Farmers urged to enter contract farming scheme

18 Jul 2018  2062 | Cambodia Travel News

Green Leader’s representatives attend a ground breaking ceremony for their factory in April. KT/Mai Vireak

A forum on contract farming held yesterday in Kratie province sought to raise awareness among farmers of the advantages of these farming schemes and encourage them to partner up with a company that is now building a cassava starch factory in the Kingdom.

The forum was organised by Green Leader Holdings Group – a Hong Kong-based investment firm now building a cassava-processing plant in the province – with the collaboration of the United Nations Development Programme (UNDP) and several government agencies.

According to an event press release, the goal of the forum was to help farmers understand the benefits of entering a contract farming scheme with Green Leader, whose factory is expected to absorb about 400,000 tonnes of cassava per year.

“A contract farming for the upcoming harvesting season could employ 1,000 different households and could result in exports of 100,000 tonnes of starch worth $52 million.

“The linkage is done through a win-win contract farming model aiming to scale up benefits for both parties and as a mean to mitigate production and market risks,” the statement read.

It said that in addition to increasing incomes for local farmers and creating many high-paying jobs, the farming scheme will also create more value by processing local cassava into starch.

Kuy Huot, director of the Department of Agriculture in Kratie, told Khmer Times yesterday that the forum gives farmers the opportunity to partner up with Green Leader to raise their incomes.

“The goal was to raise awareness and trust among farmers.

“Green Leader’s factory will need about 400,000 tonnes of cassava a year, so we think it is a great opportunity for farmers in Kratie.”

Leang Reathmana, national management specialist at UNDP, said the scheme will reduce the market risk for farmers by linking them directly to the buyer.

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