7th Cambodia Rice Forum 2024 - What Was Announced?
The 7th Cambodia Rice Forum 2024 was held in Phnom Penh under the theme of "Transforming the Cambodia Rice Supply Chain to be Resilient, Sustainable and Inclusive". We reviewed what the key takeaways from the forum were.
The Cambodia Rice Forum 2024 was organised by the Cambodia Rice Federation (CRF) and the event was held under Cambodian Prime Minister Samdech Hun Manet’s presidency at Sofitel Phnom Penh Phokeethra on 10 September 2024. The key forum aimed to enhance the visibility of Cambodia's rice sector on a global scale and to discuss strategies for its development.
H.E. Sok Soken, Minister of Tourism was one of many senior officials who attended the forum which attracted approximately 350-400 participants from various sectors related to rice production and trade.
State of Cambodia’s Rice Sector in 2024
According to the Ministry of Industry, Science, Technology & Innovation (MISTI), Cambodia has 19 large-scale rice factories with an investment of USD $342.30 million. There are also 19,570 small and medium-sized rice mills nationwide with an investment of USD $111.7 million.
The Cambodian prime minister hailed the modernisation of aspects of Cambodia’s farming communities and said that there are 8 modern farming communities covering approximately 2,000 hectares in the first phase. He reaffirmed long-term investment from the government.
He acknowledged that there are three priorities for the agricultural sector which are funded by a USD $100 million financing program through the Agricultural and Rural Development Bank (ARDB). Since March 2024, an initial budget of USD $40 million has been allocated with USD $28 million in targets. There is additional funding planned for the 2024 rainy season harvest.
The three priorities are:
- Promoting agricultural production, find markets and balancing product prices through farmers’ financing programs.
- Deployment of agricultural officers in communes - There has been a recruitment of 250 agricultural officials in 2024. There are plans to recruit 1,000 more agricultural officials in 2025.
- Development of modern farming communities to increase efficiency.
According to the General Department of Customs and Excise (GDCE), Cambodia exported 379,546 tonnes of rice, generating USD $280 million in the first seven months of 2024 and 2,711,179 tonnes of paddy rice to neighbouring countries, valued at over USD $784.6 million.
Cambodian rice has also notably won the prestigious World’s Best Rice Award for its Phka Rumduol variety five times; 2012, 2013, 2014, 2018 and 2022.
The Royal Government of Cambodia aims to boost rice exports to 1 million tonnes by 2025, but this has been a target for several years and has not been achieved.
What Were The 2024 Cambodian Rice Forum Outcomes
There were several key announcements and discussions held at the 2024 Cambodian Rice Forum. The Forum served as a platform for stakeholders to share insights, discuss challenges, and explore opportunities within the rice industry, aiming to position Cambodia as a leading player in the global rice market.
Cambodian Supply Chain Expansion - Meeting International Requirements
The forum emphasised the need to strengthen and expand Cambodia's rice supply chain to improve efficiency and market access.
CRF chairman Song Saran said that one of the key objectives of the rice forum was to strengthen and expand the country’s rice supply chain and the importance of enhancing environmental, social responsibility and good governance practices. These are requirements for international rice exports, which are set to be implemented for the European Union market by 2026.
CRF president Chan Sokheang confirmed that Cambodia has expanded its export markets from 35 in 2010 to 121 markets in 2023.
Value Addition through Processing
H.E Hem Vanndy, the Minister of Industry, Science, Technology, and Innovation, urged stakeholders to focus on rice processing to add value to the sector. This includes enhancing the quality of rice products and exploring new markets.
Together with H.E. Mrs. Cham Nimul, Minister of Commerce, and H.E. Dith Tina, Minister of Agriculture, Forestry and Fisheries, reiterated their commitment to advancing the rice sector through research and innovation, collaboration, and sustainable practices, with the goal of enhancing the global competitiveness of Cambodian rice, said an official release.
MISTI has a role in transforming agricultural products through processing and innovation to create agro-industrial and industrial products that deliver greater value, it added.
There is further investment required in critical infrastructure such as transportation, logistics, storage facilities, as well as processing plants - which has been on the agenda for many years, as it's well regarded that Cambodia could enhance the value of its rice products and explore niche market opportunities.
- There were also calls for the adoption of environmentally friendly farming practices and modern agricultural technologies as outlined in the Agri-Tech Roadmap
- MISTI has transformed the Science, Technology, and Innovation National Laboratory into a public administration institution which is set to offer expanded testing capabilities from December 2024.
International Support For Cambodia’s Rice Sector
Australian Commitment
Australia reaffirmed its commitment to supporting Cambodia's rice sector, highlighting the importance of collaboration in achieving sustainable growth.
Australian ambassador to Cambodia Derek Yip said support through the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) was an indication of their commitment to helping Cambodian rice exporters find global markets and promoting sustainable agricultural practices.
Yip said, “Australia has been supporting Cambodia’s agricultural sector since the 1960s. We are pleased to see significant progress in Cambodia's rice sector, with rice and paddy exports valued at around USD $1.8 billion in 2023.”
Increased US Exports Targeted
Prime Minister Hun Manet announced that U.S. companies planned to increase their purchases of Cambodian rice, following a meeting a delegation of 5 Us companies in Phnom Penh
Potential agricultural exports to the US could include milled rice, cashew, pepper and dried mango with the prime minister indicating there could be a tax incentive package and agricultural modernisation locally.
It should be noted this is more an indication of intent and no actual agreements or details were indicated.