Contract Farming
CPSA is partnering with the Ministry of Agriculture, Forestry and Fisheries (MAFF) — Department of Agro-Industry (DAI) to promote, discuss and share experiences on Contract Farming and its role in modernizing and enhancing Cambodia’s agriculture sector.
Background and Structure of Contract Farming
In 2011, the Royal Government of Cambodia introduced Sub-decree N.36 on Contract Farming (“Contract- based Agricultural Production”) which defined the implementation framework of contract farming in the Kingdom of Cambodia. A coordination Committee was later established, with the objectives of developing policy and strategic plans, facilitating and strengthening harmonization between contracting parties and working working on dispute resolution.
Since its establishment in 2017, the Committee’s Secretariat together with the Department of Agro-Industry (DAI)/MAFF) have organized biannual consultation workshops, engaging private sector stakeholders, development partners, NGOs and CSOs.
CPSA’s support to Contract Farming
To ensure that all stakeholders along the value chain are able to benefit from contract farming, CPSA supported DAI by conducting two workshops in 2019 with three specific objectives:
Engage and motivate all steering committee members, relevant ministries and agencies, and other stakeholders to enhance contract farming practices.
Assist the Working Group in charge of drafting the Contract Farming law to gather inclusive and collective recommendations for developing the draft policies.
Provide a platform for participants to share experiences and lessons learned.
Our Activities
17th July 2020 at Ministry of Agriculture Forestry and Fishery (MAFF)’s Office, Department of Agro-Industry (DAI/MAFF) facilitated a production contract- selling and buying on “Processed Cashew Nut”. The event supported by Top Planning (Japan). The event was chaired by H.E Veng Sokhon, MAFF’s Minister on two separated MoU between Khmer Organic Cooperative (KOC) with Chey Sambo Processing Enterprise and another one between HEKS and Chey Sambo Processing Enterprise.
27th April, 2020 at Department Agriculture Forestry and Fishery (PDAFF), Kampong Thom province – Department of Agro Industry (DAI/MAFF) facilitated a cashew buying and selling contract between cashew producers with Chey Sambo Processing Enterprise. The meeting participated by 50 relevance stakeholders in cashew nut sub-sector in the province and beyond.
13th February, 2020 at Phnom Penh Hotel- together with Department of Agro Industry (DAI/MAFF), CPSA/Grow Asia co-organized a contract farming workshop under topic of “Reviewing the Progress Report , Challenges and Next Step for the Contract Farming”. The workshop joined by different stakeholders (500 participants) including: 18 relevance government agencies, provincial governors, agro-businesses, agri-cooperatives (ACs), civil society organisations (CSOs) ..etc
02nd September, 2019 at Ministry of Agriculture Forestry and Fishery (MAFF)’s Office – Department of Agro Industry (DAI/MAFF) organized a contract farming workshop under topic of “Reviewing the Progress Report , Challenges and Next Step for the Contract Farming” , the workshop organized by Department of Agro-Industry (DAI/MAFF).
23 July, 2019 at Ly Hourt Hotel in Preah Vihear Province – Department of Agro Industry (DAI/MAFF) facilitated a contract farming on organic rice between 22 agriculture cooperatives (ACs) with with Amru Rice Cambodia.
17th July, 2019 at Preah Vihear Department Agriculture Forestry and Fishery (PDAFF) in Preah Vihear Province – Department of Agro Industry (DAI/MAFF) facilitated a contract farming on organic rice between 11 agriculture cooperatives (ACs) with Signature of Asia.
10th January, 2019 at Phnom Penh Hotel- CPSA Director participated in contract farming workshop under topic of “Reviewing the Progress Report , Challenges and Next Step for the Contract Farming” , the workshop co-organized Department of Agro-Industry (DAI/MAFF) and Cambodia Development Resource Institutes (CDRI).
“ Amru Rice is contracting 60 Agricultural Cooperatives which is approximately 10,000 smallholder farmers. From our experience, contract farming benefits farmers in several ways, by providing them with a guaranteed market price, technical support to maximize yields, input support (including seeds), and access to
financial institutions. Not only are farmers better off, but so is our business, the environment and our community at large. Through contract farming, Amru is better equipped to control and manage
its supply chain and the quality of rice we buy. Moreover, we are contributing to community development through job creation and poverty reduction, while minimizing migration. We are also contributing to environmental sustainability by preventing logging and deforestation.”