Modern farming boosts profits, aids competitiveness
THE Ministry of Agriculture, Forestry and Fisheries has announced its efforts to encourage communities in two provinces to modernise their agricultural activities. The initiative not only aims to enhance profitability but also promises robust support in developing business strategies and accessing new market opportunities.
Ministry spokesperson Khim Finan noted on January 21 that the authority had been urging communities in Kampong
Cham and Kampong Thom provinces to adopt technical advancements.
He explained that the initiative is designed to boost market competitiveness and profitability, with market exploration being a key responsibility of the ministry.
“While meeting with farmers in [these] provinces, I encouraged them to embrace technically advanced agricultural methods. Modernisation is essential for enabling farmers to produce and manage their output more effectively, which aids in supplying the market and increasing profits,” he stated.
Finan said that if communities require capital for business activities, the ministry offers a financial programme that assists in creating business plans, securing loans and providing donated capital, with a potential gift of 40% of the total investment.
“As part of this investment capital scheme, we signed a memorandum of understanding [MoU] with Wing Bank. The bank allocated $5 million to the ministry for providing communities and farmers with loans at a reduced interest rate of seven to eight per cent per year, without requiring collateral,” he explained.
He added that modern communities offer benefits, including reduced production costs, financial and market support and reduced climate change risks.
Hun Lak, director of Longmate Agriculture Co Ltd, which exports fresh bananas, mangos and vegetables, highlighted the requirements of modern agricultural communities.
He said these include farmers working collaboratively, managing production professionally and collectively making decisions.
Lak emphasised the necessity of enhancing competitive capacity in terms of quantity, quality, price and sustainable support.
He said this means communities jointly handle purchasing, production, sales and management, followed by profit distribution based on member shares.
“More than this, we established these … communities primarily to support and benefit farmers. This includes providing financial support, infrastructure and modern production methods, along with facilitating discussions on business management. We also offer low-interest loans to effectively reduce costs, enabling them to compete in international markets,” he added.
According to the ministry, the Kingdom has organised 1,251 agricultural communities since 2003, encompassing over 170,000 individuals. Among these, 217 are considered ‘strong’, collectively possessing over $26 million in capital, averaging about $20,000 per community.*