Through the Accelerating Inclusive Markets for Smallholders (AIMS) project, the Ministry of Commerce has organised purchase agreements for chilli and spice farmers from Battambang and Kampong Cham.
Representatives of 34 farming collectives signed the agreements, with Phnom Penh-based processing businesses Leang Leng Enterprise and RINGACAM.
The AIMS project and the provincial commerce departments collaborated to foster the agreements, which were formed during a tour which aimed to foster stronger business-to-business cooperation between farmers and processors.
Cheang Borin, director of the Kampong Cham commerce department, coordinated the project in his province. He expressed optimism about the agreements, noting that they create new opportunities for farmers.
He explained that a total of 7,753 farmers in Kampong Cham are currently involved in Phase 1 and Phase 2 of the AIMS project, organised into 175 groups. The farmers receive support in the form of materials, cultivation techniques and seeds. The project also works with partner banks to facilitate loans for farmers to expand their businesses.
“We are pleased to have facilitated these meetings between the enterprises and farmers,” said Borin.
“They were able to negotiate prices and discuss purchasing procedures directly with the enterprises,” he added.
Thot Sithan, an official at the Battambang commerce department, noted that as part of the agreement, the two businesses have committed to purchasing more than 30 tonnes of raw spices and chillis per annum.
“I hope farmers will continue to improve both the quality and quantity of their products to meet market demands and fulfil the supply agreements they’ve signed,” he said.
“We encourage more farmers to join the AIMS project to expand its membership at the grassroots level,” he contined.
Dy Sreyhach, a representative of the Chey Yo spice farmers group from Kampong Cham province’s Chey Yo commune, in Chamkar Leu district, Kampong Cham, expressed her satisfaction with the new agreements.
“I’m very thankful to the AIMS project for coordinating them. This helps us farmers find markets for our products. I’ll discuss expanding our cultivation areas with my group. Now that we have buyers, we are motivated to produce even more,” she said.
Leang Leng, owner of Leang Leng Enterprise, explained that his company has long supported local farmers by purchasing agricultural products. His business relies almost entirely on local raw materials.
“We signed these agreements to buy agricultural products, especially chillis, at fair prices,” he said.
“We’re grateful to the AIMS project for helping facilitate this partnership,” he added.
Sreyhuoch, owner of RINGACAM, said she was happy to support farmers. She hoped they will expand their production and improve quality, while continuing to supply her business.
“They visited our facility and showed strong interest in our production chain,” she said.
“In the past, I’ve bought agricultural products from many provinces. We purchase hundreds of tonnes of food ingredients and spices every year for processing,” she continued.
The AIMS project was jointly initiated by the Royal Government of Cambodia and the International Fund for Agricultural Development (IFAD). Its aim is to promote environmentally sustainable market growth for high-value agricultural products and support rural agribusiness clusters composed of smallholder farmers — including the poor — so they can also benefit.
Phase 1 was implemented over a 7-year period from February 28, 2017, to March 31, 2023, in 18 target provinces: Battambang, Kampong Cham, Kampong Thom, Preah Vihear, Kratie, Stung Treng, Siem Reap, Banteay Meanchey, Pailin, Kep, Kandal, Takeo, Kampot, Kampong Speu, Prey Veng, Tbong Khmum, Ratanakiri and Mondulkiri.
After a mid-term review in 2021, the project was extended to September 30, 2024.
Phase 2 began in October 2024 with $20 million in funding from IFAD. It is expected to run until September 2027.
