Minister of Agriculture, Forestry and Fisheries Dith Tina aims to promote cooperation between local farmers in northern Takeo province’s Bati district and the owners of Kirisu Dairy Farm, saying he foresees great potential in such a venture.
Tina encouraged people living around the farm – located near the Phnom Tamao Zoological Park and Wildlife Rescue Centre, just outside the capital – to grow Mombasa grass and sell it to the company, Khmer Fresh Milk Co Ltd, for use as cattle feed.
“There are excellent potential profits to be made from doing so, but I have observed that some farmers appear to lack the confidence to invest in doing business with this large company,” he said.
The minister visited the Kirisu farm in Kandoeng commune’s Opheasaing village on February 24 and learned about the process of producing milk using the latest technology.
“This modern farm cannot function on its own. Many in this area farm in a very traditional way, but I believe they have the potential to diversify and support one another,” he said.
“Kirisu has invested heavily in many large projects, but faces challenges related to water demand and land requirements if it wants to expand its herd,” he added.
The company began by importing about 500 Holstein heifers from Australia and has been running for four years since its establishment and the first drop of milk.
The herd has grown to almost 1,000 cows, which produce about 10,000l of milk per day. The milk is used to produce plain, chocolate, and barista milk, as well as several flavours of yoghurt, and now provides 15 per cent of the Kingdom’s daily dairy consumption.
“We have 500-600 cows that are milked daily, with the others still growing or being rotated through the milking schedule. In the future, we hope to produce many more products,” said Chy Sila, co-founder of Khmer Fresh Milk.
“Recently, we began producing butter and cream, and some of our milk is sold to cheese makers,” he added.
Although the farm has 300ha of concession land, it lacks the capacity to expand.
Tina said he had identified an opportunity for farmers to contribute to the expansion of a vital food production chain. Farmers could convert their paddy fields to grassland and sign contracts to supply the large dairy farm.
“The farm does not need more land to keep dairy cows on, but land which can produce cattle feed. The ideal land would be close to the farm and have an excellent water supply, so local rice fields would be ideal,” he added.
“I don’t want people to think I am supporting Kirisu because it is a large company. They are supplying nutritious milk to Cambodian children, helping their bones to grow strong,” he continued.
He said that with a reliable supply of cattle, the farm could support two or three thousand head of cattle.
He wanted to find a win-win solution to the problem, so that farmers in the surrounding area would also benefit from the company’s investment.
“The important part is building farmer’s confidence. I will work on it, and the ministry will facilitate the transition. We will make sure that the contracts are mutually beneficial, and that farmers will not lose their land or be taken advantage of. It will take some time to switch from traditional crops, and we will have to work out several details. We will also need to calculate exactly how much they will earn,” he said.
He explained that although some farmers found it hard to believe, sometimes growing grass was more productive than farming crops.
“Although grass sells for less than rice, it can be harvested up to six times a year, whereas rice might produce just two crops in the same time. Once planted, grass can be harvested for as long as five years,” he said.
“Cooperation with local farmers is imperative if we want to expand our herd,” said Sila.
“Each hectare could yield four to five hundred tonnes of grass per year, with current prices ranging from $20 to $30 per tonne. Our company will provide technical assistance to the farmers. Mombasa grass is easy to grow, and only requires water and fertiliser. Farmers could be harvesting it in as little as 60 days,” he added.
Sila met with families from the Prey Kabbas farming cooperative, which is about 20km from the dairy operation, an ideal distance.
Prey Kabbas district agriculture office director Ouk Sokha had not heard about Kirisu’s plans, but acknowledged that few people would agree to clear their paddy fields if they were still able to harvest rice two to three times per year.
“However, I welcome any cooperation that will help smallholder farmers,” he told The Post.
Tina reiterated the agriculture ministry’s readiness to facilitate contracts and build the trust of local farmers.
“This could be an excellent opportunity for the farmers, but they need to be confident in the idea. I am working to develop their faith in the concept,” he said.