Contract farming agreements inked to boost organic farming in P Vihear

Contract farming agreements inked to boost organic farming in P Vihear

The collaboration marks a major step forward for Cambodia’s organic agricultural sector, ensuring a stable market for local farmers and strengthening the country’s position in global markets.

Agricultural cooperatives in Preah Vihear province, Amru Rice (Cambodia) Co., Ltd., and Cambodian Agriculture Cooperative Corporation (CACC) entered into agreements on Tuesday to boost organic farming in Preah Vihear province.

The agreements mark a major step forward for Cambodia’s organic agricultural sector, ensuring a stable market for local farmers and strengthening the country’s position in global markets.

Amru Rice, known for its environmentally friendly business model, has been a pioneer in this inclusive business approach. The company works directly with smallholder farmers, providing them with technical assistance and a guaranteed market for their organic products.

This approach not only ensures high-quality exports but also allows the company to pass on a premium to farmers. Similarly, the Cambodian Agriculture Cooperative Corporation, a key partner in diversifying agricultural exports, focuses on transforming smallholder farmers into entrepreneurs.

CACC and Amru Rice support agricultural cooperatives by providing technical assistance, market access, and financial support, helping them add value to their crops and improve their livelihoods, said Song Saran, CACC Chairman of the Board.

“This contract farming agreement in Preah Vihear is more than a business deal; it is a commitment to our farmers, to sustainability, and to Cambodia’s reputation as a leading producer of organic rice,” Saran said.

“Together, we are building not only growth, but also dignity and prosperity for our farming communities,” he added.

Ouk Kimsan, Deputy Governor of Preah Vihear Province, highlighted the economic benefits for the region, saying, “I hope that the livelihoods of our farmers in Preah Vihear province will be further improved through increased yields, reduced costs of production, and a resulting increase in family income.”

The agreement is a continuation of a partnership, aligning with the Cambodian Government’s vision for a more structured and supportive agricultural sector.

The success of the public-private-producer partnership is a testament to the coordinated efforts of all relevant stakeholders, including the Ministry of Agriculture, Forestry and Fisheries and the Ministry of Commerce.

These government bodies have played a crucial role in providing a supportive framework for contract farming through policies, training, and market facilitation.

Lay Chhun Hour, President of the Cambodian Rice Federation, emphasised the contract’s importance for national economic growth.

He reported that in the first eight months of 2025, Cambodia’s rice exports grew significantly, with 472,803 tons of rice worth $348 million and 4.84 million tons of wet paddy rice worth about $1.114 billion.

“This growth generated nearly $1.4 billion in revenue for the national economy, and he credited this success to the efforts of all stakeholders, especially our farmers,” Chhun Hour said.

The contract farming agreement in Preah Vihear reflects more than a decade of trust, commitment, and progress, said René Borgholt, CEO of Nordic Food Partners A/S. “We believe that Cambodian organic rice has a unique place in the global market, and together with Amru Rice and the agricultural cooperatives, we will continue to bring sustainable, high-quality rice from farmers’ fields in Preah Vihear to dining tables around the world.”

The contract signing ceremony in Preah Vihear stands as a powerful example of the successful collaboration between the public and private sectors in Cambodia. This joint effort demonstrates a clear path forward for Cambodia’s agricultural sector in the global marketplace.

khmertimeskh