PHNOM PENH: The Ministry of Commerce signed a Memorandum of Understanding (MoU) with a major agro-industrial and food business regarding the procurement of agricultural products for animal feed production and the improvement of food safety related to the trade in meat products.
On December 14, the Ministry signed an agreement with CP Cambodia Co., Ltd. to promote the procurement of red corn, cassava, rice, bran and rice husks and other local raw materials for animal feed production. They will also collaborate on better food safety in the meat product trade.
Speaking at the signing ceremony, Minister of Commerce Cham Nimul emphasized that CP's participation in procuring agricultural products that are already produced in Cambodia will reduce the pressure of supply in the market, provide economic diversification and strengthen the competitiveness of Cambodian products.
She said the three MoUs will allow the purchase of about 250,000 tons of red corn per year, about 150,000 tons of cassava per year, about 20,000 tons of rice, about 50,000 tons of bran and sorghum and about 10,000 tons of rice husks per year.
She added that boosting feed production will boost productivity and reduce local production costs, while also increasing the supply capacity of local producers at competitive prices, providing extra profits for agricultural input.
The Minister of Commerce emphasized that these investments will create jobs and strengthen the value chain in a sustainable and cost-effective manner. She added that in addition to boosting domestically produced feed, it will boost productivity and reduce domestic production cost. She noted that when the cost of animal feed is affordable, it can help reduce the increase in feed prices
The MoUs show the cooperation between the government and the private sector, which is participating in implementing the first phase of the Pentagon strategy. The fifth priority of phase one seeks coordination and financing programs aimed at stabilizing retail prices of agricultural products to increase the productivity of farmers and reduce the risks that can cause agricultural products to flood the market and lower prices during the harvest season.
