On November 13, 2021, at Amru Rice Factory in Kampong Thom Province, Amru Rice Company started our busy work to visit the paddy harvesting and paddy purchasing from the agricultural cooperatives (ACs) according to the contract farming and the price agreed with the representatives that have signed the contract with Amru Rice company for this year 2021.
Every year, Amru Rice always go on field to visit and buy paddy gradually in lines with the harvest season of farmers, especially for Preah Vihear province, which is the main location of organic rice production and where most of the production is done under contract farming with Amru Rice. In addition to inspecting the quality and buying paddy from farmers, Amru Rice is always trying to find ways to save farmers’ paddy despites their challenges in quality through drying and other technical work to save paddy lives.
Contract farming is an appropriate mechanism to promote farming, supply, and varieties of seed that meet the needs of market conditions, especially paddy and organic crops, and as a mechanism to ensure and improve farmers’ capacity in farming.
In 2021, Amru Rice plans to buy about 20,000 tonnes of rice varieties such as Premium jasmine rice, Premium White rice , Sen Kra Ob, Jasmine rice, and Premium Organic rice. Amru Rice offers the premium price to farmers who grow organic rice, where they get an additional 15% to 30% or at least value-added between 170 To 250 riel per kilogram above the market price in the local area. It’s mean that farmers will get more income from organic rice than the conventional rice.
ACs benefits from contract farming with Amru in not only gain market sustainability and profitable, but also get training from company on various soft skills and practical skills related to organic standards, internal audit systems, techniques. Cultivate planning, trading, entrepreneurship, business concepts, financial records and management. All this work is in line with the principles and commitments of the company in inclusive business smodel and Corporate Social Responsible (CSR) and fair trade, including all smallholder farmers as partners by offering them something beyond the traditional rice cultivation ever made.