Local Firms, USAID Jointly Invest in Establishing Cold Chain Infrastructure in Cambodia

• Kongleaphy Keam
• 23 February 2022
• Uncategorized
• 2373 Views

The United States Agency for International Development (USAID) announced two new partnerships with private firms to co-invest in the cold chain, agricultural storage capacity, and logistics sectors in Cambodia.

According to the USAID announcement on 23 February, Khmer Cold Chain Company (KCCC) and Amru Rice will develop, test, and operationalise agricultural cold chain storage and logistics capabilities and services in Cambodia.

“USAID’s partnerships with Cambodian firms reduce their financial risk, so they can test and promote successful solutions and inspire investment in agriculture to increase regional and international trade integration,” said Nancy J. Eslick, USAID/Cambodia Mission Director.

Under the two-year partnership, KCCC, a Phnom Penh-based cold chain logistics and services company, will provide approximately US$1 million of its own funding and leverage an additional US$1 million in U.S. Government and private sector funding to operationalize its cold-storage facilities.

Amru Rice, a food producer and trader, will provide approximately US$600,000 of its own funding and leverage an additional US$400,000 in U.S. Government funding to establish on-site cold storage rooms near its headquarters and at its agricultural cooperatives’ sites, creating a decentralised cold storage and logistics network for its smallholder farmer suppliers.

This innovative approach to the vegetable supply chain will grow Cambodian farmers’ untapped potential to deliver high-quality products to domestic and international markets, with the aim of improving food security, increasing smallholder farmer incomes, and reducing Cambodia’s reliance on imported vegetables.

The project aims to expand Cambodia’s economic development to rural households who remain vulnerable to food insecurity because of limited access to formal markets within Cambodia and beyond.

• Technology and Engineering
• Logistics and transportation