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New
Market Could Change the Way Farmers Do Business
An
ineffective market system in Cambodia is keeping farmers pinned down
with low capital, unable to invest in equipment or diversify their
crops.
And
these problems faced by farmers are what is keeping Cambodia's
agriculture exports low and imports high, experts say.
The
Ministry of Commerce and the European Commission are hoping to solve
those
problems
with a new market center in Neak Leung in Prey Veng that would serve
as a
model
for the rest of Cambodia.
"The
idea is simple," said Khek Ravy, secretary of state for the
Ministry of Commerce.
"But
the Cambodian way of doing things is complex. We have to change
that"
The
proposed market would have 400 to 500 stalls, with 40 to 50
dedicated to wholesalers, according to a draft plan of the market
There would be sections for
produce,
fish, pigs and poultry.
But
the market would be more than just a physical space in Neak Leung,
said Manfred Staab, the EC's Co-director for the project. It would
be a carefully organized move toward overall agricultural
improvement.
Neak
Leung, on the Mekong River, is a good midway point between Phnom
Penh and Ho Chi Minh City and is a collection point for trade, Staab
said. `like a valley that catches water."
In
addition to better organization, the market will emphasize hygienic
conditions and timely information on everything from international
market prices to farming innovations.
Currently,
marketplaces across the country are a mixture of wholesalers, semi-wholesalers,
retailers and farmers peddling their own goods. A farmer might spend
half
his time in the field and the rest of it moving his goods to the
market and waiting
for
them to be sold.
It
is an inefficient system that leads to instability for farmers, who
have a difficult time
either
selling what they have, or knowing where to expand. For example,
Khek Ravy
said,
fruits and vegetables that could be grown and sold locally are being
imported from Vietnam.
The
Neak Leung market would help put more control into the hands of
Cambodia's farmers, Khek Ravy said. The market will first be set up
under the guidelines of the ministry, with low rental prices for
space to encourage participation. Day to day management of the
market will eventually be placed in the hands of a national
association of farmers, which the ministry is encouraging to help
the flow of goods and
information
among farmers, and to give them a legal recourse against buyers who
break their promises.
Rental
spaces designed specifically for wholesalers-and including the
necessary space
for
new technologies like grain dryers-will adhere to strict international
hygienic codes
so
that, once a large mass of goods begins accumulating there, the
potential or export will not be hampered by dirty food, Khek Ravy.
said.
An
information office that lists international prices of goods will
also be built into the
market.
Farmers will be able to tell which crops they could begin diversifying
into and
form
cooperatives capable of growing crops in quantities high enough to
make export
feasible.
No
construction date for the market has been set nor is the overall
cost known, Staab said. Funding will come from a $34 million EC
Support Program for the Agricultural Sector in Cambodia, Stabb said.
Project officials will meet with local businessmen in Neak Leung in
coming weeks to discuss the market plan further.
Once
the market is built, Khek Ravy said, it will serve as a model that
could restructure how all of Cambodia's markets work.
"If
I can demonstrate with this project that it is successful," he
said, "It will catch all over."
By
Brian Calvert
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