Phnom Penh, Cambodia, May 22, 2018 — IFC, a member of the World Bank Group, and Mars Food and Battambang Rice Investment Co., Ltd (BRICo), launched a partnership to promote sustainable development of Cambodia’s rice industry. Improving rice production and enhancing linkages with the global rice value chain will help Cambodia’s agri-sector expand market access, increase export value, and improve farmers’ livelihoods.

Rice is Cambodia’s most important produce, engaging 80 percent of farmers. Cambodia’s rice exports have grown tenfold since 2010, thanks to raised industry standards, improved efficiency of rice millers and re-processors, and streamlining of export procedures, among others. However, the sector has scopes to further increase the rice export value by improving rice yield and quality, adopting sustainable farming and processing practices, and enhancing value chain linkages. In addition, with climate change threats, there is an urgent need to shift to a more sustainable way of growing rice.

IFC and Mars Food, owner of the world’s largest rice brand UNCLE BEN’S®, along with its local rice supplier Battambang Rice Investment Co., Ltd (BRICo) — a rice mill from Cambodia’s rice bowl of Battambang — kick-started the advisory project today. By helping farmers conform to agricultural standards and practices developed by the Sustainable Rice Platform (SRP) and improving famers’ adoption of technology and climate smart agriculture practices, the project is expected to result in a 20 percent increase in yield and a 25 percent increase in income by 2025. Over the next three years, about 9,000 smallholder farmers will benefit from exposure to sustainable farming practices, climate smart agriculture technologies and financial literacy training disseminated by the project.

“This partnership with IFC, and Mars’ commitment to sustainable sourcing, is a key part of Mars’ Sustainable in a Generation Plan. We strive for all of our high-quality rice to be sourced from farmers working toward the Sustainable Rice Platform standard. IFC’s work to advance sustainability in Cambodia’s rice sector, particularly among smallholder farmers, will make the country’s rice more attractive to international rice buyers like Mars Food in the future, said Luc Beerens, Global Sustainable Sourcing Director at Mars Food. “IFC’s global supply chain expertise make them a natural partner for us.”

The project further seeks to improve farmers’ adoption of climate smart agriculture including planting seeds, technologies, and services. It will build a sustainable rice supply chain, adopt better pesticide and fertilizer practices, and employ better post-harvest methods.

“The aim is to integrate small farmers and SMEs into a more effective rice value chain by providing them with better access to improved inputs, technology, knowledge and markets, better firm linkages and training,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “Building on our earlier support to Cambodia’s rice sector, this project will further help the industry achieve its full potential by boosting its export of traceable, sustainable, and high-quality rice products.”

IFC has been supporting Cambodia’s rice sector over the past few years by helping to add value along every step of the supply chain, with key interventions at the farming, milling and export stages. With IFC’s support, the country’s premium jasmine rice won the “World’s Best Rice” award in 2012 and 2013 at the Rice Trader World Rice Conference.

For the third straight year, the World Rice Conference has voted Cambodian rice as the world’s best. This year Cambodia shares the award with Thailand.

Cambodia produced just one percent of the world’s rice in 2012. It is trying to increase that amount. The award may help.

The country’s rice industry is small and not well-organized. As a result, large amounts of unmilled, or unprocessed, rice is sent to Thailand and Vietnam where it is sold for a higher price. But rice is very important to Cambodia’s economy. Many Cambodians survive in part by growing rice on small pieces of land.

Sok Puthyvuth is the president of the Cambodia Rice Federation.

“We need better seeds, we need a better collection process, we need better storage, we need better logistics, and also our exports need to brand Cambodian rice to be one of the top brand(s) in the world.”

The group has set a target of one million tons of milled rice exported by 2015. So far this year, Cambodia has exported around 400,000 tons, mostly to European Union countries.

Keat Chhon is Cambodia’s deputy prime minister. He says increasing rice exports will improve the lives of many of the country’s farmers.

He says the purpose of the rice policy is to reduce poverty and help people in rural areas earn more. This shrinks the development gap between rural and urban areas.

China is loaning the country $300 million to help Cambodia develop its rice industry, including improving storage.

But exporter David Van says the country’s rice industry continues to suffer from the same problems it has had for many years. He says these include the high cost of electricity and a lack of good seeds. And he says the country’s rice industry needs to change the way it markets its product to show it is different from what other countries offer.

“You need to differentiate your product from your competitor next door. Otherwise, you will keep on being compared automatically to what the next-door competitor is offering.”

Cambodia faces other problems. Countries like Myanmar also want to increase their rice exports. And, Thailand has extra rice, which is forcing down prices.

The award for best rice may help Cambodia grow its exports even if it does not reach its million-ton target next year. And that will help the industry and millions of Cambodia’s poor farmers.

The content of this news is available in khmer language only 

To celebrate the 70th anniversary of diplomatic relations between Cambodia and Australia, Australia donated agricultural machines to farmers in Battambang to boost the farming capacity of the province. Australia organized a presentation on agricultural techniques on the use of cultivators and other agricultural techniques and equipment. The demonstration was held at Don Bosco School in Sangkat O’Mal, Battambang City on March 14. The demonstration was attended by the Deputy Ambassador at the Australian Embassy, Andreas Zurbrugg, and Battambang’s Provincial Agriculture officers. Deputy Ambassador Zurbrugg confirmed that this year is a special year for bilateral relations between Australia and Cambodia, it is the 70th year of diplomatic relations between the two countries. The Deputy Ambassador added that launch of agricultural assistance cooperation is an important point because Australia is economically dependent on agriculture. He said that Australia can provide assistance to Cambodia through the Australian Centre for International Agricultural Research (ACIAR) project, which has provided prior assistance to Cambodia through the establishment of the Rice Research and Development Institute in Cambodia. Deputy Ambassador Zurbrugg hopes that this good cooperation will continue with the relevant ministries and that the machines presented to farmers will assist farmers in increasing agricultural productivity.

Source: Australia donates rice mills to Battambang farmers - Khmer Times (khmertimeskh.com)