Agriculture & Agro-Processing

CAPRED aims to foster a more sustainable and prosperous agricultural sector in Cambodia by empowering small-scale producers, enhancing market competitiveness, and improving the livelihoods of farming households.

Our work in agriculture and agro-processing focuses on 6 priority crops: rice, cashew, banana, mango, cassava and vegetables. These cover more than 90% of Cambodia’s total cropping area and are dominated by small-scale growers. They offer enormous potential in increased sales and productivity; export growth; import substitution; and gender equality, disability and social inclusion (GEDSI) benefits.

We adopt an integrated value chain or market system approach for each crop from market (upstream) to production (downstream). Each market is made up of a series of transactions governed by supply and demand.

We examine market needs and work backwards to improve and strengthen the supply chain.

MARKET SYSTEM APPROACH

Strengthening upstream and downstream sectors

In our model, the upstream sector covers processing, compliance, labelling and/or packaging, marketing and distribution before products go to market. This sector contributes to skilled employment, technical expertise and quality standards.

Strengthening this sector can increase value addition, competitiveness and market access that in turn contributes to employment, economic growth, production and crop diversification.

The downstream sector covers primary agricultural production activities. These include research and development of better farming techniques or machinery, climate- or pest-resilient seeds, sustainable practices, improved irrigation systems, farming and harvesting crops, and enhanced post-harvest handling and storage facilities. Strengthening the downstream sector has a positive ripple effect on the entire supply chain.

For Cambodia, the key challenge is to grow its value addition sector rather than sell raw produce to Thailand and Vietnam who then benefit from processing it themselves. Value addition requires a significant improvement in processing efficiency, affordable processing equipment, and use of wastage, ensuring that farming households receive better prices for their products and can rely on stable market access.

Our approach

  • Drive inclusive growth in the agricultural sector
  • Fully integrate climate change adaptation and mitigation into all agricultural support
  • Use the private sector business model, supporting linkages with growers and collectors as well as rural improvement
  • Learn and collect market intelligence
  • Complement and collaborate with strategic partners

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Australia champions climate action in Cambodia. Australia has taken strong action to decarbonise our economy and partner with countries in the region to address climate change impacts. We are supporting Cambodia’s clean energy transition through our flagship economic development program, the Cambodia Australia Partnership for Resilient Economic Development (CAPRED). Australia was proud to be the official partner of the Cambodia Climate Change Summit 2023 (CCCS23). The summit examined the country’s climate change challenges and highlighted government and private sector commitments to climate action. Watch the CCCS23 recap video to learn more.

CAPRED Strategy

This document outlines the strategy for implementing the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) Facility, a five-year initiative (2022-2027) with a possible three-year extension. CAPRED is Australia’s flagship economic development program in Cambodia, building on a long history of support. It represents Australia’s commitment to Cambodia’s long-term development, transitioning from direct aid delivery to a partnership-based approach. Funded by the Australian Government with a budget of AUD87 million, CAPRED is implemented by Cowater International. Its focus is on resilient, inclusive, and sustainable economic development for Cambodia.

CAMBODIA AND UNLOCKING GLOBAL MARKETS by Leveraging Free Trade Agreements

The Royal Government of Cambodia has taken several steps to promote global trade, including the launch of the Rectangular Strategy - Phase 4 of the National Assembly, which focuses on economic development through diversification and competitiveness.

Australia champions climate action in Cambodia

CAPRED Strategy

Cambodia and Unlocking Global Markets by Leveragin...

Latest news & stories

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