In this and the next five chapters the focus is on the commercialisation of rice farming in the Central Plain of Cambodia. Particularly since 2010, rice has come to be seen as more than merely a subsistence crop or a staple for domestic consumption but as “white gold”—a commodity with major commercial, including export potential. This chapter sets the scene for the in-depth studies on the commercialisation of rice farming in Cambodia by describing the rice-growing environment in Cambodia as a whole, outlining the history of rice production in Cambodia, examining the role of the rice sector in the rapid agricultural and economic growth in Cambodia since 1993, highlighting the changes at the farm level that have underpinned this agricultural growth, and providing a profile of Takeo Province within this larger context. Cambodia has a long history and comparative advantage in rice production. With relative political stability and access to improved varieties and other inputs, farmers have been able to increase the area cultivated and especially per-hectare yields so that total production has grown at over 5% since 1990. From being a rice-deficit country in the 1980s, the country has achieved self-sufficiency and, since 2010, become a serious exporter of paddy and milled rice. Rice farmers in Takeo Province have long made an important contribution to Cambodia’s rice production and currently contribute 8% of wet season output and 19% of dry season output, as well as a major share of exports.

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Though the rice sector has demonstrated rapid growth in Cambodia in the past decade, many studies show that there are significant issues in production and post-harvest operations to do with the cost of production, rice quality, storage capacity, the structure and performance of the milling sector, and the management of cross-border trade with Thailand and

One reason for the low rice yields in Cambodia compared with Vietnam and Thailand has been the low use of fertilisers, even though there is a high yield response to fertiliser application. A study of the fertiliser value chain in Takeo Province was conducted. The hypothesis was that limited access to good-quality, affordable fertilisers is a major constraint to improving rice yields in the province. The study confirmed the hypothesis and concluded that farmers’ access to affordable, good-quality fertilisers could be improved by addressing the following concerns. The Ministry of Agriculture, Forestry and Fisheries (MAFF) could simplify and speed up the import licensing procedures and regulations for fertilisers, thus removing the scope for rent-seeking behaviour and the need for facilitators to expedite the issuing of licences. This would also reduce the incentive for illegal imports. Import licences should be approved by MAFF based on the suitability of a product’s use in Cambodia; then importers could be allowed to import any quantity of a registered fertiliser based on market demand and their own commercial risk assessment. This would also reduce the scope for illegal (and hence unregulated) imports. All imported fertiliser products should be labelled to identify the manufacturer. This would enable the sources of sub-standard fertilisers to be traced, particularly from Vietnam and China, where it is claimed that sub-standard blends and granular products are produced. MAFF should also certify third party traders who purchase and deliver fertilisers to villages for re-sale to farmers. Finally, fertiliser dealers, retailers, and other fertiliser traders should buy fertilisers only from certified importers or distributors and transport to villages for direct re-sale to farmers. Inspectors should monitor and spot-check fertiliser operators to help reduce fertiliser quality problems for smallholders.