Battambang Rice Investment Company
56 (end of 2013)
Sector: Agribusiness, Aquaculture, Forestry
Year of investment 2009
Fund intermediary: Cambodia Laos Development Fund
Financial intermediary: Emerging Markets Investment
SIFEM investment into fund: USD 3.5m
The situation in Cambodia
- More than 80% of Cambodia’s population are farmers and rice is grown on over 90% of the currently cropped area.
- The Royal Government of Cambodia has a focus on rice processing as a strategic sector to drive economic growth and poverty alleviation, creating an opportunity for both commercial and social impact. There is currently a lack of international standard operators in the sector.
- Cambodia produced 9.31 million tons of paddy rice in 2012. After local consumption, about 3 million tons was left over, but not all was able to be milled for export. A high quality, international standard rice mill would make increased export possible.
- Traditionally, Cambodia exports a large proportion of its unprocessed rice crop to Vietnam and Thailand, where it is milled and often re-exported. By improving the domestic agriculture infrastructures, Cambodia is able to increase its share of profit and export its own product.
- Approximately one-third of Cambodia’s population lives below the international poverty line. Increased jobs and increased exports leads to increased GDP, supporting poverty alleviation.
Development effects in a nutshell
- The mill can process 15 tons of rice per hour, and BRICo is planning to export 30,000 tons each year.
- From the outset, the company has focused on applying international standards and best practices for good corporate governance, and operational and quality compliance.
- The company is able to extend its export reach further by applying international standards. It serves both international and domestic markets with premium and middle-market rice.
- BRICo employed 56 people as of the end of 2013. This is expected to continue to grow as the rice mill increases its operations.
- BRICo is currently executing its plan to purchase a rice paddy which will allow it to host a farmer contract farming base model. It would allow education, training and hands-on experience as part of the crop-growing process while at the same time creating profit both for the company as well as the famers and local community.
- In the longer term, the company will focus on the development of a farmer network and its by-products such as rice husk and bran, to optimize the use of available resources and wastage.
Data as per 2014
Obviam has made reasonable efforts to ensure the accuracy of the data presented. A case study is made possible both through Obviam’s first-hand experience and/or the information provided by Obviam’s investment partners. Data is valid as per the date recorded.