Appendix C : Milling Process

TABLE OF CONTENTS

C.1 Milling Facilities ........................................................................................... C - 1C.2 Custom Mill ........................................................................................... C - 2C.3 Commercial Mill ........................................................................................... C - 4

C.3.1 Milling Facilities ............................................................................... C - 4C.3.2 Management ...................................................................................... C - 5C.3.3 Fund ........................................................................................... C - 6C.3.4 Tend of Commercial Mill .................................................................. C - 7

C.4 Warehouses and Milling Facilities of the Government and GTC.................. C - 8C.4.1 Warehouses........................................................................................ C - 8C.4.2 GTC and Warehouses & Facilities owned by GTC........................... C - 8

C.5 Problem of Milling Process and Depot.......................................................... C - 10C.5.1 Problem of Milling process ............................................................... C - 10C.5.2 Problem of Depot .............................................................................. C - 11

C.6 Direction of Development of Millers............................................................. C - 11C.6.1 Custom Mill....................................................................................... C - 11C.6.2 Commercial Mill ............................................................................... C - 11C.6.3 Depot ........................................................................................... C - 12

Tables and Figures ........................................................................................... C - 14

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Appendix C: Milling Process

C.1 Milling Facilities

Rice mills in Cambodia are classified, Custom Mill or Village Mill with power of 10 to 20 HP,milling capacity of 0.2 to 0.3 ton/hr and working for only processing not buying or selling the riceas well as Commercial Mill or Large Mill with power of 20 to 200 PS, capacity of 0.3 to morethan 1.0 ton/h and conducting for processing, buying and selling the rice. Though, this classificationis not clear, in analyzing of the data from the Provincial Department of Industry, rice mill havingless than 24 HP would be classified as Custom Mill. However, in Bat Dambang, some rice millerswho have large milling capacities, do conduct as the Custom Millers. The Ministry of Industry,Mines and Energy and the Provincial Department conduct the registration of rice mills. As thisregistration is not fixed, a lot of rice millers are not reported. Reported data include name of the ricemill, owner, location, house power, capacity, capital and numbers of employee. When rice millerhave registered to the Government, rice miller should pay registration fee and license fee of 70,000Riels per year and 50,000 Riels per month, respectively. The renewal of license is carried out everyone or three years. Most owners are Khmer-Chinese. Numbers of rice millers by Province areshown blow. The data include the non-registered rice millers and a lot of rice millers at the contrarywould not be reported.

Table-1 Numbers of Rice Mills by ProvinceType Kandal Prey

VeaengKg.Cham

SvayRieng Takaev Kg.

SpueuKg.Chhn. BTB Siem

ReabPhnomPenh Total

Com. 87 50 49 3 23 59 11 207 23 6 518

Cus. 1,688 2,495 2,363 1,447 1,113 830 1,090 153 956 63 12,198

Total 1,775 2,545 2,412 1,450 1,136 889 1,101 360 979 69 12,716

Source: (1) Provincial Department of Industry, Year2000; K. Cham in 1998, K. Spueu in 1999

Most of the rice mills have storage and control the seasonal fluctuations of rice demand and supply.The number of large-scale rice mills has been increasing yearly in Takaev Province, KampongSpueu, Prey Veaeng, Siem Reab, as shown in Table-2.

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Table-2 Number of Rice Mills by YearType 1994 1995 1996 1997 1998 1999 2000

TakaevCommercial 7 11 13 14 15 19 19Custom 1,495 2,053 2,331 1,618 1,646 1,123 1.117Total 1,502 2,064 2,344 1,632 1,661 1,142 1,136Kampong SpueuCommercial 30 32 36 37 39 56 59Custom 560 580 620 640 654 776 830Total 590 612 656 677 693 832 889Prey VeaengCommercial 14 17 19 22 30 36 38Custom 1,500 1,500 1,500 1,510 1,513 1,534 1,533Total 1,514 1,517 1,519 1,532 1,543 1,570 1,571Siem ReabCommercial 10 12 15 17 20 23 23Custom 890 913 925 943 945 948 956Total 900 925 940 960 965 971 979

Source:　Provincial Department of Industry, Year 2000

Most of the rice mills are built with galvanized iron for wall and roof. Their rooms are dark andunsanitary with cobwebs in the ceilings. The rice milling machines are of old type and made inVietnam, and are inferior to the modern Thai and Vietnam machines. The Rice Millers are willing toplan a machine-upgrading program as one of their activities.The electrical distribution system covers only 12.5 percent of the country. Most rice mills areoperated using diesel engines. It was found in the Northern area that the engines for rice mills aremostly Japanese Brand “Yanmar” for small engines of Custom Mills, and a Chinese brand for bigones. Some owners of rice mills stated that fuel consumption was 6 to 9 liter per one ton of milledrice; and this cost is approximately 70 percent of the operating cost.Some rice millers have radios to get information. “Business News” of July 24th and 30th reportedthat a computerized ‘RiceNet Project, initiated by EDC, will link Rice Millers‘ Associations in eightProvinces for the purpose of obtaining domestic and international rice market information.

C.2 Custom Mill

Custom mill in Cambodia are able to identified four types.First is Engerberg type, which is the most compact, low cost and easy to operate. This machine canprocess from paddy to white rice by one-pass. This machine has a week point that when processinghusk is processed simultaneously and processed husk stick to the white rice, it causes moreproduction of broken rice. Bran of by-product contains the processed husk and quality of branbecomes low.

Second is a type having rubber roll type husker above the milling machine. Compact type rice millwith one common base. This machine is one reducing the fault like Engerberg type rice mill.

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However, it has also a fault that its rubber rolls are easily worn. This has another faults that themilling portion is of friction type and when processing, broken rice comes out easily by only one-pass, especially for a long grain variety.

Third is a small plant type using the Engerberg type for husker instead of rubber roll husker andpolishing by the friction type mill. This is not compact, but used by the elevator for paddy-input orloaded by manual.

Last one is a small plant type composing the rubber roll husker and friction type mill. System is assame as the third.

Machine of Custom Mill is operated by one to three operators. Owner usually operates the machineand more than half of owners, by means of rice mill survey by the study team, work for agricultureor small shop as the side business. According to that survey, some rice millers, eight rice millers outof 131 rice millers, work for both custom style and commercial style.

Average processing capacity of custom mill is 0.3 t/hr, processing volume per year is 67 tonnes. Itmeans that the machine is operated only one hour a day. Recovery rates are 15.77% for husk,17.51% for bran and 66.22% of white rice including broken rice. It is higher recovery rate than 62%,which usually used in Cambodia. It is considered that the survey data were collected by mean ofhearing from rice mill owners. The rice mill owners would not clearly acknowledge the recoveryrate, because they don’t used the weighing machine.

Table-3 Custom Mill’s ProfileRecovery Rate　%

White rice Broken Bran HuskCapacity

(t/hr)Volume(t/year)

Nr of Rice Miller (47) (47) (47) (47) (47) (47)Nr of Reply (47) (44) (45) (44) (43) (27)Total 2921 179 788 694 12.9 1,809Average 62.15 4.07 17.51 15.77 0.3 67

Source: Rice Miller’s Survey by the Study Team

Most of the Custom Mills surveyed were installed after the year of 1995, which shows theincreasing number of Custom Mills. Investment cost for 80% of these is less than US$1,000. 70%of fund is come from own budget, 10% from relatives or private company. One out of 53 CustomMillers answered hiring from the Bank.

Table-4 Installed Year of Custom MillsYear 1979-1993 1994 1995 1996 1996 1998 1999 2000 TotalNumber 22 1 5 7 8 4 6 2 52Rate % 36.6 1.9 9.6 13.5 15.4 7.7 11.5 3.8 100

Source: Rice Miller’s Survey by the Study Team

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Table-5 How obtained the Fund of Custom MillOwn Bank Relatives Private Gov’t Others Own/

BankOwn/Relatives Total

Number 34 0 2 4 0 1 2 6 49Rate % 69.4 0.0 4.1 8.2 0.0 2.0 4.1 12.2 100

Source: Rice Miller’s Survey by the Study Team

Management of custom mill is that owner operate and maintain the machine and that customers orresidents near around bring paddy to be processed. The customers obtain the white rice and ownerobtains the by-products such as husk and bran as a milling fee. Recently, cash payment is increasingand now both styles are conducted. Custom millers don’t collect the paddy, instead that seasonallow volume occurs or there are many competitors near around.

C.3 Commercial Mill

C.3.1 Milling Facilities

Commercial mill in Cambodia is of plant type composing the following functions:

1) Pre-cleaner (sifting type)2) Husker (stone type or rubber roll type or both)3) Paddy separator4) Milling machine (2-stage to 4-stage)5) Grader (sieve type or indent type)6) Scale7) Packing machine

Pre-cleaner used for Commercial Mill is of sifting type, air screen cleaner type is not found. Siftingtype is a weak-point that lighter paddy cannot be removed by this type, so it may cause low millingquality. Milling machine used for Commercial Mill is of vertical emery stone type. As the capacityof rice mill becomes larger, the number of milling machine is increased due to obtain the betterrecovery. It is found that the vertical type is more suitable for a long grain variety, durable and easyto operate. However, this type is of grinding the grain to remove bran, it damages the surface ofwhite rice and quality of white rice becomes low. It is necessary to add the refining milling machine.Paddy separator is of table type sifting machine, which is widely used in ASEAN countries and lesspower required and more effective. It is found that rice millers in Bat Dambang, Banteay MeanChey, Siem Reap and Takaev are used length graders due to meeting the customers’ demand forhigh quality rice. De-stoner or color sorter machine are rarely installed, 9 rice millers or one ricemiller out of 131 rice miller according to the survey install the de-stoner or color sorter,respectively.

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According to the rice millers’ survey, average capacity of commercial mill is 1.1 ton per hour,average processing volume is 1,611 ton per year. Number of employees is 5 to 7. It is found that thelargest capacity of rice miller is in Kandal, who has 120 HP machine and process approximately10,000 ton per year, and that on the other hand, one of rice millers in Siem Reab has 350 HPmachine and process only 1,000 ton per year.

Table-6 Commercial Miller’s ProfileCapacity

(t/hr)Volume(t/year)

Employee(person)

Seasonal(person)

MillingMachine(number)

Power(HP)

Invest.Cost

(US$)Nr of reply (74) (61) (74) (74) (74) (70) (67)Total 81.9 98,274 371 145 163 9,596 2,512,400Average 1.107 1,611 5.01 1.96 2.202 137.09 37,499

Source: Rice Miller’s Survey by the Study Team

Many of these rice mills were installed after the year of 1995. It shows the increment of rice millnumber. Investment cost of rice mill is US$37,499 in average. One of the rice millers in Kandalinvested US$ 120,000.

Table-7 Installed Year of Commercial MillYear 1979-1993 1994 1995 1996 1996 1998 1999 2000 Total

Nr of rice mill 22 　0 11 9 7 8 11 1 69Rate % 31.9 0.0 15.9 13.0 10.2 11.6 15.9 1.5 100

Source: Rice Miller’s Survey by the Study Team

Eighty percent of rice millers installed their rice mills by own budgets. Some borrowed from therelatives and private companies near around. Nobody borrowed from the government and three outof 69 rice millers according to the survey borrowed from banks.

Table-8 How obtained the Fund of Commercial MillOwn Bank Relatives Private

CompanyGovernment Others Own/

BankOwn/

Relatives Total

Nr of replay 57 1 0 3 0 1 2 3 69Rate% 82.6 1.4 0.0 4.3 0.0 1.4 2.9 4.3 100

Source: Rice Miller’s Survey by the Study Team

C.3.2 Management

Management of commercial mill are conducted by the owner, who buying paddy and selling,transportation white rice to the rice shops. Buying paddy are conducted from the farmers or tradersas well as both. Selling white rice are carried out that after white rice is sent, owner go to collectmoney to rice shops. Nobody uses his bank account. Operating and maintaining the rice millmachine are carried out the experienced hired operator.

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C.3.3 Fund

Commercial rice millers are eager to have the fund, however, few borrow it at present. There are 50rural credit institutions for farmers and small and medium scale business enterprises, according tothe Bureau of Supervision of Specialized Bank and Micro Finance Institutions under the NationalBank of Cambodia. Ten institutions are having more than 1,000 million Riels outstanding, sixteenbetween more than 100 million Riels and 1,000 million riels, seventeen between more than 10million Riels and 100 million Riels and seven are less than 10 million Riels outstanding. RuralDevelopment Bank controls these credit institutions and it is lending to them. Lending amount as ofthe end of October, 2000 is US$595,000 for three commercial banks and two small scale creditinstitutions. ACREDA is the largest among them, carrying out for small-scale business enterprisesin 12 provinces. E.M.T at the third position is conducting the loan programs for farmers in 9provinces at the central-south of Cambodia, borrowing the fund from RDB. Credit institutions forfarmers are CRS/TPP, CCCB, HARHAKAKSEKAR and SEILANITHIH. These lendingprocedures are similar to each other by the instructions of the controlling bank. There are two typesof lending procedures. One is for single loan and the other is group loan. Single loan requires thecollateral, amount of which is approximately three times equivalent to borrowing amount. Grouploan requires group member’s guarantee and/or famous guarantor. Interest rate is 3 – 5 % per monthwith one to two years period at present. There are no long term lending schemes except businessloan. Number of clients of larger scale credit institutions is 260,443 and total number of clients of50 institutions is 339,944.

Table-9 Larger Organizations Providing Rural Credit & Saving Mobizations

Name Outstanding(‘000‘000R)

Saving(‘000’000R)

Clients(number)

Savers(number)

Employee(number)

Zones(provinces)

InterestRate (%)

ACLEDA 53,922.01 0.0 58,355 - 330 12 5

PRASAC 10,415.0 915.4 22,291 43,729 265 6 4

E.M.T. 9,579.3 34.1 56,646 26 239 7,(9) 4

CRS/TPP 5,121.0 1,553.7 31,589 21,448 97 8 3

CCB 3,099.2 601.7 13,631 13,631 111 6 -

HATHAKAKSEKAR 3,221.3 149.4 3,741 4,100 26 2 (36%/m)

WVI-C 2,171.9 41.2 17,303 - 379 6 4

SEILANITHIH 2,579.4 524.8 11,725 11,725 40 4 5

ADC/ANS 1,418.9 0.0 7,737 - 17 1 4

MOWA 1,493.8 400.0 37,425 3,015 779 17 3

Note: ( ) shows branch office numberSource: Bureau of Supervision of Specialized Bank and Micro Finance Institutions

Date: as of June, 2000

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C.3.4 Trend of Commercial Mill

It is said that Rice Mill is the largest industry in whole Cambodia. Enterprise DevelopmentCambodia (EDC) is actively supporting for developing this industry. EDC became one of NGOsince 1999 after renamed from PSD Unit, which have been promoting the private sectors under theUNDP/CARERE Project. PSD Unit provided technical and funding support to newly createdbusiness associations and undertook relevant research data collection and analyses, establishedmarket contact and began enterprise management training to upgrade members operations andadvance the potential. EDC operates from head quarters in Phnom Penh and regional services centerin Manteay Mean Chey for North-West Region and Kandal for South-East Region since 1999. EDCsupported to establish 9 rice mill associations in 8 provinces and one national level rice millfederation in Phnom Penh. EDC held technical and training tours by the members of rice millassociations to Vietnam, Thailand and Singapore. EDC are considering to provide the loan or fundto the members of rice mill associations in the future.

Table-10 Established Year and Number of Members of Rice Mill AssociationsAssociation Established Member Association Established Member

Bat Dambang District 1998 Takaev Apr.2000 13Bat Dambang Province 1998 80 Kandal Mar.2000 30Banteay Mean Chey 1998 18 Prey Veaeng Mar.2000 27Siem Reab Mar. 2000 26 Svay Rieng Mar.2000 18Pursat Mar. 2000 28Total 240

Remarks: UNDP/CARERE supported in 1998.EDC supported in 2000.

Source: Enterprise Development Cambodia

Meanwhile, There is a private enterprise which is planning to export rice to establish the modernrice mill made in Thailand at the highly convenient place. Ankor Kasekam Roogroeung Co., Ltdwas to establish modern rice mill and to operate form October 2000, now still under construction.This enterprise set up a complete system for specially selected fragrant rice from production toexport. Enterprise entered into contract in three selected provinces such as Kandal Kompong Spueuand Takaev with 2,488 farmers in 1999. Enterprise is to collect the law paddy of 63,750 tonnes in2001 from 25,550 ha field where 22,822 contract farmers grow fragrant rice by the given seeds atfree of charge. Enterprise supported the local authorities to enter into contract with farmers andprovide the know-how of cultivation, seedling, application of fertilizer etc to farmers by his owntrained 60 staff. The enterprise will give great impact to the people concerning to the rice industrysuch as farmers, rice millers and traders in whole Cambodia in near future.

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C.4 Warehouses and Milling Facilities of the Government and GTC

C.4.1 Warehouses

Warehouses as the marketing facilities of rice are owned by rice millers, Green Trade Company andMinistry of Commerce. Warehouse owned by rice millers are effectively used, average storagevolume by the rice millers according to the survey is 1,367 ton. Rice millers who are in far placessuch as Bat Dambang and having large-scale rice mill machine to sell the high quality rice toPhnom Penh are eager to utilize the warehouses. On the other hand, warehouses owned by the MOCwere installed around the year of 1995. They are old and less utilized. However, they are dispersedin whole provinces, having a good accessibility standing along the National Road or main roads ornear main cities. It would be more effective to use. These warehouses are built with the concrete orwood walls and slate roofs. Some are concrete floors. They are damaged on doors, walls, floors androofs, which are necessary to renovate to be utilized.

Table-11 Warehouses owned by MOCBuilding Conditions (Nr)

Province Number Capacity(ton)

Usage(Number) Good Fair Poor

Bat Dambang 13 43,438 1 N.A N.A N.AKg. Cham 17 36,369 0 2 10 5Kg. Chhnang 7 12,703 0 2 1 4Kg. Spueu 3 1,040 0 0 0 3Kandal 5 10,783 0 0 1 3 + (N.A)Siem Reab 15 21,154 0 9 6Svay Rieng 12 161,400 0 N.A N.A N.ATakeav 7 11,300 1 2 5 0

Source: Provincial Department of Commerce

C.4.2 GTC (Green Trade Company) and Warehouses & Facilities owned by GTC

GTC was established based on Sub Decree #72, dated on November 23, 1998, was formed bycombining three companies, one of which is under the Ministry of Agriculture and two the Ministryof Commerce. GCT is controlled by the Board of Director, which consists of representatives ofMinistry of Commerce, Council of Minister, Ministry of Economic and Finance, Ministry ofPlanning and Ministry of Agriculture, Forestry and Fisheries and General Director of GTC andRepresentative of Employees. It would be aiming at the private company’s activities, butcompletely controlled by the government. Paid-up capital of GTC is Riel 41,900 million, has 174staff at the end of November, 2000.

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1) Former companies:(a) Cambodian Food Company, MOC(b) Material & Equipment Company, MOC(c) Agricultural Product Company, MAFF

2) Roles(a) Purchase and sell rice in order to maintain market stability and support the

production cost of farmers,(b) Take part in controlling the import and export of rice from Cambodia,(c) Take part in the storage strategy of reserve stock of the Royal Government,(d) Take part in the supply of the needs of the Royal Government, and(e) Other activities mentioned in the Statutes of Green Trade Company.

3) Facilities owned by GTC(a) Warehouse:

- Phnom Penh; 27 warehouses, 50,000 ton (34,750 ton: vacant)- Bat Dambang; 1 warehouse, 7,000 ton- Takaev; 1 warehouse, 4,230 ton- Kampong Cham 3 warehouses; 6,000 ton- Sihanoukville 5 warehouses; 2,650 ton

(b) Rice Mill:- Phnom Penh; New type (made in Japan), 125 kW, 1.0 t/hr

Old type, 77 kW, 1.0 t/hr- Bat Dambang; New one (in 1999), 340 kW, 2.0 t/hr- Kampong Cham under construction

Four warehouses in Phnom Penh are used by WFP, who contracted with GTC for renovation andusage. Renovation of floors, walls, roofs and drainage around the warehouses was conducted and itscost was US$ 200,000.

GTC activities are just started. Performances in 1999 and 2000 is as follows:

1) Buying and selling paddy: Year 1999; 3,000 ton. Year 2000; 3,175 ton.2) Rice reservation for the Secretariat General National Committee on Disaster Management: Year 1999; 1,173 ton. Year 2000; 1,272 ton.3) Paddy reservation for MOC: Year 1999; None. Year 2000; 1,000 ton.4) Supply to WFP: Year 1999; None. Year 2000; 2,700 ton

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C.5 Problem of Milling Process and Depot

C.5.1 Problem of Milling Process

According to the rice mill survey conducted by the study team, problems of custom millers are“There are many competitors near around.”, “Milling machine is of old type.”, “Milling technologyis poor.”, etc. At present, operating hour is very short as approximately only one hour a day. Custommillers are straggling to defeat the competitors by mean of obtaining the better quality rice thanothers. They are facing with a lack of fund to obtain the better machine.

Commercial millers have many problems according to the survey such as “lack of fund”, “heavytax”, “lack of market”, “fluctuation of paddy/rice prices”, etc. Commercial millers are conducting apaddy buying by themselves or ask traders to collecting paddy, therefore, they need the budget forsuch activities.

Problems appeared by the Workshop conducted for Commercial Rice Millers are similar to these ofsurvey. According to the Workshop analysis, “low income” problem of rice millers in Northwestregion comes from “Milling cost is high.”, “Export market is small.” and “Export volume is notenough.”. Causes of which are “Fuel cost is high.”, “Milling machines are old.”, “Paddy quality islow.”, “Market information is not enough.”, “Agricultural production technology is poor.”,“Industrial technology is poor.” and “Transportation fee is high.”. On the other hand, “rice milling isnot active.” problem in South region comes from “Low income”, “Lack of rice market”, “Lack ofpaddy storage for milling”, “Milling machine is old.” and “Lack of fund”. Causes of these are“Milling cost is high.”, “Lack of information”, “Lack of milling technology”, “Milling machine isold”, and “Interest rate is high.” These problems are wide on volume, quality, technology and fund.Rice millers in Northwest region is aiming to the foreign market and rice millers in South aiming toquality and technology improvement.

On processing volume, commercial millers are straggling to obtaining the enough volume of paddysuitable to the milling capacity for one to two months. Points of problems for input paddy andprocessing volume are as follows:

1) Rice millers have not enough money to buy paddy and volume of good quality paddy is small,2) Paddy sold by farmer is of small volume, mixed variety and contains immature or impurities as

well as moisture contents of paddy is not stable,3) Milling machine is of old type and better quality rice cannot be obtained.

On the other hand, points of problems for milling technology, which derive from the lack of qualitystandards of rice, are as follows:

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1) What kind of machine is suitable for obtaining better quality rice?2) What procedure is necessary?3) How much milling process is required?

Rice millers don’t know clearly the above technologies. For example, large commercial rice millerin Prey Veaeng thought that quality rice with 5%, 10%, 20% or 30% are graded by the gradingmachine, but are mixed again after graded due to obtaining the qualified graded rice according tothe quality standards.

C.5.2 Problem of Depot (Warehouse)

Warehouses belongs to rice millers are usually used, therefore problems of them are not for thewarehouse itself but for method of usage. Rice millers are not conducting maintenance regularly,which causes damage of paddy bags, mixture of different varieties, wet of paddy as well as check ofgrain.

Warehouse owned by the GTC and Government are old and damaged, which are not wellmaintained and vacant. Warehouses are built with slate walls and roofs or wood walls. Heavilydamaged. Some warehouses in Phnom Penh or Takaev are built with concrete floor, even they aredamaged by rain. Quality of them is poor for paddy and/or rice storage.

C.6 Direction of Development of Millers

C.6.1 Custom Mill

Custom mill is widely dispersed and answers the resident’s demands. It can process any time or anysmall volume and replies the household’s demands. In considering that the farther from the cities,the road network is lighter, custom mill is necessary in order to answering the daily resident’sdemand. Custom millers usually conduct agriculture or shops as side business, milling business isadditional earning works even its business is not so large. Therefore, direction of development ofcustom mills is high in the rural area. When the road conditions would be developed, transportationtime would become short, resident could reach farther places and require better milling quality. Atpresent, it is shown along the main roads that the compact type rice mills with rubber roll huskersare becoming popular instead of Engerberg type rice mills.

C.6.2 Commercial Mill

Commercial mills are active in the rice production area such as nine provinces in the study areaexcept Phnom Penh as well as Banteay Mean Chey, Kampong thum, Pampot and Pousat. Phnom

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Penh is biggest rice consuming area, and commercial millers are aiming at this market. Medium andlow quality rice are coming into Phnom Penh from neighbor provinces and high quality rice arecoming from Bat Dambang or imported from the Thailand. As Cambodia is big rice productioncountry, big rice consuming country, population is increasing and people think rice business is amore suitable business and a stable business in Cambodia, Commercial mill would be increased inthe big cities and along the main roads being easily accessible in near future. For that, it is necessarythat the problems of rice mills should be overcome:

(a) Quality of paddy collected should be increased. It should be overcome in the aspect of thefarmers’ rice production as well as rice millers’ technologies. On rice production, it isnecessary that MAFF, DAFF, CARDI and seed growers should coordinate and distributeeffectively. Rice millers should conduct the inspection of paddy from farmers, select thevarieties, constant the moisture contents and remove the impurities.

(b) Rice miller should operate the machine effectively, maintain and repair them periodically aswell as develop the machine. At present, points of improvement would be changing the pre-cleaner to air screen cleaner type, add the refining milling machine up to four-stage, changingthe sifting grader to length grader, adding the de-stoner.

However, rice millers could not carry out by themselves. Supports by the Government, NGOs andagencies concerned would be necessary. Up to now, EDC, which is one of NGOs, is supporting ricemillers, and established the Rice Millers Associations and National Rice Millers Federation. Atpresent, 9 associations are established in 8 provinces. And similar associations in 6 provinces areexpected near future. EDC is searching the technology improvement, better management andlending schemes.

Cambodia is sandwiched by Thailand and Vietnam, which are biggest rice production and exportcountries. Paddy producing in Northwest such as Bat Dambang, Banteay Mean Chey is transportedto Thailand and paddy in South such as Takaev, Prey Veaeng, Svay Rieng and Kampong Cham istransported to Vietnam. Rice millers in Cambodia are eager to process this paddy before transported.At present, this trend would not be changed, if the Government would implement the regulations onthis. Now Cambodian Government pursues free market system and does not conduct muchintervention. However, taking into consideration the current trend of establishment of rice millassociations by PSD Unit under UNDP/CARERE Project and EDC and establishment of privatemodern rice mill by Ankor Kasekam Roongroeung Co., Ltd., technology and quality will bedeveloped speedily. Commercial Mill will be more popular for consumers who prefer high qualityrice in the domestic as well as international.

C.6.3 Depot (Warehouse)

Depot is an essential facility for rice marketing and rice milling activities. Rice millers carrying out

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the big volume rice processing are eager to use the depot or warehouse effectively. Government andGTC warehouses would be suitable for this intention. As the rice millers want to have enoughstorage paddy for one to two months and operate steadily as well as they are straggling the lack offund to hire the depots, government warehouses would be useful for this. Since the governmentwarehouses stand on each province and along the main road, it is suitable to access. The more large-scale rice mills are developed, the more warehouses are required. If the government would like therice millers to store paddy as food reservation for disaster or emergency, government should supportthe rice millers to supply low interest credit and warehouses with low lent fee.

Appendix C : Milling Process

Tables and Figures

Fig. C.1 Organization Chart of Ministry of Industry, Mines and EnergyFig. C.2 Organization Chart of Green Trade CompanyFig. C.3 Organization Chart, National Rice Millers Federation of Cambodia

Table C.1 Number of Rice Mill by ProvinceTable C.2 Number of Rice Mill by PowerTable C.3 Estimated Milling CapacityTable C.4 Custom Mill ProfileTable C.5 Commercial Mill ProfileTable C.6 Warehouses owned by Ministry of CommerceTable C.7 Profile of Green Trade Company (GTC)Table C.8 Warehouse & Rice Mills owned by Green Trade CompanyTable C.9 Rural Credit in CambodiaTable C.10 Cellule Coordination and Support Micro Finance SectorTable C.11 ACLEDA Bank Limited (Credit Institution)Table C.12 E.M.T. (Credit Institution)