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Farmily Rubber

Family Rubber Plantation (AFD pilot test)

The Cambodian rubber plantation industry knew about an important development before being ruined by the civil war during the last twenty years. A plan of raise was the object of profound discussions between the Cambodian authorities and the French cooperation, an agreement having intervened on its main objectives that are the privatization of the industrial rubber plantations tree, nationalized in 1979, and the development of the family rubber plantation, on which the sector of rubber.


Objectives, justification and means of the project

The pilot project, for three years, has the objective of testing, on 1500 ha of land, the most suitable solutions to the technical, institutional and financial plans, permitting a development of family rubber plantations on a large scale. At the end of the pilot phase, a decision was made to start a structural program on around 20 000 ha, with the involvement of the World Bank. The World Bank expressed its interest and participated, as observer, to the assessment of the pilot project.
This project essentially applies to small farmers cultivating less than 5 hectares but the system will be equally tested for individual plantations of bigger dimension.

Organization of the project

The development of the family rubber plantation should be confided to a national structure, of type society “mixed economy”, associating the various partners of the project.

Considering the long delay of entry in production of the rubber tree, the project will facilitate the setting up of a long term credit whose conditions would be the following:

  • Loan Period 20 years (maximum).
  • Adversity period in first 10 years.
  • The refund of the credit by the farmer will only begin the year 11th.

Credit Conditions

  • Interest rate 7.00% per year.
  • Allocated amount USD 1,000 for one hectare.

Government Objectives

  • Fight against poverty in the rural environment
  • Protection of the environment by improving plants and
  • Increasing the export of natural rubber to help national economy.