Safeguarding income for small-scale farmers is the main objective of DEG’s investment in Cambodia.
Photo: © nalin a /

DEG invests in rice mill in Cambodia

DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH is investing in improving rice production in Cambodia, the aim being to expand a rice mill and thus safeguard the income of small-scale farmers in southern Cambodia.

The Deutsche Investitions- und Entwicklungsgesellschaft mbH  (DEG) is investing in rice production in the future market of Cambodia, and providing a quasi-equity loan amounting to USD 15 million to Angkor Kasekam Roongroeng Co. LtD (AKR), to expand a rice mill. The Cambodian family-owned company set up in 2000 purchases paddy rice from local farmers, before processing and trading it.

According to a press-release by the DEG, the rice mill specialises in the production of high-quality fragrant rice and owns a modern rice mill which can process up to 250,000 tonnes of rice per annum. The planned investments should help to exploit this capacity even better in the future, and increase the added value. Above and beyond this, the company is extending its drying and warehousing capacities. The total investment volume for the project amounts to USD 22 million.AKR purchases the husked rice from tens of thousands of farmers under contract located in four provinces in southern Cambodia. According to DEG, premium rice, which is growing in popularity, makes up around 35 per cent of the production, and it is planned to increase this share.

The rice husks produced during processing are used by the company's subsidiary, Angkor Bio Cogen, to generate renewable energy. This makes it the first project in the framework of the Clean Development Mechanism (CDM) Cambodia, which aims to reduce climate-damaging emissions, says DEG.
In addition to the investment financing, DEG is offering the company accompanying measures, for example in the context of cooperation with farmers or for introducing organic types of rice.
DEG notes in the press release that financing companies in future markets such as Cambodia is a strategic priority of DEG, a subsidiary of the KfW Group. In 2014 alone, it provided finance totalling EUR 855 million to facilitate progress and provide prospects for local populations in Africa and other future markets.


For more information:Angkor Kasekam Roongroeng Co. Ltd (AKR)



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