August 5, 2020

Cambodia holds roundtable on reducing costs of locally-produced feed

Cambodian Minister of Agriculture, Forestry and Fisheries (MAFF)VengSakhon and Cham Prasidh, Minister at the Ministry of Industry, Science, Technology and Innovation, held a roundtable discussion on local feed production with participation from relevant stakeholders, including the private sector, KhmerTimes reported. The aim was to study the feasibility of having more locally-produced feed to reduce import reliance.

The MAFF highlighted that the initiative will also help small and medium industries as electricity prices remain high for the region.

The ministries discussed challenges farmers faced in the livestock and aquaculture value chains in making production more competitive with neighbouring countries, including enhancing the productivity and quality of local feed, ensuring sufficient supply of safe, quality meat and fish to the domestic market, participating in raising the living standards of farmers, and expanding investment potential to establish feed mills and farms using local raw materials and creating local jobs.

Sakhon said that Cambodia currently imports nearly half of its animal feed as local alternatives cost more.

"We have collected input from the private sector and the Ministry of Industry will discuss more details with producers. We are looking into reducing the high cost of electricity, transportation costs and provide some tax incentives while restricting raw material imports with the purpose of promoting local use in the industry," he said.

Cambodia imports both animal feeds and livestock products valued between US$250-300 million a year, according to Sakhon.

He said there are currently 17 companies investing in animal feeds in Cambodia.

Prime Minister Hun Sen in July asked local investors to invest in feed processing plantsto reduce imports with the government providing incentive for the investment.

If the private sector lack capital, he said that they can co-invest with the state.

The meeting also studiedCambodia's electricity prices, production cost reduction, and the challenges faced by SMEs in promoting domestic investment.

SrunPov, president of the Cambodia Livestock Raisers Association, said that Cambodia currently imports more than 30% of animal feed, mostly from Vietnam.

"Currently there are more than 10 animal feed producers in Cambodia and if those companies make use of their capacity, we have no need to import any feed," he said.

Povexplained that because feed production consumes large amounts of electricity with prices more than 50% higher than Vietnam and Thailand, local feed would not be the first choice for farmers.

He added in order to promote farming commercially, farmers still need to be educated more on technical and management skills.

"Farmers or livestock raisers always follow each other and they are not aware of thedemand and supply side in the market," he said.

"For example, when chickens fetch a good price, farmers turn to chicken-raising and give up on pigs and then the price of chickens goes down because of their oversupply."