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.

Our Approach

  • Drive inclusive growth in the agricultural sector
  • Fully integrate climate change adaptation and mitigation into all agricultural support
  • Use the private sector business model, supporting linkages with growers and collectors as well as rural improvement
  • Learn and collect market intelligence
  • Complement and collaborate with strategic partners

Latest resources

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Own a small business and have not applied for a license to operate yet? We have good news for you. Australia recently supported the Ministry of Industry, Science, Technology & Innovation to launch its Digital Public Service Portal for online business license applications. The portal reduces the time and effort required for applications by streamlining processes, and particularly benefits people with disabilities or those living in remote areas. Through the portal, you can request a Prakas to establish small and medium-sized enterprises (SMEs) or handicraft businesses and apply for or renew a license to operate such a business. This initiative aims to boost Cambodia's economic growth by helping to formalise the SME, handicraft, and industry sectors, which represent more than 70% of jobs in the country. Australia is committed to supporting Cambodia to create a business-enabling environment that fosters resilient, inclusive, and sustainable economic growth through its CAPRED program. Ready to get started? Access the portal here: https://services.misti.gov.kh/ Check out the video to learn more.

Did you know? An estimated 99.8% of Cambodian businesses are micro, small and medium-sized enterprises (MSMEs), and 61% of MSMEs are owned by women. Through its flagship economic development program, the Cambodia Australia Partnership for Resilient Economic Development (CAPRED), Australia supported the Ministry of Industry, Science, Technology & Innovation (MISTI) to develop, launch and disseminate the Gender Equality, Disability and Social Inclusion Mainstreaming Action Plan (GEDSI-MAP) 2023–2028. H.E. Lay Navinn, MISTI Secretary of State and Chairperson of the GEDSI Action Group, underscored the importance of the plan in ensuring opportunities for and participation by not only women but people with disability, ethnic minorities and other marginalised groups.

Australia's Support to the Cambodian Rice Sector

Australia’s support to the Cambodian rice sector Australia has provided longstanding support to Cambodia’s agriculture sector since the 1960s when it started sending agricultural experts to improve rice-based research. Other key collaborations include the establishment of the Cambodian Agricultural Research and Development Institute (CARDI) in 1999, a strong partnership with the Australian Centre for International Agricultural Research (ACIAR), and the Cambodia-Australia Agricultural Value Chain Program (CAVAC), which concluded in 2022. In July 2022, the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) was launched as Australia’s flagship AUD87 million economic development program. CAPRED aims to support the Royal Government of Cambodia to build sustainable, resilient and inclusive economic growth.

Australia Supports Cambodia's Small Businesses wit...

Australia is proud to support Cambodia in fosterin...

Australia's Support to the Cambodian Rice Sector

Latest news & stories

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Agriculture and Agro-Processing

Australia continues to support Cambodia's agricult...

Agriculture and Agro-Processing

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Agriculture and Agro-Processing

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