Rice Mars-BRICo

completed

Although, the Cambodian rice sector is undergoing significant changes and Cambodian rice exports have dramatically increased following higher product quality and improved production technology, some sector challenges remain including limited milling and storage capacity, leading to significant loss of a substantial degree of the value addition due to large portion of paddy is exported for processing to Thailand and Vietnam through informal channels. Farmers struggle to find proper off takers and often accept low paddy prices due to their inability to effectively engage in their supply chain, and overall export levels remain below the country’s potential. At the smallholder level, yields and farm practices are generally poor if compared to neighboring countries. Farmers lack access to technology, inputs, knowledge and finance. E&S performance is generally low and market dynamics are poorly understood, and generally farmers have poor business and financial management skills. At the industry level, millers and exporters still faces poor and inconsistent paddy quality from farmers, attributable to (i) limited access to improved quality seeds, (ii) a highly-fragmented rice industry with too many intermediaries leading to a significant loss in value and quality across the value chain; (iii) ineffective supply chain development of high value varieties and iv) limited access to affordable inputs services. These combined constraints prove a great challenge for commercial investors and regional and international rice players to provide long term funding and enter into the Cambodia rice market. The project aims to address these challenges through a combined lead firm approaches in partnership with international players and their key domestic partners. The project has two specific objectives: (1) Increase access to SRP verified rice, including strengthening farmer groups/cooperatives and traceability; and (2) Improve farmers’ adoption of technology climate smart agriculture practices including improve access to planting seeds and services. To achieve these objectives, the project has designed and implemented various interventions include: (i) SRP training; (ii) seed multiplication; (iii) introduction of technologies and mechanization; (iv) farmers financial literacy; (v) farmer group/cooperative strengthening; and (vi) traceability. IFC manages the project and implements with its contractors and with partners under close guidance and technical inputs from various IFC internal specialists.