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

majorpartnerships@worldvision.com.au

or your WVA representative