PHNOM PENH: Cambodia earned US$3.4 billion from agricultural exports in the first 10 months of 2024, an almost 50% increase compared to the same period in 2023.
This positive trend is expected to continue, especially if Cambodia can develop its processing industries and increase its value-added production.
In a recent forum discussion, Khim Finan, spokesperson for the Ministry of Agriculture, Forestry, and Fisheries, noted that most of the $3.4 million in agricultural products that were exported from January to October were in raw or unprocessed forms, resulting in lost revenue for the country.
“If we can find ways to process and add value to our agricultural products before exporting them, the potential for added value in the agricultural sector is enormous,” he said.
He explained that products such as cashew nuts, rice and cassava are largely sent overseas in raw form.
Exporting these products after they have been processed would bring huge benefits to the national economy, through job creation and tax revenue.
"If we can do this, Cambodia could better control its economic future," he added.
He emphasised that to make this happen, it is essential for farmers to actively participate in forming agricultural cooperatives.
"By organising into cooperatives, it will make things easier for both the farmers and the buyers, as they won’t have to worry about issues like market access, seed selection or pricing.
"Buyers involved in processing or exporting will also benefit from a more predictable supply chain," he explained.
"If we implement this model, agriculture will become a key driver of national economic growth," he added.
Uon Silot, country director of the Cashew nut Association of Cambodia (CAC), told The Post on November 20 that the increase in the volume and value of agricultural exports is very good news, as many Cambodians are employed in the agricultural sector.
He also agreed that if the Kingdom can enhance its processing capacity for agricultural products, it would see even greater benefits.
He added that the reason Cambodia continues to export fresh or unprocessed agricultural products in large quantities every year is due to several factors, including a lack of capital to purchase products from farmers, limited processing facilities and insufficient storage infrastructure.
These issues have led to the export of raw agricultural products to neighbouring countries, which are better equipped to process and sell these products on international markets.
"As of October 2024, Cambodia had harvested about 84,000 tons of raw cashew nuts this year, of which 79,000 tons were exported to Vietnam.
"Cambodia earned approximately $1.1 billion from exporting raw cashew nuts to Vietnam," he continued.
In addition to cashew nuts, Cambodia has exported several other agricultural products.
For example, 507,029 tonnes of rice brought in approximately $376.63 million, while 4,036,336 tons of paddy rice generated around $1.18 billion. - The Phnom Penh Post/ANN
