Implications for Corporate Performance and
Impact on Local Communities
WORLD BANK REPORT NUMBER 86175-GLB
Sector related to "Angkor Rice", Chapter 4, Page 33.
BOX 4.9: Technology Transfer in Rice Contract Farming
One investor in Cambodia had developed a rice contract farming system whereby the company supplied improved fragrant rice-planting materials to farmer groups. An average farmer cultivated about one to 1.5 hectares of fragrant rice, using rice seeds provided by the investor. After retaining part of the harvest for their own consumption, the farmer sold all production to the investor. The investor agreed to buy all the production from the farmers at market prices and provided a guaranteed minimum price as an assurance to farmers. The rice from the contract farms was milled at the investor’s rice mill and the final product is sold in the national market (about 80 percent) or exported.
The investor provided technical support and training to contract farmers on the appropriate techniques for rice cultivation. Farmers were given training on the use of proper agricultural practices such as scheduling of various field operations (for example, ploughing, planting), optimal planting densities, nonuse of chemical fertilizers and pesticides, and so on. Extension service staff visited farmers during the growing season and provided advice on how to address any problems observed during the visit, for example, on how to overcome attacks by insect pests. Participants in this scheme noted the higher yields resulting from the better quality seed inputs and technical support provided by the investor. The working relationship between farmers and the investor was perceived as positive by both parties.
Source: UNCTAD-World Bank Survey of Responsible Agricultural Investment Database.