Spice farmers sign supply contracts with enterprises under MoC project

Spice farmers sign supply contracts with enterprises under MoC project

The Ministry of Commerce (MoC), through its Accelerating Inclusive Markets for Smallholders (AIMS), facilitated the signing of “purchase and sale contracts” between 34 spice cluster farmer representatives from Battambang and Kampong Cham provinces and two Phnom Penh-based enterprises, Leang Leng and Ringacam.

The agreement was made during a study tour organised with the collaboration of the AIMS project and the Provincial Department of Commerce. The initiative aims to foster cooperation and business partnerships between farmer clusters and enterprises to expand Cambodia’s spice market.

Chheang Borin, Director of the Kampong Cham Provincial Department of Commerce and Head of the Provincial Project Management, expressed optimism about the deal.

He noted that 7,753 farmers in Kampong Cham are currently part of the AIMS Phase 1 and Phase 2 projects, organised into 175 groups. These farmers have received support in materials, cultivation techniques, and seeds, with AIMS also helping coordinate loans through partner banks to scale up their businesses.

Thot Sithan, a focal point for value chain development at the Battambang Department of Commerce, highlighted that under this agreement, the enterprise committed to purchasing more than 30 tonnes of raw spices annually from farmers. He described it as a key achievement of the AIMS project, which has worked tirelessly to build such connections.

“I hope farmers will continue to improve the quality and quantity of their products to meet market demand. The AIMS project will also keep mobilising more farmers to join and expand the project’s reach,” he added.

From the private sector side, Leang Leng, owner of Leang Leng Enterprise, stated that his company has long supported local farmers by purchasing their agricultural products. He emphasised that his business uses nearly all local raw materials, helping boost the value of Cambodian produce.

“Our agreement ensures that we will purchase chilli peppers from farmers in Battambang and Kampong Cham provinces at reasonable prices, supporting them with stable market access,” Leng said.

Similarly, Sar Srey Houch, owner of Ringacam Enterprise, said she expects farmers to both expand their cultivation and improve quality to meet demand. “They visited my enterprise, saw our production chain, and trusted us. In the past, we have also sourced many agricultural products from these provinces,” she noted.

Som Visal, representative of the Ta Sanh Spices Business Cluster in Ta Sanh commune, Samlot district, Battambang province, said the AIMS project has greatly benefited farmers by providing materials for agricultural production, technical training on cultivation techniques, and support in finding reliable markets.

“I am very happy that the AIMS project has facilitated the signing of agreements with the two enterprises to purchase our products. Now that we have a specific market, it motivates farmers to work harder and produce more to meet market demand,” he said.

It may be recalled that the Accelerating Inclusive Markets for Smallholders (AIMS) project, a joint project of the Royal Government of Cambodia (RGC) and the International Fund for Agricultural Development (IFAD), is designed to promote markets for high-value agricultural products and develop rural business clusters. It ensures that smallholder farmers, including poor households, can benefit from collective market opportunities.

The first phase of the AIMS project was implemented over seven years, from February 2017 to March 2024, across 18 provinces, including Battambang, Kampong Cham, Siem Reap, Preah Vihear, and others. Following a mid-term review in 2021, the completion date was extended to September 2024.

For Phase 2, IFAD has approved an additional $20 million for implementation from October 2024 to September 2027, further strengthening the market access and business development of smallholder farmers.

khmertimeskh