Cambodia Export Diversification and Expansion Program – Milled Rice

Project Update – January 5, 2016

In partnership with

Content of Presentation

Project Update – key results so far

On-going Project Activities

Project Implementation Challenges

EIF ES & TFM Recommendations & Discussion

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Key Results

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The ‘Cambodia Rice’ Project (RSSP): 2012-2015

Overall Goal of the ProjectTo transform the Cambodian rice market by increasing product quality along the supply chain (from use of high quality seed to improved milling operations and efficiency) and facilitating access to high value export markets.

THE GOAL WILL BE REACHED BY WORKING ON THE FOLLOWING COMPONENTS:

Improving paddy quality

AIM: Increase farmers’ access to improved inbred planting seeds for high value rice varieties.

Enhancing milling efficiency

AIM: Increase the efficiency and output quality rice mills/re-processors through adoption of mill management software and food safety systems.

Marketing Cambodian rice

AIM: Develop and implement a strategy to increase Cambodian rice exports, especially fragrant rice, to support the RGC Rice Export Strategy

Milled Rice Export Promotion:

Key results as of December 2015

building on IFC’s rice sector support since 2008

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Directly facilitated rice exports: As of June, 2015 more than US$ 100

million – >50% is fragrant rice.

2015 rice exports estimated at 500,000 MT

World’s Best Rice Award three years consecutively

Revised Cambodian Milled Rice Standards approved

11 Cambodian rice mills were HACCP certified during project life

DNA fingerprint of Cambodian fragrant rice varieties established

Cambodian rice intensely promoted in different international trade

exhibitions, conferences and other promotional activities (THAIFEX, TRT,

SIAL Paris, Guangzhou Trade Fair etc…)

Cambodian rice brand is being developed with marketing agency and CRF

US$125K of client cash fees collection

Key Project Highlights

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Outcome 1: Enabling Environment for Cambodian private rice sector

• Rice Standards Technical Working Group (RSTWG) and Export Promotion Working Group (EPWG) were established.

• MoU signed between IFC and FCRE (former industry body – currently merged with a newly established CRF) - Formal G-PS started under FCRE reign

• A number of consultations with CRF conducted

• Core Team for Rice Component engaged with project activities, i.eTHAIFEX May 2014, 2nd CMB Rice Festival, Guangzhou Trade Fair June 2015 etc…

• Revised Milled Rice Standards Approved by MIH (second version)

• On-going capacity building for CRXs on different topics by different key speakers (Subra, Dr. Werner, Dr. Makara)

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Outcome 2: Identifying market opportunities

• International Market Studies on Cambodian rice completed and

published – dissemination workshop organized

• Participated in international trade exhibitions (THAIFEX 2013 and

2014), and TRT WRC in KL,HK/CMB - Cambodia won 3 times WBR

Award

• Promotional events: 1st and 2nd CRF 2013/2014, Cambodia: World

Best Rice Cuisine, and business matching with HK Rice Merchants’

Association.

• Developed and published Cambodian rice portfolio catalogue

• Manual on FS developed and training rolled-out

• FS curriculum of 3 local education centers updated

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Outcome 3: Food safety management system and rice branding development and promotion

• Revised Cambodian Milled rice standards approved by Sr. Minister of MIH (second version)

• 11 Cambodian rice mills HACCP Certified and 1 OHS certified.

• DNA fingerprint of Cambodian fragrant rice varieties established – adopted and issued by CARDI.

• Branding strategy for Cambodian rice is being developed - based on the findings from the market studies, market missions and consultations with industry body and EPWG.

• Continuous promotion of Cambodian rice: promotional materials, VDO clips, FB page, www.WorldBestRice.biz, Youtube, global price index (LRI)

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Current Project Activities

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Current Project Activities

Fragrant Rice Survey

On-going FS Advisory Services

Provide back stopping support to CRF for the organization of the Cambodia Rice Forum & Festival (Jan 2016)

Rice Branding/Marketing Strategy

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Current production & potential expansion

Province

Rice Production Areas (ha)

Produc-tion (t)

Potential for expansion

Non-aromatic paddy Aromatic paddy

In hectare (ha) Percenta

ge (%) Number of

Parcels Area Planted Number of Parcels Area Planted

Cambodia 2,866,135 2,047,446 301,168 280,359 897,149 293,901 10.3

10 provinces 1,945,595 1,385,522 273,004 241,672 736,781 221,297 11.4

11/20/2015 13

•Source CAC 2013

Planted areas of FR in 10 provinces

11/20/2015 14

Project Implementation Challenges

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Key Challenges Reaching targets, but also sustaining growth

• Good progress in firm level capacity building but challenges at sector level;

• Timeframe for the exit strategy has been adjusted, but still challenging:

Branding strategy needs to be properly implemented, particularly on use and protection, and code of conduct needs to be developed.

Time to measure the impacts from this branding support is short;

• Following each rice market mission, proper market penetration strategies with follow-up plan need to be developed and implemented to realize the full potential – lesson learned from recent market missions;

• FS engagement with rice mill clients takes significant time, from 12 to 18 months. difficult to see the full impact in short-term (market access);

• Promoting Cambodian rice is really fully depending on a ‘supply chain’ approach: from farm to fork, with improved linkages between seed growers, farmers, processors, traders and exporters.

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EIF ES & TFM Recommendations

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# Recommendation Timeline Status(December 2015)

Next Steps

CEDEP I: IFC

1 While a No-cost extension (NCE) for CEDEP I is envisaged, it is recommended that specific exit steps should be elaborated and fully implemented as part of the NCE work plan to ensure the sustainability of the project outcomes and the continuation of momentum beyond the project funding

30 June, 2015

On-goingThe project has

discussed with DICO and CRF. Exit

steps/strategies have been incorporated.

2 In the run-up to the end phase of CEDEP I, it is recommended that the MIEs of CEDEP I to collaborate with the communication and M&E teams of DICO to take stock of project results, good practices and success stories and to share them with the EIF constituencies and other stakeholders.

ASAP On-going

The project has closely cooperated

with communication and M&E teams of DICO. E.g. project

flyer dev, field trips org, DICO/MOC local &regional workshops

# Recommendation Timeline Status(December 2015)

Next Steps

CEDEP I: IFC

3 The MIEs should work closely with DICO andrelevant line Ministries to strengthen theparticipation of core team in theimplementation and M&E of CEDEP I. A clearTOR and shared workplan between core tammembers and MIEs should be agreed upon.

30 June, 2015

On-goingDuring reporting period IFC team and core team have met and cooperate closer now. DICO/Core Team has engaged in

organizing events, e.g. trade fairs.

4 Due to the un-functioning of the Rice Programme Committee, it is recommended that IFC discusses with DICO to identify an appropriate national/sector governance structure which can review and approve the project implementation progresses and workplan and budget.

30 July, 2015

This has been discussed with DICO/MOC at last

meeting, but needs further follow up.

TBD with DICO/MOC

Thank YOU