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CEDAC Organic rice business (CORB)
Yang Saing KomaARUN International Symposium
6-7 September, 2012
Organic Rice Produc
tion (Farme
r supported by CEDAC
)
Storage +
Processing
(Private Rice Mill)
Marketing & Sale (SKC)
CEDAC Shop and
other private retails
Overview of current CORB
CORB : production, storage, processing, sale and marketing support services to rice farmers CORB seeks to achieve following social objectives by combining development and business approach: Improving livelihood for organic rice farmers Contributed to sustainability of rice
production systems Contributed to improved public health
CORB
Around 1.8 million rice farmers families (60 % of Cambodia population)
Issues of rice farmers:- Lower yields, higher expenses on external input- Lower prices, prices determined by traders- Soil degradation and pollution- Health problem- Lack of trust in cooperatives
Socio-economic issues of rice farmers to be addressed by CORB
CEDAC as Cambodian NGO set up in August 1997 to work for the improvement of livelihood of farmers, with > 100,000 farmers supported to improve rice production
2004: Integration of organic rice marketing support services through opening pilot shop in Phnom Penh
2009: Established Sahakreas CEDAC (SKC) to be responsible in sale and marketing of organic food products, especially organic rice,
2012: Introduction of the rice mill cooperative initiative
Background of CORB
Company owned by CEDAC and farmers Set up in 2009 to provide sale and
marketing services to farmers Current main products: organic rice, wild
honey, traditional rice wine and palm sugar Market: Phnom Penh, USA, Ho Chi Minh City Number of organic rice farmers : 2000
families supported by CEDAC projects Main investment partners: Oiko Credit and
ARUN, mainly in paddy procurement
SKC in brief
Procurement of paddy Storage (private warehouse and own
warehouse) Milling (private rice mill) Packaging Distribution and sale services Export services Organic rice brand development
Services of SKC
Technical support services to small rice farmers to increase rice production and to produce organic fragrant rice with lower cost/zero expenses on external inputs
Quality control (organic certification) services
Producer organizations development and management support
Consumer education and raising awareness on organic food and organic farming
Services provided by CEDAC
Producing more rice with SRI methods
Internal inspection
08.04.2023
Certification
Manual rice harvesting
Paddy warehouse
Rice packaging for the export
Packages of CEDAC organic rice
CEDAC support: Improved production with lower cost on external input, improved producer organization, improved soil fertility
SKC business: improved access to market and higher prices for farmers, increased motivation to work together in producer organizations and to produce higher quality rice
CEDAC + SKC = higher net income for rice farmers, improved cooperation among farmers, change of power relationship, laying foundation for financial sustainability of the whole operation,
Impact of CORB on the situation of rice farmers
Growing demand of organic rice, domestic and international markets
Foundation for CEDAC organic rice laid, including brand popularity, distribution and retail networks
Increasing number of rice farmers supported by CEDAC producing rice surplus for the markets
Donors’ support to CEDAC work with rice farmers to improve rice production
Favorable government policies to support rice business and rice export
Opportunities for the expansion of CORB
Improve more benefits to farmers by integration of community-based rice mill cooperatives (RMC) into the systems
Improving profits to ensure the financial sustainability and autonomy the whole operation of CORB
Expanding the benefits of CORB to more rice farmers, up to 100,000 farmers by 2022
Future plan 2012-2022
Producing can sell milled rice with higher price than paddy
Access to rice husks for improving soil fertility and rice bran for developing animal husbandry and fish culture
RMC can be the focal point for farmers to interact with each other and to interact with other stakeholders as well as future service provider centers for farmers
Value added benefits of RMC
Production (Farmer)
Storage +
Processing
(Private Rice Mill)
Marketing &
Sale
(SKC)
CEDAC
Shop and othe
r private
retails
At Present
2013 onwards
Production (Farmer)
Storage +
Processing (RMC)
Marketing &
Sale
(SKC)
Retails (Private
Business)
CORB from 2013 onwards
SKCPG
PG
PG
Raising awareness and educating farmers on benefits cooperatives, especially RMC, and organic rice farming business
Capital contribution from farmers to invest in rice mills and in procuring paddy (RMC investment fund)
Changing the attitude of farmers in selling paddy to selling milled rice to get installment payment
Developing RMC and SKC business and financial management capacity
Developing human resources to applying business approach in development
Challenges