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.