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CEDAC Social Enterprise

Social Themes

  • Food Access & Safety
  • Income Enhancement

Target Group

  • Impoverished
  • Rural
  • Urban

Environmental Themes

  • Sustainable Farming
Phnom Penh
CEDAC works with over 2,400 villages in 20 provinces and benefits more than 100,000 families. By growing organic rice farmers earn 80% more than they would by growing traditional rice. CEDAC continues to educate their farmer co-operatives not to use pesticide, which benefits the farmers health as well as the consumers of their rice. CEDAC promotes sustainable farming, which limits its impact on the environment.
Social Impact 
Anticipate to lift 20,000-30,000 rural Cambodian out of poverty
Anticipate an additional income of USD300 per year by trading with the company
Aniticipate to generate around 20 full time job opportunities, plus a number of jobs for farmers and field workers based in rural provinces
Financial Impact 
Anticipate to provide good returns by capitalizing on the rapidly growing demand for organic rice, the strong network of CEDAC, and the increasing purchasing power of the middle class in Cambodia
Environmental Impact 
Aniticipate agricultural production standards and quality will be improved
Anticipate rural health and sanitary conditions will be improved and the risk of diseases and infections will be lowered
Large Description Title 
Background and Business Description

The Cambodian Centre for Study and Development in Agriculture (CEDAC), based out of Phnom Penh is the biggest Cambodian NGO working on sustainable agriculture and rural development. They have been teaching farmer cooperatives the benefits of organic rice farming since 1997.  The process they teach is called System of Rice Intensification (SRI) which uses less water and eliminates the use of dangerous chemicals ultimately yielding better crops. SRI's method of rice production promotes more productive soil by allowing greater root growth and encouraging soil bio-dynamics. They have carefully built up a SRI process with their farmer co-operatives and created a strict Basic Organic Standard labelling which bodes well for domestic food security.  The practice of sustainable farming has brought health benefits to rural and urban communities, as well as reduced the impact on the environment.

 

At present, CEDAC works with about 2,400 rural families from five provinces involved in 400 agricultural producer groups which in turn have formed a network comprising 30 marketing co-operatives. Co-operative members follow CEDAC’s strict basic Organic Standard.  The farmer co-operatives are also marketing chicken, black pepper, and vegetables. The organic rice has been well received by Phnom Penh consumers and sales have grown rapidly; the company sold 450 tons in 2007 and projects to sell up to 2,400 tons in 2009. In Cambodia, the demand for organic rice is driven both by the boom in tourists and the hotels, as well a growing middle class and the regional demand due to 2008's rice shortages. 

Tapping the growing market for organic products and leveraging its nationwide rural network for sustainable agricultural products, CEDAC sees a strong need to become self-reliant by developing income sources from non-donor sources. In 2008 it set up and spun off a for-profit company, the CEDAC Social Enterprise (CSE), to engage in the trading of agricultural commodities and retail operations. CSE has been selling farmer produce and organic rice through its Natural Agri Product shop and opened a restaurant serving organic fried chicken in the capital city in the same year.  Results thus far for this venture have been encouraging.

CEDAC also completed construction on a community rice mill for farmers in 2008.  There is one in Takeo and another one in Kampot province. The rice mill gives confidence to farmers to increase their production, helps with logistics and allows stock taking thus farmers are less affected by price fluctuations. Currently, there are 241 farming families who benefit from the community rice mill. 

Partnerships 
Ministry of Agriculture, Forests and Fisheries
Global Institute For Tomorrow
Status 
Seek ways to strengthen the upstream stages of its supply chain
Need funding to create a rice trading company