De Heus, ADB to develop feed supply chain in Cambodia

De Heus will expand its storage and processing capacity for animal feed production in Kampong Speu province.

Jyotsana Varma, ADB country director for Cambodia, H.E. Veng Sakhon Minister of Agriculture, Forestry and Fisheries of Cambodia, and Harry Schimmel, General Director of De Heus TMH Company Limited.

July 28, 2022

The Asian Development Bank (ADB) and De Heus TMH Company Limited (DH-TMH) signed a $15 million loan to boost Cambodia’s agricultural feed sector by expanding DH-TMH’s storage and processing capacity for animal feed production in Kampong Speu province.

The additional storage and procurement of processing machinery will promote efficient feed production. This will allow the company to buy more local raw materials like maize, rice, and cassava from smallholder farmers within its supply chain, enabling a supply of affordable, high-quality feed for livestock and fish farmers. With investments in storage, maize can be stored for extended periods, making the supply chain less dependent on climate-related vulnerability.

“By supporting DH-TMH, we are helping strengthen the feed value chain, improve livelihoods of feed crop, livestock, and fish farmers, and support sustainable and resilient agricultural practices,” said ADB country director for Cambodia, Jyotsana Varma. “Developing locally sourced, high-quality, affordable animal feed supply is integral in safeguarding Cambodia’s food security and reducing reliance on imported feed inputs.”

“De Heus TMH is committed to empowering independent farmers in Cambodia. The strategic cooperation agreement with ADB, in combination with our focus on training and knowledge sharing, with the motto ‘global knowledge-local impact’, will support and accelerate the sustainable development of the Cambodian animal protein supply chain,” said De Heus Asia chief executive officer, Gabor Fluit.

A technical assistance grant will support training for 2,000 maize and 2,000 poultry farmers, many of them women, in climate-resilient farm practices and financial literacy. Supporting women farmers will help strengthen their positions within farms and boost their access to finance and expand their businesses.

The transaction will be supported by the Asian Development Fund 13 Private Sector Window (PSW) through a partial guarantee solution. The PSW supports private sector development in frontier markets by offering grant resources to fund financial products that address and reduce common financing constraints that hinder many private sector transactions.