ADB and De Heus Sign Agreement to Support Cambodian Agricultural Supply Chains

The establishment of additional storage space and the acquisition of processing equipment will facilitate more effective feed production.

Cover Image Attribute: Image by Sasin Tipchai from Pixabay
Cover Image Attribute: Image by Sasin Tipchai from Pixabay 

The Asian Development Bank (ADB) and De Heus TMH Company Limited (DH-TMH) have collaborated to secure a loan of $15 million to bolster Cambodia's agricultural feed sector. This loan will assist in extending the storage and processing capacity of DH-TMH in the province of Kampong Speu. 

The establishment of additional storage space and the acquisition of processing equipment will facilitate more effective feed production. This will make it possible for the company to buy more local raw materials like maize, rice, and cassava from small and marginal farmers who are a part of its supply chain. This will enable the company to offer affordable and excellent quality feed for livestock and fish farmers. In addition, with this kind of investment, maize may be stored for longer durations, reducing the supply chain's reliance on climate-related risk.

"By supporting DH-TMH, we are helping to strengthen the feed value chain, improve livelihoods of feed crop, livestock, and fish farmers, and support sustainable and resilient agricultural practices," said ADB Country Director for Cambodia Jyotsana Varma. "Developing locally sourced, high-quality, and affordable animal feed supply is integral in safeguarding Cambodia's food security and reducing reliance on imported feed inputs."

"De Heus TMH is committed to empowering the independent farmers in Cambodia. The strategic cooperation agreement with ADB, in combination with our focus on training and knowledge sharing, with the motto' global knowledge­­—local impact', will support and accelerate the sustainable development of the Cambodian animal protein supply chain," said De Heus Asia Chief Executive Officer Gabor Fluit.

A technical assistance grant will support training for 2,000 maize farmers and 2,000 poultry farmers, the majority of whom will be women. The training will focus on climate-resilient farming methods and financial literacy. By assisting women farmers, one can improve their standing within their farms and increase their access to financing so they may grow their small-scale, home-based enterprises.

Through a partial guarantee arrangement, the Asian Development Fund 13 Private Sector Window (PSW) will lend its support to the transaction. The PSW encourages the growth of the private sector in frontier markets by providing grant resources to fund financial solutions that address and minimize the frequent financing limitations that stand in the way of many private sector transactions.



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IndraStra Global: ADB and De Heus Sign Agreement to Support Cambodian Agricultural Supply Chains
ADB and De Heus Sign Agreement to Support Cambodian Agricultural Supply Chains
The establishment of additional storage space and the acquisition of processing equipment will facilitate more effective feed production.
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