Boosting Cambodia's Farming Efficiency and Sustainability through Digital Agriculture Solutions

The World Bank and KGGTF's study highlights the potential of Digital Agriculture Technologies (DAT) to transform Cambodia's agriculture sector by enhancing productivity, sustainability, and market efficiency despite existing challenges. Key recommendations include improving digital infrastructure, regulatory frameworks, and investing in digital literacy and innovation.

The World Bank, in collaboration with the Korea Green Growth Trust Fund (KGGTF), has conducted an extensive assessment of the potential and challenges of Digital Agriculture Technologies (DAT) in Cambodia. This study, led by Mudita Chamroeun, Mio Takada, and Mekbib Haile, alongside independent consultants Sovith Sin and Sereiratha Chan, aims to create a Digital Agriculture Profile (DAP) for Cambodia. The primary objective is to identify agriculture policies and investments that can foster the growth of DAT in the country, leveraging technology to enhance productivity, sustainability, and market efficiency in the agricultural sector.

Cambodia’s Agricultural Backbone and Digital Opportunity

Agriculture remains a vital pillar of Cambodia’s economy, employing over 70% of the workforce and generating over 5 billion dollars in exports in 2021. However, the sector faces significant challenges, including low productivity, inefficiency, and vulnerability to climate change. Many farmers lack access to modern technologies and decision-support tools essential for sustainable farming. Despite these challenges, Cambodia has a high rate of mobile phone penetration, with 88% of individuals accessing the internet via mobile phones by 2016. By 2021, the country had 8.86 million internet users, marking a 14% increase from the previous year. This robust digital infrastructure presents a unique opportunity to implement innovative DAT solutions.

Leveraging Technology for Sustainable Farming

DAT encompasses a wide range of technologies, including sensors, drones, GPS-guided machinery, precision irrigation systems, data analytics, and machine learning tools. These technologies can significantly enhance agricultural efficiency by reducing labor and operational costs, improving crop quality and yield, and enabling sustainable resource use. For instance, commercial farmers in Cambodia can use drones for crop spraying, while social media platforms enable farmers to form interest-based groups for exchanging ideas and digital consultations. Despite the sector’s importance, Cambodian agriculture faces substantial obstacles, such as limited access to modern technologies, low productivity, and inefficiency. These challenges are exacerbated by the sector’s vulnerability to climate change, which necessitates the adoption of more resilient farming practices.

Key Players in Cambodia’s DAT Ecosystem

The study underscores the importance of understanding the key actors in the DAT ecosystem, which include government agencies, development projects, the private sector, and enabling actors like mobile operators and internet service providers. Government agencies play a crucial role in formulating policies and strategies, managing standards of agricultural production, conducting research and development, and supporting digital infrastructure development. Development agencies and projects are instrumental in supporting specific agricultural value chains and co-funding innovative solutions. The private sector provides agricultural products and services, technical knowledge, and market linkages, while enabling actors ensure robust digital connectivity.

Navigating Challenges and Opportunities

Despite the supportive environment for DAT innovation, the assessment reveals several macro-environmental challenges that hinder growth. These include a low average score in human capital and workforce readiness, highlighting the need for improved digital literacy. The SWOT analysis identifies strengths such as strong government support and a growing ecosystem for DAT development, but also weaknesses like limited investment in DAT solutions and a lack of coordination among stakeholders. Opportunities lie in the high mobile phone usage and digital literacy among the youth, while threats include strong competition from more advanced economies and a high failure rate of DAT solutions due to the agriculture sector’s inherent risks.

Strategic Recommendations for a Digital Future

To overcome these challenges and harness the full potential of DAT, the study recommends several measures for the government, private sector, and development partners. The government should create an enabling regulatory environment, improve digital infrastructure quality and access, enhance digital literacy, and develop an agriculture e-commerce framework. The private sector and development partners should invest in viable services that create impacts, support incubators and accelerator programs, increase investment in research and development, utilize government support for tech transfer and skills development, and redefine human resource management to attract and retain talent.

The transition to digital agriculture holds significant potential for Cambodia’s sustainable economic growth, particularly in the post-COVID-19 era. By addressing the identified challenges and leveraging the existing digital infrastructure, Cambodia can mainstream digital agriculture technologies to enhance productivity, sustainability, and market efficiency in its agricultural sector. This will not only improve the livelihoods of farmers but also contribute to the overall economic development of the country. As the agricultural sector continues to evolve, embracing digital technologies will be crucial for ensuring long-term sustainability and competitiveness in the global market. The successful implementation of these strategies will require coordinated efforts from all stakeholders, including government agencies, development partners, and the private sector. With the right policies and investments, Cambodia has the opportunity to become a leader in digital agriculture, driving innovation and growth in the sector.