AGRICULTURAL DEVELOPMENT &

INVESTMENT IN CAMBODIA

By: Srey Vuthy Deputy Director, Department of Planning and Statistics (DPS)/MAFF

06 September 2012, Busan, Korea

Ministry of Agriculture, Forestry and Fisheries

• Cambodia is an agrarian country with its economic foundation still largely

based on agriculture sector. It provides food for daily living condition, supply

raw materials for industry, and also a main source of national revenue

generated from production and exportation.

• Around 80% of the population live in rural areas and make their livings in

agriculture;

• The total production area is more than 3.92 millions ha, in which

• Rice is about 2,97 millions ha,

• Cash & industrial crop is about 0.79 million ha, and

• Permanent crop is about 0.16 millions ha.

I. Situation on Agriculture Sector

Agriculture Sector Contribution in GDP (Constant 2000 price)

Share (%) of Agriculture Sector in GDP

Gross Value Added for Agriculture Sector

Growth Rate (%) for Agriculture Sector

Composition (%) by Sub Sector

II. Agriculture Policy

Enhancement of Agriculture Sector :

The Four Rectangles of Rectangular Strategy-II

1- Enhacement of Agriculture Sector 2- Land Reform and Landmine Clearance 3- Fisheries Reform 4- Forestry Reform

Rectangular Strategy Phase-II

II. Agriculture Policy (Cont.)

Overall Policy Goal “Enhance the agricultural productivity, diversification and

commercialization in order to reduce poverty and promote the economic growth by high consideration of environmental protection and sustainable natural resource management ”

Indicator: 3-4% Agricultural Growth per annum which

contributed to economic growth of 7%.

National Strategic Development Plan updated 2009-2013

Agricultural Strategic Development Plan 2009-2013

Rectangular Strategy-II

II. Agriculture Policy (Cont.)

Policy Objectives: To improve agricultural productivity and diversification through increasing crop

production growth by 10%, livestock production of 3% per year based on

broader acceleration and improvement of the agricultural research and

extension and efficient animal disease prevention.

To ensure and maintain the fishing areas for fisheries communities, to protect

fisheries resources with increased efforts to crack down on illegal fishing

practices, especially in Tonle Sap Lake, to increase aquaculture production by at

least 15% per year and to strengthen capacity for fisheries communities for

better management.

To ensure 60% forest cover of the total land by 2015 through forestry protection,

especially suppression of forestry crimes, Forestry Law enforcement and

acceleration of reforestation efforts with strengthening capacity of forestry

communities for effective and sustainable management.

National Strategic Development Plan updated 2009-2013

Land Use in Cambodia

Agriculture 24%

Forest covered 56%

Grass land 6%

Shrub land 10%

Soil-Rock 0.2%

Urban Built Up

0.1%

Water Body 3%

Source: MPWT/JICA (2002)

Soil Condition

Potentials in Production

200

kilometers

0

Lao PDR

Vietnam

100

Thailand

Krong

Pailin

Bat Dambang

Krong KaebKrong Preah Sihanouk

Kampot

Phnom Penh Kandal

Kampong SpueuPrey Veaeng

Svay Rieng

Takaev

Kaoh Kong

Kampong Cham

KrachehMondol Kiri

Rotanak KiriStueng Traeng

Preah Vihear

Kampong Thum

Kampong

Chhnang

Pousat

Banteay

Mean CheySiem Reab

Otdar Mean Chey

Regions

Coastal (4)Plain (6)Plateau/Mountainous (6)Tonle Sap (8)

Mountainous Region - Coffee, pepper, - Rubber, Fruits, - Livestock - Cassava - Peanut, Sesame, - Soybeans

Plain Irrigated Region - Rice, maize, soybean - Sesame, peanut, - Vegetables, fruits

Costal Region - Fruits, - Livestock - Rice, Cassava - Green beans,

Sesame,

Tonle Sap Region - Rice, maize, - Cassava -Peanut, Sesame, -Soybeans, Green bean, -Sugarcane -Jute - Fruits, - Livestock

Rice Production

Lowland

Rice

(80.4%)

Deep

Water

Rice

(3.5%)

Irrigated

Paddy

Rice

(14.2%)

Upland

Rice

(1.9%)

III. Agriculture Sector Development

1- Rice Production

1.1 Five-Years Trend:

Descriptions 2007 2008 2009 2010 2011

Cultivated Areas(Ha) 2,585,905 2,615,741 2,719,080 2,795,892 2,968,529

Harvested Areas (Ha) 2,566,952 2,613,363 2,674,603 2,777,323 2,766,617

Yield (T/Ha) 2.621 2.746 2.836 2.970 3.173

Production (MT) 6,727,127 7,175,473 7,585,870 8,249,452 8,779,365

Rice Surplus (MT) 1,649,640 2,025,033 2,244,598 2,516,752 2,780,328

Paddy Surplus (MT) 2,577,562 3,164,114 3,507,185 3,932,425 4,344,263

1.2 Future Plan for Development: •More than 1 million ton of milled rice officially exported by 2015 •Rice yield increased by 3.32 t/ha by 2015 •Increase of all crop production by 10% per year •More focus on improvement of productivity (R&D, Farmer Organization, Agricultural

Land Use, Processing, Market Information, Contract Farming etc.)

III. Agriculture Sector Development (cont.)

2- Other Crop Production

Commodities 2006 2007 2008 2009 2010 2011

Maize 108,836 142,391 163,106 206,058 213,622 174,257

Cassava 97,918 108,122 179,945 160,326 206,226 391,714

Mung Bean 85,140 65,261 45,605 49,599 69,206 68,111

Soya bean 75,053 76,981 74,413 96,388 103,198 70,584

Total 4 main

Crops 366,947 392,755 463,069 512,370 592,250 704,666

Maize is more focused in increasing for the domestic utilization, especially feed processing.

III. Agriculture Sector Development (cont.)

3- Livestock Production

Plan for Development: Increase productivity by 3% per annum:

• R&D, improved breeding, • feed processing, • disease control, • bio-digester program • Need Private Investment in this area.

III. Agriculture Sector Development (cont.)

4- Rubber Production (2nd Export Commodity) In 2011, the total of Cambodian rubber plantations covered on 213,104 ha. Plan for Development: •Increase Private investment and small holder rubber plantations. •R&D in Rubber Sector •Linking small farms and large farms by Contract Farming System. •Development of Rubber Producer Community. •Quality improvement, Certification

Economic Land Concession

At the present, 116 validated ELC companies with total land of 1.190.069 ha are located at 17 provinces.

1 - French companies 01 6 - Thai companies 05

2 - Singapore companies 01 7 - Korea companies.. 05

3 - India companies. 03 8 - USA companies.. 02

4 - China companies. 27 9 - Cambodia companies 41

5 - Vietnam companies 28 10 - Israel 01

11- Sweden 01 11 - Australia 01

III. Agriculture Sector Development (cont.)

Potential Areas for Foreign Investment

• Storage & transportation • Wholesale market • Agricultural auction •Market information •Standardization

Agri. Marketing • Milling factory • Meat industry • Slaughtering • Fisheries processing •Cold storage system

Food Processing • Agricultural purchasing •government storage & selling •Agricultural fund for price stabilization

Agri. Fund

•Export & import for agricultural products •Brand development for agricultural export • Develop export strategy

Agricultural Trade •Provide loans for farm mechanization •Loans for food processing & marketing •Provide mutual credit

Agricultural Finance •Develop agricultural technologies •Agricultural education •Seed development & extension

Agricultural R&D

Source: KIRD, 2012

III. Agriculture Sector Development (cont.)

Thank you for your attention