Logo of Phnom Penh Post newspaper Phnom Penh Post - Hope sprouting for growers as more farming contracts inked

Hope sprouting for growers as more farming contracts inked

Content image - Phnom Penh Post
Minister of Agriculture, Forestry and Fisheries Veng Sakhon (centre) and Ly Ly Food Industry Co Ltd CEO Keo Mom (right) have said contract farming not only protects growers but also promotes international recognition of the quality of Cambodian products. Heng Chivoan

Hope sprouting for growers as more farming contracts inked

Contract farming in Cambodia has witnessed sharp growth this year, with 516 contracts signed so far this year, eclipsing the 498 for the whole of last year – proving the merits of the scheme, Minister of Agriculture, Forestry and Fisheries Veng Sakhon said on Thursday.

He was speaking as a witness at the signing ceremony for a farming contract involving Ly Ly Food Industry Co Ltd, one of the Kingdom’s largest food processing small and medium-sized enterprises, and Ly Ly Kameda Co Ltd, a joint-venture it launched with Japan-based Kameda Seika Co Ltd last year.

He said contract farming is improving Cambodia’s food processing supply chain and sharpening its competitive edge locally and internationally.

The contract farming not only enhances the productivity of agricultural production, but also enables the Kingdom to use raw materials to their fullest potential, reduce imports and create employment opportunities, he said.

“The active participation of private partners will unquestionably lend a hand in promoting Cambodia’s agricultural sector by further enhancing commercialisation and agro-industrial development.

“This in turn will further increase the added-value of crops, maintain sustainable production and supply, and boost already-rising household incomes in line with Cambodia Industrial Development Policy 2015-2025,” said Sakhon.

Cooperation between development partners, companies, factories, processing enterprises and farmers is essential to more robust, wider and more effective adoption of contract farming, he said.

Using the latest technologies and innovations available, contract farming will also reinforce and expand the agricultural production mechanism and ensure production quality criteria are met.

Ly Ly Food Industry CEO Keo Mom said that over the last few years, fruit and vegetable growers have struggled to secure a market during the harvest season, crippling their earning power.

This, she said, often leads them to migrate or quit agriculture altogether.

She added that contract farming not only protects growers but also promotes international recognition of the quality of Cambodian products.

“It truly is a source of pride for me that all products made by Cambodian farmers can have a competitive advantage on the international market,” she said.

Cambodia Rice Federation president Song Saran could not be reached for comment on Thursday, but he previously said contract farming is necessary to promote stronger and more competitive Cambodian production so that it demonstrates high standards of excellence on the international stage.

Kong Pheach, director of the ministry’s Department of Agro-Industry, told The Post that contract farming plays an important role in building farmers’ confidence, noting the surge in number of contracts signed in the past year.

He said contract farming has many advantages – not only does it help growers obtain a guaranteed market, but also provides growers with the latest technical resources, expertise and assistance, as well as seed stock, provided by authorities and seasoned companies.

Cambodia is no longer a subsistence agricultural country, he said. Selection of agricultural products for export requires careful consideration of quality to increase their competitive position on international markets.

“Contracts farming is meant to help all of us in finding markets, seed stock and common solutions,” he said.

According to Pheach, only 93 farming contracts were signed in the first half of last year, mainly in the rice sector.

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,