Agriculture & Agro-Processing

CAPRED aims to foster a more sustainable and prosperous agricultural sector in Cambodia by empowering small-scale producers, enhancing market competitiveness, and improving the livelihoods of farming households.

Our work in agriculture and agro-processing focuses on 6 priority crops: rice, cashew, banana, mango, cassava and vegetables. These cover more than 90% of Cambodia’s total cropping area and are dominated by small-scale growers. They offer enormous potential in increased sales and productivity; export growth; import substitution; and gender equality, disability and social inclusion (GEDSI) benefits.

We adopt an integrated value chain or market system approach for each crop from market (upstream) to production (downstream). Each market is made up of a series of transactions governed by supply and demand.

We examine market needs and work backwards to improve and strengthen the supply chain.

MARKET SYSTEM APPROACH

Strengthening upstream and downstream sectors

In our model, the upstream sector covers processing, compliance, labelling and/or packaging, marketing and distribution before products go to market. This sector contributes to skilled employment, technical expertise and quality standards. Strengthening this sector can increase value addition, competitiveness and market access that in turn contributes to employment, economic growth, production and crop diversification.

The downstream sector covers primary agricultural production activities. These include research and development of better farming techniques or machinery, climate- or pest-resilient seeds, sustainable practices, improved irrigation systems, farming and harvesting crops, and enhanced post-harvest handling and storage facilities. Strengthening the downstream sector has a positive ripple effect on the entire supply chain.

For Cambodia, the key challenge is to grow its value addition sector rather than sell raw produce to Thailand and Vietnam who then benefit from processing it themselves. Value addition requires a significant improvement in processing efficiency, affordable processing equipment, and use of wastage, ensuring that farming households receive better prices for their products and can rely on stable market access.

Latest resources

See our latest resources from across the CAPRED program.

Laser land levelling is revolutionising Cambodia’s rice industry, boosting productivity and preparing farmers to face climate challenges. This advanced technology ensures precise field levelling, conserving water, reducing costs, minimising pests, and improving rice quality and yield.

With Australia’s support, Mr Meun Sor, a laser land levelling pioneer in Banteay Meanchey, has expanded his business from 3 to 100 hectares annually.

Many Cambodian farmers rely on costly chemical products, putting their health and the environment at risk. To address this issue, Australia partners with the private sector to introduce the use of agricultural drones.

Ms To Kosal, a drone service provider in Battambang, has helped more than 80% of local farmers adopt this technology. With her fleet of drones, she is empowering farmers to:
🪲 combat pests efficiently to minimise crop damage
💧 conserve water
🌱 lower chemical use
👨‍ reduce negative health impacts on workers
🌾 increase productivity.

As demand soars, Ms. Kosal is expanding her operations to better serve her community. Through the CAPRED program, Australia is working to support the use of agricultural drones in other areas of Cambodia, contributing to sustainable, inclusive, and resilient economic growth.

Did you know? Most Cambodian agri-businesses have to send their product samples abroad for testing prior to export. This costly and time-consuming process hinders companies’ competitiveness in exports. Australia recently launched a collaboration with the Institut Pasteur du Cambodge (IPC) to establish accredited in-country testing services for pesticide residue, antibiotic residue and heavy metals. This initiative will help businesses ensure safe, high-quality food products and expand to new markets. Australia through the CAPRED program aims to help Cambodia increase its export capacity, contributing to resilient, inclusive and sustainable economic growth.