Agriculture Sector Development in Cambodia Policy on the Promotion of Paddy Production and Rice Export Government Policy Measures: i.Paddy Production ii.Rice Processing iii.Export

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Agriculture Sector Development in

Cambodia

Presented by: SREY VUTHY, Deputy Director of Department of Planning and Statistics,

Ministry of Agriculture, Forestry and Fisheries

28 March 2012

I. Agriculture Sector in Cambodia

Agriculture is an important Sector in Cambodia (80% living

in rural area and depending on this sector)

Nearly 70% of Total Labor Force

Provided food, raw materials, national revenue (export)

AGRICULTURE 28.4%

INDUSTRY 30.5%

SERVICES 41.1%

Share (%) of Agriculture in GDP 2011


The share (%) of agriculture sector in the total GDP reported at about 28.4% in 2011

(decreased from 31.5% in 2002 to 26.8% in 2008 and 29% in 2010). The gross value

added (GVA) for agriculture shown that the value increased from 5,108 billion Riels in

2002 up to 8,587 billion Riels in 2011 (Constant 2000 price).

31.5% 32.1%

28.9% 29.5% 28.1% 26.7% 26.8%

28.0% 29.0% 28.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Share (%) of Agriculture Sector in GDP, 2002-2011 (Constant Price 2000)


In general, the growth rate (%) for agriculture sector has been considered increasing with an average of 3-5% per year (2006-2011) and it varied in accordance with the climate condition of each year. It is recognized that the agricultural production is highly dependent on the natural condition which was affected the agricultural outputs. In 2006, the growth for agriculture sector reported at about 5.5% and 4% in 2010 and about 3.3% in 2011 (flooding destroyed crops, more than 200 thousand hectares).

3.6%

-2.5%

10.5%

-0.9%

15.7%

5.5% 5.0% 5.7% 5.4% 4.0% 3.3%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Growth (%) for Agriculture, 2001-2011


It is generally observed that in the whole agriculture sector, the composition of sub-sector contribution in percentage (%) in 2011 shown around 54% contributed by crop production, followed by 25% for fisheries, 15% for livestock production and 6% for forestry and logging.

52.2 52.7 52.9 53.8 54

24.8 25 25.2 27.3 25

15.6 15.5 15.3 12.8 15

7.3 6.9 6.6 6.1 6

Composition (%) of Sub-Sector in Agriculture, 2007-2011

Crops Fisheries Livestock Forestry

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Rice Production

I- Agriculture Sector in Cambodia

Description 2006 2007 2008 2009 2010 2011 (Estimated)

Cultivated Areas (ha) 2,541,433 2,585,905 2,615,741 2,719,080 2,795,892 2,968,529

Harvested Areas (ha) 2,516,415 2,566,952 2,613,363 2,674,603 2,776,323 2,766,617

Rice Yield (t/ha) 2.489 2.621 2.746 2.836 2.97 3.173

Production (mt) 6,264,123 6,727,127 7,175,473 7,585,870 8,249,452 8,779,365

Rice Surplus (mt) 1,433,880 1,649,640 2,025,033 2,244,598 2,515,752 2,780,328

Paddy Surplus (mt) 2,240,438 2,577,562 3,164,114 3,507,185 3,930,425 4,344,263

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Four Main Crops Production, 2001-2010:

• The cultivated areas of subsidiary and industrial crops in 2010 were also increased to 752,640 ha in 2010 (+12.3% compared to 2009) and the total production is also shown increasing from 5.4 million tons in 2009 to 6.1 million tons in 2010 (+13% compared to 2009); • The cultivated area of permanent crops reportedly achieved around 190.000 hectares (increased about 9% compared to 2009).


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Livestock Production (Cow, Buffaloes, Pig), 2006-2010


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Livestock Production (Poultry), 2006-2010

Poultry population has been increased tremendously of 37% from 2006 to 2010 (15 million heads to 20.68 million heads). In 2010, the poultry production increased about 3% if compared to 2009 and this is because of the expansion of animal raising techniques absorbed

by the farmers.

0

50,000

100,000

150,000

200,000

250,000

Demand Supply Import

216,000

156,000

60,000

Animal Feed in 2009 (tonnes)

Animal Feed Demand and Supply (Cont..)


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Rubber Production In 2010, the total of Cambodian rubber plantations covered on 181,430 hectares, an increase of 39.6% compared

to that of 2008 (129,920 hectares of rubber plantations in 2009) in which:

• 47,092 hectares of existing agro-industrial rubber plantation

• 52,528 hectares developed by economic land concessionaires

• 81,813 hectares of household rubber plantations.


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Fisheries Production (metric ton)


Inland Fisheries Marine Fisheries Aquaculture

616,000 tons 493,760 tons 471,000 tons 515,000 tons 550,000 tons

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II- Agricultural Sector Strategic Development Plan 2009-2013

Rectangular Strategy - II

National Strategic Development Plan, 2009-2013

Agriculture Strategic

Development Plan, 2009-2013

Strategy for

Agriculture and

Water (SAW)

Government

Rice Policy

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• Official Export by 2015: > 1 million ton of milled rice

• Paddy surplus more than 4 million tons by 2015

Government Policy on the Promotion of Paddy Production and Rice Export

Government Policy Measures:

i.Paddy Production

ii.Rice Processing

iii.Export Facilitation and

iv.Marketing

MAFF Action Plan focused on: •Seed development, Seed reservation

•Import facilitation for inputs

•Law on Management of Agro-Chemical & Fertilizer

•Strengthen capacity of R&D (CARDI, Dev. Centers)

•Agricultural Extension Services

•Agricultural Cooperatives, Law on Agricultural Cooperative

•Agricultural Census, Land use zoning

•Law on Agricultural Land Use and Management

•Contract Farming System, OPM-Paddy mortgage Scheme

•Law on Plant Protection and Plant Quarantine, Rice Standard

•Rice market information

Potential Areas for Foreign Investment

• Storage & transportation • Wholesale market • Agricultural Contract Farming •Market information •Standardization

Agri. Marketing • Milling factory • Meat industry • Slaughtering • Fisheries processing •Cold storage system

Food Processing

•Export & import for agricultural products •Fertilizer and input & animal feed factory

Agricultural Trade •Provide loans for farm mechanization •Loans for food processing & marketing

Agricultural Finance

•Develop agricultural technologies •Agricultural education •Seed development & extension services

Agricultural R&D

Relevant Legal framework ELC Grant

• Land Law dated 30 August, 2001

• Forest Law, dated 31 August 2002

• Investment Law, dated 04 August 2004

• Sub Decree on ELC No. 146, dated 27 December, 2005

• Sub Decree on State Land Management No. 118, dated 07 October, 2005

• Sub Decree No. 131 dated 15 September, 2008 on Amendment of ELC Sub Decree

Context of ELC Companies

• Since 1993 till December 2011, RGC has granted ELC investment projects to 167 companies.

• MAFF has requested and accepted from the RGC to cancelled 51 ELC companies who are unimplemented their contracts of investment , and confiscate 478.926 ha of land as state property.

• At the present, 116 validated ELC companies with total land of 1.190.069 ha are located at 17 provinces.

• ELC companies with its land less than 1,000 ha were 39 companies, with total land areas of 31,593 ha.

Context of ELC Companies (Cont.)

1 - French companies 01 6 - Thai companies 05

2 - Singapore companies 01 7 - Korea companies.. 05

3 - India companies. 03 8 - USA companies.. 02

4 - China companies. 27 9 - Cambodia companies 41

5 - Vietnam companies 28 10 - Israel 01

11- Sweden 01 11 - Australia 01

Total = 116 companies

Development Trend in Rubber Plantation, 2006 to 2011 (in thousand hectares)

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011

45 44 45 45 47 50.7

0 2 8

22

53

66.4

25

36

54 59

81

96

Development Trend in Rubber Plantation, 2006 to 2011 in (in thousand hectares)

Rubber Estates Rubber Private Concession Small Holder Rubber Plantation

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Documents

Agriculture Sector Development in Cambodia Policy on the Promotion of Paddy Production and Rice Export Government Policy Measures: i.Paddy Production ii.Rice Processing iii.Export