Paper for 21 th ACEDAC Meeting on 24 June 2014 Bandar Seri Begawan, Brunei Darussalam

1. KINGDOM OF CAMBODIA Agricultural Cooperative Development in Cambodia Paper for 21th ACEDAC Meeting on 24 June 2014 Bandar Seri Begawan, Brunei Darussalam By: CheaSaintdona, Deputy Director, Dept of Agricultural Extension, MAFF, Cambodia

2. Policy and Strategy Support for Agricultural Cooperatives • Law on Agricultural Cooperatives 2013; • Rectangular Strategy of RGC and The National Strategic Development Plan 2009-2013; • Agricultural Sector Strategic Development Plan 2009-2013; • Policy Paper on the promotion of Paddy production and rice export (Aug 2011); • Action Plan for implementing of policy paper of Paddy production and Rice export (Target 2011-2015); • Sub-decree on Contract Farming; • Ministerial Decrees on Agricultural Cooperative Promotion.

3. Supportive mechanisms to be set up to promote ACs • National Board of Agricultural Cooperative Development • Agricultural Cooperative Development Fund • New National Training Center for Agricultural Cooperatives • New Department of Agricultural Cooperative Promotion at national level • New Provincial Agricultural Cooperative Promotion Office

4. Government Support to ACs • Provision of supportive Policies; • Provision of Law on Agricultural Cooperatives; • Registration with free of charge; • Coordination with concerned ministries/institutions; • Capacity Building for Agricultural Cooperatives; • Training on Exchange visits and forum/workshop; • Products and service exhibition and promotion.

5. Types of AC business and products

6. Agricultural Cooperative Products

7. Agricultural Cooperative Systems • Agricultural Cooperatives will have their three tier systems. However, today agricultural cooperatives are still at primary level. The secondary and tertiary levels are not yet established by primary agricultural cooperatives. Expectedly, the agricultural cooperative unions and Cambodian Agricultural Cooperative Alliance will be set up by primary agricultural cooperatives in the near future after the model by-laws is issued by Ministry of Agriculture, Forestry and Fisheries.

8. Capacity Building Program For ACs • Concepts of Agricultural Cooperatives • Leadership and Management • Book Keeping • Business Planning • Credit Management • Marketing • Exchange visits

9. Training of Trainers on Book Keeping by ASEAN-JAPAN Project

10. Farmers Trained on Book Keeping

11. Businesses of Agricultural Cooperatives Common businesses • Credit business • Savings • Agricultural input supply business Emerging New Businesses • Crop production and animal keeping for markets • Processing agricultural product for markets (Aromatic rice, pepper, cassava, and others) • Grocery shops ( animal feeds, petrol, handicraft products, ingredients and foods) • Processing animal feeds • Produce handicraft products (Khmer silk products) • Marketing agricultural produces

12. Aromatic Rice Processed for Markets

13. Types AC products

14. Kampot Pepper

15. Agricultural Cooperative Business Networks • Annual congress of agricultural Cooperatives; • Annual farmer congress; • One village one product expo promotion, • Farm products and agricultural service expos: • Cambodia rice forum 2011;

16. Challenges for Promoting ACs • Inadequate legal and policy frameworks for AC promotion; • Inadequate support and coordination mechanism and institutions for agricultural cooperatives promotion; • Lack of support structure for support and facilitation cooperatives business and market as well as AC movement and promotion such as absent of AC unions and alliance; • Agricultural cooperatives have limited capacity in financial management, business planning and operation, and marketing;

17. Challenges (Continued) • Limited access to credit services from the financial institutions e.g. banks and micro-finance institution; • Lack of physical infrastructures e.g. post-harvest facilities, processing and marketing facilities; • Lack of technical capacity for improving quantity and quality production to meet market demand • Quantity and quality products of ACs are limited and small volume to market need and demand and • Lack of business network and market linkages between ACs, private sectors and other partners.

18. Action to be taken • Develop, policy and strategy frameworks for support, promoting and developing ACs; • Set up supportive mechanism for ACs • Establish support and coordination mechanisms for cooperatives such as competent/registrar and support institutions, cooperative unions, and alliance; • Strengthen ACs capacity in terms of leadership & management, bookkeeping, business planning, business management, marketing; • Introduce model businesses into ACs

19. Action to be taken • Strengthen capacity of officials and extension workers on cooperative promotion and development (e.g. management, bookkeeping, business planning and operation and marketing); • Establish and develop business network for cooperatives e.g. event, fairs, forum/meeting...etc; • Support physical infrastructures such as storages, post-harvest facilities, markets for support cooperatives and • Enforce the implementation of contract farming frameworks for support and promoting cooperative business.

20. Agricultural Cooperative leaders and personnel from ASEAN member states visited Agricultural cooperatives in Cambodia