Agricultural Production

Contents

1. National Food Balance

2. Geography
1. Water Resource
2. Rainfall
3. Surface Water
4. Groundwater
5. Soil Classification
6. Rice Ecosystems of Cambodia
7. Rain-fed Lowland Rice
8. Deepwater or Floating Rice
9. Rain-fed UplandRice
10. Dry season Irrigated Rice
3. Main Crops Cultivated
1. Rice
2. Maize
3. Cassava
4. Sweet Potato
5. Vegetables
6. Industrial Crops
4. Land Distribution
5. Cropping Season
6. Livestock
7. Limitations to Agricultural Productivity
1. High cost of agricultural production
2. Addressing problems of low soil fertility
3. Lack of Diversity
4. Processors and Millers
5. Distributors: Retail and export
8. Agricultural Production at Household Level

National Food Balance

Average annual GDP growth rates in Cambodia have exceeded seven percent since the mid-1990s,
driven by garment exports, tourism and urban construction. In 2006, Cambodia once again
enjoyed double-digit economic growth, at an expected rate of 10.4 percent, which comes after a
growth of 13.4 percent in 2005 and 10 percent in 2004 (EIC, 2007). Cambodia has increased its
GDP more than fourfold since 1990. This growth was mainly boosted by the continued expansion
of garment exports, construction and the number of tourist arrivals in Cambodia, and came in
spite of the consequences of sharp increases in the price of oil and other imported input costs.
Table 2.1: Cambodia's Real GDP Growth by Sector (%, 2000 prices)

Source: NIS FOR 2002-06, EIC projection for 2007

The growth of the agricultural sector expanded moderately, whereas that of non-agricultural
sectors was 13.2 percent in 2006, 1 percent higher than in 2005. However, the country's overall
economic growth rate for 2006 remained high, compared with an expected rate of 7.3 percent in
Lao PDR, 4.5 percent in Thailand and 8.0 percent in Vietnam (EIC, 2007).

2006 was another rainy year, following on from an equally wet 2005. The agricultural sector
remained natural resource-based and achieved 4.4 percent growth in 2006, down from 16.4
percent in 2005 (EIC, 2007). This growth was mainly boosted by the expansion of cultivated
areas, aqua-fishing, and a continued increase in livestock production. However, agricultural
productivity is still quite low for both labor (about US$170/worker) and land (US$ 518/ha)
(Agrifood Consulting International and CamConsult, 2006).

Within the agricultural sector, while the crop sector has grown considerably - 5.95 percent
average annual growth, with the main boost in 2005, when paddy production soared 44 percent
in a single year - other sectors have expanded relatively slower (livestock, 1.96 percent; fisheries,
2.99 percent; forestry, - 0.09 percent average annual growth) (UNDP, 2007). Since 1995, the
percentage of the work force employed in agriculture has decreased from 80 to 60 percent
(though the overall number has increased slightly due to population growth) (ADB, 2007). With
70 percent of Cambodia's population being engaged in the slower-growing primary sectors,
mainly in rural areas, agriculture as a percentage of GDP has nearly halved since 1988, indicating
the structural transformation of Cambodia's economy has been heavily tilted in favor of urban
sectors, leaving the majority of the population under-represented in the economic growth picture.

Notwithstanding recent gains the agricultural sector remains volatile. Effective irrigation and
natural resource management systems are still urgently required in order to achieve sustainable
agricultural growth and thus poverty reduction, since the agricultural sector is the main source of
income for the country's poorest inhabitants. Based on current trends, the growth of the
agricultural sector is expected to slow during 2007.

Cambodia's most important agricultural commodity is rice, the staple food of the Cambodian
people, which provides an estimated 68 percent of daily caloric intake, with the remainder coming
from fish, meat, tubers, vegetables and fruits.

Estimates made by the Ministry of Agriculture, Forestry and Fisheries (MAFF) indicate that
Cambodia has produced a national surplus of rice production since 1995/96. The rice surplus was
estimated at around 2.24 million mt equalling 1.433 million mt of milled rice in 2006/2007 after
adjusting for per capita food requirement of 143 kg per year (Figure 1). Between 1995 and 2006,
there was a significant improvement in food production, although production declined in 2000
due to severe floods and in 2004 due to drought.

Figure 2.1: Rice Production, Y ield and Balance, 1995 - 2006

Source: Ministry of Agriculture, Forestry and Fisheries, 2007.

Cambodian farming systems are largely subsistence oriented and most agricultural activity is
based on low input and rain fed production systems centered on paddy rice production. In spite of
Cambodia having achieved rice self sufficient and even an exportable surplus, the rice-based
farming systems are characterized by low income. The typical farmer growing paddy gets an
income per hectare ranging between $100 and $ 200 per year. With little diversification into other
crops and agricultural activities and with an average landholding size of 1 hectare, poverty is
pervasive (Agrifood Consulting International and CamConsult, 2006).

Furthermore, despite the overall surplus of rice production in Cambodia, food insecurity still
remains a major concern in some parts of the country, especially at administratively
disaggregated levels, such as province, district, commune and household, where droughts and
floods have occurred frequently. According to 2007 MAFF report, 5 out of 24 provinces did not
produce enough rice for self-consumption (Figure 2.2). Rice shortages can be observed as high
(over 10,000 MT) in 3 provinces (highlighted red) and as low (0 to 10,000 MT) in 2 provinces
(highlighted orange). A large number of households may not have access to adequate food due to
either the lack of productive means or purchasing power.

According to the 2004 Cambodia Socio-Economic Survey (CSES), 35 percent of Cambodian

population or about 4.6 million individuals are estimated as living below the poverty line. Of this
group, approximately 2.6 million live in extreme poverty facing food deprivation.

Figure 2.2: Rice Production by Province 2006/2007

Source: Ministry of Agriculture, Forestry and Fisheries, 2007.

 y g , y , 7
Geography
Cambodia has a land area of 181,035 square kilometers in the south western part of the Indochina
peninsula. The country is bordered by Thailand in the west and northwest, Laos in the north, and
Vietnam in the east and southeast. The cultivatable area is approximately 26 percent of the total
land area [1] . The country has a coastline of 435 km and extensive mangrove stands.

The physical geography of Cambodia shows gently rolling alluvial plains forming the centre. The
Mekong River drains these plains. Cambodia is spanned by mountains on three sides and by a
narrow coastal strip on the southwest side. The Dangrek Mountain ranges form the frontier with
Thailand in the northwest. The Cardamom Mountains and the Elephant Ranges spread across the
west. Stretching along the central part of Cambodia are the alluvial plains.

The principal inland water bodies are the Mekong River, the Tonle Sap (Great Lake) and the
Tonle-Bassac River. The great Mekong River stretches across the country in a north-south
orientation and forms a huge delta in the southeast region of the country. The Tonle Sap (Great
Lake) lies at the heartland of the country in a northwest to southeast orientation and connects
with the Mekong River at Phnom Penh. The Tonle Bassac River flows southwards from this point
to the delta region. Together they form a network of river channels, levees and river basins that
criss-cross the entire lowlands.

Water Resource

Water is essential for ensuring food production. Safe drinking water is a prerequisite for healthy
living. The main sources of water are rainfall, surface water and groundwater. The main water
bodies of Cambodia are the Tonle Sap (Great Lake) that lies in the heartland of the country and
the Mekong River that runs in a northeast south direction across the country. Table 2.2 shows
the summary of Cambodias water resources.

Table 2.2: Summary of Cambodia's Water Resources

Source: MOWRAM 2003

Rainfall

Cambodia receives most of its rainfall from the South West monsoons, which occur during the
period between mid-May and November. According to 2004 rainfall data from MOWRAM, the
coastal regions received the highest rainfall of about 3,000 mm/year (millimeters per year),
whereas the mountainous regions and plain regions received an average of 1,500 mm/year and
1,200 mm/year, respectively. Koh Kong received the highest annual average rainfall of up to
4000mm (Figure 2.3).

Figure 2.3: Average Annual Rainfall for 2004

Source: NIS/MOWRAM

The monthly distribution of rainfall has resulted in a wet season extending from April/May to
November/December and a dry season from December/January to April. In 2004, the greatest
amount of rainfall occurred between June and August (Figure 4).

Figure 2.4: Average Monthly Rainfall for 2004

Source: NIS/MOWRAM

Surface Water

The major water bodies are the Tonle Sap Lake, Mekong and Bassac Rivers. The Mekong River
has a length of almost 4,000 km. It originates from the Tanghla Shan Mountains in the Tibetan
Plateau in China. Total catchment area is 795,000 square km. Among its important tributaries in
Cambodia are the Sesan, the Srepok and the Sekong, which drain part of Southern Laos, western
Vietnam and northeastern Cambodia. The average annual flow in the Mekong at Kratie province
is approximately 440 billion cubic meters, while the maximum and minimum discharge at Kratie
are estimated at 66,700 m 3 /s and 1,250 m 3 /s respectively [2] .

The Mekong River flows across Cambodia over a distance of 486 kms and drains around 156,000
km 2 or 86 percent of the country, representing 19 percent of total catchment area of Mekong
basin as a whole. The Sesan is the largest Mekong tributary in Cambodia. It has a drainage area
of 18,000 km 2 , of which 11,000 km 2 are located in Vietnam from where the river originates. The
remaining 7,000 km 2 are drained in Cambodia before discharging into the Mekong in Stueng
Treng province.

The Tonle Sap Lake which is the source of the Tonle Sap River is the largest natural lake in
Southeast Asia. The annual flow from the Mekong into the Tonle Sap peaks around 8,900 m 3 /s in
September [3] . The inflow increases the area of the Great Lake from 2,600 km 2 to up a
maximum of approximately 15,000 km 2 and raises its water level by about 8-10 meters. About 62
percent of the Tonle Sap wet season volume originates from the inflow, while the remaining 38
percent is generated within the Tonle Sap catchment. After the monsoon, when the floods subside,
the water reaches a maximum flow rate of 9,700 m 3 /s in November [4] .

Groundwater

Cambodia is estimated to have groundwater resource of 17.6 billion m 3 . On the basis of limited
investigations, about 4.8 million ha of cultivatable land appear to be underlain by shallow aquifers
with the potential for exploitation by shallow tube wells for irrigation. Generally, the water table
is between 5 to 10 meters below the surface.

In summary, total water usage in Cambodia is estimated at approximately 750 million m 3 per
year, and by far the largest portion is used for irrigation. The use of water from both surface and
groundwater sources is increasing for cultivation, industry, aquaculture, and domestic purpose.
The pie chart shows the largest portion is used for agriculture [5] .

Figure 2.5: Water Use

Source : MOWRAM 2005

Soil Classification
In Cambodia, about 11 major soil types have been identified in the rice ecosystems (adapted from
White et al 1997)[6] . Cambodian rice cultivation ecosystems and soil types have evolved in
response to diverse geomorphology, topography and hydrology. Three physiographic regions
subdivide the rice areas.

Traditional Rice-growing areas: Soils developed from old alluvial and/or colluvial [7]
plains. They are located in almost all the rice-growing areas and have moderate to low
fertilities, as much of the nutrients and organic matter have either leached out or been
swept away by erosion.
Upland soils and soils of the foothills: These soils are derived from both sandstone and
shale, which formed the mountains surrounding the country during relatively recent
geological activities. Soils formed in this manner are relatively young and fertile. Most of
the upland soils and the soils in the foothills are made this way.
Soils of the flood plains: Soils developed on active floodplains of rivers and lakes. There
are three types of flood plains: a) meandering flood plains formed from meandering rivers
that migrate laterally and thus keep changing their course; for example, the Mekong River,
b) extensive floodplains formed in the lower deltaic regions of the Mekong and Tonle
Bassac rivers and c) lacustrine floodplains, formed in the areas surrounding the great lake
that are repeatedly flooded. These soils are very fertile and are periodically replenished by
the rice alluvial deposits carried by the floodwaters.

Figure 2.6: Soil Classification

Rice Ecosystems of Cambodia

The rice ecosystems are among the most important terrestrial ecosystems to the Cambodian
population in terms of food security. As in any other ecosystem there are living and non-living
components and rice is undoubtedly the most important living component of the ecosystem.

Rice ecosystems in Cambodia, as elsewhere, are influenced by rainfall/flooding patterns, soil

suitability and the country's topography. As a result, Cambodian rice growing ecosystems can be
grouped into the following broad categories[8] :

1. Rain-fed lowland rice or wet season rice

2. Deepwater or floating rice

3. Rain-fed upland rice or Chamkar rice

4. Dry season irrigated rice

Rain-fed Lowland Rice

Rain-fed lowland rice represents 86 percent of the total annual rice cropping area of Cambodia. It
is characterized by flat bounded rice fields, which depend almost entirely on rainfall or surface
runoff for their water supply. The varieties grown by farmers in the rain-fed lowlands are
dependent on factors such as local traditions and practices and water depth in the fields. In the
higher fields, where the water depth is 15-20cm, short duration (fast growing) varieties are
normally grown, while in the lower fields, where the water depth is 20-60cm, medium and long
duration varieties are normally grown. In general, farmers tend to match the variety of rice to the
availability of water in the area.

Deepwater or Floating Rice

Deepwater rice areas can be classified as low lying areas and depressions that accumulate flooded
water to a depth of between 50cm and a maximum of 3m for at least one month during the
growing period. Deepwater period rice production area accounts for only 4 percent of the total
annual rice crop area in Cambodia. These areas are located mainly around the Tonle Sap Lake
and along the Mekong and Basac Rivers.

Rain-fed UplandRice

The area under rain-fed upland rice cultivation accounts for 2 percent of Cambodia's total annual
rice cropping areas. Upland rice areas are unbounded fields in the mountainous and rolling hill
areas of Cambodia(Mondulkiri, Rattanakiri, Kratie, Koh Kong, Kampong Cham and Kampong
Thom). In the shifting cultivation areas of the Northeast of Cambodia upland rice is an integral
part of the "chamkar farm". Ethnic minority groups in these areas practice this type of cultivation
almost exclusively. Permanent upland rice production is commonly practiced by Khmers where a
field of rice is grown annually either on its own or as an intercrop or in rotation with other upland
crops. It is important to note that shifting cultivation, also known as swidden agriculture which is
common practice of clearing and utilizing a plot of land for 1-5 years and then clearing another
plot of land and is associated with burning and thus often termed as slash and burn, has
destroyed thousands of hectares.

Dry season Irrigated Rice

Dry season production accounts for 8 percent of the total crop area in Cambodia. The distribution
of dry season production is primarily in those areas close to the major rivers and their floodplains.
Dry season rice production is associated with higher yields than wet season production because of
higher solar radiation, better water control and the cultivation of more fertilizer-responsive
varieties of rice.

Main Crops Cultivated

Note: The statistics for crop production in Cambodia has been sourced from the 2006 Agrifood
Consulting International and CamConsult report prepared for AusAID (unless otherwise
indicated).

Rice

Rice production comprises 84 percent of total cultivated land, and provides 65-75 percent of the
populations energy needs. Average growth in rice production has been 5.9 percent for the period
1991-2000 but has been slowing down with growth from 1996-2000 at 3 1 percent and 2000-
1991-2000, but has been slowing down, with growth from 1996-2000 at 3.1 percent and 2000-
2004 at 1.7 percent. Cambodia as only recently moved from rice deficit to surplus; while the
actual volumes of surplus or deficit are under dispute, it is generally agreed that Cambodia moved
into rice surplus in the 1995-96 cropping year.

Figure 2.7 Paddy yield rates (MT/ha), select rice producers/ exporters

Source: UNDP HDI, 2007 (data for 2004)

Note: The latest FAO data reports that overall rice yields in Cambodia increased from 1.98 in
2004 to 2.47 tonnes per hectare in 2005 an increase of 25 percent. Thus while average growth
in rice production has been slowing down; average yield of rice obtained from a hectare has seen a
sharp surge in the period 2004 2005.

The main types of paddy production systems are upland and lowland rainfed rice, deep water
floating rice and dry season rice. These can be generally classified as being wet season versus dry
season rice. Dry season rice is usually improved varieties of rice grown for cash income purposes
while wet season rice include traditional varieties cultivated for subsistence and food security
purposes Over the period 1992-2004, most of the increase in rice production has come through
increases in dry season area production (6.73 percent per year), and yields of wet season rice (4.36
percent per year). The yields of wet season rice increased from 1.2 tonnes per hectare in 1992 to
2.47 tonnes per hectare in 2005, but the three-year yield average for 2003-05 was lower, at 2.18
MT/ha. Y ield rates achieved in other rice-producing and exporting countries are considerably
higher (Figure 2.7). A large portion of the production gains in the last two decades has come from
area expansion rather than yield improvements. Cultivated area has been estimated to expand at
about one percentage point each year since the early 1980s (UNDP, 2007). Thus the increase in
yield should be seen in the context of improvements from a very low base. Because access to
better wet season variety seeds has been limited, this increase in yield has been due to better access
to fertilizer and other inputs (rather than improved varieties of seed).

The total tonnage of wet season rice has increased from 1.87 million tonnes in 1992 to 4.97 million
tonnes in 2006 (MAFF report 2007), compared with 0.35 million tonnes of dry season rice in 1992
to 1.29 million tonnes in 2006. This indicates that although dry season rice is becoming an
important component of rice production in Cambodia(particularly for exports), wet season rice
continues to be the mainstay of rice production in Cambodia.

Figure 2.8. Price movements of different farm products, diesel and urea fertilizer
Source: UNDP HDI, 2007

Maize

Maize production grew strongly at 28 percent on average during 1995-2004, but has been slowing
down from 32 percent over 1995-2000 to just under 23 percent over 2000- 2004. However the
period 2004 2005 saw a sharp increase in the national price index for maize and between 2005-
06 there was further improvement (UNDP, 2007). In the course of a decade (1995-04) yield grew
at an average of 17 percent while the increase in cultivated area averaged 7 percent. However,
Y ellow maize production grew by 45.5 percent over 1995-2000 (Agrifood Consulting
International and CamConsult, 2006). The strong growth of yellow maize is probably due to its
increasing use as animal feed, which is associated with the rapid growth of the poultry industry.

Unlike rice, for the period 2003 06, Maize has shown no increase in yield. Indeed since 2003,
average yields of Maize have fallen by 6 percent (FAO, 2007). However if Maize prices continue to
maintain its current position then yields are likely to increase as farmers, assured of high returns,
will invest in agro-chemicals and fertilizers.

Cassava

Cassava production growth has been strong at 39 percent over the period 1995- 2004, helped by
the increasing demand for the starch industry. Even though recent yield growth has been strong,
averaging 23 percent, average yields for 2004 were still low at 13-16 tonnes per hectare for wet
and dry season production. For the period 2004-05, Cassava has continued to improve both in
terms of production and yield. Cassava production increased by forty eight percent for the period
2004-05 and average yields had improved to nearly 18 tonnes per hectare (FAO, 2007).

Sweet Potato

Sweet potato production has been declining, partly because more farmers prefer to utilize
cultivated area to grow rice and maize (which have higher returns) partly because, unlike
cassava, there has not been growing demand for industrial uses. Over the period 1995- 2004
average growth in production was around -0.4 percent. However, in recent years there has been
resurgence in production, with growth averaging 6.2 percent over the period 2000-2004. Average
yields are around 4.3 MT/ha for wet season production and 3.6 MT/ha for dry season production.

Vegetables

Over the period 1995-2004 there have been only 3 years where growth in vegetable production
has been positive; 1995/96, 1999/00 and 2003/04 (29.4 percent, 7.7 percent and 28.2 percent
respectively). The average growth over the period 1995 2005 has been far less with the period
1995- 2000 being 1.6 percent and 2000-2004 being -0.9 percent. It is possible that actual
production is grossly underestimated because of home garden cultivation that goes unrecorded
production is grossly underestimated because of home garden cultivation that goes unrecorded.
Most of the increases in production have been due to yield, which grew an average of 3.1 percent
over the period 1995-2004 compared with -2.2 percent growth in area under cultivation. Since
2004 vegetable production has once again experienced negative growth with a slight decrease in
overall production between 2004 05. Average yields have seen a reduction of 12 percent for the
same period (FAO, 2007).

Industrial Crops

Industrial crops occupy 3.5 percent of total cultivated area. They include groundnut, soybean,
sesame, sugarcane, tobacco, jute and rubber.

Growth in production of groundnut was on average around 23 percent per year, for the period
1995-2004. During this period growth in production was only 4 percent, but since 2000
substantial improvements in yield and area planted have increased growth to around 47 percent
per year. This increase in yield and production has continued through 2005.

Growth in production of soybean has been significant over the period 1995-2004, averaging 33.5
percent. Growth has been sustained, despite several periods of contraction over this period. From
1995 to 2000 growth was almost 24 percent, while in recent years from 2000-2004 it averaged
45.6 percent. The crop grew (in terms of production) by nearly 60 percent for the period 2004
05 with annual production increasing from 110,305 MT to 179,096 MT (FAO, 2007).

The trends in production of sesame in Cambodia have had a similar behavior to soybean in that
there has been rapid growth till 2004. The crop has exhibited a rapid growth in production (43.5
percent annual growth over 1995-2004), with an acceleration in the most recent past, mostly as
the result of growth in area. Over the period 1995-2000 growth in production was around 24
percent (comprising 19.5 percent in area and 4.7 percent in yield), while over the period 2000-
2004 it was around 67.7 percent (40.2 percent in area and 15.2 percent in yield). However unlike
soybean 2004 - 05, the rate of growth in production and yield was almost negligible.

Rubber plantations in Cambodia have been for a long time a major source of foreign exchange for
Cambodia. Rubber production in 2004 was around 25,900 tonnes, of which 26,000 tonnes was
exported from the seven SOE plantations, around 0.3 percent of the world rubber production
(MAFF 2005). Production was down by 20 percent compared with 2003 data, due to reductions
in tapped area and a long dry season. Export value of rubber stood at just under US$30.6 million,
an increase of 5 percent over 2003 due to a 33 percent increase in the average sale price (US$1175
per tonne compared with US$866 per tonne in 2003).

Land Distribution
Land is a key asset for poor people. Owning land provides a means of livelihood to many,
facilitates access to credit markets, leads to higher investments in childrens education and gives
the poor more voice in the political arena (World Bank, 2006) [9] . The importance of land is
paramount in a primarily agrarian society, such as Cambodias, in which the majority of the
population makes a living as small-holding farmers, meeting a majority of their food and income
needs directly from the land. With low levels of education and constrained access to capital, rural
Cambodians have limited off-farm employment or self-employment opportunities. This is
changing with economic growth and diversification, but for the near and medium term land will
remain a critical resource for the poor, 91 percent of whom live in the countryside (World Bank,
2007)[10] .

With investment and growth since the early 1990s, land in Cambodia has for the first time begun
to acquire significant market value. In the past, a low population density and limited economic
potential of land underpinned a traditional legal framework based on principles of usufruct: that
is a popular understanding that someone who cleared land and cultivated it was assumed to
is, a popular understanding that someone who cleared land and cultivated it was assumed to
enjoy title. Since the 1990s, however, population growth and market integration have resulted in
increasing competition for land, bringing this traditional concept of usufruct into conflict with
commercial, state and environmental interests and claims (World Bank, 2007).

In Cambodia, the average farm size among the rural poor is 1.5 ha. However, 40 percent of rural
Cambodians live off less than 0.5 ha (World Bank 2006)[11] .

The proportion of rural households lacking land for cultivation has risen from 13 percent in 1997
to 16 percent in 1999 and 20 percent in 2004. An additional and growing number of households
are near landless, owning only very small plots. The rise in landlessness is nonetheless of
concern because: (1) it is relatively rapid, given that land distribution was more-or-less equal
(relative to household labor) when land was formally allocated to households in 1989; and (2) the
economy is not growing sufficiently fast enough to provide poverty-reducing jobs or self-
employment opportunities for the increasing number of landless households. Although not all
landless households are poor (some have profitable non-agricultural sources of income), many
are, as with few other rural livelihood opportunities, they have to rely upon low and variable
income from wage labor (World Bank, 2006).

There are a number of forces underlying the trend towards increasing landlessness. A significant
proportion of the landless (those who returned from refugee camps in 1993-94 and newly-formed
households headed by a young married couple) have never owned land. There is also a natural
dynamic away from equal distribution: population growth leads to smaller plot sizes in densely
populated areas and, as mentioned above, as in any economy a proportion of households choose
to sell land (either to finance investment in non-agricultural enterprises, or in response to a
pressing need for cash for current consumption, most typically urgent health treatment). A small
but increasingly important part of total landlessness is due to land grabbing, as more powerful
actors displace current, generally poor owner-cultivators in order to acquire valuable land
(typically those near urban centers or roads) (World Bank, 2006).

Land tenure in Cambodia remains insecure for most, with ensuing disincentive effects for
productivity investments and access to credit. The benefits of property rights are widely recognized
and well documented in the literature. Issuing full titles to the 4.5 million applications received
after the 1989 land privatization (86 percent of which are outstanding) would have significant
(positive) impact on farmers with existing land (World Bank, 2006).

Oxfam GBs 2007 study found that 67 percent of owners hold land less than 1 ha and each owned
only 8 percent of land, while 12 percent of owners hold land more than 3 ha and each owned a
total of 72 percent of the land.

Figure 2.9: Landholding

Source: Oxfam, 2007

According to 2004 MAFF survey data, the percentage of landless households increased slightly
from 8.41 percent in 2003 to 8.58 percent in 2004 in rural areas in Cambodia. However, at
provincial level we can observe that the percentage of landless households in some provinces has
slightly declined, while that in other provinces has slightly increased.
Figure 2.10 indicates that the percentage of landless households in 2003-2004 in provinces that
are involved in agricultural activities increased, while the percentage of landless households in
provinces that are not engaged in agricultural activities declined. It can be concluded that most
land in agricultural areas is increasingly being concentrated in the hands of better-off households.

Figure 2.10: Percentage of Landless households 2003 and 2004

Source: MAFF crop data assessment 2003 and 2004

Overall, 48 percent of rural households in Cambodia hold less than 1 ha of agricultural land,
though the difference between provinces can be drastic: 87 percent of rural households in Kratie
province hold less than 1 ha of agricultural land, while only 7 percent of rural households in
Ratanak Kiri province hold that amount (Figure 2.11).

Figure 2.11: Percentage of Household Landholding Less than 1 Ha in Rural

Source: MAFF crop data assessment 2003 and 2004

Cropping Season
The majority of farm households are engaged in rice production. The most important rice growing
areas include the provinces of Battambang, Banteay Mean Chey, and Siem Reap in the North
West and Kampong Cham, Takeo and Prey Veng in the South East. In a normal year, these
provinces together account for some 63 percent of aggregated rice production. Most of the rice
cultivation in the country revolves around the wet season which extends from July to October.
This crop is entirely dependent on rainfall and accounts for around 85 percent of annual food crop
production, over 90 percent of crop area and almost 70 percent of dietary energy needs
(FAO/WFP, 2000). Five different rice systems are practiced: three in the wet season and two in
( O/ , 000) y p
the dry season. These include the following:

Low-land rain-fed rice;

Deep water and floating rice;

Rain-fed upland rice;

Dry season flood recession rice with supplementary irrigation;

Dry season lowland irrigation rice.

Within the wet season systems, floating, early, medium and late varieties of rice are cultivated, the
growing period of which extends from 90 to 210 days.

The crop calendar for the various types and seasons of rice is indicated in Figure 8.

Figure 2.12: Crop Calendar

Livestock
Apart from growing rice and crops, Cambodian farmers also raise livestock, such as cattle,
buffalo, pigs, and poultry, which play a major role in Cambodias rural farming system. Farmers
use cattle and buffalo in the rice field to plough, carry rice and perform other tasks. Farmers also
sell their livestock in exchange for cash. In addition, most poor farmers raise a small number of
chickens and pigs in order to earn some supplementary income.

Livestock production in Cambodia accounted for 4.6 percent of GDP (at current prices) in 2006
(NIS, 2007) [12] and was the second most important source of protein intake after fish. It is
largely a household activity and provides useful income supplements. Raising cattle, pigs,
ruminants and poultry holds high promise for growth. In addition, livestock often integrates well
into the overall agricultural farming systems framework. Thus at present livestock production
i l l i h f f ll l f il f i N l l l d b ff l
exists solely in the form of small-scale family farming; No large-scale cattle and buffalo
production exists in Cambodia. Cattle and buffalo are raised as an integral part of the rural
agricultural system. They are the most important sources of draft and transport in the fields,
representing 90 percent of the power needs for tillage and transport in rural areas [13] . According
to MAFF data, cattle and buffalo production has increased gradually in the last 10 years. The
number of poultry has increased significantly from about 11 million in 1993 to 15 million in 2005
(Figure 2.13).

The strong demand for cattle and buffalo in neighboring Vietnam and Thailand represents a
significant potential source of export earning, though the current system of weak border controls
greatly impacts trade and management. According to the UNDP HDR 2007 report 80,000 to
150,000 head of cattle was unofficially exported in 2004. Official export numbers, however, are
much lower only 10,600 head of cattle, or only two percent of the total livestock exports of
ASEAN. Although there is no official data on cattle export to neighboring countries, small and
medium-scale export of Cambodian cattle is often reported to occur along the Thai and
Vietnamese borders. Without an adequate system of trade and management though, the export of
Cambodian cattle and buffalo to Thailand and Vietnam remains an untapped, though potential
large, source of development in the future.

Figure 2.13: Number of livestock

Source: MAFF/NIS data (1993-2005)

Limitations to Agricultural Productivity

Cambodian rice farmers face serious constraints on increasing productivity and output quality.
These include the lack of breeding-seed stock, many farmers lack of title to the land they farm
(which discourages them from investing in improvements), and a lack of access to commercial
credit, in part because credit application procedures are discouraging and not tailored for small
loan sizes. Water-use systems, where irrigation is available, are highly politicized, with pervasive
free riding. Many farmers struggle to subsist on rice production from plots that are just not suited
to rice production[14] . According to Agrifood Consulting International and CamConsult (2006),
agricultural productivity is still quite low both in terms of labor (about US$170/worker) and in
terms of land (US$518/ha).

Increased public investment is needed to maintain the breeder stock of seed, particularly for the
traditional rice varieties that the poor grow. This should be complemented through an appropriate
institutional framework to ensure that research centers focus on basic research and varietal
development, while private companies focus on the multiplication and sale of certified seed.
Efforts also need to be redoubled to implement the land law and raise public awareness of land
rights, while improvements in the functioning of water user groups would go a long way to raise
 g , p g g p g g y
productivity and returns. Those farmers who cannot profitably produce rice because of poor
natural resource endowments should be encouraged to diversify into other products, helped by
agricultural extension and advisory services (World Bank, 2003).

High cost of agricultural production

The prices of fertilizers and fuel have risen continuously and steeply in recent years, but the prices
of farm produce have not kept pace (Figure 2.8). This deteriorating input-to-output price ratio for
all crops, unless compensated by commensurate productivity increases, will squeeze farmers
profitability. The direct fall-out of this is that farmers cannot afford to use fertilizers and hybrids in
an effort to increase yield. Through the 1980s and 1990s the Government provided subsidized
fertilizers but this practice was ended in 1997. While there are definite advantages in removing
fertilizer subsidy (for e.g. in a country like India where fertilizer consumption is relatively high
considering average land holdings); Cambodias farmers will definitely reap benefits if the cost of
agricultural production is lowered, allowing them greater access to inputs especially organic
fertilizers, and improved varieties.

Addressing problems of low soil fertility

Land is being constantly cleared for cultivation by felling forests. However the sudden and large-
scale removal of forests is also resulting in the reduction of soil fertility. These recently cleared
lands often are not fertile enough to sustain mono-crop cultivation. Low yields and high risks of
crop failure in these areas are major causes of poverty and indebtedness. Many of these lands
require soil treatments, while others, at least in the short term, are better suited for perennial crops
(e.g., palm, papaya, banana) rather than annual crops. However as has been noted farmers are
unable to afford fertilizers or practice multiple cropping (as returns for other crops are low).

Lack of Diversity

The UNDP HDR 2007 report notes that more than 90 percent of Cambodias farm land is
allocated to rice despite the country having the environment to produce a number of crops in
addition to a range of horticultural and tree crops. This lack of crop diversification is probably
driven by the farmers fear of economic loss which prevents him switching to alternative crops.
Among problems faced by individual farmers in growing other crops is that at most locations, the
marketable supply is not large enough to attract other buyers. Further, this lack of a critical
minimum supply volume of alternative crops also inhibits the agro-industry from establishing
value chains of Cambodian food products.

Processors and Millers

Rice processing, too, faces some key constraints. A few millers hold a monopoly on rice
processing, allowing them to capture higher margins than if the milling link was more
competitive. Reliance on obsolete milling equipment results in high levels of broken rice, reducing
the value of the crop. Poor paddy quality, in the form of mixed varieties of seeds and inadequate
post-harvest handling, also increases the percentage of broken rice and lowers the price earned by
most farmers. Millers lack of working capital, and the high cost of credit, limits their ability to buy
paddy from farmers and update their machinery. This encourages the unofficial export of paddy
to Vietnam and Thailand and prevents the country from capturing the value added from rice
milling. Rice millers have limited access to foreign markets, given their inability to produce
consistent amounts of standardized varieties of milled rice and their lack of information about
foreign market conditions (World Bank, 2003).

Milling is the key bottleneck in the rice value chain in Cambodia. Millers and farmers have
important unexploited opportunities for collaboration to encourage more productive cultivation of
 p p pp g p

paddy as well as better sorting and post harvest handling; farmers associations have linked with
millers and processors in Angkor Kasekam, providing a model that could be replicated elsewhere.
More important still is increased competition in milling (to help reduce milling margins in
Cambodia that are substantially higher than those in Vietnam) and an increase in prices for poor
producers. Efforts to build capacity (both private and public) in marketing information services
would be useful to improve knowledge among participants in the rice marketing chain[15] .

Distributors: Retail and export

Poor roads dampen production incentives and reduce market access. Unofficial checkpoints and
port fees raise the costs of rice for Cambodian consumers and lower the competitiveness of all
Cambodian rice products, including those bound for export. Nearly half of transport fees are
unofficial costs. In addition, exporters are constrained by their inability to obtain consistent
amounts of a standardized quality of milled rice (World Bank, 2003).

Increased investment to improve roads, railways, and ports, and to strengthen the market
information system, would reduce transactions costs and raise the profits to actors along the
chain. So, too, would efforts to put into place transparent rules for export clearance and to build
capacity in legal institutions to facilitate export transactions. Reducing transactions costs and
marketing margins can go a long way to improve returns (World Bank, 2003).

Agricultural Production at Household Level

The majority of farm households are engaged in agricultural production. According to CSES
2004, about 2,148,500 households (about 82.6 percent of total households) were estimated to
work on crop production in the wet season and 874,154 households (about 33.6 percent of total
households) in the dry season[16] . Table 2.3 shows that about 61.6 percent of total households are
engaged in the production of cereals.

Table 2.3: Households engaged in crop production

Source: CSES 2004

Rice grown on uplands requires more fertilizer inputs since there is no natural nutrient left behind
by receding flood-waters and the crop also requires transplanting, which raises the costs. These
farmers have also been adversely affected by natural calamities. Excessive flooding in 2000 and
2001 prevented farmers from cultivating low-lying lands for two years. Some farmers face a rice
shortage for up to three months each year because they are either landless or possess very small
plots of land. Additionally, many have to sell all their produce at harvest time at low prices to pay
back loans and/or to meet expenses. They buy food during the lean months. For such farmers,
farming is not a profitable proposition. Chamcar crops (home garden, horticulture and fruit trees)
are an important source of food, and are critical to maintaining the food balance during lean
months. Farmers cultivate orange, banana, mango, jack fruit, papaya, guava and a variety of
medicinal flora. Chamcar cultivation is subsistence agriculture as cash incomes earned from
chamcar and most of the crop is for personal consumption or exchange Chamcar land is more
chamcar and most of the crop is for personal consumption or exchange. Chamcar land is more
equitably distributed compared to rice land, which helps in strengthening the food security
situation (Agrifood Consulting International and CamConsult, 2006)

According to an assessment on Food Security and Livelihood in Svay Rieng province [17] ,
agriculture is the major income source of better-off households (52%), while poor households
have only 20 percent of income from agriculture and 40 percent from casual labor.

Table 2.4: Percentage of Annual Income of Households in Svay Rieng

Source: Oxfam GB's seasonal calendar in Svay Rieng province.

The seasonal calendar shows that households engaged in rice farming generally start land
preparation in May, plant seedlings in June/July, and harvest in November/December. In
addition, they do home gardening from January to May and fish and find craps and frogs from
July to November/December. Poor households who are landless or have little land sell their labor
for transplanting rice from August to September and harvesting from November to December.

Figure 2.14: Seasonal Calendar

Source: Oxfam GB's seasonal calendar in Svay Rieng province.

[1] Ministry of Water Resource and Meteorology, 2005, Summary Report on Integrated Water
Resource Management Strategy in Cambodia.

[2] Ministry of Water Resource and Meteorology, 2005, Summary Report on Integrated Water
Resource Management Strategy in Cambodia.

[3] Ibid

[4] Ibid

[5] Ibid

[6] White, P.F., Oberthur, T. and Sovuthy, Pheav, 1997, The Soil Used for Rice Production in
Cambodia.
[7] Alluviation is the washing of sediments or erosion from the hills by rivers through gullies and
ravines. Colluviation is the movement of weathered and loose soil down slopes through
gravitational action. These deposited sediments in the course of time from gently undulating
terraces.

[8] MAFF/UNCCD, 2006, 3rd National Report to the Convention on Combat Desertification.

[9] World Bank, 2006, World Development Report, Oxford University Press

[10] World Bank, 2007, Cambodia : Sharing Growth : Equity and Development Report.

[11] World Bank, 2006, Cambodia : Halving Poverty by 2015.

[12] NIS, 2007, National Accounts of Cambodia 1993-2006.

[13] CDRI, 2001, Agriculture Sector in Cambodia.

[14] World Bank, 2003, East Asia Integrates : A Trade Policy Agenda for Shared Growth.

[15] Ibid

[16] NIS, 2004, Cambodia Socio-Economic Survey : Crop Production.

[17] Oxfam GB, 2007, Food Security and Livelihoods Baseline Assessment Report.