Lessons learnt from support programs to rubber smallholder plantations

Panel 1: Rubber smallholder plantations dynamics and policies to support them

HE LY PHALLA, General Director General Directorate of Rubber

Regional ConferenceCambodiana Hotel, 24th June, 2009

History of Rubber Smallholder Plantations in Cambodia

• By 1960’s, spontaneous plantations have been set up on the edge of industrial scale plantation estates in order to ensure outlets and to limit transport costs.

• New smallholders’ plantations were set up from 1990, with neither any real technical assistance nor financial support.

• In 1999, beginning of the “Rubber Smallholders’ Development project” or also called “Pilot Project” funded by AFD

• In August 2000, the RGC announced a national policy to promote the “family-scale rubber plantation “ which would insure livelihood security, land tenure, and technical assistance.

• In 2004, the Rectangular Strategy of the Royal Government is to improve the agricultural sector activities including the promotion of rubber smallholder development.

• Since 2004, the areas of smallholder and private plantations are growing rapidly owing to largely spontaneous process.

History of Rubber Smallholder Plantations in Cambodia

Cont. . .

Project to support Rubber Smallholder Plantations

• Supported by AFD from 1999 to 2008 for an amount of 10 MUSD

• Objectives: test on significant scale (500 ha/year) the best technical, institutional and financial answers to the successful development of rubber smallholders.

• Result: 4,000 ha assisted by 1,300 families (around 3 ha/family)

Project to support Rubber Smallholder Plantations

3 main directions for the farmers support:

• Technical support– monitoring during immature period and tapping

training on new mature trees– access to input with a good quality of planting

material

• Official Land titling

• Long term credit

Rubber Smallholder’s Development ProjectRubber Smallholder’s Development Project

Historical Rubber Areas

Smallholder Rubber Project

1- Certified budwood garden1- Certified budwood garden

Budded Polybags with certified clones. Chemical fertilizer. Fungicide. Petrolatum (plant protect after cut back). Technical advice.

PROJECT

Provide

Acceptable land. Pump and irrigation system. Fuel. Labor and management. Maintenance. Small equipments and tools.

Responsible

Contract for 3 to 5 years BUDWOOD’S OWNER

1- Certified budwood garden

Budwood gardens network in Kg. Cham Province

Total number of stumps is 65 439

3998 stumps

16485 stumps

8120 stumps

6551 stumps7512 stumps

4590 stumps 4036 stumps

7861 stumps

6286 stumps

2- Certified nursery

Polybags of good quality. Fertilizer (chemical + natural). Hevea seeds. Fungicide and pesticide. Certified Budwood. Grafters team. Technical Advice.

PROJECT NURSERY’S OWNER

Acceptable land. Water pump and irrigation system. Fuel (ex. D.O.) Labor and management. Maintenance. Small equipments and tools.

Provide Responsible

Contract for 1 production cycle

2- Certified nursery

The Rubber Smallholder’s DevelopmentProject (1999-2008)

Access to good quality planting material

1 month after seeding 6 month after seeding

Young Budwood garden

4 years old of budwood garden

Budwood Garden

Nursery

3 . FINANCING AND CREDIT

Ministry of Economy and Finance

AFD

Rural Development BankRubber Smallholder Project

Land Title

Farmers(Rubber Plantations)

Contract

Ministry of Agriculture

Rubber Smallholder’s Development Rubber Smallholder’s Development ProjectProject

Gret

Strong dynamic of smallholder and private Strong dynamic of smallholder and private rubber plantationsrubber plantations

Cambodian Rubber Plantations Areas in 2008

No Rubber PlantationsAreas (Ha)

Tapping Replanting New Planting Total %

I Private Estates * 20,633 21,460 3,377 45,470 41.95

II Eco. Land Concession 0 0 8,305 8,305 7.66

III Rubber Smallholders 13,044 904 40,669 54,617 50.39

Total 33,677 22,364 52,351 108,392 100

Note: (*) The 7 SORE’s are sold to the Private (local & Foreign) Companies

Source: GDR May 2009

Policies

Sector policy

• Rubber sector changed drastically these last few years with :

1. Privatization of the 7 SORE’s (completed early 2009)

2. Important development of small and medium private rubber plantations (> 10,000 ha/y)

• A draft sector policy has been developed and is under discussion at MAFF level

• The sector policy on smallholder is based on the lessons learned from AFD support project

Policy orientation

• Set up a new and autonomous coordination body (Rubber Board) in charge to support smallholder rubber plantations for :

1. Technical support2. Development of certified budwood gardens3. Support a long term credit mechanism

• Funding through a new mechanism based on specific tax on rubber production/exportation.

• For a transitional phase, creation of the Office of Rubber Smallholder Plantations within GDR.

Access to planting material

• Planting material are provided by private nurseries: – 5 ha of nurseries supported by AFD Project,

and 40ha developed by private sector, controlled by GDR, provide good quality planting materials for around new 4,500 ha/y

– Other new plantations got planting materials from various sources (from neighboring countries) without any quality control.

Need for a certification process implemented by GDR & CRRI

Access to technical advices

• Currently provided by GDR through 2 technicians based in Kg. Cham (Memot and Chamcar Leu) supported by a team at central level.

• GDR is working closely with the 4 existing Rubber Smallholder Associations to provide technical advices to planters, and to organize trainings.

Access to credit

• Existing credit line at Rural Development Bank (RDB) supported by AFD project– Direct support to planters with an on-going

credit lines set up during AFD project– Short term credit to rubber smallholder

associations to support the procurement of fertilizers.

Need for additional fund to extend the credit line for new planters

Access to land

• Crucial issue • Land issue is impacted by the recent past

history:– All land belongs to State unless a new land title has

been issued– Forest land is huge (>80% in areas for rubber

development) with unclear demarcation• Long process to secure land title if needed as a

prerequisite for a long term credit.

Need to adjust Land law to support rubber smallholder plantations

Access to information

GDR is preparing the support to inform the rubber stakeholders on the relevant technical expertise (planting, tapping, harvesting, maladies control,…) as well as marketing, prices trend, production and consumption of NR and SR in the world (more specifically the situation of NR in SE Asia).

THANK YOU VERY MUCHFOR YOUR KIND ATTENTION