Cambodia's Cassava in Regional Value Chain
DOWNLOADMay 31, 2024 - Keo Sombath, Sim Sokcheng, and Sey Jakkrya
Print
EmailThe report on Cambodia’s cassava industry explores its role within the regional value chain, primarily focusing on production, local processing, and export dynamics with neighboring countries like Vietnam, Thailand, and China. Cassava, the second-largest agricultural crop in Cambodia after rice, serves as a crucial cash crop for smallholder farmers and local processors. The majority of Cambodia’s cassava—96%—is exported, with Vietnam and Thailand being the main buyers of fresh cassava roots. However, only 4% of cassava is locally processed, mainly into native starch, which is primarily exported to China.
Despite its importance, the sector faces significant challenges, including a shortage of raw cassava for local processing, high production costs, and price fluctuations. The competition from neighboring countries, which offer higher prices for raw cassava, limits local processors' access to raw materials. Moreover, Cambodia’s processing costs are higher than in Vietnam, making local production less competitive.
The report identifies several opportunities, including expanding domestic processing capacity and encouraging investment through tax incentives and improved infrastructure. By promoting value addition and strengthening the local processing industry, Cambodia can enhance its competitiveness and ensure sustainable growth within the regional cassava market. The report concludes with policy recommendations to support the cassava sector, including enhancing contract farming, improving export facilities, and encouraging small-scale processors to boost local economic development.
This study underscores the importance of targeted interventions to optimize Cambodia’s cassava resources and foster long-term growth in the regional and global markets.
