Green Leader’s $20-million cassava factory will become operational in May, processing up to 130 tonnes of starch per year.
Hong Kong Stock Exchange-listed Green Leader Holding Group Limited announced last year that it will build 20 factories across Cambodia in the next five years.
Covering 20 hectares of land in Kratie’s Snuol district, the first factory in the company’s plans began construction in April last year.
Speaking during a meeting with Minister of Agriculture Veng Sakhon, Michael Tse, Green Leader CEO, said the new factory has the capacity to process 130,000 tonnes of starch a year, absorbing 500,000 tonnes of raw cassava.
“To draft a successful investment plan, the company has worked closely with the ministry and with UNDP Cambodia, completing a study on cassava cultivation,” Mr Tse said.
“Now we are working with 5,500 farmers on 30,000 hectares in targeted areas,” he said, adding that those farmers have organised into 27 agricultural communities and that Green Leader is now negotiating contract farming agreements with them.
Minister Sakhon praised Green Leader for its achievements, and encouraged the company to keep working to further contribute to the development of the local agriculture sector.
“This is yet another achievement by our government through the Ministry of Agriculture. It is in line with our investment policy for the private sector, particularly for the processing of raw materials into finished products for export.
“This project will help reduce exports of raw materials and add value to locally made products, promote local production, and encourage farmers to form agricultural communities and enter contract farming schemes with the private sector,” Mr Sakhon said.
According to a report from the department of agriculture, in 2018 Cambodia exported 15,282 tonnes of mango products and 1.08 million tonnes of cassava.