Peter McPherson, consulting advisor to Costa Berry International, talks exclusively to Fruitnet about the group’s pioneering new berry plantation in Laos
Congratulations to Costa Group on this exciting new project to grow blueberries in Laos. What prompted the group’s move to establish production in Laos and what advantages does the region offer compared with existing growing locations?
Peter McPherson: Costa first became aware of Laos as a potential location to grow berries almost a decade ago, but at the time our key focus was on expansion in China. Together with the multi-year impact of Covid, it has only been more recently that the time was considered right to take advantage of the unique microclimate that Laos presents. This is particularly so with the new ‘no-chill’ Costa blueberry varieties that we are all very excited about. This location will allow Costa to substantially increase its seasonal offer of fresh premium berries in the Asian market consistent with what has been achieved with our China JV, which all about premiumisation and delighting the consumer. The other key benefit here is the timing of production – our Laos crop comes online approximately three months earlier than the Yunnan, China seasonal peak production.
Where is the project located in Laos and can you describe the growing conditions and elevation?
PM: The project is in Southern Laos on the Bolaven Plateau in Paksong, which is close to Pakse, the major city in Southern Laos. This is a very unique location as it is some 1,200 metres above sea level, with a microclimate that has to date through our trials delivered an earlier production window between October to February. The earlier timing is also made possible by our latest Costa no-chill varieties.
When are you expecting the project to be up and running and when do you anticipate the first fruit will come online?
PM: The first stage commercial plantings are underway with plant material supplied from Driscoll’s state-of-the art China nursery and initial production forecast for October this year.
The timing of the production looks set to fill important window in the market between October and February-March – coinciding with Peru and Chile. Do you see the Laos production competing with Peru and Chile or complementing them?
PM: There is no doubt Laos production will compete with the late-season supply from Peru and Chile, but this is something we have faced before with our Australian, Moroccan and China-grown blueberry varieties. However, when it comes down to it, the proven premium quality and established reputation of our Costa genetics which has been earned over many years will mean Costa product continues to hold its rightful place at the premium end of the market.
What varieties of blueberries will you grow there? Are you looking to plant other berries like raspberries and blackberries?
PM: The Costa varieties will underpin the production. This includes Arana, which has been our standout variety for many years but also our exciting new varieties, Cascade, Eterna, Delight, Breeze, and Bounty – each of which has positive traits from a consumer and shelf-life perspective. There is also the potential to trial other Driscoll’s blueberry, rubus, and strawberry varieties to complement the blueberry infrastructure investment.
Logistics poses a challenge for such a project in terms of getting fruit to market. How are you planning to manage this?
PM: There will undoubtedly be some teething issues with logistics and moving product to various target Asian markets. This is not a new challenge for Costa, given the many locations where we have been one of the first movers and have needed to focus investment on developing a reliable and efficient supply chain. Significant investment is going into logistics in Laos as of this moment. This will enable the operation of a proper cool chain where product can reach its intended destination within two to four days’ transit time.
What are the key target markets for the initial production from the Laos project? Presumably Laos will need to establish market access protocols with several countries in Asia and beyond?
PM: Asia in general will be the key target market with already established customer relationships in place. This should be helped by progress on market access which has already begun. The Laos government is very proactive and supportive with obtaining access to China and India.
This is a project that promises to bring significant social and economic benefits to Laos. What opportunities and challenges do you see for Laos in berries?
PM: Costa is very aware of the positive opportunities it can provide for both social and economic development. The main way we can do this is through employment. We already have 65 local employees, and as we progress there will be local employment opportunities at every level of our Laos operation, be it on-farm roles, specialist horticulture roles and of course supervisor and management roles. Indeed, when we reach the planned production footprint of 200ha, our workforce should grow to employing up to 2,000 locals. Costa will also look for ways in which it can actively support the local community, including sourcing goods and services from local businesses, supporting initiatives that promote education, health and well-being, and sport and recreation activities.
