Rice value chain analysis of small-scale farmers in Banteay Meanchey province, Cambodia

Abstract

Rice has always been a staple food for all countries but especially for developing countries. Approximately 30% of Cambodia's population works in the agricultural industry and is therefore a main source of income generation for the rural population, making it one of the most important industries in the country. Although this value has declined, the food production value has more than tripled making Cambodia one of the countries with the best rice yields. These high yields are a consequence of the country's rice workforce, small-scale farmers. However, those rice producers are sometimes neglected and do not get the expected benefits from their work. This paper will describe a multitude of parameters influencing the rice value chain in the province of Banteay Meanchey thanks to different data sources. The main source is the analysis of both qualitative and quantitative data from a sample of rice producers. The results are multiple and show that the production and sale of rice constitutes the basic income of farmers. However, it is difficult for them to access financial resources and many rely on micro-credit or their personal savings. They need a lot of credit to be able to carry out their activity properly and in the most cost-effective way possible. Without access to full market information, many are unaware of the true state of the industry and sell their production as soon as they can to repay their credit or to support themselves and their families. Many actors are involved along the rice value chain, each one having its own role that adds little or a lot of value. Most of the production is dedicated to the country's residents, who are among the highest rice consumers in the world but most of exports are dedicated to Europe. In addition to financial problems, farmers suffer from parameters that are difficult to anticipate such as climate change, problems with water and pests. This study concludes with an overview of the main improvements that could be undertaken to remove possible bottlenecks.