For agricultural cooperatives, access to capital can make the difference between simply serving farmers and building a sustainable business that can grow with them.
In Cambodia, the Federation of Farmer Promoting Family Agricultural Enterprise in Cambodia (FAEC) has been supporting agricultural cooperatives to strengthen their skills in business planning, financial management, and marketing. Through the APFP-FO4A program, FAEC facilitated support to cooperatives, including the Ponleu Kdei Songkhoem Kasekar Agricultural Cooperative in Battambang province and the Ballang Sethaphi Agricultural Cooperative in Kampong Thom province.
The cooperatives received revolving funds to expand businesses related to natural fertilizer, agricultural inputs, and rice seed production.
Building businesses around farmers’ needs
Before receiving the revolving funds, both cooperatives faced challenges in accessing sufficient capital to expand their businesses.
For Ballang Sethaphi Agricultural Cooperative, the support opened opportunities to invest in agricultural inputs and rice trading. In 2024, the cooperative received USD 8500 support from the APFP-FO4A program.
“The fund was used by the cooperative to create businesses such as purchasing and selling agricultural inputs, as well as purchasing rice to process and sell in the market,” said Vy Luy, Deputy Head of the cooperative.
With the additional capital, the cooperative began signing contracts to purchase and sell fertilizer, including Japanese organic fertilizer and locally produced husk fertilizer.
In 2024, the cooperative sold 138 tons of fertilizer.
The fund also allowed the cooperative to purchase rice directly from farmers and provide agricultural inputs to members. Instead of traveling to distant markets to purchase fertilizer, farmers could now buy directly from their cooperative.
“Since we received the revolving fund, the cooperative has been profitable,” Luy said.
The cooperative’s increased working capital has enabled it to continue operating even after the revolving fund was returned to the project.
Reducing farmers’ reliance on high-interest loans
In Battambang, the Ponleu Kdei Songkhoem Kasekar Agricultural Cooperative used its USD 8,500 support from the APFP-FO4A prigram, to purchase fertilizer and support rice seed production.
“We used this fund to buy fertilizer for one year,” said San Tep, Head of the cooperative.
The cooperative then used the remaining funds from its fertilizer business to purchase rice seed for its members.
One of the cooperative’s approaches is to allow farmers to receive inputs first and pay after harvest. This gives members greater flexibility during the planting season and helps reduce their need to borrow from outside lenders at high interest rates.
The cooperative has also seen growth in its capital. Before receiving support through APFP-FO4A, its capital stood at around 40 million Cambodian riel. After a year, it had increased to more than 50 million riel.
The cooperative has continued expanding its rice-related business. In 2024, it purchased nearly 20 tons of rice, and after receiving the revolving fund, it increased its purchases, including varieties such as Sen Kra Ob, Sra Ngae, and Rumduol.
As farmers prepare rice seed for the next planting season, the cooperatives continue to build on the businesses they have established.
For these farmer organizations, revolving funds are not simply capital. They are a foundation for stronger cooperative enterprises—and for more accessible services for the farmers who depend on them.
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