CAMBODIA – The Development of Akphivat Srok Yoeung Cooperative

The Akphivat Srok Yoeung Cooperative was established through a consolidation of four self-help saving groups from four villages in Prey Chhor district, Kampong Cham province with technical support from a project of a local NGO called CEDAC since 2008. When the project was phased out, the self-help groups continued to grow organically and were able to overcome challenges. In 2015, the Farmer and Nature Net (FNN) started to intervene and assist the members through a project called “Linking Organic Agricultural Products to Market (LOAPM) with financial support from AsiaDHRRA through the FFP project.

The community members realized that if they are not united, they are going to be poor and will have a weak position in terms of negotiation and development. They realized that they could be organized and they can exchange learning and share experiences based on their common agenda and interests. The Akphivat Srok Yoeung Cooperative was then formed and officially registered with the Kampong Cham Provincial Department of Agriculture on 12 December 2015. The cooperative started with 251 members (107 are female) with 4,148 shares or equal to KHR 165,920, 000 (USD 41,480). The number of members gradually increased. To date, the coop has 263 members with 4,479 shares, which is equal to KHR 179,160,000 (USD 44,790).

The cooperative is governed by seven elected members of the Board of Directors, one of which is female. The cooperative also set up a controlling committee composed of 3 members.

Objectives of the Cooperative

The coop has been established centered upon the following objectives:

1. To mobilize local resources for better income generation through effective agri-investment in the cooperative
2. To better manage and improve the activities of the community on production, processing, and business to better contribute to the socio-economic and livelihood improvement of the cooperative members
3. To empower the community members through negotiation and bargaining power in terms of market balance based on their strong solidarity spirit.

Key Activities of the Cooperative

• Rice business activities (contract farming): Through the cooperative, the community is able to consolidate their agri-products to be more effective in negotiating with private companies. With strong efforts of the cooperative and with support from FNN, the cooperative secured a rice business contract with Amru rice company through contract farming. This guarantees a higher price of rice for the products of the cooperative.
• Job creation and local labor capitalization within the community
• Self-reliance development and sense of ownership
• Socio-economic development and poverty eradication

Major Achievements of the Cooperative 

Before the establishment of the cooperative, there was no cooperation with Amru rice company. Most of the community members were selling their agri-products individually for a cheap price to middlemen because they did not have the power to bargain. After the establishment of the cooperative, Amru rice company established a partnership with the cooperative in terms of contract farming focused on the Sustainable Rice Platform (SRP). In 2017, the cooperative sold out around 216 metric tons of rice to Amru, which offered to buy the product for a higher price compared to what middlemen usually offer. The company also offered a premium to the cooperative of around USD 10 per metric ton which enabled the cooperative to build up its institutional asset. The company has also provided additional technical support for the cooperative including production techniques, certification, and other inputs. The cooperative has been certified by Amru as SRP producer. At present, there are 200 household producers of the cooperative under contract farming with Amru.

The cooperative has been working very hard to bring development to its members. Aside from its partnership with Amru, the cooperative also has its own rice mill for processing its rice production and selling these out to local markets and even to major markets in Phnom Penh.

Major Businesses of the Cooperative

• Rice mill
• Paddy and milled rice
• Agricultural inputs supplies
• Self-help saving and credit
• Rice seeds production
• Animal feed mill

Strengths of the Cooperative

• More members put more shares into the cooperative for capital investment
• The cooperative members get a premium price for selling paddy rice to Amru
• The cooperative became a center for members to sell their produce, which in turn is sold to Amru company
• Members of the cooperative regularly receive capacity-building training on agricultural techniques and inputs utilization based on the SRP standard of Amru
• The cooperative also receives general support from the FNN through the FFP project of AsiaDHRRA with regard to production, processing, market linkages, leadership/governance, business plan, financial management standard, etc.
• The cooperative has established cooperation with local authorities and relevant provincial departments such as the department of agriculture and commerce, micro-finance institutions, and the Rural Development Bank

Facilitating Factors for Development

• Internal factors
• The committee leaders and members of the cooperative are very committed to the development of the community through the cooperative
• Teamwork with a strong solidarity spirit
• The committee leaders and members became more committed because they receive incentives for their extra work through premium prices from Amru company
• o More members of the cooperative came to understand the advantages of being a member of the cooperative so they put in more shares

• External factors
• The cooperative continuously receives advice and technical support from FNN
• Cooperation and support from the Amru rice company based on mutual trust building
• Cooperation and support from the local authorities, relevant provincial departments such as PDA, PDCOM, micro-finance institutions, and Rural Development Bank

Points to be Improved by the Cooperative

Despite having more cooperative members putting in more shares for a bigger investment, the capital mobilized so far is not yet sufficient to respond to the market demands and competition. As a solution for this, the cooperative will:

• improve the strategic business plan to access market competition through improving processing capacity and functions of the mill and paddy dryer facility
• increase the quantity of agri-products of the cooperative (paddy rice production)
• improve the quality of agri-products of the cooperative (including packaging processes)
• seek more markets/customers both inside and outside the province
• improve the mechanism of the market supply chain and payment processes
• improve hygiene and sanitation of the cooperative products and rice mill place
• put more effort and commitment into mobilizing resources from the members and other relevant stakeholders
• improve the financial management of cooperative
• increase other agri-products of the cooperative such as vegetables and livestock to meet market demands
• provide loans to members who need capital investment, etc.

Action Plan of the Cooperative

• Produce and sell 600 metric tons of SRP paddy rice to Amru in 2019
• Mobilize new 1,500 shares
• Build a new warehouse for paddy rice stock
• Build a paddy rice dryer facility

About AFOSP-MTCP2

AFOSP-MTCP2 is a capacity-building program funded by the European Union (EU) with co-financing from the International Fund for Agricultural Development (IFAD) and the Swiss Agency for Development and Cooperation (SDC). The program is being implemented in seven ASEAN countries through the consortium Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC). AFOSP-MTCP2 supports the strengthening of national farmers’ organizations (FOs) and their national platform towards improving their institutional capacity to deliver economic services to their members as well as to effectively engage them in policy processes. At the ASEAN level, the consortium AFA – LVC works in partnership with the ASEAN Foundation in expanding the spaces for the engagement of FOs in ASEAN processes.