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Lessons learnt from support programs to rubber smallholder plantations

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  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, 24th June, 2009

  2. History of Rubber Smallholder Plantations in Cambodia • By 1960’s, 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. History of Rubber Smallholder Plantations in Cambodia Cont. . . • 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.

  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 Smallholder’s Development Project

  7. 1- Certified budwood garden

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

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

  10. 2- Certified nursery

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

  12. The Rubber Smallholder’s Development Project (1999-2008) Access to good quality planting material Budwood Garden Young Budwood garden 4 years old of budwood garden Nursery 1 month after seeding 6 month after seeding

  13. 3 . FINANCING AND CREDIT

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

  15. Strong dynamic of smallholder and private rubber plantations

  16. Cambodian Rubber Plantations Areas in 2008 Note: (*) The 7 SORE’s 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 : • Privatization of the 7 SORE’s (completed early 2009) • 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 : • Technical support • Development of certified budwood gardens • 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).

  25. THANK YOU VERY MUCH FOR YOUR KIND ATTENTION