Sunday, 15 June 2008

The Department of Agriculture Publishes Contract System to Farmers’ Associations to Plant Sugar Cane

Posted on 14 June 2008.
The Mirror, Vol. 12, No. 564

“Svay Rieng: In the afternoon of 11 June 2008, the Department of Agriculture, Forestry, and Fishery announced a contract system to farmers’ associations’ representatives in the province to plant sugarcane, to change to new crops planting which can provide high yields and can obtain suitable income. The president of the provincial department of agriculture, Mr. Thach Ratana, the representative of Kamadeno [phonetic] Venture Cambodia Limited (KVCL), Mr. Nagarayu [phonetic], and 197 farmers’ associations’ representatives from all districts of the province participated in this act.

“Mr. Thach Ratana said that because some farmers, nowadays, have land that is not used for rice farming, and because the planting of paddy rice does not provide very good yields, and because farmers lack capital for the cultivation and some leave their land unused, the agricultural department contacted a company to invest in the agricultural sector and agro-industry by providing loans to farmers to plant sugarcane in order to increase the cultivation as much as possible on the land they have. Mr. Thach Ratana added that this year, the Indochina Food Industrial Company of Singapore is interested in Cambodia and invests with the farmers to plant sugarcane on 500 hectares of land as a test; and the company provides seeds of sugarcane, teaches techniques for planting, for caring, for using fertilizer, and for harvesting, and provides capital and fertilizer to farmers for planting until the farmers obtain their first yield. This is the day to provide information to farmers’ associations by the department of agriculture, to spread this information to other members at the villages, so that they can prepare themselves and the land for doing rice farming and for planting sugarcane in 2009.

“The Representative of KVCL, Mr. Nagarayu, said that the company has practiced the program of planting sugarcane in Vietnam successfully for twelve years in Long An Province of Vietnam with farmers on 20,000 hectares of land to produce sugar and wine. The waste from sugarcane is used to create 45 megawatt electricity for the villages; and the company is interested in Cambodian fertile soil that can provide 70 tonnes to 100 tonnes per hectare. He added that because Mr. Thach Ratana, the president of the provincial department of agriculture, has organized farmers’ associations in a proper structure at the local level, the company wants to invest directly with farmers to plant sugarcane. If farmers have at least half a hectare of land, the company will provide loans of sugarcane seed and fertilizer to farmers, and train them in the ways to plant, to choose seeds, to use fertilizer, to take care, to harvest, and to protect their plants etc. The company also provides tractors and machines for planting, and teaches farmers how to use them by themselves.

“Mr. Nagarayu continued that sugarcane can be harvested in four years; and per year, one hectare of sugarcane can be harvested once and can provide from 70 tonnes to 100 tonnes. The company buys it for US$20 per tonne. So, with just 60 tonnes, they can get US$480; US$560 from 70 tonnes; US$640 form 80 tonnes; US$810 from 90 tonnes; and US$1,000 from 100 tonnes. From 60 tonnes to 80 tonnes, the company gives 40% of the profits to farmers; with 90 tonnes they can earn 50%; and if farmers have 100 hectares of land, the company will dig channels to bring water, charging for it.

“Mr. Thach Ratana said that the provincial agricultural department organized the center for the publication of the planting of sugarcane in Ou Smach Village, Chamlang Tralach Commune, Svay Chrum District by planting sugarcane on five hectares of land with the cooperation of KVCL. He went on to say that the planting of sugarcane needs much capital, and many citizens cannot afford it. In Vietnam, people are rich so they have their own capital to plant sugarcane, when they harvest, they sell it directly to the company. As for Cambodia, because they cannot afford it, the company provides equipment, techniques, seeds, and fertilizer, and the farmers just invest their land and their labor. When they get their yields, the company shares 50% of the profits; this is a good opportunity. Citizens can decide to use some land for sugarcane planting and some for rice farming. If we compare, 2 tonnes to 2.5 tones of paddy rice are from one hectare of land which is equal to US$250 to US$300, but nowadays prices of land increase and if we cut out other expenses, the most profits are form US$100 to US$150. Therefore, we must change the kind of crops for plating in order to obtain suitable income that can improve the living standard.”

Koh Santepheap, Vol.41, #6371, 14.6.2008

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