China’s market access for other tropical fruits like longans, dragon fruit, and jackfruit. It is expected that once the China-Laos Railway becomes fully operational and functioning, the trade links between the country will improve. The new railway lines are set to bolster Laotian agricultural exports and help the country take advantage of a shorter land link to China.