Oz studies plant roots for nine crops
The Cambodia-Australia Agricultural Value Chain Program (Cavac) released a study on August 25 identifying nine high-value-added crops with high export potential in China, the EU, ASEAN, Australia and in New Zealand.
Agricultural products highlighted in Cavac’s “Cambodian Crop Market with Promising Outlook” report are avocados, chili peppers, sesame seeds, sweet potatoes, longans, mangoes, cashews, sugar palm and dried banana chips.
It is well recognized that Cambodia is generally not able to compete with its neighbors on the basis of volume and economies of scale, so the Kingdom must have a keen sense of the market niches in which it can thrive. .
While efforts to increase productivity are important, perhaps a strategic way for Cambodia to increase its agricultural exports is to identify products that are in high demand in the market or offer more value.
This is illustrated in the study, commissioned by the Australian government funded Cavac.
The research deepens data such as the size and growth potential of the global market, consumer preferences for varieties, sanitary and phytosanitary measures and other non-tariff barriers to trade, product use (fresh or processed ), main competitors and potential opportunities. The challenges of exporting these crops are also explored.
Australian Ambassador to Cambodia Pablo Kang is a long-time partner in agricultural development, providing assistance to increase the Kingdom’s production capacity, improve agricultural practices, and advance research and development.
The Australian mission is focused on agriculture, recognizing the huge unlocked potential and the value that modernization and improved productivity of the sector creates for Cambodia, according to Kang.
Given the Kingdom’s limited ability to compete with neighboring countries, Cavac is focused on finding new ways to add value to agriculture, engaging with the private sector to introduce new crops and technologies. modern in order to produce high-quality, high-value products, he said.
“We are also working with the Royal Government of Cambodia to encourage new investments in the agricultural sector,” Kang added.
Making the closing remarks at the report launch event, Commerce Minister Pan Sorasak expressed hope that the study would encourage relevant stakeholders to explore the development of new products for sale in Chinese markets, from the EU, ASEAN, Australian and New Zealand, or anywhere else. with a sufficiently large demand.
He highlighted trade relations, agricultural and national development, and poverty reduction – during and after the Covid era – as key topics to consider when interpreting the study results.
The study noted that poor market information, to a large extent, causes some Cambodian agricultural exporters to focus on less demanded crops, poor farming techniques, a lack of capital for warehousing, and a capacity for storage. limited processing which restricts export options to unprocessed products.
The absence of an internationally recognized national institution capable of certifying good agricultural practices (GAP) and food safety remains a major obstacle, limiting the export of these nine products to many international markets, especially European ones.
Aiming to address the challenges facing the industry, the study provides recommendations to government, the private sector and development partners on what they can do to promote and develop exports, with an emphasis on crop competitiveness, market relevance and market access for the nine crops.
Regarding foreign direct investment (FDI), the study highlights the need for Cambodia to create a specialized investment unit to advise potential investors on the potentially lucrative opportunities offered by agriculture, in particular the nine high-value crops. added.
The study offers an overview of the intricacies, designed for agricultural policymakers to use to make strategic and informed choices to boost exports of the nine crops and increase Cambodia’s strategic ability to compete. more effectively its economic rivals.
Other applications include trade policy and facilitation, quality standards, and investment promotion.
In collaboration with the Ministry of Commerce, Cavac plans to organize a forum on “Promotion of commercial information on promising crops of Cambodia”.