In the face of global economic upheaval, the Ministry of Agriculture, Forestry and Fisheries has reported an estimated $2.4 billion in agricultural exports for the first half of 2023. This calculation is based on the exporters’ invoice unit price.

Ministry spokeswoman Im Rachna confirmed that these export figures were accumulated from nearly four million tonnes of agricultural produce logged in the National Sanitary Database.

The haul comprised 329,633 tonnes of milled rice, 1,226,400 tonnes of paddy and a significant 2,345,180 tonnes of non-rice agricultural commodities.

Overall, however, these represented a 22.52 per cent dip compared to the corresponding period in 2022.

“The reduction in agricultural exports in the first half of 2023 is linked to the global economic crisis, which had led to a decrease in orders and disrupted trade flows,” explained Rachna.

She noted an increase in the domestic absorption of raw materials for the production and processing of animal feed, alongside an uptick in fresh produce for various processing methods.

“Uncertain market conditions and climate change’s impact on yields and crop quality have caused a decrease in some crop production,” she said.

Rachna also pointed out the issues surrounding unauthorised export, without the necessary phytosanitary certification, through Vietnamese and Thai corridors, where some transactions have not been documented.

The spokeswoman emphasised that the ministry is encouraging the private sector to search for additional purchasing partners and to invest in the agro-industry to ramp up productivity and stimulate exports of processed products.

“We aim to endorse Cambodian agricultural goods more widely at forums and exhibitions. Our objective is to draw investment, expand the market for our agricultural products and inspire the private sector to invest in local agricultural resources to decrease production costs,” she explained.

Rachna further asserted that the growth in agricultural processing is beneficial, as it helps to assimilate local raw materials, contributing to an increase in value added to the crop price chain.

“Although there is a slight downturn in agricultural exports to foreign markets, it does not affect producers or create a surplus problem in selling,” she affirmed.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC) and a notable figure in agriculture, corroborated on July 9 that export reduction could be attributed to several factors.

He noted the influence of harvest seasons and global inflation, particularly in countries like the US and some EU nations.

“The dip in exports is associated with the harvest season. Fewer harvests result in fewer exports. The other contributing factor is inflation in certain countries, reducing orders, albeit only for consumer goods, as food demand has remained relatively stable,” he observed.

Heng highlighted the need for Cambodia to increase investment in agriculture, particularly in processing agricultural products, to stimulate exports.

He stated that certain countries, including China, Japan, South Korea and Australia, are currently leading investors in the field of agriculture.