AMRU Rice AS

completed

The overall goal is to develop a sustainable, traceable and inclusive rice supply chain and support the introduction of sustainable rice production compliant with guidelines developed by SRP and IRRI. In addition, the project will support AMRU for IFS Foods Standard certification, which enables AMRU to enter into retail markets. The project aims to enhance overall AMRU supply chain performance and increase revenues for firm and smallholder farmers through improving productivity and efficiency through training and adoption of new practices, technologies and inputs. Despite the undisputed development taken place over the past years, the Cambodia rice sector still faces some key challenges including insufficient and inadequate supply from farmers, poor process quality, and poor market access. At farm level, challenges lie with still suboptimal farming practices, limited application of respective technologies, relevant know-how, insufficient quantities of improved seed, other quality inputs, and access to finance. Yield is lowest among rice production countries in the Mekong (2.8MT/ha vs 4.5 in Vietnam and 3.2 in Thailand). A lack of strong organizational structures slows productivity gain: Agriculture Cooperatives (AC) can assist their members to obtain quality inputs at more economical condition and facilitate access to finance. In addition, women farmers play important roles in both rice production and post-harvest activities, particularly in managing household incomes and expenditures. However, women farmers have limited knowledge on financial literacy and business management skills, preventing them from making the productive decision and participation in AC leadership roles. At mill level, remaining inefficiencies in processing, storage capacity, control over the supply chain and weak or lack of extension services, paired with limited marketing knowledge, result in low value addition and limited growth opportunities. Furthermore, poor market access due to lack of knowledge on potential markets, and product and market diversification limits Cambodia rice sector to fully realize its potential growth. In addition, the rice sector’s fast devolvement and continued growth come at a price to the environment and cause a variety of challenges on farm, mill and firm levels. To sustain production without depleting & destroying essential natural resources, environmentally-smart production processes are needed. Rice milling must become more cost efficient to gain economic competitiveness. To supply large retailers in high value markets, exporters must improve corporate governance and adopt Environment, Health and Sustainability Management Systems (EHS MS). Meeting such buyers’ audit requirements is fundamental and include various product and production quality certification. AMRU, a leading CMB rice exporter, has engaged with IFC on market development, Food Safety & seed supply chain in the past. However, AMRU still faces challenges in its supply chains - lack of available quality rice, lacks traceability, and poor adoption of sustainable cultivation - and is seeking IFC AS to support on these areas. The project will take an integrated approach in addressing the above-mentioned market failures. The AS works with AMRU are expected to reach 2,000 farmers (direct) by 2021 across all interventions through the following specific objectives: (1) Increase cultivation of SRP rice and access to improved quality seed, enhance business management skill and financial literacy, and develop product traceability; (2) Improve farmer groups/cooperatives capacity; (3) Improve AMRU Rice access to export and retail markets through introduction of Food Safety certifications including IFS Foods Standard and HACCP, and Halal certifications; and (4) develop and implement comprehensive Group-level Integrated EHS (Environment, Health and Safety) Management Systems.