PHNOM PENH: De Heus TMH Company Limited (DH-TMH) has signed a US $15 million loan from the Asian Development Bank (ADB) to boost Cambodia's animal feed sector by expanding DH-TMH's storage and processing capacity in Kampong Speu province.
ADB Country Director for Cambodia, Jyotsana Varma, said she hopes that through this loan, the cost of animal food will be strengthened, making the livelihoods of farmers growing feed for livestock and fish more sustainable and resilient in Cambodia.
"Developing a supply of locally sourced, high quality and affordable food is key to protecting Cambodia's food security and reducing dependence on animal food imports," she said.
Expansion of warehousing and procurement of additional processing machines will promote efficient food production. The project will allow the company to purchase more raw materials from local smallholder owners of maize, rice, and cassava in its supply chain by facilitating a supply of quality feed for livestock and fish. Along with investments in corn storage, the project also supports the installation of dryers that can allow food to be stored longer and reduces risks posed by the weather.
De Heus Asia CEO, Gabor Fluit, has said that through the agreement with the ADB, the focus on training and knowledge sharing, with the motto "Global Knowledge - Regional Impact,” will support and accelerate the sustainable development of the animal protein supply chain in Cambodia.
Technical assistance will support training for 2,000 corn farmers and 2,000 poultry farmers, who are mostly women, on climate resilience practices and financial literacy. Supporting women farmers will help strengthen their work on farms and boost their access to finance to expand their business.
The transaction will be supported by the Asian Development Fund 13 Private Sector Window (PSW) through a partial guarantee solution. PSW supports private sector development in emerging markets by providing financing resources for financial products, addressing and reducing barriers to general financial access, barriers that normally hinder many private sector operations.
