The Benefits of Contract Farming for Cambodia

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The Benefits of Contract Farming for Cambodia

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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

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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 »

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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Re: The Benefits of Contract Farming for Cambodia

Post by CEOCambodiaNews »

January 28, 2021
Contract farming in Mondulkiri fruit and vegetables rolling out
Sok Chan
Tropicam Fruit and Vegetable Co Ltd will be rolling out a contract farming agreement with groups of farmers in Mondulkiri province on the supply, purchase and safe production of fruits and vegetables according to Good Agriculture Practice (GAP) standards.

Tropicam Chief Executive Officer Hun Lak said this coming weekend will see representatives of the company, the Ministry of Agriculture, Forestry and Fisheries, chefs’ associations and farmers meet to discuss the advantages of a partnership between producers, buyers and consumers in Mondulkiri province and to set out a contract with the farmers.

He added the company will be working with around 70 clusters of farmers in Mondulkiri and said the programme will encourage farmers to grow produce that meets the highest potential in market demand for produce successfully attaining GAP standards.

Lak said: “We selected Mondulkiri as the kick-off province to roll out the GAP standard for vegetables and fruits in our programme and will mobilise the farm clusters producing GAP standard vegetables so that we can best understand the source of production, the yields, plantation areas and quality control.”

He added: “We want the GAP standard for vegetables and fruits to be recognised and sought out by local consumers,”

Lak said the benefits to farmers entering into contract farming with the company include an increase of income and achieving production efficiencies through crop rotation. Contract farming also delivers price stability to a sustainable market and strengthens farmers’ networks, which contributes to increasing trust with credit institutions. All of the above factors are indicative of contract farming’s ability to enhance the well-being of the nation’s people and its environment.

“While Mondulkiri is the first provincial model to roll out the project, we have piloted previously in Kandal and Kampong Chhnang.” Lak explained that farmers who join the Tropicam project are asked to grow vegetables by scheduled planting and harvests. Tropicam then buys all the yield and packages it for distribution to the market.
https://www.khmertimeskh.com/50807971/c ... lling-out/
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