Cambodia’s rice exports on track to hit record highs this year

Cambodia’s rice exports on track to hit record highs this year

The optimistic forecast comes on the heels of strong export performance in the first eight months of the year, placing Cambodia well within reach of its ambitious year-end target.

Cambodia is on track to export more than 700,000 tonnes of milled rice by the end of this year, a new record that will mark significant growth for the Kingdom’s agricultural sector, according to the Cambodia Rice Federation (CRF).

The optimistic forecast comes on the heels of strong export performance in the first eight months of the year.

According to a CRF report, Cambodia exported 472,803 tonnes of milled rice from January to August, a notable 14.7 percent increase compared to the same period last year.

The commodity exports earned a total of $1,462 million from paddy rice and milled rice exports in the first eight months of this year, said the report.

CRF’s newly-elected President Lay Chhun Hour confirmed the positive outlook, highlighting the industry’s continued progress, citing that this strong momentum has placed the country well within reach of its ambitious year-end target.

The positive outlook is attributed to a combination of factors, including continued demand from key international markets and strategic government support, he said.

“For the remaining four months of this year, we can assume that the 2025 rice export would be higher than 2024 to reach more than 700,000 tonnes of milled rice,” Chhun Hour told Khmer Times yesterday.

The Royal Government has supported the rice sector through initiatives to improve infrastructure and technical assistance to farmers and the branding of Cambodian rice.

The government also encouraged the CRF to further strengthen collaboration with ministries and institutions to boost direct exports to international markets with higher added value.

It may be recalled that last year, Malys Angkor (Phka Romdoul) won the World’s Best Rice Award at the World Rice Conference in Manila, the Philippines.

Since participating in the World Rice Conference, Cambodia has won the prestigious title multiple times, in 2012, 2013, 2014, 2018, and 2022.

Despite this impressive growth, the CRF has emphasised the need for more concerted efforts to promote Cambodian rice on the world stage.

“Winning international awards is a tremendous recognition of the quality of our rice, but it’s not enough,” said a CRF representative.

“We need to do more to promote our rice potential to international markets and actively participate in world exhibitions to attract more buyers,” he said.

The main markets for Cambodia’s milled rice are the EU countries, China, ASEAN nations, and other destinations in Africa and the Middle East.

Between January-August of this year, the Kingdom generated some $1,114 million in revenue from border-traded paddy rice export of 4.84 million tonnes to neighbouring countries.

In addition, the agricultural sector has received a significant boost following the signing of two major memoranda of understanding (MoUs) with Chinese companies, paving the way for the export of cashew, fruit and vegetable products worth a combined $65 million over the coming years.

Last Friday, Samheng Bora, Secretary of State at the Ministry of Commerce and Chairman of the Export Promotion Task Force, presided over the signing of a landmark MoU between Sinomach Hainan, five enterprises from Hangzhou and Guangxi provinces of China, and Cambodian partners, including Cambodian Cashew Nut Agro Product Co., Ltd., and the Cambodia Cashew Federation.

The agreement sets out the export of 20,000 tonnes of dried cashew and 5,000 tonnes of processed cashew annually to China, valued at approximately $35 million over the next three years, the Ministry said.

Bora welcomed the new initiative, thanking Sinomach Hainan and its partners for their commitment to investing in and sourcing Cambodian agricultural products.

He noted that the agreement reflects the Royal Government’s continuing efforts to maintain existing markets, expand new ones, and encourage additional investment in Cambodia’s cashew sector. He also invited Chinese investors to explore further opportunities in domestic cashew processing to strengthen the value chain and increase local employment.

Earlier, on September 10, Minister of Commerce Cham Nimul held talks with Zheng Haiyang, Vice-Governor of China’s Henan Province, to discuss ways of deepening economic and trade cooperation between the Kingdom and Henan, particularly in agriculture.

The Minister also witnessed the signing of another MoU between Zhengzhou Chen’s Sun Fruit and Vegetable Co., Ltd. and Nongde Agricultural Development Co., Ltd. The agreement focuses on promoting Cambodian fruit and vegetable exports to the Henan market, with a value of $30 million over the next two years.

Minister Nimul expressed her appreciation for the Henan delegation’s efforts to strengthen Cambodia-China trade ties and reiterated her support for further Chinese investment in Cambodian sectors such as modern agriculture, food processing, automotive, electronics and digital technology.

She also called on both sides’ private sectors to take full advantage of regional trade agreements, including the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Agreement, to broaden cooperation and secure additional export deals.

The two agreements are widely seen as evidence of growing demand for Cambodian agricultural products in China’s expanding consumer markets. Analysts note that the cashew sector in particular has significant room for growth, given Cambodia’s rising production capacity and the government’s push to establish domestic processing facilities to capture more of the value-added segment.

Both deals also align with the government’s export diversification strategy, which seeks to reduce reliance on traditional markets and drive sustainable rural development by connecting Cambodian farmers and agribusinesses to high-value overseas buyers.

Industry stakeholders expect that, if implemented successfully, the agreements could catalyse further investment in logistics, cold chain infrastructure and quality standards necessary to compete in the global marketplace.

khmertimeskh