Cambodia Plans to Export More Goods

BY BUTH REAKSMEY KONGKEA

The Royal Government of Cambodia plans increased exports of 19 priority products that have the most potential on international markets. The promotion of these products will contribute to the nation’s economic development and reduce poverty.

Kem Sithan, Secretary of State at the Ministry of Commerce, said that his government has formulated these economic plans with markets in Europe in mind.

The Secretary of State recently that these 19 locally produced commodities would include rice, corn, soy beans, sesame, potato, rubber and fish.

“In order to increase markets for our farmer’s products, the Ministry of Commerce is now identifying stable markets in European countries,” said Sithan. “We are also going to help our farmers strengthen the quality of their produce, as well as the quantity they can grow.”

Sithan said the plan for the 19 products relied on the support of international markets and that his government was doing all in its power to ensure this.

“Currently, the quality of our agricultural products needs some attention to nudge it up to meet international standards. This will be the first step in our mission to increase international demand for Cambodian goods,” he said.

He continued, “The other wing of our campaign concerns quantity. Currently, the demand is out there, but we do not yet have the capacity to meet it. Thus, we are going to tackle this challenge on two fronts, taking care of quality, but also training our farmers. We have to educate them and all relevant officers in the ways to make the most effective use of the land available.”

The Secretary of State also emphasized that these measures would be rolled out across the entire nation. He said his Ministry also planned to ease export procedures, making export licenses easier to obtain and speeding up the passage of Cambodian commodities across international checkpoints. He also promised meaningful reductions on export taxes.

Thong Sina, Director of the Commerce Office in Banteay Meanchey province, said that
Cambodian farmers were largely unaware of the demands of international markets. Their business plans and worldview were limited by local conditions and demands.

‘We believe that if our farmers are taught the basic economic principles concerning markets, supply and demand; if they are shown how to make the best use of their land, then they would be able to play a profitable role in the world’s trading centers,” he said.

Dr. Yang Saing Koma, President of the Cambodian Center for Study and Development in Agriculture (CEDAC), agreed with the government’s choice of 19 commodities. According to his observations, Cambodian exports have been increasing over the past eight years. He noted that hundreds of tons of Cambodian rice, beans and rubber resins made their way to markets in Japan as well as Europe.

Saing Koma observed that the quality of raw materials produced by Cambodia’s farmers was as good if not better than anything else produced in the region. The flow of exports was impeded however by the quality of packaging. Exported goods undertake an arduous journey and they need packaging protection if they are to arrive at the buyer’s door in pristine condition.

He also noted the discrepancy between quantities demanded and the ability of Cambodia’s small scale and uncoordinated farming operations to meet these demands.

Currently, CEDAC has been working with local farmers across the nation to introduce them to practices that promise both quality and quantity under a controlled policy that promotes sustainability.

He said that his organization has also been helping farmers to establish networks and marketing strategies. These drives will help farmers share valuable experience and enable them to get a fair deal for their produce.

He also said that his organization has promised to buy rice and other products from the farmers for milling and packaging. These products will then be marketed across the country and the world. Last year alone, CEDAC bought a total of 1,200 tones of rice from farmers in eight provinces, all of it processed, packaged and sold. He added that next year, CEDAC plans to buy around 3,000 tones from the 4,000 farmers covered by CEDAC’s economic policies.

Sok Chamroeun, Executive Director of the Khmer Farmers Association, a local association formed in 1994 and based in Kandal province, said that every harvesting season, huge quantities of Cambodian rice were bought by middlemen and exported to Vietnam and Thailand. He said that according to his findings, this was the very best quality rice and was more than capable of meeting international standards.

He continued “If Cambodian government can control the illegal export of rice to neighboring countries, we will have more rice for sale in more distant but more profitable markets.”

Mao Sok, 50, and a farmer living in Tram Kak district, Takeo province, said that he and his family had been in the trade for the last 30 years. He has seven children and four hectares of land with which to support them.

Sok said he could produce about 30 tones of rice per year and can earn up to 4 million riel a year when working with local businessmen.

Kong Sarom, 45, is another farmer from Baseth district in Kampong Speu province and he can look back on over 25 years experience in the trade. He has five children and six hectares of land, producing about 50 tones per year and earning roughly five million riels.

“I think that if there is a direction and guarantee from the government or sizeable private company, they are welcome to my produce for export abroad. I would be happy to cooperate with them and encouraged to work even harder,” he said.