Logo of Phnom Penh Post newspaper Phnom Penh Post - Fertiliser deal eyes growing market

Fertiliser deal eyes growing market

Fertiliser deal eyes growing market

A new partnership between Thai-based MSK Fertilizer and Cambodian import agency Brightway Group will increase the distribution of certified quality fertilisers to combat the Kingdom’s endemic supply of fake crop stimulants, a Ministry of Agriculture official said.

The two companies signed the agreement at the Thai Embassy in Phnom Penh yesterday, but operations will not begin for at least three more months as the import agency still needs to register for a licence and receive an import quota from Cambodian regulatory authorities.

The distribution deal will benefit the local market, where demand for fertiliser has risen swiftly, said Phum Ra, acting director of Agricultural Registration at the Agriculture Ministry.

He said Cambodia imported around 570,000 tonnes of fertilisers during the first half of the year, roughly equalling imports for the whole of 2015. Actual import figures could be close to double when unofficial exchanges from along the border are included.

The bulk of fertiliser products arrived from Vietnam, making up 60 per cent of imports, followed by Thailand with a 30 per cent share. An increasingly large portion of these imports is believed to be falsely labelled products.

“It is very good to increase the number of official distributers because we can then have better control over the quality of fertilisers that are being used,” Ra said.

Brightway Group will initially target its distribution of fertilisers to large-scale farms and later seek to expand its reach to smaller markets, according to Hong Mongheng, the company’s president.

The group has allocated an initial budget of $700,000 to purchase and import 300 tonnes of fertilisers. It will then look to enlarge its operations according to the market demand.

He was unable to disclose the price of the imported fertiliser, but expected it would be available at a suitable price.

Manoon Sritaikhum, CEO of MSK Fertilizer, said establishing a registered company to distribute fertilisers to farmers will be good for the local agricultural sector as farmers’ crop yields are regularly impacted by the use of fake fertilisers purchased from unregistered middlemen.

“We aim to help farmers boost their crop yields by providing good quality fertilisers,” he said.

MOST VIEWED

  • Cambodia’s image problem

    In opening remarks at a recent event, Secretary of State at the Ministry of Foreign Affairs and International Cooperation Luy David said information can be a double-edged sword. He told a European Institute of Asian Studies (EIAS) briefing seminar that the media has unfairly presented

  • PM Hun Sen says dangers averted

    Delivering a campaign speech from his home via Facebook Live on Thursday, caretaker Prime Minister Hun Sen said his Cambodian People’s Party (CPP) had carried the country through danger in its latest mandate. He was specifically referring to the threat of a “colour revolution”

  • Kingdom's trade deal with EU questioned before poll

    A European Union (EU) mission met with senior government officials at the Ministry of Interior on Tuesday as the 28-member bloc monitors an agreement under which Cambodian goods reach the crucial European market tariff-free. Some 10 commissioners are in the Kingdom as part of a seven-day

  • A new carrier takes off in capital

    Cambodia Airways, the latest passenger airline to enter the Kingdom, launched its first domestic flight on Tuesday. Flight KR801, carrying 145 passengers, left the Phnom Penh International Airport at 9:50am and landed in Siem Reap at 10:35am in an Airbus A319. Cambodia Airways marketing and branding