Phnom Penh (VNA) - The Asian Development Bank (ADB) has approved a 70 million USD in loan to improve the capacity of agribusinesses in six provinces across Cambodia to process key agricultural products.

In a press release, the lender said that the Agricultural Value Chain Competitiveness and Safety Enhancement Project aims to benefit about 230 agricultural cooperatives and 50 agribusinesses in Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap and Tbong Khmum provinces.

ADB principal natural resources and agriculture economist Ueda Takeshi said agriculture can contribute to Cambodia’s economic growth and diversification if local small- and medium-sized agribusinesses can improve their abilities to process high-value agricultural products and market them domestically and overseas.

Private investment in agriculture, along with better access to credit and high-quality raw materials, will help Cambodian agribusinesses unleash their growth potential, create jobs and improve rural livelihoods, he said.

With 76 percent of Cambodia’s population living in rural areas, agriculture accounted for 20.7 percent of gross domestic product and 31.2 percent of total employment last year. The industry grew an average of 1.7 percent annually from 2010 to last year.

The COVID-19 pandemic has disrupted supply chains and reduced incomes and market opportunities for farmers and agribusinesses, according to the ADB.

It said the project will enhance access to credit for the industries. Additionally, it will support initiatives to strengthen food safety and quality across the value chains for cassava, cashew nut, mango, vegetables and free-range poultry.

Support for research and development of crop varieties will help agricultural cooperatives access high-yield, drought and disease-resistant seeds, the ADB said. 

Infrastructure projects will revamp 110km of rural roads, helping connect producers to markets./.