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Lessons learnt from support programs to rubber smallholder plantations Panel 1: Rubber smallholder plantations dynamics and policies to support them HE.

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Presentation on theme: "Lessons learnt from support programs to rubber smallholder plantations Panel 1: Rubber smallholder plantations dynamics and policies to support them HE."— Presentation transcript:

1 Lessons learnt from support programs to rubber smallholder plantations Panel 1: Rubber smallholder plantations dynamics and policies to support them HE LY PHALLA, General Director General Directorate of Rubber Regional Conference Cambodiana Hotel, 24 th June, 2009

2 History of Rubber Smallholder Plantations in Cambodia By 1960s, spontaneous plantations have been set up on the edge of industrial scale plantation estates in order to ensure outlets and to limit transport costs. New smallholders plantations were set up from 1990, with neither any real technical assistance nor financial support. In 1999, beginning of the Rubber Smallholders Development project or also called Pilot Project funded by AFD

3 In August 2000, the RGC announced a national policy to promote the family-scale rubber plantation which would insure livelihood security, land tenure, and technical assistance. In 2004, the Rectangular Strategy of the Royal Government is to improve the agricultural sector activities including the promotion of rubber smallholder development. Since 2004, the areas of smallholder and private plantations are growing rapidly owing to largely spontaneous process. History of Rubber Smallholder Plantations in Cambodia Cont...

4 Project to support Rubber Smallholder Plantations Supported by AFD from 1999 to 2008 for an amount of 10 MUSD Objectives: test on significant scale (500 ha/year) the best technical, institutional and financial answers to the successful development of rubber smallholders. Result: 4,000 ha assisted by 1,300 families (around 3 ha/family)

5 Project to support Rubber Smallholder Plantations 3 main directions for the farmers support: Technical support – monitoring during immature period and tapping training on new mature trees – access to input with a good quality of planting material Official Land titling Long term credit

6 Rubber Smallholders Development Project Historical Rubber Areas Smallholder Rubber Project

7 1- Certified budwood garden

8 Budded Polybags with certified clones. Chemical fertilizer. Fungicide. Petrolatum (plant protect after cut back). Technical advice. PROJECT Provide Acceptable land. Pump and irrigation system. Fuel. Labor and management. Maintenance. Small equipments and tools. Responsible Contract for 3 to 5 years BUDWOODS OWNER 1- Certified budwood garden

9 Budwood gardens network in Kg. Cham Province Total number of stumps is 65 439 3998 stumps 16485 stumps 8120 stumps 6551 stumps 7512 stumps 4590 stumps 4036 stumps 7861 stumps 6286 stumps

10 2- Certified nursery

11 Polybags of good quality. Fertilizer (chemical + natural). Hevea seeds. Fungicide and pesticide. Certified Budwood. Grafters team. Technical Advice. PROJECT NURSERYS OWNER Acceptable land. Water pump and irrigation system. Fuel (ex. D.O.) Labor and management. Maintenance. Small equipments and tools. Provide Responsible Contract for 1 production cycle 2- Certified nursery

12 The Rubber Smallholders Development Project (1999-2008) Access to good quality planting material 1 month after seeding 6 month after seeding Young Budwood garden4 years old of budwood garden Budwood Garden Nursery


14 Ministry of Economy and Finance AFD Rural Development Bank Rubber Smallholder Project Land Title Farmers (Rubber Plantations) Contract Ministry of Agriculture Rubber Smallholders Development Project Gret

15 Strong dynamic of smallholder and private rubber plantations

16 Cambodian Rubber Plantations Areas in 2008 NoRubber Plantations Areas (Ha) TappingReplantingNew PlantingTotal% IPrivate Estates *20,63321,4603,37745,47041.95 IIEco. Land Concession008,305 7.66 IIIRubber Smallholders13,04490440,66954,61750.39 Total33,67722,36452,351108,392100 Note: (*) The 7 SOREs are sold to the Private (local & Foreign) Companies Source: GDR May 2009

17 Policies

18 Sector policy Rubber sector changed drastically these last few years with : 1.Privatization of the 7 SOREs (completed early 2009) 2.Important development of small and medium private rubber plantations (> 10,000 ha/y) A draft sector policy has been developed and is under discussion at MAFF level The sector policy on smallholder is based on the lessons learned from AFD support project

19 Policy orientation Set up a new and autonomous coordination body (Rubber Board) in charge to support smallholder rubber plantations for : 1.Technical support 2.Development of certified budwood gardens 3.Support a long term credit mechanism Funding through a new mechanism based on specific tax on rubber production/exportation. For a transitional phase, creation of the Office of Rubber Smallholder Plantations within GDR.

20 Access to planting material Planting material are provided by private nurseries: –5 ha of nurseries supported by AFD Project, and 40ha developed by private sector, controlled by GDR, provide good quality planting materials for around new 4,500 ha/y –Other new plantations got planting materials from various sources (from neighboring countries) without any quality control. Need for a certification process implemented by GDR & CRRI

21 Access to technical advices Currently provided by GDR through 2 technicians based in Kg. Cham (Memot and Chamcar Leu) supported by a team at central level. GDR is working closely with the 4 existing Rubber Smallholder Associations to provide technical advices to planters, and to organize trainings.

22 Access to credit Existing credit line at Rural Development Bank (RDB) supported by AFD project –Direct support to planters with an on-going credit lines set up during AFD project –Short term credit to rubber smallholder associations to support the procurement of fertilizers. Need for additional fund to extend the credit line for new planters

23 Access to land Crucial issue Land issue is impacted by the recent past history: –All land belongs to State unless a new land title has been issued –Forest land is huge (>80% in areas for rubber development) with unclear demarcation Long process to secure land title if needed as a prerequisite for a long term credit. Need to adjust Land law to support rubber smallholder plantations

24 Access to information GDR is preparing the support to inform the rubber stakeholders on the relevant technical expertise (planting, tapping, harvesting, maladies control,…) as well as marketing, prices trend, production and consumption of NR and SR in the world (more specifically the situation of NR in SE Asia).


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