The Cambodian Ministry of Commerce has urged the China-owned Long Wo Fruit Industry Co to carry out contract farming with more farmers’ associations or farmers directly, in order to ensure its processing capacity and supply chain can increase exports of a processed-mango.
During a working visit to inspect the company’s mango jam factory in Kandal province’s Ang Snuol district last Friday, Ministry of Commerce Seang Thai said the private sector and the state needed to join hands to tackle some challenges in promoting investment in mango processing.
“To ensure the investment goes smoothly, the company would need to carry out contract farming with the farming community or association to expand the capacity and build a supply chain,” he said.
Long Wo’s president, Lu Song, said that along with growing and reviewing its ability to expand further to Kampong Cham, his factory has been facing challenges such as a lack of raw materials.
There is also the problem of buying mangoes from farmers and a lack of stakeholder coordination, he said, adding that contract farming is one of the issues prioritised by his company as it directly affects his factory’s sustainability and export potential. However, he did not disclose the production capacity or amount of current exports.
Cambodia’s fresh mangoes have been approved by South Korean authorities to be exported into that country, while exports to the Chinese market may happen by the end of next year. Officials from the General Administration of Customs of the People’s Republic of China (GACC) arrived to assess the quality of Cambodian mangoes in late November.