Assessment on Marketing and Enterprise Cambodia’s Report By FNN Mr. EUNG SENG and Mr.CHHONG SOPHAL AFA GA May 6-9, Bali, Indonesia

I. Introduction Project title: “Strengthening Farmer-owned and Farmer-led Marketing Enterprises through Technical Assistance and Learning Exchange” in the Cambodia Objective of the project: - Enhance capacity of farmer- leaders-managers in managing farmer-led and farmer-owned enterprises such as technical (efficient production farming practices and quality produce, enterprise plan and budget preparation, production and marketing plan preparation), financial (internal control system and fund management) and market (linkage and management); - Present policy recommendations based on case experiences and lobby for support to develop/enhance capacity of farmer leaders and managers in managing enterprise and improve market competitiveness to engage as well as get optimum benefits in the commodity/ industry value chain particularly in Cambodia, under the cooperation agreement with CSA;

II. Case study Rice Mill Cooperative (Growing) - TrapaingThom Khang Tboung Cooperative The cooperative run four kind of business: 1. Rice mill ( Purchase paddy and selling, milling for selling rice ) 2. Credit ( Saving, and make loan to members), 2.5% of interest 3. Community business (Community store), reduce 3% per month of capital invested in community shop 4. Restaurant ( reduce 3% per month of capital for invested to building restaurant ) Other activities: forestry community

Rice Mill Cooperative (Con’t) Start Up - 2009 : Register at Provincial Department of Agriculture; - Membership: 41 household - Total of Capital = 44,000,000 Riels - Organic rice produced about 350 – 400 ton - Sold to Sahakreas CEDAC about 300 ton Present - Produce organic rice about 800 ton - Sold to Sahakreas CEDAC about 400 ton - Total of capital: 130, 000,000 Riels - Membership: 206 households - Price: 1,650 Riels/kg and equal to 412.5$/Ton

Organization Management Start up/Building Up - Report regularly (In the first and second year), for third and fourth is irregular - Do not staff to serve for the cooperative - Irregularly meeting (members were busy) - Did not annual assembly ( was done in first and second year) - Reserve fund 20% of net profit not yet reduce Strengthening/ Developing - Report improve but late because of some BODs are not active to implementing their role. - Build capacity members committee by FNN staff - Have account-book - Increase rice producing and shareholders - Participating from authority (shareholder)

Organization Management (Con’t) Present (Consolidating) - BODs monthly meeting still irregular - Report are still irregularly - Increased members and capital - Have rice market (Sahakreas CEDAC, and others) - Good relationship with stakeholder and Gov’t officer Planning - Have Strategic Planning (Vision, Mission, Goal) but Do not good implement yet and also are not regular to reflection on the mission and goal - Implement on Strategic planning step by step, but slow

SWOT Analysis Strength - Implement all objectives (business activities) - Increased members - Increased capital - Participating from authority - Attention of board and committee Consensus Weakness - Meeting not regular - Report not regular - Do not reserve fund (20% of income) - Board and Committee do not consensus - Lack of capital to buy rice

SWOT Analysis (Con’t) Opportunity - Recognized by the provincial Department of Agriculture - Have market for rice/paddy - Have producer group ( organic) - Preferential export tax - Free tax from net profit of cooperative ( agriculture law) Threatens - Competition from middle-man - Registration certificate of land title of cooperatives still late - Can not borrow money from Bank/ Credit Agency, because they need collateral

Organization Management B. Animal Feed (Advance) - Animal Feed Cooperative in Svay Rieng The cooperative run five kind of business: 1. Animal feed, for member and non member 2. Credit, saving and make loan to members 3. Truck for transportation farmer and member of cooperative product 4. Sale and buy Chemical fertilizer, to members and non 5. Sale and buy pig for supporting to slaughter house at PP Organization Management Start up: 30 May 2009, Register at Provincial Department of Agriculture - Members: 30 households - Capital: 1person = 5,000 Riels - Animal feed Produce only 100 kg/month

Present - Member: 217 households - Total capital: 149 million riels equal to 37250$ - Animal feed Produce, 500- 900 ton/month - Loan for farmer member - BODs regular meeting - Monthly and annual report on transaction of AC by computer system - Training to member of AC on how to raising and selection pig - Monitoring member who are make loan from AC by inspection committee of AC - Marketing committee are implementing role for connecting farmer product to the market and slaughter house

Supported and training from DAI, ILO, USAID, Would Vision Cambodia Supported from 7districts of agriculture in Svay Rieng and two citys Supported by Svay Rieng DPA Supported from all of authority Have strategic planning clearly Decision making: Committee and members Participation from women about 40% Evident one share per yer 120,000-150,000 Riels perheap 30-37%

SWOT analysis Strong - Chairman of BODs have important role for helping AC - Cooperation all the partner ( NGOs, Company) - Solving all the problems on time Weakness - limited loan for farmer to raising pig - A few of BODs have supported monthly allowance - Not yet own office ( have one part of district of agriculture)

- Member increase raising pig, so they need more feed Opportunity - Member increase raising pig, so they need more feed - Have a local market and slaughter house in PP - Have partner to support, especially authority Threatens - Limited in AC Management - Decrease pig price, because of import more from neighbor country - Lack of capital for running their business - Some diseases unavailable to treatment - Limited to understanding on AC from members

Successes point of AC in Svay Rieng - Member need to understanding on AC status and internal regulation, especially respect - Hornets and fair - Solidarity - Networking with community to community and also all of start institutional ( DPA, …) - Finding profit for AC - AC advantage in the big one than the own advantage

Conclusion After study to both of cooperatives in Cambodia, we note that management and financing are important for running enterprise business, especially BODs of cooperative are important role for helping their business to sustainable in development, base on it the updating enterprise need human beside for make capacity building to all of them to implementing their role and respected to core value and cooperative principles for become to advance cooperative in the future.

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