Vietnam agribusiness Loc Troi signs MoUs to produce five mln tons of rice per year

Major Vietnamese rice conglomerate Loc Troi Group JSC (LTG) and its members signed memoranda of understanding (MoUs) with representatives of provinces and domestic and foreign partners to produce and supply nearly five million tons of rice per year from 2024 during the Loc Troi Customer Festival 2023 on Tuesday.

Loc Troi Agricultural Research Institute (LTI), Loc Troi Seed JSC (LTS), Loc Troi Agricultural Materials (LTV), Agricultural Services Company Limited Loc Troi (LTF), and Loc Troi Agricultural Products JSC (LTA) comprise LTG's agricultural ecosystem. These members have become increasingly connected with one another, working to boost crop efficiency for farmers while developing a production value chain in sustainable agriculture with other partners.

During the event, Loc Troi Agricultural Research Institute inked a research cooperation agreement with the Mekong Delta Rice Institute, the Southern Fruit Tree Institute, and WeatherPlus Weather Solutions JSC to collaborate in the development of farming operations and the application of AI.

Big Data will also be used to create a database of crops and dangerous organisms in rice and other crops. This is an essential activity in the process of sustainable agriculture production that Loc Troi Group JSC consistently prioritizes its investments in.

Loc Troi Seed JSC also signed agreements with Bayer Vietnam Co., Ltd., Mahyco Vietnam Co., Ltd., provincial agricultural service centers, and other partners to collaborate in franchising, producing, and distributing 60,000 tons of nuts, rice varieties, vegetables, and seedlings across the country and Southeast Asia by 2024.

Loc Troi Agricultural Materials is dedicated to offering a complete line of plant care and protection products via a nationwide distribution system of over 3,000 agents. Simultaneously, Agricultural Services Company Limited Loc Troi is directly offering 250,000 solutions to production-linked material areas signed with provinces, cooperatives, cooperative alliances, and farmers.

For its part, Agricultural Services Company Limited Loc Troi signed an MoU with the Departments of Agriculture and Rural Development of An Giang, Kien Giang, and Soc Trang provinces, deploying rice material areas linked to rice production of over 300,000 hectares and many other agreements with localities for direct production cooperation with farmers.

These cooperations will help Loc Troi ensure high-quality rice material areas that can supply five million tons of rice per year.

Loc Troi Agricultural Products JSC is currently Vietnam's largest rice supplier, with 10 factories in the Mekong Delta region capable of supplying over two million tons of rice annually, as well as over one million tons of by-products such as broken rice, bran, rice husk, rice husk pellets, and rice husk ash for the domestic and international markets.

Loc Troi Agricultural Products JSC secured agreements with local and foreign partners, including Hopestone Group Pte Ltd. and Quan Yi Agri Group Limited, to directly export over 100,000 tons of rice and supply commodities to a number of additional export partners.

Loc Troi Group JSC and other members were joined at the event by representatives of famous Vietnamese and foreign banks. Banks are highly confident in funding capital for the group's production and business activities, with the same objective of achieving sustainable agricultural output and clearly perceiving the ability and potential of Loc Troi Group JSC and its agricultural ecosystem.

Huynh Van Thon, chairman of Loc Troi Group JSC's board of directors, stated his firm belief in the group's goal and excitement about the 2024 strategy and the next years for the group and its members. Through the MoUs, he believed that Loc Troi Group JSC will have more opportunities to contribute to the agricultural development of each locality and help improve farmers' lives, build livable rural areas, and protect the environment, thereby actively contributing to Vietnam's strong development.

On the unlisted public company market (UPCoM), Loc Troi Group JSC closed at VND23,200 ($0.92) on Tuesday.