Kampong Chhnang (27 Oct 2012) – Three new Agricultural Cooperatives (ACs) in Sameakki Meanchey and Tuek Phos districts of Kampong Chhnang province set to launch their business today after receiving licenses from the Ministry of Agriculture, Fishery and Forestry.
The Cooperatives, named Chhean Laeung Chamroeun Phal Agricultural Cooperative, Svay Chuk Meanchey Satrey Akphivoadth Agricultural Cooperative in Sameakki Meanchey and Chieb Santepheap Satrey Khlahan Agricultural Cooperative in Tuek Phos, were set up after several months of preparation under the support of Life With Dignity (LWD) in close collaboration with the Department of Agriculture in Kampong Chhnang.
In his opening speech, Executive Director of LWD Dr Sam Inn said that supporting the AC is a focus of LWD’s agriculture program which has two main objectives— to empower farmers to work together and connect better to the market and to understand well about market and make right decision for investment.
“Through the ‘Women: Hope and Growth Project’ supported by Finn Church Aid (FCA), women empowerment is also integrated in ACs which encourage women to be their members and increase the participation of women in the leadership structure,” he said, adding that women empowerment was crucial for social development including reducing domestic violence, improving livelihood and family harmony.
Ms Anu Riikonen, FCA Regional Representative for Asia, said the Agricultural Cooperative was a self-financing, democratically controlled by registered a Community-Based Organization.
“The ACs will operate to assist their members to improve agribusiness, so that they can improve their livelihoods and also contribute to socio-economic enhancement. Income generation from agricultural product is often limited by lack of market information and market power,” she said, adding that most farmers, especially women, depended on middlemen for market information and got lower prices for their products.
“Experience has shown that Agricultural Cooperative has played an important role in keeping storage of agricultural products during the harvesting time and to do collective marketing. They also help vulnerable household groups to access agricultural inputs at cheaper prices through collective procurement,” she said.
In his speech, H.E Chan Sarun, Minister of Ministry of Agriculture, Forestry and Fishery, highly appreciated the support of LWD to set up these ACs.
He called for all development partners to continue their support and strengthen the AC structure to be an agri-business enterprise that could improve food security to fight hunger and stabilize incomes of the community and the country as a whole in a sustainable manner.
“To make this happens, we also need capacity building for AC staff such as technical skills, leadership skills, business planning skills, and market access skills,” he said.
To become a members of each AC, each farmer is required to pay membership fee of 5,000 Riel (US$1.25) and buy at least one share worth 10,000 Riel ( US$2.50), according to their by law and AC Royal Decree. Each member can own a maximum of 30 shares.
Chhean Laeung Chamroeun Phal in Sameakki Meanchey comprised 168 members and 424 shares worth 4,240,000 riels ($1,060). Svay Chuk Meanchey Satrey Akphivoadth in the same district was consisted of 178 members and 498 shares worth 4,980,000 reils ($1,245). Chieb Santepheap Satrey Khlahan in Tuek Phos comprised 237 members and 421 shares worth 4,210,000 riels ($1,052).
To further support the functioning of the ACs, FCA granted 28,000,000 Riel ($7,000) to each AC. Since 2009, 11 ACs were established in Kampong Chnnang under the support of LWF/LWD.
For more information, please, contact Leak Ratna (Mr.), LWD Communication Coordinator | E-mail:ratna@lwd.org.kh | Phone: 012 819 121