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Oddar Meanchey, Cambodia
Rice banks
Project overview
• Strengthen the local community
• Increase the income and the food security in Oddar Meanchey
• Make the social enterprises profitable
• Increase the income and the food security in Oddar Meanchey
• Make the social enterprises profitable
Project description
The challenge
Small farmers in Cambodia are often so poor that they don’t have any sheltered place to store their harvest. In addition, while the harvest was growing they already had to borrow money to keep their head above water. The only thing these farmers can do is sell their harvest for a knockdown price. If the farmer and his family are starving, the farmer is even driven to buying back his own rice. At rates that can reach 300% of the starting price.
The changers
ICS made an initial investment in nine villages to support the communities in building rice banks. These banks are managed by the villagers themselves. Farmers sell their rice to the rice banks and when they need rice, they can buy it back at reasonable interest rates.
Small farmers in Cambodia are often so poor that they don’t have any sheltered place to store their harvest. In addition, while the harvest was growing they already had to borrow money to keep their head above water. The only thing these farmers can do is sell their harvest for a knockdown price. If the farmer and his family are starving, the farmer is even driven to buying back his own rice. At rates that can reach 300% of the starting price.
The changers
ICS made an initial investment in nine villages to support the communities in building rice banks. These banks are managed by the villagers themselves. Farmers sell their rice to the rice banks and when they need rice, they can buy it back at reasonable interest rates.
The change
With the interest they gain, the rice banks in Pou Thmei and Prasat Lbeuk have been able to increase their capital by one fourth. This profit is then invested in extra services for the local community. So that in the future they can also offer the farmers small loans, marketing assistance (through collective purchase and sales) and affordable agricultural products. In addition, the farmers are trained to gain optimum yield from their farming practices. The rice banks thus contribute greatly to the welfare and food security of the area.
A few results:
• 2,000 households use a rice bank
• Two rice banks are now making a profit
• With the profit, the rice bank in Pou Thmei has constructed a water purification plant for the community
With the interest they gain, the rice banks in Pou Thmei and Prasat Lbeuk have been able to increase their capital by one fourth. This profit is then invested in extra services for the local community. So that in the future they can also offer the farmers small loans, marketing assistance (through collective purchase and sales) and affordable agricultural products. In addition, the farmers are trained to gain optimum yield from their farming practices. The rice banks thus contribute greatly to the welfare and food security of the area.
A few results:
• 2,000 households use a rice bank
• Two rice banks are now making a profit
• With the profit, the rice bank in Pou Thmei has constructed a water purification plant for the community
