It Takes a Village

From Company Sales to Community Capacity, Private Extension Services Prove to Be Worthwhile

Many Cambodian vegetable farmers recognize the value of modern production methods. Implementing them, however, can be difficult without reliable access to quality inputs and the technical knowledge to apply them correctly. East-West Seed Co. (EWS) is an input supply company working to change that and expand their business at the same time. With support from Feed the Future Cambodia Harvest II, EWS has worked across the provinces of Pursat, Battambang, Siem Reap, and Kampong Thom not only to build producers’ technical capacity, but also to strengthen the support systems and services that farmers need to continue improving their yields and access stable markets.

A central element of EWS’s approach is its work with independent retailers. Based in the villages where farmers live and work, retailers provide a crucial link between farmers in need of quality goods and services, and EWS, who can provide them.

Kain Chenda is one such retailer. Three years ago, he opened an input supply shop in Rohal Suong village, fifteen kilometers north of Battambang town. After initially struggling to attract customers and connect with reputable supply companies, Chenda began working with EWS, recognizing an opportunity to set his business apart by providing quality products and sound technical advice.

Input retailer Kain Chenda has collaborated with East-West Seed Co. to support vegetable farmers’ efforts to improve production through access to quality inputs and reliable technical advice.

Chenda and some of his farmer-clients joined trainings held by EWS on improved growing techniques, learning about different seed varieties and cultivation practices. They participated in demonstrations on mulching, irrigation, and other production techniques.

Building his own technical capacity, Chenda says, is good for his business. “I have to have up-to-date technical expertise and knowledge,” he says, “because farmers have me visit their farms. I can attract various farmers to come buy from me, because I provide this service.”

As noted by EWS sales representative Seng Chanthy, working with retailers like Chenda is part of EWS’s emphasis on sustainability. The company ensures that farmers continue to have support networks in their communities, even after EWS-led trainings, by building retailers’ capacity to provide farmers with not just quality inputs, but technical assistance as well.

“We support independent retailers through technical assistance, product knowledge, and linkages to depots,” Chanthy says. “Many farmers now know which market actors they need to work with in order to access specific seed varieties, technical advice, product knowledge, or market information.”

These networks of mutually-beneficial support mean greater income for farmers, more reliable supply chains for buyers, and better business for input retailers. Chhut Man, a vegetable collector in nearby Bak Amrek village, has doubled his daily collection volume through his farmers’ improved capacity. Chenda’s sales doubled between his first and second year, and are on track to grow another 25 percent this year.

Vegetable buyer and farmer Chhut Man has doubled his daily collection volume as his farmers have participated in East-West Seed Co. trainings and improved their production practices. 

“These days, things are much easier, due to my collaboration with EWS,” he says.

EWS’s Chanthy says that the company’s own sales, too, have increased, growing by more than 21 percent across the four provinces. He attributes much of this growth to farmers’ adoption of improved growing methods, thus increasing their demand for – and confidence in – the company’s products. Input retailers, as trusted and knowledgeable community members, are key to this success, and EWS intends to continue building their capacity and skills.

Legal, Quality Inputs and Tailored Services Pay Benefits

Longan Actors Work Together for a Stronger Sector

Longan, a fruit similar to lychee, is popular among farmers in western Cambodia, and has high export potential. Meeting international quality standards, however, requires access to reliable agro-inputs and technical assistance, which many Cambodian farmers lack.

“Many farmers work along the border, learning Thai techniques,” explains Rin Narith, Vice Manager of Sales and Marketing at Khmer Angkor Farmer (KAF), a Cambodian input supply company. “This means that they have to use Thai products. Khmer Angkor Farmer saw this and said, perhaps there’s a market there.”

Thai products pose unique challenges for Cambodian farmers. Illegal imports and counterfeit products are difficult to distinguish from genuine products, and when labels are not translated into Khmer (Cambodian), farmers are unaware of safety risks and proper application methods.

Feed the Future Cambodia Harvest II began working with KAF in Phnom Preuk district, Battambang province, in June 2018, helping the firm build longan farmers’ access to reliable inputs and technical capacity. With support from Harvest II, KAF held trainings for producers, buyers, input dealers, and farm service providers, covering such topics as pruning, the proper application of fertilizers and pesticides, and the use of personal protective equipment.

With facilitation from Harvest II, KAF also began working more closely with input dealers. Phut Borey, one such dealer, started out as a longan farmer before opening an agro-inputs depot last year. He also operates a pesticide-spraying service for farm owners, and, after connecting with KAF at a training, took an interest in their products.“I prefer using legal products from my own country,” Borey says, “because the company guarantees the quality. The guarantee is important, because farmers invest a lot in their farms.”

Input dealer Phut Borey has worked with Khmer Angkor Farmer to expand farmers’ access to legal, quality agro-inputs, as well as the technical expertise that they need to apply them safely and properly.

Borey encourages his farmers to attend KAF’s trainings, and has built his own capacity to provide quality services and technical assistance to his customers. His clientele has grown from ten to 100 farmers, and he has hired a permanent employee to help with both his own farm and his support services business.

Many of Borey’s farmers sell their longan to the Pailin Longan Association, an agricultural cooperative that purchases Cambodian longan for export to Thai markets. Harvest II has worked with the association to build their network of suppliers in Phnom Preuk, increasing their access to longan of adequate and consistent quality.

“Especially important,” says Yim Bunthoeun, a Pailin Longan Association buyer, “is technical capacity,” because of the strict requirements for export markets. “If a farmer harvests 30 tons, but they have not cared for their farm well, only ten tons will meet the standards.”

Input supply company Khmer Angkor Farmer has helped build the technical capacity of farm services labor groups to provide improved services to longan farm owners. 

The Pailin Longan Association works symbiotically with input dealers like Borey, who help farmers improve the quality of their harvest and connect them to the association’s buyers. In return, the association provides an attractive market for farmers’ longan, thus encouraging them to expand their production and in turn increasing demand for agro-inputs. In the last season, the association purchased $1.89 million of longan from 52 farmers in Phnom Preuk and neighboring districts, a tenfold increase on the previous season. Meanwhile, KAF has seen its profits increase, and is building a strong reputation as a reliable company providing quality agro-inputs and technical assistance.

“We do whatever it takes to ensure that farmers see Khmer Angkor Farmer and know that it is good quality,” says Narith. “They use our products and achieve success, and so they speak highly of us.”

Cashews for the Community

How One Woman Entrepreneur Is Bringing New Opportunities to Her Community

In Laihuot, of Trapeang Arak village in Kampong Thom province, first began working as a cashew collector five years ago. She entered a sector characterized by a lack of coordination among market actors and a heavy dependence on Vietnamese traders: with limited value-added infrastructure at home, Cambodia exports most of its cashews to Vietnam for processing.

Laihuot, 40, who is also a cashew and rice farmer, saw these challenges as an opportunity – not only for herself, but for others in her community as well. Thus, after initially working through a farmers’ association and community processing center in her village, Laihuot decided to start her own business as a collector and processor.

At first, she says, a key challenge was working with farmers to ensure a supply of cashews of consistent quality and quantity, as well as managing her business and navigating the market. Furthermore, a lack of working capital limited her purchasing capacity during the harvesting season.

Ms. Laihuot has worked with Harvest II to expand her network of suppliers and support farmers in her community to improve their harvests, strengthening her own business in the process.

©Feed the Future Cambodia Harvest II/Benjamin Rost, 2019

Then, at the outset of the cashew season last year, Laihuot attended a short training hosted by Feed the Future Cambodia Harvest II on cashew pest and disease management. After applying the techniques that she learned at the training, Laihuot saw improvements in her harvest, and recognized an opportunity to support her fellow farmers and to strengthen her business at the same time.

Laihuot worked with Harvest II to grow her network of suppliers, expanding from a single village to three districts, and to improve her supply chain management. She began collecting information from her producers related to their production capacity and expected yield, and now pays premium prices for premium product in order to encourage farmers to improve their harvests and post-harvest handling.

“In previous years, farmers would always bring product with some unripe cashews, some overripe, some still attached to the fruit, some covered in dirt,” Laihuot says. “But this year, they wash and clean their cashews, and if I cannot go collect them right away, they have started drying them, too.”

Laihuot is also helping her producers to improve their yields. After joining a business-to-business workshop organized by Harvest II last year, Laihuot connected with VT Grow Co., a specialized input supply company, and joined a technical training in her district on the proper application of inputs for pest and disease management. She subsequently shared what she learned with her farmers to help build their capacity – and her business as well.

Providing sustainable employment opportunities to women in her community is a central element of Ms. Laihuot’s mission as a business owner. Seventy percent of her staff are women.

©Feed the Future Cambodia Harvest II/Benjamin Rost, 2019

As a result of her efforts and improved collaboration with her farmers, Laihuot was able to collect a total of 57 tons of cashew last year. This season, after securing a loan with help from Harvest II to increase her access to working capital, she is on track to buy and sell twice as much and has plans to build a storage facility to stockpile cashews for year-round processing.

But it’s not just for her own benefit that she works so hard. Her processing business is oriented towards providing employment to others in her community – especially women, who make up 70 percent of her staff, and who, Laihuot says, are uniquely impacted by limited employment opportunities in their communities. “I run this business through an aspiration to help the community – I don’t want to profit just only for myself; I want farmers to profit just as I do,” Laihuot says.

By partnering with entrepreneurs like Laihuot, Harvest II is helping Cambodians capture value-added opportunities for local horticultural products as well as bring new jobs to rural areas.

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Bringing Local Produce to Modern Retail

A Vegetable Wholesaler in Siem Reap Expands into New Markets

Two decades ago, when he was still a young boy, Rim Krai used to travel with his father to sell vegetables in Siem Reap town. Now a vegetable wholesaler in Prasat Bakong district, Siem Reap province, Krai recalls how they would load up their ox cart with cabbages, making the fifteen-kilometer journey along a rough dirt road to the market – and that they would always sell out.

These days, things have changed for vegetable wholesalers like Krai. Cambodian-grown vegetables must compete with imports from neighboring countries, while supply networks are often inconsistent in terms of quality, quantity, and timing, as farmers lack technical expertise and access to market information.

Thus, when Krai heard that Makro, an international supermarket chain, was opening a store in Siem Reap, he recognized an opportunity to improve his business – and support his producers in the process. As one of the first modern retail outlets in Siem Reap, a town with vibrant tourism and hospitality industries, Makro could help provide Krai with a stable market for his vegetables, and bring Cambodian produce to a modern retail outlet. Meeting Makro’s quality standards, however, would take work.

With support from Harvest II, Rim Krai has expanded his network of suppliers, and now purchases between 500 and 1,000 kilograms of vegetables a day – a tenfold increase on previous years.

©Feed the Future Cambodia Harvest II/Benjamin Rost, 2019

Since January 2018, Krai has been working with Feed the Future Cambodia Harvest II to improve his wholesale business. Harvest II connected Krai to more suppliers in his area, helping him expand his daily collection volume and improve his supply chain management.

“Before working with Harvest II,” Krai says, “there weren’t many vegetables to buy. I bought from only two or three households, and producers lacked technical knowledge and post-harvest handling skills.”

After working with Harvest II, he expanded his daily collection volume from between 50 and 150 kilograms to between 500 and 1,000 kilograms, and supported his producers to improve their post-harvest handling techniques.

“Now, they throw out the rotten vegetables,” he says, “and prepare them in ten-kilogram bags. They sort the vegetables by grade as well.”

Confident in his producers’ ability to meet Makro’s demand, Krai was eager to work with the supermarket as a supplier of local vegetables. With facilitation support from Harvest II, he traveled to Phnom Penh to meet with Makro managers and negotiate a contract, and began selling to them in January 2019.

Since then, his income has increased, as Makro provides a reliable supplement to Krai’s wholesale business at Samaki market in Siem Reap. Krai now employs six staff: three to run the wholesale stand at Samaki market and three to organize and package produce according to Makro’s standards.

Krai has supported his producers to improve their post-harvest handling, such as by grading, sorting, and packaging their vegetables after harvesting.

©Feed the Future Cambodia Harvest II/Benjamin Rost, 2019

“I am glad to work with Makro,” Krai says, “as not many buyers like myself are able to enter into this kind of business. Makro orders vegetables every day, and I am glad to have a daily income.”

To prepare for future expansion of his business with Makro, Krai has worked with Harvest II to support his producers to continue improving their production methods, and to begin growing vegetables year-round to ensure a more stable supply network throughout the year. As his business continues to grow, Krai looks forward to the benefits that it will bring: more jobs in his community, more stability and support for farmers, and more customers able to enjoy Cambodian-grown vegetables.

AC Supports Improved Production through New Business Venture

How One Agricultural Cooperative Is Expanding Its Business to Support Members

Agricultural cooperatives, or ACs, are common in Cambodia as organizations in which many small farmers work together as a business. Many provide loans or sell agro-inputs to members, or support members to grow and sell their crops. Without business experience and market expertise, however, many ACs find it challenging to operate successfully within Cambodia’s dynamic horticulture market system.

Stoeng Sangkae Agriculture Cooperative is one such AC. Located in Battambang province with roughly 2,500 members, Stoeng Sangkae AC was established in 1998 to provide loans to its members, 80 percent of whom are farmers growing rice, mango, and vegetables, with small business owners comprising the other 20 percent. After officially registering in 2017, the AC wanted to expand its business activities to better support its members, but was unsure of how to begin.

Stoeng Sangkae AC committee members meet to discuss current constraints and future business plans.

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

Then, in January 2018, Stoeng Sangkae AC members attended a “Know Your Market” business and marketing skills training hosted by Feed the Future Cambodia Harvest II and partners. Alongside more than 200 horticulture sector actors, including other ACs and agro-input retailers and dealers, Stoeng Sangkae AC members participated in sessions designed to enhance participants’ capacity to market quality agro-inputs and provide technical advice to farmer customers.

Afterwards, the AC decided to begin selling agro-inputs to its members, recognizing room for improvement on its old model. “Previously we bought agro-inputs from nearby input dealers, which is a bit expensive,” said San Sean Ho, the AC committee leader. “Then we would apply those inputs on our farms based on our own experience, which was sometimes ineffective and raised the cost of production.”

With facilitation assistance from Harvest II, the AC connected with two specialized input supply companies. In addition to expanding members’ access to quality inputs, the companies provided technical trainings and on-farm demonstrations on fertilizer and pesticide application, and helped the AC set reasonable input prices for its members.

The AC was still constrained by a lack of capital, however. To help address this constraint, Harvest II facilitated a meeting between the AC committee and a microfinance institution (MFI) to discuss loan opportunities. By establishing collateral and other required documentation, the AC was able to access loans.

By accessing loans from an MFI and connecting with input supply companies, the AC has purchased 20 tons of agro-inputs to supply to its farmer members.
©Feed the Future Cambodia Harvest II/2018/Solina Kong

As a result, Stoeng Sangkae AC has been able to expand its operations to support its members. The AC continues to provide loans to members, and has purchased 20 tons of agro-inputs to sell to producer members, storing surplus in its warehouse. The AC also serves as a mango collector for its farmers, buying 20 tons of mango from its members last year. This year, the AC plans to double its sourcing, selling between 40 and 50 tons of mango to Misota Co., a local mango processing company, through a purchasing agreement facilitated by Harvest II.

By partnering with the MFI, Stoeng Sangkae AC was able to access the capital it needed to expand its business activities, and its agreement with Misota ensures a stable market for its members’ products. “By linking with the input supply companies,” Sean Ho added, “we receive both technical knowledge and reasonable prices, helping us lower the cost of production and increase quality.”

The result is an AC that, by forming mutually beneficial commercial relationships with other market actors, is better equipped to support its members to expand production, improve quality, and increase sales, contributing to a stronger and more robust horticulture market system.

New Horizons for Pursat Oranges

How One Orange Buyer Is Investing in His Supply Chain to Bring More Fruit to Market

Oranges from the province of Pursat are one of Cambodia’s most popular fruits. Prized for their sweet, slightly tart flavor, these unique green oranges are in high demand year-round. During the dry season, however, growers have trouble producing oranges of sufficient quantity and quality, and buyers face difficulties securing an adequate supply.

Khun Sopheap, a collector in Phnom Kravanh district, Pursat province, has partnered with Feed the Future Cambodia Harvest II to address these challenges through improved supply chain management. He began by working with Harvest II to establish and strengthen contract agreements with his growers, arranging to purchase farmers’ entire harvest for an agreed-upon price – 40 percent of which is paid up front – and sharing the costs of inputs with his producers, giving them access to the capital they need to purchase inputs and expand production.

Khun Sopheap has implemented numerous new business practices to improve his supply chain management, helping his producers expand production, increasing his sales.

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

To further build Sopheap’s growers’ capacity to produce during the dry season, when the supply of oranges falls by around 70 percent, Harvest II connected Sopheap with two agro-input supply companies to provide his growers with quality fertilizers and pesticides and hold ongoing trainings on their correct use. Harvest II also collaborated with one of the companies to conduct an exposure visit for Sopheap and 10 of his producers to observe drip irrigation systems at successful off-season orchards in other provinces.

“Hearing 1,000 times is not equal to seeing a single time,” said Sopheap, quoting a popular Cambodian proverb. “Drip irrigation is such a good technology to practice on farms. It makes for very convenient fertilizing and watering and saves times and labor, which will help us produce higher quality oranges during the dry season.”

With support from the input supply company, Sopheap decided to pilot drip irrigation on his own farm before showcasing this best practice to his producers and helping them install similar cost-shared irrigation systems on their farms.

An exposure visit, hosted by Harvest II in collaboration with an input supply company, introduced Sopheap and his producers to drip irrigation systems that they can replicate on their own farms.

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

“Harvest II is like a bridge to safely bring me across difficult roads,” he said. “I am connected to more actors, which helps me to establish stronger business relationships and increase my sales.”

Sopheap’s success demonstrates the potential of improved supply chain management as a win-win for all market actors. Sopheap increases his sales, while his producers increase production and are thereby able to maintain a stable market for their oranges. The input supply companies expand their business by establishing new loyal customer bases and creating larger markets for their goods and services.

Furthermore, as Sopheap and his various market partners continue to increase their sales and create new jobs, they generate ripples within the horticulture sector, helping establish new business relationship norms. By partnering with entrepreneurs like Sopheap, Harvest II is working towards a more robust market system and a stronger Cambodian economy – and year-round access for Cambodian consumers to delicious Pursat oranges.