Cambodia Export Diversification and Expansion Program – Milled Rice

Project Update – June 23, 2015

In partnership with

Content of Presentation

Project Update – key results so far

On-going Project Activities

Project Implementation Challenges

EIF ES & TFM Recommendations & Discussion

3

Key Results

1

4

The ‘Cambodia Rice’ Project (RSSP): 2012-2015

Overall Goal of the ProjectTo transform the Cambodian rice market by increasing product quality along the supply chain (from use of high quality seed to improved milling operations and efficiency) and facilitating access to high value export markets.

THE GOAL WILL BE REACHED BY WORKING ON THE FOLLOWING COMPONENTS:

Improving paddy quality

AIM: Increase farmers’ access to improved inbred planting seeds for high value rice varieties.

Enhancing milling efficiency

AIM: Increase the efficiency and output quality rice mills/re-processors through adoption of mill management software and food safety systems.

Marketing Cambodian rice

AIM: Develop and implement a strategy to increase Cambodian rice exports, especially fragrant rice, to support the RGC Rice Export Strategy

Milled Rice Export Promotion:

Key results as of May 2015

building on IFC’s rice sector support since 2008

6

Directly facilitated rice exports: US$ 74 million – more than 50%

is fragrant rice.

World’s Best Rice Award three years consecutively

Revised Cambodian Milled Rice Standards approved

First 10 Cambodian rice mills were HACCP certified

DNA fingerprint of Cambodian fragrant rice varieties established

Cambodian rice intensely promoted in different international

trade exhibitions, conferences and other promotional activities

(THAIFEX, TRT, SIAL Paris, Guangzhou Trade Fair etc)

Key Project Highlights

7

Outcome 1: Enabling Environment for Cambodian private rice sector

• Rice Standards Technical Working Group (RSTWG) and Export Promotion Working Group (EPWG) were established.

• MoU signed between IFC and FCRE (former industry body – currently merged with a newly established CRF) - Formal G-PS started under FCRE reign

• A number of consultations with CRF conducted

• Core Team for Rice Component created – started to engage with project activities, i.e THAIFEX May 2014, 2nd CMB Rice Festival, Guangzhou Trade Fair June 2015 etc

• Revised Milled Rice Standards Approved by MIH (second version)

• On-going capacity building for CRXs with different topics by different key speakers (Subra, Dr. Werner, Dr. Makara)

8

Outcome 2: Identifying market opportunities

• International Market Studies on Cambodian rice completed –

dissemination workshop organized

• Participated in international trade exhibitions (THAIFEX 2013 and

2014), and TRT WRC in HK/CMB - Cambodia won 2nd/3rd WBR Award

• Promotional events: 1st and 2nd CRF 2013/2014, Cambodia: World

Best Rice Cuisine, and business matching with HK Rice Merchants’

Association.

• Developed and published Cambodian rice portfolio catalogue

• Manual on FS developed and training rolled-out

• Working with local education centers to update FS curriculum

9

Outcome 3: Food safety management system and rice branding development and promotion

• Revised Cambodian Milled rice standards approved by Sr. Minister of MIH (second version)

• 10 Cambodian rice mills HACCP Certified – 1 more expected to be certified by mid 2015.

• DNA fingerprint of Cambodian fragrant rice varieties established – adopted and issued by CARDI.

• Branding strategy for Cambodian rice is being developed - based on the findings from the market studies, market missions and consultations with industry body and EPWG.

• Continuous promotion of Cambodian rice: promotional materials, VDO clips, FB page, www.WorldBestRice.biz, Youtube, global price index (LRI)

10

Current Project Activities

2

11

Current Project Activities

Fragrant Rice Survey

On-going FS Advisory Services

Participation in Guangzhou Trade Fair & Market Missions

Publication of the Global Market Study

Rice Branding/Marketing Strategy

12

Project Implementation Challenges

3

13

Key ChallengesReaching targets, but also sustaining growth

• Timeframe for the exit strategy has been adjusted, but still challenging:

Branding strategy needs to be properly implemented, particularly on use and protection, and code of conduct needs to be developed.

Time to measure the impacts from this branding support is short;

• Following each market mission, proper market penetration strategies with follow-up plan need to be developed and implemented to realize the full potential – lesson learned from recent market missions;

• FS engagement with rice mill clients takes time, from 12 to 18 months. difficult to see the full impact in short-term (market access);

• Promoting Cambodian rice is really fully depending on a ‘supply chain’ approach: from farm to fork, with improved linkages between seed growers, farmers, processors, traders and exporters.

14

EIF ES & TFM Recommendations

4

15

# Recommendation Timeline Status(June 2015)

Next Steps

CEDEP I: IFC

1 While a No-cost extension (NCE) for CEDEP I is envisaged, it is recommended that specific exit steps should be elaborated and fully implemented as part of the NCE workplan to ensure the sustainability of the project outcomes and the continuation of momentum beyond the project funding

30 June, 2015

On-going Detailed discussions with DICO and CRF

2 In the run-up to the end phase of CEDEP I, it is recommended that the MIEs of CEDEP I to collaborate with the communication and M&E teams of DICO to take stock of project results, good practices and success stories and to share them with the EIF constituencies and other stakeholders.

ASAP On-going Detailed discussions with DICO

# Recommendation Timeline Status(June 2015)

Next Steps

CEDEP I: IFC

3 The MIEs should work closely with DICO andrelevant line Ministries to strengthen theparticipation of core team in theimplementation and M&E of CEDEP I. A clearTOR and shared workplan between core tammembers and MIEs should be agreed upon.

30 June, 2015

On-going Organize meetings

with DICO/Core

Team

4 Due to the un-functioning of the Rice Programme Committee, it is recommended that IFC discusses with DICO to identify an appropriate national/sector governance structure which can review and approve the project implementation progresses and workplan and budget.

30 July, 2015

On-going TBD with DICO/MOC

Thank YOU