Improving supply chain management through collaboration

Longan actors in Battambang connect and learn improved production practices

Longan, the tasty, high-value tropical fruit, offers enticing export market opportunities for Cambodians in the Battambang region near the Thai border. At the same time, actors in this sector – the longan agricultural cooperatives (ACs), buyers, collectors, producers, and other service providers – have faced challenges meeting market requirements. Recently, however, the group has begun working together to improve product quality and increase yield, and their efforts are paying off.

Feed the Future Cambodia Harvest II (Harvest II) has provided a variety of support to the subsector using its market systems approach. Since production issues were a binding constraint, Harvest II worked with government officials to deliver Cambodian Good Agricultural Practices (Cam-GAP) training to 222 participants in Battambang. In addition to introducing improved product quality and production practices, the training encourages producers to conduct food safety risk assessments, adopt sound environmental practices, and safeguard workers’ health.

GDA and PDAFF delivers Cam-GAP training to participants in Battambang.

Suon Keo Mony, a longan collector who attended the training, doubled his sourcing of longan from more than 100 farmers. This collector has invested financially to provide Cam-GAP training to his farmers utilizing the arrangements coordinated by Harvest II’s partnership with PDAFF. He shared, “The training is very useful because when farmers understand and apply Cam-GAP, they can increase their quality and productivity, and I can also increase my purchase to export market.”

In addition, Harvest II hosted an exposure visit to Thailand for 11 longan actors including buyers, AC members, and an input supply company. The exposure visit aimed to build capacity for the actors through observation of successful farmers and service providers that have adopted improved practices and services. After the exposure visit, Mr. Hun Vatha, the Ponleu Thmey Pichchenda AC Board of Directors has formed a group of farmers to provide trainings (spraying, pruning, harvesting, etc) and has developed a Facebook page to share gained insight with other farmers. He added, “This is a very good opportunity for me to join the exposure visit as I can share new knowledge to the AC members and non-members through trainings and social media platform like Facebook.”

Mr. Hun Vatha, the Board of Directors of Ponleu Thmey Pichchenda Agricultural Cooperative.

Harvest II further facilitated an agreement between longan collectors and producers, resulting in an expansion of more than $1.7 million in working capital that they have used to offer cash advances to producers to purchase agro-inputs and apply techniques to increase productivity and quality.

Through improved practices and supply chain management among key players in the longan subsector, a new longan processing company has invested $3 million in a longan processing facility in Pailin, near Battambang province. The company will continue purchasing Cam-GAP longan from Harvest II collectors after a bilateral agreement is signed between the Royal Government of Cambodia and China. With the current processing capacity of the newly established facility, longan sales are predicted to double from 2,500 to 5,000 tons per year.

Pilot program taps agronomy grads

A Commercial Horticulture Agent works to enhance agricultural input sales and services

Agricultural input dealers play a major role in the horticulture sector of Cambodia. In addition to managing their day-to-day operations, they must stay up to date with agricultural trends, provide technical support and advice to farmers, understand market needs and prepare for the next season. Due to limited time and many responsibilities, dealers often find it challenging to develop and strategically grow their businesses.

Kimsong, an agricultural input dealer in Battambang, is an example of a dedicated input dealer who saw the need for change. He was committed to providing his customers the best service and support, but that was impeding his business development. Spending most of his time in the field, maintaining relationships and assisting farmers prevented him from taking the necessary steps to expand his business. 

Feed the Future Cambodia Harvest II (Harvest II) worked closely with Kimsong to assess his needs and identify a solution that would benefit both his business and farmers. This led to the creation of a new position called Commercial Horticulture Agent (CHA). A CHA is a recent agronomy graduate who earns a modest salary and commission. In this role, he works closely with retailers, forges relationships with farmers and provides customized support to all parties, allowing dealers to focus on growth and advancement.

Teng Tin, the Commercial Horticulture Agent, at Depot Song Mouy, Kimsong's agricultural input shop. 

Kimsong hired the first CHA, Teng Tin, in October 2019. Tin spends most of his day visiting farms and fostering relationships with retailers and farmers, attending trainings, and sharing the best practices for the Battambang area. In the last three months, he has connected with over 100 farmers and five new retailers that are now regular customers of the dealership. “Retailers are happy to meet because I am not only there to promote products, but also to create a close relationship and discuss their challenges.” Tin reports. “Now that I do their job in promoting their products at the farm, they can also spend more time in the shop and sell new products.”   

This unique role strengthens the sector by facilitating business growth, expanding its knowledge base and providing personalized support to dealers and farmers. “Tin not only provides sales support to me, but also technical information, and now we also exchange ideas,” shares an agricultural input retailer from Battambang. “Tin also goes to many technical training sessions, and if I cannot attend, he shares the information with me the next time I see him.”

An agricultural input dealer, Kimsong (left) shared, "In my mind, Tin is equal to five employees from other companies. He is always happy to do the work and supports me in many ways.Add caption

The CHA has provided Kimsong a way to provide better support and services while addressing his business needs and the needs of the community. Since the addition of the CHA, his first quarter has seen a 5-10% increase in sales and he has been able to open a temperature-controlled store that offers a large selection of seeds and instructional advice. As the industry observes the resounding impact from this new role, other businesses are seeking to include CHAs in their business models. One example is the agricultural cooperative in Battambang, which is planning to hire a CHA to help with sales, administration and communication tasks.

As the horticulture market continues to develop, collaborating with motivated actors to try new strategies that respond to system-level constraints can create mutually beneficial solutions and foster inclusive growth. The CHA program is showing promise as a way to meet the needs of businesses and cooperatives, bring new knowledge to farmers, and help young agronomy graduates find meaningful work in the sector.