Rural families will benefit from increased incomes

	Cambodia - Agricultural Productivity Improvement Project IFAD/Giuseppe Bizzarri

Rome, 8 June 2012 – The International Fund for Agricultural Development (IFAD) will provide US$17.5 million loan and US$17.5 million grant to the Kingdom of Cambodia to improve agricultural productivity and  to diversify the sources of income of rural families living in poverty.

The loan and grant agreement for the Project for Agricultural Development and Economic Empowerment was signed today at IFAD headquarters by Aun Moniroth, Minister attached to the Prime Minister, Secretary of State of the Ministry of Economy and Finance, Kingdom of Cambodia and Kanayo F. Nwanze, IFAD President.

Rice is the country’s main staple food. It is gradually generating a surplus for export. But food price spikes, such as the one in 2008, can hit rural areas hard, leaving many poor families to cut back on their food intake. More recently, Cambodia has made strides in economic growth but about 30 per cent of its population still lives below the poverty line.

The IFAD-funded project aims to benefit approximately 90,000 rural households in the five provinces of Kampot, Kandal, Prey Veng, Svay Rieng and Takeo. Landless and land-poor farmers, rural youth and women-headed households will be a priority. As a result of the project, average paddy yield of the primary target group is expected to increase by 15 per cent, and non-rice agricultural production by 20 per cent.

Poor families will have improved access to financial services and  service providers will help on financial management of Improved Group Revolving Funds (IGRF).

Farmers will learn how to access  technology and markets through training. The innovative training package will include improved production and marketing techniques and how to establish linkages between farmers and agricultural markets.

With this new project, IFAD will have financed seven programmes and projects in Cambodia for a total investment of US$99.3 million, benefitting 1.1 million households.

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Press release No.: IFAD/41/2012

The International Fund for Agricultural Development (IFAD) works with poor rural people to enable them to grow and sell more food, increase their incomes and determine the direction of their own lives. Since 1978, IFAD has invested almost US$14 billion in grants and low-interest loans to developing countries through projects empowering about 400 million people to break out of poverty, thereby helping to create vibrant rural communities. IFAD is an international financial institution and a specialized UN agency based in Rome – the United Nations’ food and agriculture hub. It is a unique partnership of 168 members from the Organization of the Petroleum Exporting Countries (OPEC), other developing countries and the Organization for Economic Co‑operation and Development (OECD)