The Ministry of Agriculture said the number of contract farming schemes is increasing remarkably, helping enhance productivity and market access for farmers.
From January to August, a total of 91 contract farming schemes were inked in various sectors, including rice, sugarcane and livestock production, the ministry announced during a meeting yesterday.
It said that 7,897 smallholder farmers have entered contract farming agreements throughout the country.
In contract farming, buyers sign agreements with farmers for the production and supply of crops to be delivered at a future date, usually at predetermined volumes, quality and prices.
The government considers the scheme an effective mechanism to raise productivity while benefitting all actors involved.
Kong Pheach, director of agroindustry at the Ministry of Agriculture, told Khmer Times that the number of contract farming agreements will continue to rise as the model is more widely understood by farmers and buyers.
“Our priority is to increase the number of contract farming schemes in each province. Once such agreements are in place, farmers will be able to increase their production because they have guaranteed markets,” Mr Pheach said.
“Establishing contract farming schemes is how we help small farmers increase production,” he explained.
Song Saran, Amru Rice’s CEO, said contract farming schemes enable market expansion through innovation and help agricultural cooperatives maintain existing markets.
“We will keep up our work linking markets to farmers, particularly farmers who produce agricultural goods of great potential.
“We will continue connecting farmers to companies, particularly rice millers that are members of the Cambodia Rice Federation,” said Mr Saran, who was recently appointed president of CRF.