SOK CHAN
A rising global demand for dates is behind the memorandum of understanding (MoU) signed in Phnom Penh yesterday between companies from Cambodia, Thailand and Israel, seeking to start growing the fruit in Cambodia within the next 10 years.
Cambodian company Kheng Lay Co., Daily Green (2507) Co., from Thailand and Thai-based Israeli-owned ATC Supply (1993) have agreed to work together to develop date farming in Cambodia.
Kheng Chantha, CEO of Kheng Lay Co., said that the first step for his company will be to locate farmers willing and able to grow the products. While Cambodia has a number of endemic palm trees, the date-bearing palms are not currently found in the Kingdom. Mr. Chantha explained that every province other than Preah Sihanouk, which has too much rain, can potentially grow the palms.
“From our estimation, the investment will be about $1 million but we have to study first on how many farmers will join us to grow date palms. We also need to estimate the size of potential plantation areas.”
Once this is known, said Mr. Chantha, the cost of production and fertilizers can be better determined.
Dates currently fetch up to $25 per kilogram on the global market, he said, and in addition to being eaten whole, it can also be used in other foods such a jam, ice cream and processed into sugar. But he admitted that at present, both dates and alternative date products were not well known in Thailand or Cambodia.
“This project will take about 10 years, and each year we will develop the plantation area from 5,000 hectares to 10,000 hectares. If more than 20,000 hectares are planted, then a production plant will most likely be built in Cambodia,” added Mr. Chantha.
Porn Pattarawadee, CEO of Daily Green, said that dates have been grown in Thailand for the past 10 years and there was a large potential for growth.
She said that installing irrigation and planting the trees cost around $3,000 but that farmers could expect to harvest up to 50 tons of dates per hectare, at a price of about $7.50 per kilogram. In addition, other crops could be grown alongside the palms until they mature.
“Farmers can grow other plants like herbs, soybeans, vegetables or another crops in the rows of the date palms for about four years, after which it is possible to harvest dates. And the date harvests can continue on for another 70 years,” she explained.
Under the MoU, Daily Green will provide the date palm seedlings and purchase the annual crop from Cambodia, for it to be processed in Thailand.
Avner Ehrlich, CEO at ATC Supply said that their role in the agreement was to provide irrigation systems to ensure optimal date-growing conditions.
“In Cambodia the weather is hot as well as highly humid. Temperatures are different during the day and night, and this weather is suitable for date trees,” Mr. Avner said.
Veng Sakhon, Minister of Agriculture, Forestry and Fisheries, said following the MoU signing, that the agreement would provide high income to farmers who agree to grow dates.
“Since Cambodian farmers are new to this kind of fruit, the companies must provide [education on] the growing techniques to farmers, as well as on maintenance, harvesting and packaging for export –following safety and hygiene standards.” he said, adding that the ministry would oversee the venture.
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