Promoting Public-Private Dialogue in Cambodia’s Horticulture Sub-Sector

Good communication between the government and the private sector is essential to building an enabling environment that can support growth. However, interaction between stakeholders is not always regular or fruitful. To address this problem in the Cambodian horticulture sector, public-private dialogue (PPD) meetings were organized by Feed the Future Cambodia Harvest II in four provinces: Pursat, Battambang, Siem Reap, and Kampong Thom. Participants at the PPDs included buyers, suppliers, agro-input supply companies, financial institutions, provincial chambers of commerce, as well as provincial line departments. During the dialogues, these actors discuss constraints and challenges and propose solutions through focus group exercises.

Mr. Chhim Vachira, Director of PDAFF in Battambang commented that “I am happy to see diverse relevant stakeholders help address constraints and identify areas for collaboration as it is rare to have everyone sitting together like this.” A longan exporter, Mr. Kong Sokha also expressed that “This is a good opportunity to meet and talk about our challenges and propose solutions that benefit all.”

Focus group discussion between microfinance institutions in the horticulture in Battambang.

©Feed the Future Cambodia Harvest II/2018/Solina Kong

Numerous findings were raised during each group discussion. For instance, a priority concern raised by agro-input companies was the unfair competition brought about by unregistered and illegal imported agro-inputs and the complex registration and license process. Horticulture producers expressed that they lack production knowledge and technologies, have inadequate capital and market information, and that agro-inputs are expensive – all chronic issues preventing them from being competitive.

In addition, inconsistent supply due to seasonal production, low quality produce, high competition with imports, lack of investment in processing, lack of working capital, and financial skills seemed to be major issues among buyers. The latter, especially, has led to an increase of payback risk to microfinance institutions and banks. Similar issues were also brought up by provincial line departments and development partners.

Focus group discussion between NGOs and development partners on the challenges faced by horticulture actors in Siem Reap.

©Feed the Future Cambodia Harvest II/2018/Solina Kong

Harvest II will synthesize and share these findings in a national public-private dialogue to be held later this fiscal year, where government ministries, development partners, and key private sector actors will be engaged. Additionally, this PPD will document the issues, constraints, and challenges, and formulate potential joint solutions to address enabling environment constraints in the sub-sector.

 

Strengthening Resilience to Climate Change

In Cambodia, agriculture plays a vital role to ensure food security and contribute to economic growth. Over 80 percent of the population of Cambodia lives in rural areas and about 70 percent depends on agriculture for their livelihoods. However, farmers in Cambodia are facing major production constraints from unreliable rains, drought, changes in weather patterns, and pest and disease outbreaks caused by climate change, affecting their economic and livelihoods.

To help farmers with this challenge, Feed the Future Cambodia Harvest II ("Harvest II") awarded two grants to local NGOs - Aphivat Strey (AS) and International Institute of Rural Reconstruction (IIRR) - to work directly with 2,000 producers in Battambang, Pursat, and Siem Reap, three of the four Feed the Future’s Zone of Influence.

Producer Phon Hok (right) is packaging cucumber into 10 Kg plastic bags ready for buyers to transport to the market.

©Feed the Future Cambodia Harvest II/2018/Solina Kong

This climate change adaptation and resilience activity under the Feed the Future Cambodia Harvest II project is intended to improve access to and use of climate information, resulting in risk-reducing actions in the targeted intervention areas. The main activities under these grants is to identify successful technologies or practices, then provide training and follow-up coaching to sure that producers and producer groups are applying climate smart practices on-farm. The trainings include bed raising, trellising, drip irrigation and mulching, healthy seedlings, and composting. This training is helping farmers produce more efficiently, which improves their ability to increase production quality and quantity to meet buyer demand. As of June 2018, 14 climate resilience practices were introduced to 1,184 vegetable producers (59% women; 11.5% are youth) through direct trainings and follow-up visits. As a result, 64% of them have applied multiple climate resilience practices.  

Producer Sophal collects long beans to sell at a local market in Battambang.
©Feed the Future Cambodia Harvest II/2018/Solina Kong

For example, vegetable producer Phon Hok is one of the farmers who received trainings and has applied and improved his production capacities significantly. Hok said, “I used to read agriculture books and asked [for advice] from neighbors but now I have benefited from an expert coming to my farm.” Similarly to Hok, vegetable producer Sophal said that her vegetable production is much better in term of quality and quantity, helping her to increase her income and support her family.

Harvest II also launched a series of one-hour radio talk shows on climate resilience practices that was broadcast over a six-month period through one of the most popular local radio stations. Speakers from private sector such as input supply companies, NGOs, and model farmers, were invited to share their experience with farmers calling in to ask for more information on their production challenges. Over this period, 12 talk shows on climate resilience were broadcast and shared over social media like Facebook, reaching over fifteen thousand people across the country.

Increasing Buyers’ Capacity to Respond to Market Demand

Cambodia’s juicy and sweet mango is in high demand for the export market. Although Cambodia has many varieties of mango, Keo Romeat mangoes (pictured at left) are the most popular on the international market.

Vuth Chanthou is a mango buyer in Battambang province, part of the Feed the Future’s Zone of Influence. Chanthou exports grade one mango to the Thai market, sending the rest to a wholesale market in Battambang. Chanthou has been working as a mango buyer for five years, developing a positive relationship with ten producers, exporting around 1,000 tons on- and off-season mango per year. Chanthou wanted to buy more, but she was having problems finding new producers.

Vuth Chanthou, a mango buyer in Battambang stands in front of her car and truck, preparing to collect mango from her producers. 

©Feed the Future Cambodia Harvest II/2018/Solina Kong

Feed the Future Cambodia Harvest II is a project designed to help horticulture actors connect and work more closely together. Harvest II has connected Chanthou to an additional 21 producers and collectors, doubling her mango sourcing by increasing farm-level sales of $582,901 between December 2017 and June 2018.

Harvest II has also connected input supply companies to Chanthou’s producers to provide advice about fertilizer, pruning, pests and disease control. This helps improve fruit tree health and increase yield and quality. The companies also provided in-depth technical demonstrations at mango farms that brought together producers and Chanthou to observe the new techniques.

Sok Nat is one of the new producers who just harvested mango for Chanthou for the very first time. He had negotiated with various buyers before, but their offers were low and they wanted to buy only the best quality mango instead of the entire crop. Harvest II brought Chanthou to visit Nat’s farm and facilitated the negotiation. Through Harvest II’s facilitation, Chanthou agreed to purchase Nat’s entire mango harvest and provided a cash advance to ensure the purchase agreement. Nat supplied all his mango (55 tons) to Chanthou and is willing to work with her again for the next mango season.

Harvest II has also linked Chanthou to another new producer, Cheav Chhoun, who was looking for a buyer. Chhoun also received training from input supply companies, helping him better understand how to take care of his mango trees. He said, “Many buyers come to negotiate with me, but only Chanthou offers me a good price.”

Producer Cheav Chhoun collects mango for buyer Vuth Chanthou.

©Feed the Future Cambodia Harvest II/2018/Solina Kong

Chanthou said, “I am happy that Harvest II connected me to more producers so I can increase my export capacities.” Chanthou is planning to expand to the Vietnamese market next year and expects to increase her sales to $1 million per year. Harvest II will continue to help Chanthou work more effectively with producers while also helping her scout new export opportunities.