Vann Chanpeth is a vegetable and fruit wholesaler in
Battambang city with daily sales of three to five tons of cabbage, chili,
cauliflower, mango, and other produce. He is looking to grow his business, but
lacks a reliable and consistent supply. “I worked with several producers, but
they are not all the same. Some of them promised to sell vegetables to me, but
when harvesting time came, they sold to other buyers. And some suppliers
produced low quality product but demanded high prices. We can’t sell products
when the quality is not acceptable in the market,” he shared.
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| Buyer Vann Chanpeth and his wife selling cabbages at Phou Poy market,
Battambang province. © Feed the Future Cambodia Harvest II/2018/Solina Kong |
Trust is key to establishing long-term relationships; however, in Cambodia’s horticulture sector, trust can be an issue. In addition to the constraints that buyers like Chanpeth face, producers also have difficulty committing to long-term commercial relationships with buyers. In some cases, buyers don’t pay producers on time, or they change the terms of verbal agreements and lower their payment price.
To address these constraints, Feed the Future Cambodia
Harvest II (“Harvest II”) is facilitating connections between buyers and
suppliers and strengthening their relationships by establishing agreements and
helping them overcome the binding constraints to expanded sales. Harvest II
uses a buyer-led approach, starting by identifying potential buyers and
understanding their specific needs. Then, Harvest II connects them with
suppliers and helps them develop their capacity to meet buyer demand.
Harvest II introduced Chanpeth to Lim Deth, a cabbage
producer who is interested in developing a long-term partnership with a
reliable buyer. “I used to sell my vegetables to different buyers, but they
lowered their prices and some left without paying me even a cent,” Deth said.
“I lost a lot of money, but I’m lucky to have met and worked with Chanpeth. He
not only provided me input credit, but also paid me according to market price.”
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| Buyer Chanpeth
collects cucumbers from farmer Lim Deth to supply to the wholesale market in
Battambang city. © Feed the Future Cambodia Harvest II/2018/Solina Kong |
Harvest II works with Lim Deth and his family to strengthen
their relationship with Chanpeth while also providing training on production
techniques to improve the yield and quality of their produce. Chanpeth is
investing in his own supply chain and in Deth’s success by offering input
credit. Harvest II conducts follow-up coaching on a regular basis to learn
about challenges and successes within this partnership, and help address any
issues.
In its first year, Harvest II connected 27 buyers to 350
suppliers, boosting their sales by $2.5 million. “I am happy to work with Uncle
Deth because he produces such good quality cabbage in response to market
demand. If there is an oversupply at the market, his cabbage is the first to be
sold out,” Chanpeth said.
