Facilitating global access to Cambodia’s fruits and vegetables

A business implements a holistic approach, applying interventions at various levels to improve the horticulture supply chain

Observing supply chain challenges occurring throughout Cambodia’s horticulture sector, the newly established, joint-venture company AgriOn Cambodia (AgriOn) devised a multifaceted action plan that envisions a dependable, sustainable supply of locally grown, safe fruits and vegetables to domestic and international markets. Investing to improve storage and logistics, working with producers to adopt improved production practices and establish traceability systems, and developing formal contract agreements with producers, AgriOn aims to implement a new business model to promote Cambodia’s horticulture sector on a global scale.

Feed the Future Cambodia Harvest II “Harvest II” awarded an Investment Accelerator grant to AgriOn to support the expansion of their operations through an investment in logistics and cold-storage equipment. The investment includes cold rooms, refrigerated trucks, conveyers, cleaning machines, water filtration systems, packaging machines, and other equipment. This equipment improves the collection and transport of fruit and vegetables. Refrigerated trucks transport fresh, quality produce to a cold storage facility to wash, clean and package it in accordance with food safety standards, followed by refrigerated transport to local and international markets. Since receiving the pay-for-performance based Harvest II grant, AgriOn invested $221,469 and hired 23 new employees including eight females.

Harvest II awarded a grant to AgriOn to establish a sustainable supply chain to domestic and international markets.

The investment improves storage and logistics and promotes compliance with food safety standards, increasing local and international competitiveness and access to Cambodia’s products. AgriOn’s Director Mr. Marith Chhor recently stated, “with the grant from USAID, it not only helps us in funding, but it may help us access more high-value markets like the US and EU, and give more chances to Cambodian growers.”

AgriOn’s multi-pronged action plan includes forging a dependable and high-quality supply chain by working closely with local agricultural cooperatives (ACs) and farmers to supply quality inputs, provide training, and connect them to reliable suppliers of greenhouse technology. In collaboration with PDAFF, AgriOn works with their producers to implement good agricultural practice (Cam-GAP) standards to improve quality and yields. In March, AgriOn provided technical training to 187 producers from 18 ACs in Battambang province, sharing various practices including crop cultivation, land treatment, and soil testing.

AgriOn signs contract farming agreements with representative from ACs to supply various fruits and vegetables.

Encouraging development across Cambodia’s horticulture sector, AgriOn establishes contract farming with farmers and farmer groups.  The company signed contract farming agreements with a total of 418 farmers from 33 ACs across 11 provinces. Mr. Nop Nun from Tasei AC and Mr. Long Mom from Meanchey AC, representatives from two producer groups that have contract agreements with AgriOn, shared that they are very happy working with AgriOn and receiving the support they provide, including technical support, record keeping, and market access.

In collaboration with various partners including Harvest II, AgriOn continues actively working to improve Cambodia’s horticulture sector through the implementation of a holistic, multi-pronged approach.  AgriOn is establishing a sustainable supply of local and safe fruits and vegetables to both domestic and international markets through investment, training, and contract farming.