Fostering Marine Fisheries Value Chain Growth and Competitiveness

FOSTERING MARINE FISHERIES VALUE CHAIN GROWTH AND COMPETITIVENESS Cambodia Export Diversification and Expansion Program (CEDEP II: Marine Fishery) Highlights of Achievements September 2017

Disclaimer This document has been prepared without formal United Nations editing. The opinions, designations and material presentations do not imply the expression of any opinion whatsoever on the part of UNIDO and EIF concerning the legal status of any country, territory, city or area or of its authorities, or concernng the delimitation of frontiers or boundaries. All photos and intellectual property are copyright property of UNIDO, unless otherwise stated. The publication language of this document is English.

FOSTERING MARINE FISHERIES VALUE CHAIN GROWTH AND COMPETITIVENESS Cambodia Export Diversification and Expansion Program (CEDEP II: Marine Fishery) Highlights of Achievements September 2017

Message H.E.Mrs. TEKRETH KAMRANG

Secretary of State, EIF Focal Point Ministry of Commerce

I am very pleased to introduce the success stories produced by the Cambodia Export Diversification and Expansion Program (CEDEP II - Marine Fishery component) in this brochure entitled ‘Fostering Marine Fisheries Value Chain Growth and Competitiveness in Cambodia’’.

This publication gives the readers and audience a chance to look back at what has been accomplished by the said program in the development of marine fishery value chain focusing more on trade related assistance to improve the competitiveness and highlights the key project achievements, best practices and experiences and lessons learned from the EIF programme implementation which have high potential for scaling up and potentially replicating in other sectors as a means to achieve sustainable trade development.

I am thankful to Enhanced Integrated Framework (EIF) for funding this programme in Cambodia which was implemented jointly by United Nations Industrial Development Organization (UNIDO), Ministry of Commerce (MoC) and Fisheries Administrator (FiA) with active participation of private enterprises in marine fishery sector. The program is also supported by Department of International Cooperation (DICO) which serves as Cambodia’s Trade SWAp Secretariat and EIF National Implementation Unit (NIU).

With these success stories, we aim to share the best practices and lessons that we have learned over the past 3.5 years for wider use in other sectors. The accumulated experience of our officials, the latest achievements of the programme and the strong commitment and ownership of our line ministries give us hope that more successes are to come.

Our sincere thanks are offered to the Executive Secretariat for the EIF, the EIF Trust Fund Manager – UNOPS – and the main implementing entity namely the United Nations Industrial Development Organization.

I wish you a good reading of the Cambodia stocktaking success story.

H.E. Tekreth Kamrang Secretary of State

Message H.E. ENG CHEASAN Director General Fisheries Administration

Releasing of this publication, “Fostering Marine Fisheries Value Chain Growth and Competitiveness in Cambodia”, is a reflection of what has been achieved in the Marine Fishery Component of Cambodia Export Diversification and Expansion Program. These achievements contribute significantly to the Pillar 3 of Strategic Planning Framework for Fisheries 2015-2024.

The program’s engagement with the government, institutions and private enterprises helped us to improve the competitiveness of Cambodia’s marine fishery products. Thanks to United Nations industrial Development Organization (UNIDO) in making this achievement possible while working jointly with Fisheries Administration of Ministry of Agriculture, Forestry and Fisheries, Ministry of Commerce and Ministry of Industry and Handicrafts with funding support of Enhanced Integrated Framework (EIF).

It is my utmost pleasure and privilege to congratulate everyone for this achievement in the marine fisheries sector through attainment of food safety compliance in pilot processors, development of new standards on Codes of Practice and establishment of an Apex body. The outcome of these program will have long term social and economic impact in terms of building consumer confidence on Cambodia products but also replace imported fishery products.

The lessons learned from this program will be very useful in our forthcoming value chain development programs not only in fisheries but also in other agribusiness sectors.

I once again, congratulate the whole implementation team and the development partners.

H.E. Eng Cheasan Director General

Acknowledgements

This publication, “Fostering Marine Fisheries Value Chain Growth and Competitiveness” is prepared

by Cambodia Export Diversification and Expansion Program (CEDEP II- Marine Fishery component) team.

United Nations Industrial Development Organization (UNIDO) expresses its gratitude to our counterpart agencies namely Ministry of Commerce (MoC) and Fisheries Administration (FiA) of Ministry of Agriculture, Forestry and Fisheries (MAFF) for their supports and partnership during program implementation. Thanks are also due to Department of International Cooperation (DICO) for their support. Active participation of private sector enterprises in marine fishery sector is very much appreciated.

Thanks to Enhanced Integrated Framework (EIF) for their funding support to CEDEP II and to UNOPS for their supportive role as Trust Fund Manager.

This publication provides an overview of achievements and learning on the journey of implementation of this program for over 3 years, contributing to growth and competitiveness of marine fishery businesses by supporting Cambodia to take advantage of regional and global market opportunities. It also provides insight into program implementation within the network of the different actors creating a measurable impact. No doubt, such outcomes would be sustainable only when the line Ministries and the concerned private sector entities take the ownership and continue to work towards the common goal.

The driving force behind this success has been the dedicated individuals, businesses and institutions in Cambodia.

Many thanks to the UNIDO’s team of dedicated staff for their invaluable contribution to our success!

Karl Schebesta Chief, Food Systems and Nutrition Division UNIDO, Vienna

Shetty Seetharama Thombathu, PhD Chief Technical Advisor CEDEP II (Marine Fishery)

Narin Sok Kang Sin UNIDO Country Representative National Project Coordinator, Cambodia CEDEP II (Marine Fishery)

Abbreviations

AFAC

Alliance of Marine Fishery Associations of Cambodia

ASEAN

Association of Southeast Asian Nations

CEDEP II

Cambodia Export Diversification and Expansion Program II

CoP

Code of Practice

CTIS

Cambodia Trade Integration Strategy

DFPTQ

Department of Post-Harvest Technologies and Quality Control

DICO

Department of International Cooperation

EIF

Enhanced Integrated Framework

FiA

Fisheries Administrator

GPSF

Government-Private Sector Forum

GMP

Good Manufacturing Practices

HACCP

Hazard Analysis Critical Control Point

LDCs

Least Developed Countries

MAFF

Ministry of Agriculture, Forestry and Fisheries

MIE

Main Implementing Entity

MoC

Ministry of Commerce

NIU

National Implementation Unit

PSDD

Private Sector Development Department

QAP

Quality Assurance Program

QMS

Quality Management System

RGC

Royal Government of Cambodia

SPF

Strategic Planning Framework for Fisheries

SOP

Standard Operating Procedures

SSC-TD-TRI

Sub-steering committee of Trade Development and Trade Related Investment

SSOP

Sanitation Standards Operating Procedures

TWG

Technical Working Group

TDSP

Trade Development Support Program

Trade SWAp

Trade Sector-Wide Approach

UNIDO

United Nations Industrial Development Organization

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Cambodia Export Diversification and Expansion Program (CEDEP II) Marine Fishery

About CEDEP II Cambodia Export Diversification and Expansion Program (CEDEP II) - Marine Fishery component is a programme jointly implemented by United Nations Industrial Development Organization (UNIDO), Ministry of Commerce (MoC) and Fisheries Administration (FiA) with active participation of private sector enterprises in marine fishery sector. The program is also supported

by Department of International Cooperation (DICO) which serves as Cambodia’s Trade SWAp Secretariat and EIF National Implementation Unit (NIU). The current program is funded by Enhanced Integrated Framework (EIF) which is a multi-donor framework that supports the Least Developed Countries (LDCs) to use trade as a vehicle for economic growth and poverty reduction by integrating LDCs into the global trading system.

National Strategic Context Cambodian Diagnostic Trade Integration Strategy (CTIS) of Royal Government of Cambodia (RGC) outlines a number of sectors that had potential to benefit Cambodia’s export growth and presented practical advice about how to achieve export success in those sectors. As a pathway to achieving this goal Ministry of Commerce devised the Trade Sector-Wide Approach (Trade SWAp) with a clear roadmap with ultimate aim of integrating Cambodia’s products into global and regional trading systems and reduce economic shocks through diversification of export products and export markets. The Trade SWAp Roadmap for 2014—2018 includes a series of Development Impacts/Goals across the three pillars which cover key indicative areas for reforms and development of Cambodia’s trade sector.

Pillar 1: Increasing the Competitiveness of Cambodian Exporters in World Markets through a Strengthened Export Business Environment Pillar 2: Expanding and Diversifying Cambodia’s Export Base through Strengthening Supply in Current and New Sectors, Entering New Markets, and Moving up Value Chains Pillar 3: Strengthening the Capacity of RGC and Cambodian Stakeholders to Manage the Trade Agenda and Trade Challenges

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Sector Background Growing trade of fish and fisheries products is considered to provide a good opportunity for Cambodia’s fishermen, producers, traders, and investors. Cambodia’s access to international seafood markets, however, will continue to depend on the country’s capacity to meet the regulatory requirements of importing countries. In order to become a larger player in global markets, Cambodia needs to promote necessary investment in both harvest and post-harvest technology, and, quite importantly, in the quality infrastructure that is required meet global market standards. At the moment, the sector is mostly dominated by middle-sized or small processors who often lack the technical and SPS know-how or understanding of potential import markets. They produce traditional products such as fish paste, fermented fish, dry salted fish, smoked fish, or fish sauce, which they either sell locally or export to neighboring ASEAN markets mostly informally, or to carry out export of semi-processed products to Vietnam or Thailand.

Program Objective The main objective of the “Cambodia Export Diversification and Expansion Program” (CEDEP) is to strengthen and diversify export supply capacity in marine fisheries sector that has been identified by the Government as one of the sectors requiring immediate and priority actions.

In line with the Government’s wishes to tap into the best possible support capacity from its development partners, Marine Fisheries component of CEDEP II has United Nations Industrial Development Organization (UNIDO) as its Main Implementing Entity (MIE).

Program Synergies The current program is designed to benefit from synergies and generate complementarities with the just-concluded fisheries project which was funded by the Trade Development Support Program (TDSP) and implemented by Fisheries Administration (FiA) with the technical support from UNIDO. During TDSP, capacity of the FiA was substantially strengthened in terms of food safety control including inspection system, laboratory and food safety guidelines. In addition, local fishers and producers were brought together under different marine fisheries associations at coastal provinces.

Expected Development Impacts The main development impacts of the current program: • Fisheries, including marine fisheries, are one of Cambodia Government’s priority sectors for export diversification. The sector employs thousands of people. Positive development of the sector supports Cambodia’s efforts through improved income of producers; • The competitiveness of Cambodian marine fisheries exports improves resulting in opening up of new markets (geographical and products) and improved pricing of its exports.

Expected Outcomes The expected outcomes of the current program are:

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• The needs of the marine fisheries product export sector are better understood, the sector is better structured, the policy dialogue with the Government is enhanced and the enabling business environment is improved; • A group of marine fisheries processors have become export-ready and are increasing their export business including to new markets; The program is expected to have strong focus on growth of exports through diversification including development of products and services that move the sector up its value chain and allow it to penetrate new markets. In addition, by focusing on moving up the value chain, the program is expected to ensure that Cambodian processors in the sector are ready to compete not only on price but also on quality.

Programme Schedule and Funding Project Phase

Period

Agreement between EIF and Royal Government of Cambodia

01 January 2013

Agreement between TFM and UNIDO

04 April 2014

Implementation phase

May 2014 to Jan 2017

Exit and Closing phase (including no-cost extension)

Feb 2017 to Sept 2017

Funding Enhanced Integrated Framework Government contribution Private Sector contribution UNIDO in-kind contribution

$ 988,953 $ 71,000 $ 188,000 $ 55,989

Programme Implementation The programme is implemented jointly by UNIDO and participating Ministries and private sector. Participating ministries were Ministry of Agriculture, Forestry and Fisheries (MAFF) through its Fishery Administration (FiA) and the Ministry of Commerce (MOC). All the programs were planned, initiated and implemented in close partnership and consultation with the government agencies and private sector counterparts based on the needs of the sector in line with the program objectives. This has resulted in a comprehensive and equitable partnership with better ownership and sustainability of the programme outcomes.

Implementation Approach Fisheries value chain in Cambodia is quite unique with too many intermediaries involved between farmers/fishers and retailers/processors/exporters. In addition, enabling environment (legal framework and policies, infrastructure, governance, human and financial resource, etc) governing fisheries business has great impact on the value chain. Most of the businesses are informal in nature and the level of businesses are mostly family oriented or small-scale.

UNIDO’s approach for value chain development provides an important guidance to understand the business to business relationships, mechanisms for increasing efficiency, and ways to enable busi-

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nesses to increase productivity and add value to the product and related services. However, due to limited scale of the current program, the implementation approach was limited.

The implementation team carried out an extensive sector analysis such as Value Chain Assessment, Standards Assessment, Environmental Impact Assessment, and Market Requirement assessment.

Based on the sector needs, work plans were refined without changing the log frame and objectives of the program.

Program Beneficiaries Project activities involved many stakeholders, both public and private during the implementation of this program. Direct beneficiaries were the Royal Government of Cambodia, designated institutions, and private sector through enhancement of their capacities towards fisheries value chain development: Fisheries Administration

Processors (crab and fish sauce)

Department of Fisheries Post-Har- Dry shrimp producers vest Technologies and Quality Control (DFPTQ) Institute of Standards of Cambodia (ISC)

Alliance of marine Fisheries Associations of Cambodia (AFAC)

Private Sector Development Department Traders/retailers/supermarkets (PSDD) of MoC The other stakeholders benefited from this program are the institutions, professional groups, private sector actors and non-governmental organizations. Cambodian consumers and those in the region are also targeted to be benefited from the program through improved food safety and better quality products. The ultimate beneficiary is Cambodian society in general through the increase in trade capacity due to improved conditions for attracting investment, leading to employment creation and poverty alleviation.

Program Implementation Team UNIDO Team

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Karl Schebesta Project Manager, UNIDO Vienna

Narin Sok UNIDO Country Representative

Shetty Seetharama Thombathu, PhD Chief Technical Advisor

Kang Sin National Project Coordinator

Samapheavy Chea Project Assitant

Sophornna Chea Communications

Vireak Loun Technical Assistant

Bunthon Nouth Logistics

International Experts Helder Marta Silva Seafood Safety Expert

Ahsan Uddin AHMED Environment Expert

Core team Dr. Chamnan Chhoun Director of DFPTQ, FiA

Mao Chheng Chief of Bureau, MoC

Sensereywath Thor Director of Planning, FiA DICO Members H.E. Tekreth Kamrang Secretary of State, MoC

Thou Panha Manager DICO

Kemvichet Long Acting Director of DICO

Vuthy Bun, M&E Specialist El Chuon, Communications Specialist

Key DFPTQ Members Net Chantha Provincial FiA Sarin Sar Head of FiA in Kampot

Chheun Sarik Chamroen Nen Head of FiA in Sihanouk Ville

Kiry Lang Head of FiA in Koh Kong Private Sector Development Department (PSDD) H.E. Mao Thora Secretary of State, MoC

Oung Sokhan Director

ISC Members Chan Sopha Deputy Director General

Chheng Uddara Director

Kong Channy

Srey Siyorn

Teng Vanndarith

Choek Vichet

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Sectoral Analysis

Food Safety Compliance

Development of New Standards

Graphic designed using elements designed by Freepik

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Business

Program intervention fields

Advocacy

s Linkage

Communications and Visibility

Capacity Building

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Major activities, Out

Majorand activities,Outcomes Outputs and Outcomes tputs

Cambodia Marine Fishery Sector Analysis Context The fisheries sector contributes significantly to the employment and livelihoods of the poor, to food security, and to GDP and foreign exchange balance. Cambodia’s fisheries provide full-time, part-time and seasonal employment for up to 6 million people and the fisheries sector contributes very significantly to domestic food security, providing over 81.5% of the animal protein in the national diet and also forming a critical source of essential vitamins and micro-nutrients. However, the fisheries sector also faces a number of growing challenges with respect to its potential for contribution to trade and economic growth.

Interventions During the inception phase of the CEDEP II program, detailed sectoral analyses were carried out to identify issues which need to be addressed for the overall development of the sector. Following are the list of studies: • Value Chain Assessment of marine fisheries sector for identifying the role of every stakeholders and identify the underlying causes for such constraints in overall development of the sector • Standards Assessment carried out to evaluate the technical contents of existing fishery product standards against the international requirement • Environmental Impact Assessment of marine fisheries related activities in the country • Export Facilitation system assessment to identify the various steps to be followed by the exporter before exporting of fishery products • SPS and Legal requirement of importing countries evaluating the Cambodia quality infrastructure framework comparing against international requirement • SPS assessment of four selected processing facilities against HACCP requirements Deliverables • All the above six reports Impact • The sectoral analysis carried out under this program has given a clear picture of the sector and the direction for drawing a roadmap for overall development of the fisheries value chain.

• The finding also indicated that the constraints and issues affecting the value chain development of marine fisheries are common in even in inland fisheries and aquaculture • The findings of the sectoral studies were considered and incorporated in recent version of Strategic Planning Framework for Fisheries 2015-24 and also draft version of Value Chain Development Strategy 2018-2024 • The findings of the studies also were considered in the forthcoming EU funded programs called CAPFish- aquaculture and capture fisheries

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Despite the weaknesses, the opportunities are large and clear. Fisheries sector growth is not only possible but achievable, both in terms of production and earnings if all the issues are addressed systematically and holistically. In order to become a larger player in global markets, Cambodia needs to promote necessary investment in both harvest and post-harvest technology, and, quite importantly, in the quality infrastructure that is required to manage harvest and postharvest and meet global market standards.

Image - Consultation workshop held in Kampot to discuss over the challenges and need in fishery sector

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Improving Enabling Environment for Fishery Sector through Standards Development Context Cambodia has many standards for fish and fishery products, some of which are derived from international standards. However, fishery product standards are mostly product specific and largely inadequate with respect to process criteria. They do not give relevant guidance (food safety and process parameters) or set out mandatory specific criteria on food safety hazards and their controls for application by the industry. Food safety assurance is the most important component for compliance by the industry and to ensure entrance in export markets for the protection of the consumers, followed by the respective control and recognition of compliance by authorities.

Interventions • Standards Assessment study conducted • Capacity building provided to staffs of Institute of Standards of Cambodia (ISC) on criteria for development of standards • Developed four new Codes of Practices (fish sauce, dried shrimp, chilled/frozen crab meat, and frozen shrimp) • Draft Standards on Codes of Practice reviewed by National Technical Committee and then approved by National Standards Committee Deliverables • Cambodia Standards Assessment report • Four new Cambodia Standards on Code Of Practice for fish sauce, dried shrimp, chilled/ frozen crab meat, and frozen shrimp • Trained national experts in ISC for development of standards in future Impact The four new Cambodia Standards on Code of Practice (CoP) might be a relevant instrument to harmonize with ASEAN and other markets requirements.

These standards can be seen as a positive and alternative way to overcome the lack of specific and appropriate technical regulations.

These standards also provide adequate guidance and defining the criteria for the business operators to develop their production and processing activities to produce safe products and comply with trade requirements.

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Image - Four Code of Practices for Fishery Products

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Improving Trade Competitiveness through Food Safety Compliance (HACCP) Context Cambodia is endowed with abundant marine, coastal and inland resources that hold potential to spur economic development in addition to providing food and nutritional security. The fishery sector has been the primary source of rural income for generations and currently employs over 6 million people. Despite such potential, fishery sector does not possess the relevant technical skills, equipment and food safety skills needed to drive the economic development and sustainable growth. There is also an immense potential for income generation through value added fishery products both for domestic and regional trade.

Improving the quality and safety through complying with the Sanitary and Phytosanitary (SPS) measures is urgently needed to further increase trade towards regional and national markets. Such actions will allow Cambodia to achieve a sustainable expansion of its trade base.

Interventions Following an exhaustive gap assessment of four processing plants for their food safety compliance, the project assisted two pillot processors (Kampot Seafoods producing crab meat and Eche Ngov Heng Food Production producing fish/chilli/soy sauce) in implementing food safety management system, Good Manufacturing Practice (GMP), Sanitation Standards Operating Procedures (SSOP) and Hazard Analysis and Critical Control Points (HACCP).

Based on a cost sharing agreement reached between the project and the pilot beneficiaries, the following actions were carried out: • Gap assessment for food safety compliance • Refurbishment of the processing plants • Training of management and workers on food safety management; 12 training sessions were held for 226 workers (82% being women) • Developing SSOP and HACCP related documents and their implementation • Auditing and certification by Internationally recognized certification body Deliverables • Food Safety Management plans and documents (SSOP/HACCP) • Trained manpower • Award of HACCP Certificate Impact Program was successful in developing model fish processing plants with HACCP compliance, being first in the country. In parallel, capacity of over 66 technicians and workers, mostly women (84%) through skills development which ensured their continued employment and sustainability of the industry.

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With upgraded HACCP certified fish processing plants, the nation’s processors benefited through improved trade competitiveness and have potential to break into new markets, both domestic and regional, while consumers have more confidence on Cambodia’s fishery products

Image - Production practice at HACCP certified plant at one of the project beneficiaries

“Cambodia is one of the highest sauce consuming countries. In our country we have fish sauce and other sauce products from neighboring countries flooding the market. It was very difficult for me to stay competitive in the market due to lack of consumer confidence.

When CEDEP II project team approached me and explained me the project objectives, I readily accepted for co-sharing with the project for modification of the factory for meeting HACCP requirements. They trained all my staff and management repetitively. I have very good product flow avoiding all source of contamination.

Now I am able to compete with my competitors and market my products in a more aggressive way. I expect that the consumers have greater confidence on my products due to HACCP certification. On the long run, this will also reduce the imports of sauce products.” - said Oknha Chan Sitha, owner of Eche Ngov Heng Food Production of Kampot.

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Fostering Fishery Businesses through Market Linkage Context Fishery products in Cambodia are produced mainly by small and medium scale enterprises employing 20 to 50 workers, mostly female workers (>80%). These enterprises are mostly the family businesses with low technology of operations with poor infrastructure. The products such as fresh fishes, fish balls, fish cakes, prohoc and fish sauces go for domestic markets while products such as semi-processed crab meat, squids and cuttlefish are exported to neighbouring countries. There are no efforts so far in the sector linking the processors directly to niche markets for increasing profitability. There is a need for a rapid shift from sales through open markets to direct sales that involve linkages and alliances from production to consumption.

Interventions Producer groups were made aware of value addition, hygiene, labelling, packaging and selling to specific markets with prior agreements. Following actions were carried out: • Capacity building through training on value addition, hygiene, labelling, packaging • Pilot assistance for packaging and labelling • Linking the group leaders to organic markets, super markets and importers/traders at Phnom Penh • Popularizing the Cambodia products with over 120 chefs of major restaurants in Phnom Penh and Siem Reap • Participation in domestic trade fairs for better connectivity • Creation of common market under the banner of Alliance of Marine Fisheries Association of Cambodia (AFAC) and linking with producers Impact Traders, supermarkets and retail chain companies can now obtain more reliable and regular supply from these linkages and have a greater control over produce quality and safety. At the local level, small producers working with other producers to bulk-up produce achieving economies of scale and reduction of costs. Such innovative partnerships and linkage encourage small holder enterprises and contribute to economic growth and poverty reduction.

Lessons learned • Sustainable market linkages for smallholder producers require an enabling environment (policy, roads, credit) and capacity development and marketing.

• Producer – buyer linkage is an effective tool in developing the marketing capacity of producers to aggregate and supply quality products.

• Improved access to finance is important factor supporting such linkage • Due to weak quality infrastructure for export, strengthening of domestic market is the best option

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Image - Promoting Marine Fishery products in domestic markets

“I have been processing crab meat for many years and exporting to neighboring countries. During the recent years the sale unit price decreased significantly due to unrealistic demands from the buyer as also quality complaints. At this step, I needed new markets.

When I was approached by CEDEP II project team, I was not aware of benefit I get from their assistance. After so many meetings, we agreed to work together. The project carried out assessment of my factory operations and also layout and made recommendations to follow. My factory is now HACCP certified. Thanks to CEDEP II and UNIDO. We exhibited our products to over 120 chefs of major restaurants, some traders and supermarkets. Now my products are being sold at two supermarkets at Phnom Penh and my trader is supplying my products in Phnom Penh restaurants. My domestic sale is increased by about 35% with better price than the export price. I am happy that my workers and fishermen are benefited financially because of high quality products.� - said Mr. Chhor Kunthy, owner of Kampot Seafoods.

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Resilience to Market Vulnerability through Networking among Producers Context Producers when grouped under an association can achieve economies of scale that overcome the high transaction costs that producers face acting individually. They also enable producers improve quality and quantity and negotiate more effectively. To better support the sector, FiA assisted organizing small producer associations in the three main coastal provinces, under TDSP. There was a need to bring these producer groups under one apex body for better play role of advocacy and dialogue with Government.

Interventions The members of the producer associations in the three coastal provinces were consulted in association with Private Sector Development Department of MoC and provincial offices of MoC and FiA. Various interventions were undertaken to create awareness on the long-term benefit of such organization in the development of the sector: • Consultation programs and workshops held to producer association members on the benefit of such apex body (144 members attended with >36% women) • Visit to successful associations in the country (palm sugar and pepper associations) organized • Legal texts and rules and regulations were drawn up and agreed upon; election of office bearers held • Alliance of Marine Fisheries Associations of Cambodia (AFAC) established and registered with MoC • Linkage created to participate in various policy bodies such as Sub-steering committee of Trade Development and Trade Related Investment (SSC-TD-TRI) as a way to report on issues of the sector in the GPSF • Website was developed for the AFAC to showcase the marine fishery sector profile.

• A common market was created under the banner of AFAC at Kampot enabling the producers to sell or showcase their products Impact Currently AFAC is the first association in the fisheries sector which will act as a channel for the sector to express its interests in some of the policy dialogues that take place in the G-PSF or the Fisheries Government-Donor Technical Working Group (TWG).

Even though it is too early to know the impact, this output may take more time than expected to become sustainable due to limited capacity of the existing associations. However, the project has linked the association with Private Sector Development Department of MoC for further support to make it sustainable.

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Image - Creation of Common Market under the Alliance of Marine Fishery Associations of Cambodia

“We had so many small associations along the three coastal provinces since last TDSP project of 2014. But we had limited or no interactions between us to discuss about our common causes. Thanks to CEDEP II project and MoC who brought all of us together in many workshops, meetings and in-country exposure visits to successful associations/cooperatives before creating Alliance of Marine Fisheries Associations of Cambodia, AFAC. I am very happy to be selected as President of the AFAC along with two vice-presidents. We have our own statutes and we are registered with MoC and recognized. After formation of AFAC, our alliance is linked with many policy making bodies and trade fairs.

This is a good platform for bring the issues faced by fishery sector with policy makers.

Recently, we have started common market in Kampot where our members can sell or showcase their products.We also have website (www.afac-cambodia.org) and Facebook pages to interact with our customers and potential buyers,� - said Mr. Chin Samnang, President of AFAC.

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Building Capacity to Strengthen Fishery Enterprises Context The fishery sector of Cambodia has been the primary source of rural income for generations and currently employs over 2.4 million people. Despite such potential, fishery sector does not possess the relevant technical skills, equipment and food safety skills needed to drive the economic development and sustainable growth of the industry. At the moment, except for a few large processors that have access to investment, production and SPS know-how, and market access information, the sector is mostly dominated by middle-sized or small processors with limited resources and know-how. They lack the technical and SPS know-how or understanding of potential import markets.

Interventions The program has undertaken extensive capacity building efforts to create awareness and capacity building among the beneficiaries through various workshops and training.

Training program covered various issues pertaining to value chain development: • Standards development • Export procedures and protocols • Good hygiene practices and legal framework in marine fisheries • Codes of Practices for fishery products • Sanitation Standards Operating Procedure (SSOP) and Hazard Analysis and Critical Control Point (HACCP) • Technical barriers to trade • Enhancing Competitiveness of Fishery Producers and Businesses Training program covered following stakeholder: • Processors, traders and fishermen • Factory processing workers and management staff • Officers of ISC, FiA and MoC No. of programs held

Total No. of participants

Male

Female

Training programs/ workshops

21

621

293 (47%)

328 (53%)

Dissemination/consultations

25

751

590 (78%)

161 (22%)

Impact Capacity building and training have long been recognised as an important component of most development activities.

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Right from its inception, the program placed considerable emphasis on this area, and quickly found that, to ensure longer-term sustainability and impact of the outcomes of the program, it was important that all those involved in the projects improved their skills and understanding of all aspects of training. This largely supports the notion that beneficiaries that receive capacity building support can lead to greater social impact on a long run. However, such efforts should be continued by the government agencies for measurable impacts.

Image - Women empowerment through skills development

Ms. Seu Chen, pictured here, is a crab processing worker at Kampot Seafoods in Cambodia. Before the CEDEP II program intervention, she was involved in grading and meat extraction in the factory like many other female workers. After a series of training on food safety she was promoted as Quality Manager and HACCP team coordinator in the factory. The opportunity to learn more about food safety skills motivated her to take greater responsibilities of the company. “Now I carry out HACCP related monitoring and documentation of the company which is a very highly responsible and better paying job.� - said Ms. Seu Chen.

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Communications and Visibility Rationale The main objective of visibility activities of CEDEP II (Marine Fishery) program is the communication of positive results of the programme in the overall development of the marine fishery value chain. In addition, visibility activities also focused on outputs and the impact of the action’s results to ensure that the beneficiary population is aware of the roles of the program in supporting the targeted sector. This also includes target audiences and user groups inside and outside the country, leading to improved positive image of the country globally.

Interventions The programme used various tools for visibility and communication activities: Press releases, Leaflets, brochures and newsletters, Posters, Website, Display panels, Banners, Promotional items, Public events, Photographs, and Audiovisual productions.

Reports (http://moc.gov.kh/tradeswap/Index.aspx) Environmental Impact Assessment Cambodian Standard Assessment Marine Fishery Value Chain Report SPS and Legal requirement of importing countries SPS assessment reports of four facilities Export Manual Standards/Guidelines (http://isc.gov.kh/en) Cambodia Standard on Codes of Practice for Fish Sauce Cambodia Standard on Codes of Practice for Dried Shrimp Cambodia Standard on Codes of Practice for frozen shrimp Cambodia Standard on Codes of Practice for chilled/ frozen crab meat Newsletters: 10 issues (2015-17) Brochures / factsheets Social media: Facebook (@unido.kh) and twitter (@unido.kh) Publications on highlighs of achievements of CEDEP II - Marine Fishery: “Fostering Marine Fisheries Value Chain Growth and Competitiveness” Outcome The communication and visibility actions definitely built up strong awareness among various relevant audiences about the objectives, activities and accomplishments of the project, the role of the partner organizations in the implementation of the project and the impact of the program.

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Image - Marine Fishery project took part in youth fair event organised by AIESEC in Phnom Penh

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Program Sustainability Growing exports of fish and fisheries products are considered to provide a good opportunity for Cambodia’s fishermen, producers, traders, and investors. Cambodia’s access to international fish markets, however, will continue to depend on the country’s capacity to meet the regulatory requirements of importing countries. In order to become a larger player in global markets, Cambodia needs to promote necessary investment in both harvest and post-harvest technology, and, quite importantly, in the quality infrastructure that is required to manage harvest and postharvest and meet global market standards.

Sustainability refers to the continuation of or building on the benefits from an intervention after the assistance has been completed. Issues to be considered include the probability of long - term benefits from the project investments and the resilience of the net benefit stream to risk over time.

At the phasing out of this program, the issue of sustainability is of great importance.

Majority of the program outcomes is proved to be sustainable, thanks to the realization of officials of the FiA and major stakeholders that compliance with food safety and quality is a prerequisite to improve trade of fishery products to domestic and international markets.

The confidence levels of pilot processors who are HACCP certified show clear evidence for future sustainability of the certification status. However, follow up techinical guideline and advice from FiA and DFPTQ are needed from time to time.

With regard to ownership, a major concern is the existing legal framework governing fisheries sector which is fragmented leading to weak enforcements with limited manpower in the regulatory bodies. Due to this, there is a communication gaps exists between private and public stakeholders and the businesses continue to remain informal. Lack of human resource at provincial level as well as their burden of mandates, limit their control operations.

Capacity building of beneficiaries and other stakeholders along value chain seem to have created great awareness but these capacity building activities should continue for getting a meaningful impact on the sector development.

The policies and guidelines developed by TDSP and Quality Seal scheme, if enforced in a continued manner, will have a big impact on the sustainable development of the sector.

It is too early to comment on the sustainability of AFAC association created under this program.

However, it is likely to be sustainable, with the continuous guidance from PSDD of MOC. The project invested heavily on capacity building trainings to strengthen internal control systems and record keeping in the pilot factories while implementing HACCP. The expertise built within the industry seems to be sustainable due to the fact that the managers trained in this program are in place.

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“Our suppport is designed to ensure that the programme is demand-driven with the LDCs taking the driver’s seat and managing their trade and development agenda.�

Enhanced Integrated Framework

Program Impact Impact refers to the long term effect produced by an intervention. CEDEP II (Marine Fishery) programme has been successful in creating long term effect through its development intervention across the marine fisheries sector. As many of the project activities have just recently been completed, it is rather too early to assess the impact at this stage. The comments on actual or potential impacts described in this section should therefore be considered as subjective.

Policy impact On the policy and legislation, the project has made a significant impact. The most notable impact is the incorporation of some of the findings of sectoral analysis in Strategic Planning Framework for Fisheries 2015 - 2024 and also in the draft Value Chain Development Strategic Framework 2018 - 2024. The voluntary Quality Seal scheme is now approved and if implemented, it will have a great impact on food safety among the actors. The project has successfully advocated for reforms in regulatory framework governing fisheries post-harvest and trade. The degree to which these rules and regulations will be enforced will be decisive for the project impact.

Development impact The programme has developed four new Cambodia Standards which are harmonized with ASEAN requirements while two processing plants are HACCP certified. These could play major role in ASEAN trade development and integration.

Social impact Capacity building among producers and factory workers (most of whom are females) created a positive social impact among the producers/employees in terms of empowerment/self-prestige and employment status respectively. The continued (or improved) business of the enterprises expected to lead to retention or increasing of employment for both workers and also increase in their incomes.

Introduction of HACCP certified fishery products into domestic market of the country will enssure consumer protection and safety.

Financial impact The programme has clearly created financial benefits to pilot processors who were HACCP certified and those who introduced better packaging/labelling of their products. One US investor is already establishing HACCP certified and modern crab processing plant in the country, which indicates the potential of the sector.

Sectoral impact The success of the programme and the lessons learned are worth replicating in inland fisheries and aquaculture sector of the country in addition to other sectors of the country such as agribusinessfruits, vegetables, livestock, etc in terms of developing a comprehensive and inclusive value chain development based on UNIDO’s modalities.

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“There is considerable potential to increase the contribution of fishery sector to the national economy through improvement in the value chain. The expansion of regional market and increasing demands, both domestic and for export, will create opportunities for the sector to grow.�

Strategic Planning Framework for Fisheries: 2015-2024

Challenges and Way Forward Challenges Major challenge in exploiting export markets beyond Thailand and Vietnam is the lack of quality infrastructure in the country such as food safety legislation, official control procedures such as inspection, monitoring and verification and testing facilities. TDSP was aimed at developing the capacity of regulatory agencies through developing official control mechanisms including establishment of inspection system and laboratory. But none of these are in place or enforced.

Informal nature of businesses and the micro or small scale nature of production in marine fisheries in the country are still a common scenario in the sector. Lack of access to finance, lack of infrastructure, and lack of awareness on the benefit of the formal business are major constraints.

The current program had a limited scope with limited funds and time for implementation. Any program on value chain development should cover whole value chain in an inclusive and holistic manner for yielding meaningful outcomes. Such program should have bigger funds and longer period of implementation with clear responsibility shared between implementation partner and counterpart organization for effective ownership.

A Way Forward The CEDEP II (Marine Fishery) program has undoubtedly made significant contribution in building the food safety capacity of some of the small and medium scale processors through HACCP certification, improving enabling environment through new standards, creating an Apex body as advocacy tool, supporting domestic trade through market linkage, capacity building, etc. in line with its overall goal of the program. The outcomes and impacts of the program results are even though fully evident at this moment, it is assumed that such impact will be evident in due course of time.

Now it’s time to ensure that the program success will continue beyond the exit of this program.

In this direction, the program experts developed an exit plan along with a sustainability plan and submitted to the PSC and approved. The Exit Plan has also set out the list of deliverables available for implementation and the action to be taken once the current program exits.

It is important that the stakeholders take up their respective responsibilities in an orderly manner.

This would definitely ensure efficient and effective continuation of project success in the development of fisheries sector. This will also improve the fish and fishery products trade in the country leading to poverty reduction and ensuring food and nutritional security, which can significantly contributed to the goals of Royal Government of Cambodia on it Rectangular Strategy for Growth, Employment, Equity and Efficiency.

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A program implemented by United Nations Industrial Development Organisation In cooperation with Ministry of Commerce Fisheries Administration Funded by Enhanced Integrated Framework (EIF) Check out Alliance of Marine Fishery Associations of Cambodia Website: www.afac-cambodia.org Facebook: www.facebook.com/afac.cambodia

UNIDO in Cambodia Phnom Penh Center, Building A, 6th Floor, Corner Sothearos and Sihanouk Blvd, Phnom Penh, Cambodia T: (855) 23 860 927 E: office.cambodia@unido.org www.unido.org