C#3 – Contract Farming and FO role in paddy commercialization

Whereas Cambodia is developing its exports of milled rice, with increasing quality requirements, there is a need to better incentivize farmers in order to reward efforts expected from them to improve quality of the paddy produced. While the traditional way millers source their paddy (through networks of collectors/middlemen, mainly) does not always provide enough guarantees on paddy quality, and does not always encourage farmers to improve it, there is an opportunity for Farmer Organizations (with a broad understanding of “FOs”: including ACs, FWUCs, etc.) to get involved in paddy trade and enhance the direct and close link they have with their members.

Different models of engagement of Farmer Organizations in the paddy commercialization have been promoted by the Support to the Commercialization of Cambodian Rice Project:

  • Direct implication of Farmer Organizations, acting as collectors between their members and large buyers (rice millers or paddy bigger traders).
  • Contract Farming between millers/exporters and Farmer Organization, engaging both parties in a stronger commercial (and partnership) relation, which proves necessary when exporters are targeting certain standards… 

Beyond the support to pilot innovative actions engaging FOs in paddy commercialization, lessons have been drawn and guidelines developped, notably through the writing of a “Manual on Contract Farming in Cambodia”, in collaboration with MAFF’s Department of Agro-Industry.

C#3 Documents/Resources

Paddy commercialiszation


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