The Benefits of Contract Farming for Cambodia

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The Benefits of Contract Farming for Cambodia

Post by CEOCambodiaNews » Sat Aug 17, 2019 11:02 pm

August 13, 2019
Contract farming schemes on the rise: Ministry
The Ministry of Agriculture said the number of contract farming schemes has increased this year as farmers and traders are more aware of the benefits of such agreements.

Kong Pheach, director of agroindustry at the Ministry of Agriculture, said from January to July almost 60 contract farming schemes were signed in the rice sector, 20 more than during the same period last year.

In contract farming, buyers sign agreements with farmers for the production and supply of crops to be delivered at a future date, usually at predetermined volumes, qualities and prices.

Speaking yesterday at the agreement-signing ceremony for yet another contract farming scheme, Mr Pheach said so far this year rice millers have signed agreements with agricultural cooperatives from 10 provinces.

“Our priority is to increase the number of contract farming schemes in each province. Once such agreements are in place, farmers will be able to increase their production because they have guaranteed markets,” Mr Pheach said. “Establishing contract farming schemes is how we help small farmers increase production.”

Six big rice millers have already entered contract farming schemes with agricultural cooperatives, according to Mr Pheach, who added that once the contract farming model is more widely understood by farmers and rice millers, the number of such agreements will skyrocket.
https://www.khmertimeskh.com/50633015/c ... -ministry/
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Re: The Benefits of Contract Farming for Cambodia

Post by CEOCambodiaNews » Sun Jan 19, 2020 12:27 pm

Here is a good example of the benefits of contract farming for Cambodian rice farmers : https://southeastasiaglobe.com/cambodia ... act-award/
“Even when farmers use good seeds and get a really good harvest in the year, they usually receive a very low price. With high expense and little profit, it barely leaves them [farmers] with anything,” said deputy leader Srey Yat. “That problem really discourages them from further farming,” she added.

But upon joining VSO’s IMA4P project in 2014, this slowly started to change.

Today Raingkesei’s farmers have attained two milestones through the Sustainable Rice Platform and contract farming. With strength in numbers, the community now houses over 150 members, with VSO’s project working alongside the farmers to develop fair contracts with millers, ensuring supply meets demand and a reasonable price for their products.

The project has been implemented by VSO in three other countries facing similar issues – Malawi, Nigeria, and Tanzania – all with different agricultural focuses. In Cambodia, specifically Raingkesei community, improved market access has resulted in an increase in the farmers’ income by $604 per hectare – a nearly 500% increase on when the project first started.
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Re: The Benefits of Contract Farming for Cambodia

Post by CEOCambodiaNews » Wed Sep 30, 2020 3:45 pm

More Contract Farming Signed
AKP Phnom Penh, September 29, 2020 --
Some 50 agricultural cooperatives have signed contract farming with four agricultural firms and rice millers, supplying paddy organic rice and organic cassava.

The signing ceremony was held here this morning under the presidency of H.E. Veng Sakhon, Minister of Agriculture, Forestry, and Fisheries with the participation of representatives of agricultural cooperatives, rice millers, and Cambodian Rice Federation, Cambodia-Australia Agriculture Value Chain Programme (CAVAC).

Contract farming is an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreement, frequently at predetermined prices.

Under the MoU, the agricultural cooperatives, from six provinces including Takeo, Kampong Speu, Kampot, Kampong Chhnang, Mondulkiri and Preah Vihear, supply 24,662 tonnes of organic paddy rice and 30,206 tonnes of organic cassava to the four agricultural firms and rice millers, which are Cambodian Agriculture Cooperative Corporation, Armu Rice (Cambodia), Signatures of Asia, and Bayon Heritage.

As of September 2020, 701 contract farming on rice, organic rice, organic cassava, pepper, palm sugar, vegetable, cashew nut, corn, bean, chicken, pig and so on have been signed.
- AKP
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