亚开行-柬埔寨农业、自然资源和农村发展部门评估、战略和路线图（英）-2021.7_77页_1mb

Summary of Cambodia's Agriculture, Natural Resources, and Rural Development Sector Assessment, Strategy, and Road Map (July 2021)

Core Content

This report provides an in-depth analysis of Cambodia's Agriculture, Natural Resources, and Rural Development (ANRRD) sector, including its performance, constraints, and development needs, in the context of the COVID-19 pandemic and the strategic priorities of the Government of Cambodia and the Asian Development Bank (ADB). It outlines the sector strategy and a road map for achieving sustainable development and transformation.

Main Sector Overview

Economic Context

• Cambodia became a lower-middle-income economy in 2015 after 20 years of sustained GDP growth averaging 7.6% annually.
• In 2016–2019, GDP growth averaged 7.1%, but it contracted by 3.1% in 2020 due to the impact of the COVID-19 pandemic.
• Garment exports, agriculture, tourism, and construction have been the main drivers of economic growth.
• Agriculture accounts for 22.1% of GDP and 30% of total value added in the sector, though growth has been limited to 0.85% annually since 2013.
• The sector contributes 13.0% to national GDP through crop production, followed by fisheries (5.5%), livestock (2.6%), and forestry (1.6%).

Rural Population

• 76.2% of the population resides in rural areas, higher than the average for lower-middle-income countries.
• In 2019, 2.99 million people were engaged in the agriculture sector, equivalent to 32.3% of the total labor force.

Key Constraints and Development Needs

Postharvest Handling and Processing

• Only 10% of Cambodia's agricultural output is processed domestically, and 8% of total official exports.
• Agro-processing is underdeveloped, except for rice milling and basic processing of rubber and pepper.
• Private investment is needed to enhance value addition.

Agricultural Inputs and Machinery

• Limited availability of improved seed varieties and fertilizers.
• Fertilizer use increased from 10.0 kg/ha in 2005 to 33.0 kg/ha in 2018.
• Pesticide use is increasing, especially in dry-season rice and vegetable production, but many are poorly regulated.
• Mechanization is gradually increasing, but more is needed to improve labor productivity and farm income.

Market Access and Logistics

• Farmers are price takers and sell to traders immediately after harvest.
• Mixed crop varieties and limited pure varieties hinder value addition.
• Efficient transport and logistics infrastructure is critical to strengthen agri-food value chains.
• Roads are the main transport mode, but domestic transport costs remain higher than in neighboring countries.
• Physical market infrastructure is outdated, congested, and unsanitary.

Information and Communication Technology (ICT)

• The government has introduced policies for digital development, such as the ICT Masterplan 2020 and e-Government Master Plan.
• Cambodia ranks low in digital adoption and technological readiness.
• ICT can help link value chain stakeholders and facilitate information exchange.

Access to Finance

• Despite improved access to finance in rural areas, credit to agriculture and agribusiness accounts for only 9.4% of formal finance in 2018.
• High collateral requirements, short-term high-interest loans, lack of credit history, and low financial literacy are major barriers.
• The pandemic has further restricted access to credit and finance.

Extension Services and Cooperatives

• 70% of villages have access to public or private extension services, but they are generic and supply-driven.
• The government is reorienting extension services to be demand-driven, decentralized, and diverse to support agricultural diversification.
• Farmer cooperatives are promoted for economies of scale in production and marketing, but capacity varies.
• Strengthening cooperatives and farmer groups is essential for sustainable development.

Natural Resources

Water Resources

• Cambodia faces seasonal water scarcity, primarily due to lack of stored water and limited access, not due to water volume.
• Irrigation schemes cover only 22% of the country's 4.5 million hectares of arable land.
• Most irrigation schemes are not fully functional due to poor operation and maintenance.
• A shift in focus from traditional irrigation to modern water resources management is needed to enhance agricultural productivity and ecological sustainability.

Forests and Biodiversity

• Forests cover almost 50% of the country's land area, down from 60% in 2006.
• Forests serve as ecological buffers, carbon sinks, and watershed protectors.
• Deforestation and degradation have occurred due to selective logging, unregulated fuelwood extraction, and unsustainable land use.
• The government is promoting a conservation corridor approach to meet the SDG target of 50% forest cover.

Crosscutting Issues

Food Security, Safety, and Nutrition

• Food security has improved due to income growth and increased crop production, but remains precarious.
• Malnutrition is prevalent among the poorest and most vulnerable groups.
• The Food Safety Law is pending, and there are gaps in policy and technical standards for food safety.
• Inadequate coordination and poor enforcement of food safety regulations remain challenges.

Climate Change and Disaster Risk Management

• Cambodia is highly vulnerable to climate change, with increased precipitation, temperatures, and climate hazards.
• Climate-smart agriculture and disaster risk reduction (DRR) are critical to sustainable development.
• Floods and droughts can severely impact agricultural productivity.
• Institutionalizing disaster risk reduction is essential to enhance technical capacity for risk management, assessment, and monitoring.

Sector Strategy

Key Areas of Support

• Enhancing agricultural productivity through improved land use, water management, irrigation efficiency, and on-farm practices.
• Strengthening agricultural value chains by promoting commercialization, market connectivity, crop diversification, and private sector engagement.
• Strengthening natural resources management and disaster resilience, while mainstreaming climate change.

Crosscutting Themes

• Governance and capacity building.
• Cross-sector synergies.
• Regional cooperation and integration.
• Gender development.

Risks and Assumptions

• Weak institutional commitment to reforms.
• Uncertainties regarding untested technologies.
• Unclear operational provisions of government policies.
• Financial constraints for ANRRD SMEs.
• Government absorptive capacity.
• Economic impact of the pandemic on food security and value chains.

Sector Road Map and Results Framework

• The road map outlines strategic priorities and investment programs for the 2019–2023 period.
• ADB and other development partners are supporting agricultural modernization, value chain development, and natural resource management.
• Investment and technical assistance programs are designed to improve productivity, market access, and climate resilience.

Investment and Technical Assistance Programs

• ADB has prioritized agricultural productivity, value chain strengthening, and natural resources management.
• Crosscutting themes such as governance, regional integration, and gender are integrated into the strategy.
• Risks include weak institutional commitment, unclear policy provisions, and financial constraints.

Conclusion

The report emphasizes the need for private investment, modernization, and policy reforms to enhance agricultural productivity, value addition, and natural resource management. It also highlights the importance of ICT, market access, and disaster risk reduction in supporting sustainable development and poverty reduction in the sector. The pandemic has had a significant impact on economic growth, food security, and value chains, underscoring the urgency of post-pandemic recovery and resilience-building.