Legal Document

Exports boosted as snack manufacturer signs deals

Sok Chan / Khmer Times, June 26, 2020,

Japanese-Cambodian snack manufacturer LyLy-Kameda yesterday signed a contract farming deal on purchase, sale and distribution with several agricultural producers, suppliers and  crop distributors.

Keo Mom, chairwoman of the LyLy Kameda, said that so far her company has exported the snack products to 13 countries. She added that every year, the company uses 4,000 tonnes of raw materials from agriculture products such as corn, rice and cassava to produce crackers.

“Seeing the potential of the company as well as the Cambodia rice brand renowned across the world, her company has attracted Japanese firm Kameda to join a business venture to produce the rice and other crackers and snacks to supplying the local market and export to Australia, Japan and New Zealand and other countries,” Mom said.

Speaking at the contract farming signing ceremony, Agriculture Minister Veng Sakhon, welcomed the move. He said that this success would not happen if there was no cooperation from all relevant stakeholders.

Sakhon said that the contract farming on supplying the agriculture products to the factory will have financial potential because it could create added-value for the agriculture product given the company will use raw materials to process the finished products.

He said it also has potential and competitiveness for the export market especially by boosting productivity by using local raw materials and reducing imported products as well as generating more jobs for farmers.

“The participation of the private sector has bolstered the agriculture sector through a commercialisation drive and the development of the agro-industry, which is promoting  added-value to the agriculture produces, maintaining sustainable production and contributing to the government’s Industrial Development Policy 2015-2025 to achieve 12 percent of processed agriculture products of export volume by 2025,” he added.Sakhon added that the in the light of the outbreak of COVID-19, to release the burden of the local small and medium enterprises (SMEs), the government has been putting much effort and offered incentives to them by improving and strengthening the investment environment in order to help these sectors to absorb more jobs and generate revenue and use raw materials for agriculture products.“The contract farming between Ly Ly Kameda and other agriculture product suppliers has reflected government efforts to promote the Public, Private, Development Partner and Community Partnership,” Sakhon added. “Last year, the private sector signed the 498 contracts with the agro-industry department of the agriculture ministry. During the first six months of this year, the Ministry of Agriculture has signed 516 farming contracts,” he added.

source: https://www.khmertimeskh.com/50738448/exports-boosted-as-snack-manufacturer-signs-deals/