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Home Agriculture

Cambodia Modernises Agriculture to Boost Climate Resilience and Exports

Sophea Chan by Sophea Chan
November 17, 2025
in Agriculture, ASEAN, Cambodia, Climate, Development, Economy, ESG, Policy
Reading Time: 3 mins read
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Cambodia’s agricultural sector is entering a transformative phase as the government advances a modernisation agenda aimed at increasing productivity, strengthening climate resilience, and diversifying exports. In 2025, technology adoption and climate adaptation have become twin pillars of national development policy.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) reports that agricultural GDP grew 4.1 percent in 2024, driven by higher rice and cassava exports and increased mechanisation. Under the Agricultural Development Policy 2025–2035, Cambodia aims to transform from traditional subsistence farming to a data-driven, market-oriented system.

More than 2,500 smallholder farms have adopted digital tools for soil analysis, weather forecasting, and pest management through partnerships with agritech firms such as Smart AgroTech Cambodia and East-West Seed Innovation Hub.

“Technology and resilience are the future of Cambodian agriculture,” said Minister Dith Tina, adding that productivity gains must go hand in hand with sustainability.

Climate Resilience and Irrigation Investment

Cambodia’s agriculture remains vulnerable to climate shocks, particularly floods and droughts linked to changing Mekong River flows. To mitigate these risks, the government has allocated US$600 million for climate-resilient irrigation projects through 2026.

The Prek Tnaot Irrigation Modernisation Project, co-financed by the Asian Development Bank (ADB), is introducing automated gates and remote water monitoring systems. These innovations are expected to improve irrigation efficiency by 30 percent and benefit over 150,000 farmers.

In addition, the National Committee for Disaster Management (NCDM) has integrated AI-based early warning systems to help rural communities prepare for weather-related disruptions.

Export Diversification and Regional Integration

Agricultural exports reached US$6.2 billion in 2024, a record high. While rice remains Cambodia’s flagship crop — with shipments of 700,000 tonnes to markets including China, the EU, and ASEAN — diversification efforts are intensifying.

The government is promoting high-value crops such as cashew, mango, and pepper, alongside agro-processing zones to capture more value locally. The Cambodia–China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership (RCEP) are further opening new export channels.

“The key to long-term competitiveness lies in upgrading the entire value chain,” said Dr. Hang Chuon Naron, Minister of Economy and Finance. “That means moving from raw exports to processed and branded agricultural products.”

Empowering Farmers and Rural Communities

To ensure inclusive growth, the Rural Development Bank of Cambodia (RDB) has expanded concessional credit for smallholder farmers and agribusinesses, with US$150 million in new financing this year.

Community-led cooperatives are also gaining traction. In Kampong Thom, farmer cooperatives supported by the United Nations Food and Agriculture Organization (FAO) are experimenting with organic rice cultivation and blockchain-based traceability systems to access premium markets.

Digital literacy training, supported by Japan International Cooperation Agency (JICA), is enabling rural youth to participate in agritech entrepreneurship, creating a new generation of innovators in the countryside.

Sustainability as a National Priority

Cambodia’s commitment to sustainable agriculture is enshrined in its National Adaptation Plan (NAP) 2030, which targets a 25 percent reduction in agricultural emissions through improved fertiliser use, reforestation, and solar-powered irrigation.

The government is also piloting carbon credit schemes with the World Bank’s Climate Investment Funds, providing farmers with additional income for adopting regenerative practices.

As Cambodia modernises its agricultural base, it is positioning itself as a regional leader in sustainable food production — blending technology, inclusivity, and environmental stewardship to secure prosperity for rural communities and strengthen its role in ASEAN’s food security network.

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Tags: ADBAgribusinessagricultureASEANCambodiaclimate resilienceCropsdevelopmentdigital agricultureDroughtEconomyESGexportsFAOfarmersfeaturefood securityGreen GrowthinfrastructureinnovationinvestmentirrigationMekongpolicyricerural developmentSmart Farmingtechnologytradewater managementWorld Bank
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Sophea Chan

Sophea Chan

Sophea Chan is a Phnom Penh-based policy analyst and researcher with expertise in infrastructure development, regional connectivity, and investment flows. She has worked with both government agencies and development partners to assess Cambodia’s integration into regional supply chains and its investment climate.

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