Cambodia signed a Memorandum of Understanding (MoU) on Agricultural Development with a Chinese company from east China’s Shandong province on Wednesday [19 October 2016]. The deal was inked between Veng Sakhon, Cambodian Minister of Agriculture, Forestry and Fishery, and Shen Chen, chairman of Tian Rui (Cambodia) Agricultural Cooperation Special Economic Zone…Full Article: Xinhua Oct 2016

Key Point

  • As a result of the MoU, China plans to invest approximately US$2 billion on creating a Special Economic Zone (~300 hectares) in western Kampong Speu Province, Cambodia. The SEZ will have a processing and packaging factory, as well as storage facilities.

ChinaAg Comments

  • In September 2016, China agreed to import 200,000 MTs of Cambodian rice (from the 2016 to 2017 season). An increase from the previous amount of 100,000 MTs.
  • In May 2016, China Huanqiu Contracting and Engineering Corp and Cambodian Petrochemical Company signed a MoU to construct a chemical fertilizer plant in Sihanoukville Province, Cambodia. According to a representative of Cambodian Petrochemical Company, both companies are contemplating building a fertilizer factory that will process oil refinery waste into fertilizer ingredients. The factory could potentially have a production capacity of 800,000 MTs per year.
  • In May 2016, it was reported that the Chinese city of Quanzhou, Fujian Province, was looking to be an import hub for Cambodian rice. The city had already established an agriculture cooperation office in Cambodia.
  • In April 2016, a Chinese owned (Rui Feng International) sugar mill opened in Preah Vihear Province, northern Cambodia. At the same time, according to Cambodia’s Industry Minister, factories will be built in 2017 that will eventually produce 50,000 MTs of ethanol (for export to China) and 100,000 MTs of organic fertilizers.
  • In December 2015, China set a deadline (end of 2015) for Cambodia to submit a list of all its rice exporters so that they may carry out quality control inspections. China was reportedly concerned that not all of the 71 registered Cambodian rice exporters met its quality control and hygienic standards.
  • In April 2015, China announced plans to increase its imports of Cambodian bananas, mango and soybeans.
  • In December 2014, Chinese and Cambodian companies reached numerous agricultural agreements. The deals included China purchasing 200,000 MTs of cassava chips (~US49 million) and 30,000 MTs of milled rice from Cambodia’s Mekong Oryza Trading company. In addition, China’s Fuzhou Newgroup Industry agreed to distribute beer from Cambodia’s Khmer Brewery Ltd. (for one year) throughout the mainland.
  • In 2014, a Shanghai businessman founded Run Hao Modern Farming (Cambodia) Development in Siem Reap Province, Cambodia, to breed and sell crocodiles. As of 2016, the company had 5,000 crocodiles. Also in 2014, another Chinese founded Wan Hexing Farming (Cambodia) Development after buying 1,200 ha of cropland (including 100 ha of rice paddy). According to the Deputy General Manager of Wan Hexing Farming, their 100 ha of rice paddy has a yield of 4.5 MTs per ha, while Cambodia as a whole averages just 3 MTs per ha.
  • In December 2013, China’s Yunnan province donated 200 agricultural engines to Banteay Meanchey province, northwestern Cambodia.
  • In January 2013, China’s Guangxi region donated 100 MTs of milled rice (humanitarian aid) to Cambodia.

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