Rice cultivation is the biggest contributor to agriculture, followed by other crops such as cassava, maize, sugar cane and soybean.
Trends
- Low productivity highlights the potential for investments in agricultural technology and infrastructure.
- A series of government initiatives aimed at boosting agricultural production have led to a significant increase in Cambodia’s rice exports.
Getting your product into market
The best opportunities for investment in the agricultural sector are partnerships with international organisations that have programmes in place or are looking for support. Agricultural Development International (ADI) works with both the private and government sectors to provide advice on agribusiness opportunities.
Companies can operate as 100 percent foreign owned entities or in a joint venture with a Cambodian partner.
Contract farming, which offers stable revenue to farmers, can also be a possible entry strategy.
Regulations
Importers must first have an import licence issued by the Ministry of Commerce.
Imports of live animals and animal sub-products require a health certificate, while the import of some agricultural products, such as fruit, requires a phytosanitary certificate.
Opportunities
- The Cambodian agribusiness market is in the early stages of development, which means it is possible to build a dominant position as an early player.
- Cambodia requires modern technology to help increase productivity, achieve greater diversification and build capacity and New Zealand is recognised as having particular expertise and skill in pastoral and horticultural technologies.
- Opportunities exist to improve infrastructure such as irrigation facilities and transport.
- Cambodia ratified a multi-lateral free trade agreement between New Zealand, Australia and the Association of Southeast Asia (ASEAN) in November 2010. This agreement allows New Zealand exporters to take advantage of the preferential conditions.
Challenges
- Cambodian farmers are usually keen to try new approaches in order to improve their productivity, but unless this is done under a governmental and/or donor-financed program, they are still very price-sensitive.
- Cambodia will need to be considered from a long-term perspective, as investment gains may take 15 to 20 years to realise.
