Improving incomes and climate resilience in agriculture

Context

Cambodia has experienced impressive economic growth over the past 20 years, lifting millions out of poverty and significantly improving living standards. Challenges remain, however, particularly when comparing average household incomes in rural areas to those in urban centres. At the same time, there is a strong opportunity to improve the competitiveness of agriculture, including working conditions and incomes

Worldwide, Cambodia is one of the country’s most at risk from climate change. Rising temperatures, shifting rainfall patterns, and extreme weather events are becoming more frequent. These changes are negatively affecting the productivity, income, and health of people living in rural areas. At the same time, agriculture is the second-largest contributor to greenhouse gas (GHG) emissions in Cambodia.

There is enormous potential to increase the competitiveness of Cambodia’s agricultural sector by raising incomes along the value chains, improving working conditions and increasing local value addition in a climate-smart way, particularly those within the cashew and pepper industries.

Objective

More competitive cashew and pepper value chains in Cambodia allow exports to other markets such as ASEAN and EU markets.

Approach

The project takes a collaborative, innovation-driven approach, working closely with stakeholders across the agricultural value chain. the project focuses on three main intervention areas:

• Institutional capacity development: Enhancing institutional capacities for improving the national systems on agri-food safety and climate-resilient agriculture as well as the quality of work.
• Value chain performance improvement: Increasing the profitability of cashew and pepper value chains through climate-resilient and sustainable practices, such as deforestation-free production.
• Private sector development: Increasing technical skills within micro, small and medium sized agribusiness (MSMEs), industry associations, and federations to add value in the pepper and cashew value chains.

Last update: December 2024