The new, $8 million facility, set to begin operations in mid-2015 in Pailin province, will produce 180,000 tons of animal feed per year. The company’s first feed plant is in Kandal province.
The president of CP Cambodia, Uthai Tantipimolphan, says construction, which has already started, should last about eight months.
Chhil Chhen, deputy director of Pailin’s provincial department of agriculture, said the move is good for the area’s farmers and the company.
“Pailin is one of the big cassava and red corn producers in Cambodia. CP Cambodia saw the province’s potential to produce cassava and red corn, which is then used as raw materials to produce animal feed,” Chhen said in the report.
“If Pailin cannot supply enough raw materials to the animal feed mill, CP Cambodia can also buy cassava and red corn from farmers in nearby provinces such as Battambang and Bantey Meanchey, who are also big producers of the crops," Chhen said.
Song Sarom, a red corn trader in Pailin province and a supplier to CP Cambodia’s Kandal animal feed plant, said: “This is good news for both farmers and traders. We will have an additional market for our products. I hope the company will offer market prices for Pailin farmers and not dump prices during the harvest period,” he said.
The Ministry of Agriculture’s 2013 annual report showed there were seven animal feed mills operating throughout Cambodia, producing around 1 million tons of animal feed per year.