Contract Farming
BACKGROUND
In 2011, the Royal Government of Cambodia introduced Sub-decree N.36 on Contract Farming (“Contract- based Agricultural Production”) which defined the implementation framework of contract farming in the Kingdom of Cambodia. A coordination Committee was later established, with the objectives of developing policy and strategic plans, facilitating and strengthening harmonization between contracting parties and working working on dispute resolution. Since its establishment in 2017, the Committee’s Secretariat together with the Department of Agro-Industry (DAI)/MAFF) have organized biannual consultation workshops, engaging private sector stakeholders, development partners, NGOs and CSOs.
CPSA’S SUPPORT FOR CONTRACT FARMING
To ensure that all stakeholders along the value chain are able to benefit from contract farming, CPSA supported DAI by conducting two workshops in 2019 with three specific objectives:
Engage and motivate all steering committee members, relevant ministries and agencies, and other stakeholders to enhance contract farming practices.
Assist the Working Group in charge of drafting the Contract Farming law to gather inclusive and collective recommendations for developing the draft policies.
Provide a platform for participants to share experiences and lessons learned.
Our Activities
Mr. Saran Song
Chief Executive Officer of Amru Rice and Private Sector Co-Chair of CPSA
“ Amru Rice is contracting 60 Agricultural Cooperatives which is approximately 10,000 smallholder farmers. From our experience, contract farming benefits farmers in several ways, by providing them with a guaranteed market price, technical support to maximize yields, input support (including seeds), and access to financial institutions. Not only are farmers better off, but so is our business, the environment and our community at large. Through contract farming, Amru is better equipped to control and manage its supply chain and the quality of rice we buy. Moreover, we are contributing to community development through job creation and poverty reduction, while minimizing migration. We are also contributing to environmental sustainability by preventing logging and deforestation.”
