The European Union (EU) is investing nearly $87 million to modernize Cambodia’s agricultural sector and improve farmers’ access to domestic and international markets. This investment is expected to benefit hundreds of thousands of farmers and agricultural enterprises, particularly in rural communities.
On Friday, the European Investment Bank (EIB) and Ministry of Economy and Finance (MEF) signed an agreement for a $16.3 million EU grant to support the Agriculture Services Programme for an Inclusive Rural Economy and Agricultural Trade (ASPIRE-AT). The six-year program, running from 2025 to 2030, aims to equip farmers and agribusinesses with tools and infrastructure to increase production, expand markets, and improve food safety.
The EU-backed investment package consists of multiple funding sources, including a $65 million loan from EIB Global and $4.9 million from the EU for technical assistance. Additionally, the International Fund for Agricultural Development (IFAD), a United Nations agency focused on rural development, is co-financing the program with $49 million.
The program includes upgrades to the National Agricultural Laboratory in Kandal province, as well as improvements to research centers, laboratories, and quarantine stations in Phnom Penh, Kampong Speu, Battambang, Svay Rieng, and Stung Treng. Additionally, the initiative will fund the construction of Kandal’s Koh Khsach Tonlea bridge, aimed at improving transportation and market access for farmers.
EIB Vice-President Nicola Beer said that the investment is expected to directly benefit 100,000 smallholder farmers, 25,000 land-poor households, and 500 agricultural enterprises.
“With this financing, we are helping the government strengthen food security, increase farmers’ incomes, and open up new market opportunities for Cambodian products,” EIB Vice-President Nicola Beer stated in a press release.
During a press conference, in response to CamboJA News’ question on ensuring stable market prices, she explained that while the initiative does not directly control prices, it improves market value by strengthening infrastructure, business partnerships, and market access.
“When it comes to exports, if you produce at the highest international standards, you can access the European and neighboring markets,” she said. “If your products are certified by a laboratory and processed at a high technical level, they gain added value within the country, allowing farmers to earn higher prices.”
Von David, a pepper farmer in Tbong Khmum, welcomed the investment but questioned the types of grants and quality standards available, as well as whether support would extend to small-scale farmers and associations. He stressed the need for a Ministry of Agriculture focal point to provide price updates and facilitate laboratory testing.
“In the past, when companies bought pepper at a high price, they first sent it for testing—but farmers had to cover the cost themselves,” he said.
David noted that pepper prices had been improving over the past two years after a sharp decline. Previously, the price was around $2.5 per kilogram, but it has now risen to around $6.5.
Nok Bunthorn, president of the Cambodian Cashew Association Kampong Thom branch, also supported the initiative, saying quality testing would help farmers negotiate better prices. Currently, cashew farmers sell to middlemen for export to Vietnam without certification, leaving them vulnerable to price fluctuations. He noted that while prices have been stable this year, small-scale farmers still lack access to quality testing, limiting their market opportunities.
Neither Im Rachna nor Khim Finan, spokespersons for the Ministry of Agriculture, responded to requests for comment.
EU Ambassador to Cambodia Igor Driesmans said in terms of agricultural production related to both the laboratory and production, the EU has not identified specific crops in detail. However, they are focusing on two key crops—cashew and pepper. The EU is collaborating with the Ministry of Agriculture, Forestry and Fisheries and local communities to enhance the processing of these crops, ensuring greater added value.
“Together, we are helping the sector to become more inclusive and resilient, benefiting all Cambodians, especially those in rural communities,” he stated.
Minister of Economy and Finance Aun Pornmoniroth expressed gratitude to the EIB, EU, and IFAD for their support in designing and preparing the ASPIRE-AT program. He added that the investment aligns with Cambodia’s long-term development goals of achieving upper-middle-income status by 2030 and high-income status by 2050.
