A Policy Study on Vegetable Subsector in Cambodia.

1. A Policy Study on Vegetable
Subsector in Cambodia
A Focus on Vegetable Smallholder Farmers
Bangkok, 11 September 2015

2. Contents
1. Study methodology
2. Current situation of vegetable subsector
3. Key constraints faced by smallholder farmers
4. Policy recommendation
2

3. [1]
Study Methodology
3

4. There are four main objectives of the study
1) To identify major constraints including institutional
constraints and potentials of smallholders vegetable
growers as an input for pro-poor policy making;
2) To assess policy gaps as well as the policy options in
promoting vegetable production of smallholders;
3) To estimate margins and costs for each value chain
actor, to assess knowledge and technology usage; and
4) To assess the risk and vulnerability faced by
smallholder and rural poor, including their capacity of
smallholders to response to the risk and vulnerability,
with regards to vegetable growing for both income
and food availability.
4

5. Seven key value chain actors are covered by the
study, including growers…
• Commercial vegetable grower: a household permanently
living in the village and growing vegetable on a family basis
(small holder) but for commercial purposes, i.e. growing
vegetable mainly for sales.
• Subsistent vegetable grower: a household permanently living
in the village and subsistently growing vegetable, mainly for
own consumption; and if possible is IDPoor/poor/vulnerable.
• Non-vegetable grower: a household permanently living in the
village and having agriculture land or home lot suitable for
growing vegetable but not growing vegetable; and if possible
is IDPoor/poor/vulnerable.
5

6. … domestic traders and input suppliers.
• Collector: those who purchase vegetable directly from
vegetable growers at the village level and sell to wholesalers.
• Wholesaler: those who purchase vegetable either directly
from vegetable growers or collectors, then sell in large
quantity to retailers or hotels/restaurants/markets.
• Retailer: those who purchase vegetable from wholesalers and
sell to end consumers.
• Input supplier: those who supply agriculture inputs – e.g.
seed, fertilizer, equipment, etc. – to vegetable growers,
especially smallholders.
6

7. Study locations were selected based on five
criteria
7
Selection Criteria Province
District
Commune
Village
1. Representativeness of agro-ecological zones x
2. Representativeness of different production levels x x x
3. Consultation with key stakeholders (national level) x
4. Consultation with officials of provincial department
of agriculture (provincial level)
x x
5. Consultation with commune and village chiefs x

8. 8
Vegetable Cultivated Area in 2013 (ha)
Source: MAFF.
Note: BMC = Banteay Meanchey; BAT = Battambang; KCH = Kampong Chhnang; KPT = Kampong Thom; PUR =Pursat; SRP = Siem Reap;
SHV = Preah Sihanouk; KAM = Kampot; KEP = Kep; KKG = Koh Kong; KSP = Kampong Speu; KRT = Kratie; MKR = Mondolkiri; OMC =
Oddar Meanchey; PLN = Pailin; PVR = Preah Vihear; RAT = Ratanakiri; STG = Stung Treng; SVR = Svay Rieng; KPC = Kamponng Cham –
Tboung Khmum; KDL = Kandal; PNP = Phnom Penh; PVG = Prey Veng; TAK = Takeo.

9. Both quantitative and qualitative approaches
are used
• For farm survey, around 31 farmer households per
village: CG = 15; SG = 8; and NG = 8.
• For qualitative, two FGDs per commune: one for
growers, and another for non-vegetable growers.
Around six participants – not participating in the
farm survey, with gender balance – per FGD.
• And key informant interviews with domestic traders
and input suppliers at district/provincial level.
9

10. A stratified random sampling was applied to
select sample in farm survey …
• A stratified random sampling procedure was used to
select 31 households from each village for household
survey.
• To validate this procedure, a listing of village sample
was conducted; that is, each chief of villages covered
by the survey was requested to make a list of
smallholder vegetable growers and non-vegetable
growers. Then the sample size of the two groups was
randomly selected from the list.
10

11. … but purposive selection for FGDs and KIIs.
• The selection criteria similar to the household survey
was applied for FGD participant selections. FGDs for
growers and non-growers were separately
conducted.
• Regarding key informant interviews (KII) of value
chain actors other than smallholder vegetable
growers and non-vegetable growers, a purposive
selection was applied, based on their relative
importance for vegetable markets.
11

12. 12
Sample size for farmer - actual
All CG SG NG All Grower
Non-
grower
All CG SG NG
62 35 2 25 1 1 0 Baraen Leu 31 17 0 14
Por Tapang 31 18 2 11
61 37 11 13 1 0 1 Prek Ta Baen 30 20 5 5
Phoum Leu 31 17 6 8
62 32 17 13 1 1 0 Bromatt Dey 31 18 3 10
Kampong
Samrong
31 14 14 3
62 35 7 20 1 0 1 Kork Nguon 31 16 5 10
Serei Vong 31 19 2 10
62 41 0 21 1 1 0 Bos Nhinh 31 20 0 11
Kaun Satt 31 21 0 10
62 30 16 16 1 0 1 Ponlei 31 15 8 8
Snau Tauch 31 15 8 8
61 27 12 22 1 1 0
Satha Por & O'
Khlaeng Poir
31 12 8 11
Tumnup 30 15 4 11
62 26 21 15 1 0 1 Sen Kong 31 15 10 6
Tbaeng 31 11 11 9
Total 4 8 8 494 263 86 145 8 4 4 16 494 263 86 145
100% 53.2% 17.4% 29.4% 100% 53.2% 17.4% 29.4%
Note: CG = Commercial grower; SG = Subsistent grower; NG = Non-vegetable grower
Village
Household Survey
Sample - Village Level
Plain Kandal
Saang
Svay
Proteal
Mukh
Kampoul
Prek Anh
Chanh
Mountain
Preah
Vihear
Krong
Preah
Vihear
Pal Hal
Sangkum
Thmei
Chamroeun
Tonle
Sap
Kampong
Thom
Steung
Sen
Sro Yov
Kampong
Svay
Tropaing
Reussey
Coastal Kampot
Teuk
Chhou
Kaun Satt
Dorng
Tung
Ang
Romeas
Category Province District Commune
Household Survey
Sample - Commune Level
Focus Group
Discussion (FGD)

13. 13
Other key value chain actors - actual
Province/City District/Market Collector Wholesaler Retailer Input supplier All
Saang 4 0 2 2 8
Mukh Kampoul 3 0 2 2 7
Steung Sen 2 3 5 4 14
Kampong Svay 3 1 0 0 4
Teuk Chhou 4 3 3 2 12
Dorng Tung 3 2 2 2 9
Krong Preah Vihear 1 6 3 2 12
Sangkum Thmei 0 0 2 2 4
Neak Meas 0 15 0 0 15
Deum Kor 0 3 0 0 3
Chbar Ampov 0 3 0 0 3
20 36 19 16 91
Preah Vihear
Phnom Penh
Total
Kandal
Kampong Thom
Kampot

14. [2]
Current Situation of
Vegetable Subsector
14

15. Vegetable accounted 2% of the temporary crop area
(2.88 ha millions) in 2013, most fruit-bearing
15
Source: preliminary data
of Cambodia Agriculture
Census 2013.

16. Less than ⅓of the vegetable cultivated area were
irrigated
16
Category Cultivated, ha Irrigated, % ha/parcel
Leafy or stem 6,553 35% 0.30
Fruit-bearing 35,040 25% 0.52
Root, bulb and tuberous 890 33% 0.37
Leguminous green 1,480 58% 0.53
Other vegetables 465 76% 0.30
All vegetables 44,428 28% 0.46
Source: preliminary data of Cambodia Agriculture Census 2013.

17. Vegetable production has been part of
Cambodian farming but is highly seasonal
17
Seasonality
Dry Season Rainy Season
11 12 01 02 03 04 05 06 07 08 09 10
High season
Low season
Flooding
Hottest weather
Heaviest rain
Source: adapted from S. Chhean et al.Vegetable Market Flows and Chains in
Phnom Penh. 2004. November.

18. Most of vegetables are imported from Vietnam,
to feed domestic demand
18

19. National policy framework is very supportive of
the development of vegetable subsector
19
Policy framework
National level Rectangular Strategy Phase III (RS-III)
National Strategic Development Plan (NSDP), 2014-2018
Sectoral level Agriculture Strategic Development Plan (ASDP), 2014-2018
Sub-sectoral level Agricultural Extension Policy, adopted in 2015
Horticulture Master Plan (in drafting stage)
Regulatory framework
2013 Law on Agricultural Cooperatives
2012 Law on Pesticide and Chemical Fertilizer Control
2012 Prakas on the Implementation of Good Agriculture Practice (GAP)
Measures on Fresh Fruits and Vegetable Production
2008 Seed Management and Plant Breeder’s Rights (Seed Law)
Incentive schemes provided by the government
Tax free Agriculture land use, farmer’s agriculture income
Tariff free (custom duty) Imports of fertilisers
Tariff free Imports of agriculture machinery (if QIP incentives)
QIP incentives Investment in vegetable production of larger than 50 hectares
Note: QIP = Qualified Investment Project is a large-scale investment project registered at the Council for
Development of Cambodia (CDC)

20. … but very limited effectiveness when
implementing
• Weak management capacity and insufficient resources
(financial and human) largely contribute to this limited
effectiveness of implementation.
• Compared with its neighbours, Cambodia’s supports or
subsidies for vegetable subsector concerning extension
services, price supports, market or industry linkages,
irrigation and agriculture inputs (such as fertilizers), credit,
income and crop insurance for farmers, and investment in
agricultural science and technologies are very limited or
non-existent.
20

21. [3]
Key Constraints Faced by
Smallholder Farmers
21

22. Lack of coping strategy with high price fluctuation is
the most pronouncing constraints for vegetable
farmers when selling vegetable
22

23. Insect and disease is another key constraint by
vegetable farmers when producing vegetable
23

24. Key constraints preventing non-vegetable
farmers from engaging in vegetable production
24

25. Overall there are 5 main constraints for smallholder
farmers engaged in vegetable production
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Constraint Faced by
1. Lack of market knowledge and coping strategy with high price
fluctuation
CG, NG
2. High prevalence of vegetable insects and diseases CG
3. Limited irrigation access and capital NG
4. Lack of labour NG
5. Limited knowledge and techniques for vegetable production NG
Note: NG = Non-vegetable grower; CG = Commercial vegetable grower.

26. These constraints create risks concerning
production, health and market that affect livelihood
of smallholder vegetable farmers
• Production risk = {high prevalence of insects and
diseases, unfavourable weather conditions (too hot,
too dry), inundation of land in the rainy season}
• Health risk = {application of insecticide,
inappropriate practice}
• Market risk = {low selling price, competitiveness of
wholesalers}
26

27. [4]
Policy Recommendation
27

28. There remain potentials and opportunities for
promoting domestic vegetable production, albeit
the constraints and risks
• Cambodian consumers perceive that local vegetables
are safer than the imports as they are now
concerned about food safety.
• While they start to appreciate local vegetable
produce, more than half of vegetable supply on
domestic market is imported, mostly through
informal channels.
28

29. These potentials and opportunities can be captured
if pursuing the policy approach and measures below
• Policy interventions should follow a two-pronged
approach: improving competitiveness of vegetable
smallholder farmers (near- to short-term measures),
and building a favourable environment for growth
(medium- to long-term measures)
29

30. Near- to short-term measures (now – 2 years)
i. Increase public funding and/or promote public-private
partnership financing for vegetable-related agricultural
extension service with greater attention given to smallholder
vegetable producers by focusing on Good Agriculture Practices
(GAP), production cost management, grouping of smallholder
vegetable producers and market information provision;
ii. Expand irrigation schemes in areas where smallholder farmers
are involved in vegetable growing;
iii. Promote agricultural credit by developing and implementing
measures that shall expand affordable credit to smallholder
farmers, especially those growing vegetables.
30

31. Medium- to long-term measures (3-10 years)
1. Promote and facilitate contract farming that supports both
backward and forward linkages in the vegetable subsector that
shall contribute to both import substitution and export promotion
of at least tropical vegetables;
2. Encourage investments in modern market and distribution
facilities and channels for locally produced vegetables, which
include, but not limited to, cold storage, cold trucks;
3. Provide incentives for manufacturing and/or import of agricultural
equipment, tools and materials (such as nets, frames, fertilizers,
stimulants, insecticides), which are needed for boosting both
physical and economic efficiency of vegetable production by
smallholder farmers;
4. Build capacity of vegetable smallholder farmers in basic farm
management economic techniques.
31