Hong Kong Firm And UNDP Sign Partnership In Cassava Sector
A new public-private partnership aims to improve the livelihoods of local cassava farmers by guaranteeing a market for their products through contract farming and by modernising the industry.
The United Nations Development Programme (UNDP) and Green Leader Holdings Group Limited, a Hong Kong-based investment holding firm, signed a cost-sharing agreement yesterday for the ‘Accelerate Inclusive Cassava Market Development’ project. The initiative aims to enhance cassava exports and will run for 3.5 years at an estimated cost of $800,000.
Under the agreement, Green Leader will contribute $500,000, while UNDP will provide $300,000. A primary objective of the project is to encourage more farmers to join contract farming schemes with Green Leader. These schemes promise to improve farmers’ livelihoods by guaranteeing a set price for their cassava.
Nick Beresford, UNDP’s country director, described the agreement as a milestone, reflecting both parties’ commitment to supporting governmental efforts to strengthen the cassava sector. He emphasized that the partnership would lead to a more valuable product and a robust supply chain.
Michael Tse, CEO of Green Leader, stated that the company is dedicated to advancing the sector's industrialization by setting up processing facilities across Cambodia. Their first plant, located in Snoul, Kratie province, began construction on April 1 and is expected to be operational by the end of the year.
Tse highlighted the importance of integrating farmers into their contract farming scheme to secure a reliable cassava supply for their factories. “By working closely with farmers, we can create a win-win situation where farmers gain the peace of mind that comes from having a guaranteed buyer,” he said. He also noted that the agreement with UNDP marks a significant step toward the sustainable development of cassava through a public-private partnership, aligning with the government’s national cassava strategy.
Commerce Minister Pan Sorasak praised the agreement as one of the year’s key achievements in the cassava sector, alongside drafting a national strategy for cassava. He noted that this project is Cambodia’s first public-private partnership initiative with shared expenses, combining private and public investment to maximize benefits for all stakeholders in the value chain.
“I firmly believe that this model will generate impactful results, setting an example that can be replicated and scaled up across the country,” he added.