The agriculture sector is one the leading contributors to economic growth and poverty reduction in Cambodia. It is widely accepted that agricultural diversification and quality improvement will help the sector respond to changing domestic and external demand. The Cambodian government has identified a variety of agricultural commodities as having potential to generate much greater profits particularly for smallholder farmers, namely, cashew nut, Keo Romeat Mango, maize, leafy vegetables, chicken and pigs. However, these value chains are not fully realizing their potential, despite significant interest and rising demand from both local and international buyers.

The ability of the domestic market to meet demand for the aforementioned commodities is currently impeded by constraints along the value chain, including weaknesses in the following elements: seeds and other inputs quality; trust between value chain actors; extension services; consistent supply of produce throughout the year; smallholder skills and resources; access to finance; adoption of good agricultural practices; horizontal and vertical linkages; post-harvest preservation techniques. The high transportation and logistical costs are also limiting factors.

Moreover, as explained by Ms Eva Galvez Nogales, Agricultural Officer of the Food and Agriculture Organization of the United Nations (FAO), “The absence of a coherent and comprehensive market information system also stifles these opportunities, with the Agricultural Market Information System (AMIS) not fully functional due to limited human and financial resources.  Consequently, the system requires upgrading to respond to user requirements and to fill information gaps.”

Amongst the set of responses, strengthening the capacity of relevant government officials and filling the remaining information gap to ensure that smallholder farmers are able to access new markets for cashew nut, Keo Romeat mango, leafy vegetables, maize, chickens and pig is a first recommended step. 

This is precisely the objective of a new project of the FAO Representation in Cambodia, in response to a request of the Cambodian government. FAO experts will conduct a commodity value chain study to identify the type of investments required to tackle the above-mentioned barriers and inefficacies.  These studies will gather evidence of market opportunities, commercial viability of possible value chain interventions, and potential benefits for smallholders for each selected commodity. The study will provide evidence-based analysis and robust recommendations to support policy development for the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the Ministry of Commerce (MoC). The study will also identify practical interventions to be carried out in support of targeted value chains.

With the support of FAO, the Department of Planning and Statistics of the MAFF organized the inception workshop of this project on 13 February 2019. All relevant stakeholders, including relevant ministries staff from national and sub-national level, private sector actors, as well as development partners were mobilized to discuss the project strategy, action plan and to reach a consensus on the way forward. Considering the wide array of existing programmes and operations in the sector, coordination is key to guarantee that the result of the FAO supported study will contribute to respond to the identified challenges.   

Dr Sar Chetra, Deputy Secretary General of MAFF emphasized that Cambodian agriculture has witnessed a significant change, particularly from subsistence to commercial farming, with the farmers able to produce agricultural products beyond their own consumption. It has been driven by an increasing demand from the market. He also pointed out that, “strengthening the capacity of both individual famers and agricultural cooperatives to engage with the market, linking them to broader private sector actors, and particularly agricultural products collectors through contract farming, will help farmers addressing one of their key challenges, enabling them to access domestic and export markets.”