Hong Kong Stock Exchange-listed Green Leader Holding Group Limited will build 20 factories throughout Cambodia in the next five years, the Ministry of Agriculture said.
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The group’s new Snoul, Kratie-based cassava processing plant is set to start operations this month and has capacity to process 130,000 tonnes of starch a year, the ministry said.
Green Leader invested $20 million to build the plant, which is 75 percent complete, it said. Minister Veng Sakhon hailed the investment as another achievement for the government, which is pushing to drive up production of processed raw materials before export.
Deputy Prime Minister Yim Chhay Ly, who is also chairman of the Council for Agricultural and Rural Development, was present at the groundbreaking ceremony of the plant on April 1.
“This is a good policy to create more value, create jobs, boost domestic production, and find market for cassava farmers through the implementation of contract farming,” Mr Sakhon said.
The Kratie factory can absorb 500,000 tonnes of raw cassava from the market, Mr Sakhon said.
Kratie Department of Agriculture director Kuy Huot said demand from the new plant will raise purchases of local cassava production, helping to stabilise prices.
“This will invigorate the farmers’ living condition. The department under the ministry has been facilitating contract farming between farmers and buyers to make sure farmers will sell their agricultural products with the market price and buyers will have good quality products,” Mr Huot said.