Limited postharvest handling and processing. Only about 10% of Cambodia’s total agricultural outputs are processed within the country, whereas processed agricultural exports represent only 8% of total official exports by value. Other than rice milling (with its expanded capacity) and basic processing of rubber and pepper, the agro-processing sector is largely underdeveloped. Cambodia needs private investment in postharvest handling and processing if it is to capture economic opportunities arising from value addition to its agricultural products.
Key constraints to increased agro-processing in Cambodia include the reliability and cost of electricity, informal payments for permits and documentation, lack of skills and information, difficulties in obtaining development capital, and access to technology and machinery. Access to agricultural inputs and machinery. Modernizing agriculture and increasing labor productivity for farm production require quality agricultural inputs and mechanization. Cambodia has limited availability of improved seed varieties. Although the annual supply of quality rice seeds has been increasing, the supply was only 20% of the annual demand in 2019. Vegetable seeds are imported except for those produced at government research stations. The Government of Cambodia has not yet ratified a seed policy with seed quality standards under the 2008 Seed Law. Moreover, it has yet to make the seed law operational by establishing the essential policies and enforcement mechanisms. Cambodia’s fertilizer use per hectare of cropland increased from 10.0 kilograms in 2005 to 33.0 kilograms in 2018. Pesticide use has increased, especially during dry-season rice cultivation and in the vegetable sector. Pesticides are also imported; however, most pesticides are allegedly either poorly regulated or unregulated. Proper use of regulated pesticides is important for farmers’ safety, food safety, and ecosystem health. Cambodian agriculture has seen a gradual mechanization and replacement of labor with machinery such as power tillers and water pumps. Further mechanization is expected to increase labor productivity and earnings from farming to match income opportunities outside farming
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