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Sustainable Business Development Project CAMBODIA
ECONOMIC DEVELOPMENT
Project Brief FY 2016
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Eighty percent of Cambodians live in rural areas, but their agricultural productivity is
hampered by lack of skills in sustainable agriculture and small business. By supporting
this project you will assist in enhancing the business skills and potential of agricultural
cooperatives – creating sustainable business processes which increase household
income and contribute to the wellbeing of Cambodian families and their children.
Background
Ranked 138 of 184 on the United Nations Human
Development Index, Cambodia faces many
development challenges, including in the areas of
health, education and economic development.
With 80 percent of Cambodia’s 13.4 million
people living in rural areas, there is a pressing
need for the country’s farmers to maximise their
crop yields and diversify their income streams, in
order to improve their livelihoods and their
children’s nutrition.
However, many farmers lack knowledge and skills
in modern agricultural and small business
practices which would enable them to enhance
their livelihoods. This limitation poses
fundamental barriers to effective business
development in Cambodia’s agricultural sector.
Project overview
Through its work in the capital Phnom Penh as
well as in 48 districts within nine provinces across
Cambodia – Kandal, Takeo, Kampong Chhnang,
Battambang, Kampong Thom, Siem Reap, Banteay
Meanchey Palin and Preah Vihear – the project
seeks to increase incomes and the long-term
viability of farmers’ businesses by strengthening
agricultural business practices in community
cooperatives.
The project will expand on World Vision’s
recently completed Agricultural Cooperative for
Sustainable Economic Development pilot project,
which partnered with the Government of
Cambodia to strengthen 39 existing Agricultural
Cooperatives in order to maximise production,
increase incomes and improve the livelihoods of
farmer families. In addition, another 29
cooperatives replicated the pilot as it was being
implemented.
The project will establish and strengthen 128 new
Agricultural Cooperatives (ACs) and provide
them with training to improve (I) management of
the cooperatives, (2) farm business practices and
(3) their access to markets in order to better
their livelihoods. The skills of the 68 existing ACs
will also be strengthened according to their
particular need.
By supporting cooperatives to enhance their
business skills, farming knowledge and negotiating
power, the project aims to help farmers increase
their productivity, diversify their agribusinesses,
thus increasing income to give their families,
especially their children, a better quality of life.
You can help increase the ability of farmers to generate enough food and income to
support their families – giving their children a brighter future.
$10,000 can help 95 farmers register
new Agricultural Cooperatives,
increasing their income and ability to
provide for their children’s needs.
Front cover: Agricultural cooperatives help
communities grow more food for their families.
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Furthermore, each cooperative establishes a social
welfare fund to support the most vulnerable
members of the community, and all community
members can seek small low-interest loans from
the cooperatives.
Project goal
To enhance the business skills and potential of
Agricultural Cooperatives (ACs) to generate
sustainable incomes, in order to support their
families and give their children a brighter
future.
Key outcomes
Increased capacity of ACs to self-manage and
improve their own business and market
access.
Increased saving behaviour among cooperative
members.
Increased and expanded business models and
practices of cooperatives.
Business skills of cooperatives are
strengthened.
Project activities
Create and register ACs and strengthen and
network existing ones.
Provide cooperatives with training on group
governance, management and operations,
financial literacy, partnering and negotiation.
Promote, strengthen and up-skill savings
groups to maximise capital and create savings
for future individual, household or community
needs.
Work with cooperatives to improve farmers’
business strategies and identify potential for
growth, including linkages to markets and
value chain analysis.
Link cooperatives to business partners, buyers
and suppliers in order to improve their
business networks, increase profit margins
and ease their access to markets.
Support cooperatives to work collectively to
improve the local business environment by
promoting their participation in business
forums and community business meetings.
Recent achievements
Improved the business practices of 92 ACs
with 16,316 members. This benefitted a total
of 65,264 people.
Three newly registered ACs commenced
savings groups.
22 ACs started operating a business, 52
operate two businesses, 11 have three
businesses, two have four businesses and two
operate five businesses.
The total capital held by the 92 ACs reached
AUD 1,445,604.
37 ACs implemented business plans and 44
ACs applied the Ministry of Agriculture’s
bookkeeping standards.
AMRU Rice Corporation and the Centre for
Organic Development confirmed their
commitment to expand contracts with 10
ACs for 1,000 -1,500 metric tonnes of organic
rice, which will be commercially exported.
12 ACs increased investment in the health
and education of children in their
communities – 2,415 children received direct
benefits such as payment of school fees and
materials, and the poorest families received
support for medical expenses.
Beneficiaries
The project will directly benefit 24,480 families
living in disadvantaged rural communities across
Cambodia.
Project length: October 2014 – September 2019
Agricultural cooperatives help communities
grow more food for their families.
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Gender and disability approaches
Although both men and women are involved in
agricultural activities in Cambodia, women still
struggle to participate equally in decision-making
and leadership.
The project promotes gender equality by creating
opportunities for women and men in key
positions. Women are often selected by their
own communities to act as treasurer and hold
community funds, and in the important decision-
making and coordination role of Secretary of the
cooperatives and savings groups. Increasingly
women are leading the cooperatives as their skills
are recognised by their communities. By taking
up these roles, women are being seen as
responsible and accountable community
members, which in turn is changing men’s
attitude towards them.
Community members with a disability are among
the most economically disadvantaged because
they are often discriminated against and
marginalised, leaving them with little opportunity
to participate in income-generating activities on
an equal footing with their neighbours.
By actively encouraging their participation in
project activities, including membership in the
steering committees of cooperatives, the project
gives people with a disability an equal chance to
participate in decision-making, to benefit from its
outcomes and to change the community’s
perceptions of disability.
Project sustainability
Through partnership with community groups and
agricultural cooperatives, the project will build
the ability of the community to establish and
maintain productive local businesses.
As with all World Vision projects, community
ownership of project activities is paramount. By
building on skills such as organisational
management, financial literacy, leadership and
project management, community members will
be well equipped to continue to grow their
businesses once World Vision transitions from
the area.
From student to teacher
“I am able to send all my children to a good school,”
says father of four Sao proudly. “I have [also] bought
a machine for farming and a motorcycle for family
transportation and to bring my children to school.”
Like many families in the area, Sao’s household
income has improved since joining a World Vision-
supported agricultural cooperative.
He has learnt all sorts of new farming techniques,
along with small business skills, such as bookkeeping.
In 2012, his dedication saw him elected as the leader
of his agricultural cooperative.
These days, in between activities such as helping to
organise monthly meetings and the Annual General
Meeting, he also helps train other agricultural
cooperatives in bookkeeping.
So far, he has trained over 15 agricultural
cooperatives in Battambang and Kampong Chhnang
provinces. Despite this being time-consuming he says,
“I never count how much time I spend … I always do
my best because it is a way to help my community.”
Sao has big dreams for how cooperatives can make a
difference for the people in his community. “My vision
is to see my agricultural cooperative fully functioning
and helping members to improve their economic
situations.”
An agricultural co-op meeting.
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Project evaluation and reporting
Transparency is at the core of our programs and
their delivery, particularly where trust and
transparency in communities is essential to make
a cooperative function. Through monitoring and
evaluation, we strategically assess the level of
change achieved in the communities in which we
work.
All of World Vision’s projects are assessed at
regular intervals against implementation plans,
budgets and progress towards their objectives.
Evaluations help us identify what works and why,
and are therefore a critical part of our
programming approach.
Our partners will receive an annual project report
outlining progress against key outcomes and
activities undertaken. Project challenges and
adjustments will be communicated. Project images
and case studies are also often available.
ANCP initiative
The Australian Government, through the
Department of Foreign Affairs and Trade (DFAT),
provides funding to World Vision Australia to
implement international development projects
through a program called the Australian Non-
Government Organisation Cooperation Program
(ANCP).
DFAT provides funding for this program on a 5:1
basis. That is, for every $5 that DFAT provides,
World Vision Australia must contribute $1. The
Sustainable Business Development Project is part
of the ANCP.
Funding
We invite you to consider partnering with World
Vision Australia as we seek to fund $975,000* in
FY16 from donors to support this project.
*Estimated as at time of printing and subject to change.
Join us
Join World Vision Australia and its partners to
support agricultural cooperatives that are helping
to improve business activity and incomes for
families in Cambodia.
Contact us
World Vision Australia
Tel: 1300 303 401
or your WVA representative