marketing opportunities for the products of the sugar palm ... · marketing opportunities for the...

Marketing opportunities

for the products of the sugar palm trees

in Oudong district

Jean Pierre MAHE

Study commissioned by The Cambodian German Forestry Project

December 2000

TABLE OF CONTENTS

DEPARTMENT OF FORESTRY AND WILDLIFE

Cambodian-German Forestry Project

Phnom Penh, Cambodia

German Technical Cooperation

1 Presentation

1.1 Methodology

1.2 Executive summary

1.3 Recommendations

2 Ang Pro Loeung Forest

2.1 Selected areas for the study

2.2 Marketing issues

2.2.1 Roads

2.2.2 Secondary roads

2.2.3 Markets

2.2.4 Marketing practices of the APL farmers

3 Palm sugar trees

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3.1 Palm sugar trees (Borassus Flabellifer) in Ang Pro Loeung Forest

3.1.1 Number and age of palm sugar trees

3.1.2 Use of the palm sugar trees

3.1.3 Ownership

4 Productions: Analysis and potential development

4.1 Palm Sugar

4.1.1 Quantities

4.1.2 National Trends

4.1.3 Social and gender issues

4.1.4 Income analysis of a palm sugar producer in APL forest (village Pou)

4.1.5 Evolution of the household income according to selling price of the palm sugar

4.1.6 Technical improvement of the palm sugar production

4.1.7 Marketing chain

5 Alternative uses of the sugar palm tree

5.1 Opinions collected about future of palm sugar and possible diversification

5.2 Palm Juice

5.2.1 Pasteurized juice

5.2.2 Juice for pigs

5.3 Palm vinegar

5.3.1 Present situation

5.3.2 Potential development

5.4 Palm fiber

5.4.1 Present production

5.4.2 Palm Fiber brooms producers

5.4.3 Income analysis of some fiber producers

5.4.4 Social and gender aspects

5.4.5 Productivity and quality

5.4.6 Marketing

5.5 Handy-craft production

5.6 Palm wine

5.7 Palm fruits

5.8 Other forestry products

5.8.1 Resins

5.8.2 Coconut and other fruit trees

5.8.3 Cashew nuts

5.9 Cycle of palm activities in APL forest

5.10 Summary of the potentials of palm productions in APL forest

6 Proposals

6.1 Development of palm Fiber

6.1.1

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1. PRESENTATION

A recent baseline survey conducted by GTZ (GTZ-CGFP baseline survey in Oudong district, Kampong Speu province. October 2000) highlighted the importance of the sugar palm tree in villages of Oudong district. In this district, the subsistence of the farmers is based on the paddy cultivation in rainy season and the production of palm sugar in dry season (from December to July).

These last years, the price of palm sugar has considerably dropped causing a reduction in the incomes of the families of the district. Moreover in year 2000, about 40% of the producers ceased their production, leading to exodus of many to the town of Phnom Penh. (According to: PRASAC/REPLIC, the palm sugar tree in Cambodia, Analysis and Development Potential. June 2000)

On the forestry point of view, palm sugar production places a great strain on local forest resources, due to the high demand for firewood.

One of the forestry extension activities of GTZ-CGFP in Oudong is to examine ways of reducing firewood consumption, in order to reduce the pressures on the resource base. Whilst households are reliant on firewood for cooking, mostly this fuel comes from around homesteads, paddy fields and the village. Sugar production requires a far greater amount of firewood than does cooking, and is collected from further afield, including the state forest.

Firewood reduction strategies will, therefore, initially be focused towards the sugar producers. Options include the reduction of sugar production through the introduction of mechanisms for the production and marketing of other parts of the sugar palm tree.

In order to examine the feasibility of support to such alternate income-generating opportunities for households, this study assessed the potential marketing mechanisms and income from a range of products from the sugar palm tree, in comparison to those associated with the present sugar production activities.

1.1. Methodology

Objective

6.1.2 Target areas and groups

6.1.3 Marketing support

6.1.4 Technological support

6.1.5 Improvement of fiber brooms productions

6.2 Palm vinegar processing in APL

6.2.1 Objectives

6.2.2 Targets groups

6.2.3 Expected results

6.2.4 Possible organization of the project

6.2.5 Technical assistance

6.2.6 Quality control

6.2.7 Marketing and selling

6.2.8 Institutional framework

Annexes

Terms of reference

List of references

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The study was held in two phases, the first phase being during the rainy season (August 2000), and at the other at the beginning of dry season (December 2000).

During the phase I, the mission studied the palm occupations in rainy season and made a brief survey in order to select some villages for further investigation in phase II.

In the dry season (phase II), the mission collected information on all the marketing aspects of the palm sugar products, the manufacture of palm sugar and the exploitation of fiber and other craft activities.

The method of this study was based on meetings and discussions with villagers, local authorities, producers of palm sugar, micro entrepreneurs and traders involved in the production of palm sugar tree items.

1.2. Executive summary

1. The profit made by palm sugar producers in the zone of Ang Pro Loeung will inevitably decrease, as well because of the increasing scarcity and dearness of wood. Actions undertaken to slow down the phenomenon (introduction of improved cook stoves by PRASAC) have not so far proven to be efficient.

2. The demand for palm sugar tends also to decrease because of the competition of white sugar and the end of exports to Vietnam. The situation of APL, where more than half of the farmers draw their cash incomes from the palm sugar will step by step degrade.

3. The attempts at improvement of the quality and marketing (done by PRASAC, FAO, CFSP) of the palm sugar have not given yet satisfactory impacts.

4. On their other hand the producers, for a large majority did not find any alternatives to the production of palm sugar. Most of them see the emigration towards Phnom Penh as only possible alternative.

5. Among the other productions related to palm sugar tree, only palm fiber exploitation can create a credible alternative to the palm sugar production.

6. Palm fiber represents a great interest because the APL zone has many young trees that can provide fiber. The fiber can be promoted on the national market (manufacture of brushes), on the regional market ( some Thai traders have already imported several tons in 1999), and international market (Europe, USA). If developed in a proper way, palm fiber processing can provide a better income, at household level, than palm sugar production.

7. However, at the present time the productivity of APL fiber is still very low. Cost prices are rather high, the transformation is limited, and the marketing chain badly organized.

8. On a forestry point of view, palm vinegar is a interesting replacement of palm sugar because it doesn't need any wood for processing. The palm vinegar is obtained while letting ferment then acetize the palm wine. However, it should be noted that the potential marketable quantities are not very important locally.

9. The handy-craft industry of the palm tree is based on the production of items for local use (mats, hats, baskets, roofing material...) and doesn't represent a big marketing potential.

10. The cashew nut is a solution identified by some villagers to answer the problems of the palm sugar production. However, the cashew nuts producers do not receive any technical or agricultural support for the production, the sale or the processing of cashew nuts.

11. The other productions of APL (coconut, resin...) are marginal, and cannot give place to strong expectations.

1.3 Recommendations

1. Regarding fiber, the mission recommends to set up a specific project about the development of fiber production for local and export market. This project would need to include a thorough survey in Thailand (and possibly South East Asia) within the manufacturers of brushes, and a technological study in order to improve the productivity of the palm fiber production..

2. In addition, the mission suggests to support and promote the fabrication of a various range of new palm brushes and brooms. This activity could be developed within micro-enterprise centers existing in the province, and then be transferred to local entrepreneurs.

3. Since palm vinegar is a possible substitute to palm sugar production as it allows the transformation of the juice in a sellable product without any cooking operation, the mission considers that it is worth trying to set up a small pilot vinegar-processing project (for the Phnom Penh market) by taking advantage of the existing palm sugar marketing chain.

4. Regarding palm sugar, the opportunities of setting up an information system, or a local market place dedicated to palm sugar could be studied in order to allow farmers to take better decision in selling and organizing their production.

5. The mission stresses the importance of the small rural private sector in the present production and marketing of palm sugar, and suggests to base all the support strategies directly on the existing micro-entrepreneurs (Producers, carriers, traders, manufacturers of cook stoves, etc...)

6. In general, the mission recommends that a focus person be found within the Forestry Department (of the

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Ministry of Agriculture, Fishery and Forestry) in order to follow all the issues relating to the development of the palm sugar tree products.

2. ANG PRO LOEUNG FOREST

Ang Pro Loueng forest is located in Oudong district, Kampong Speu province and lies along road no26. At the North East edge is the Bat Doeung town, capital of Oudong district.

Ang Pro Loeung (APL) is a reserved forest since 1951. It Lies on Dam Nak Rang commune, Chan Ta Sen, Choeung Rors, Trach Torns, Mean Chey communes and covers 3 169 ha.

In 1951, the area was formerly rich in forest cover but now only small trees remain.

1951: APL forest area: 3 169 ha.

1998: APL forest area: 2 837 ha.

APL forest includes 38 villages, population: 12 654 , 2 336 families. (*)

The soil in APL is sandy and of poor agricultural quality. Rice yields are quite low (from 1 to1.5 ton/ha). Irrigation is very limited (only a small canal in Chre) upland are used for vegetables growing. The main resource besides paddy cultivation is the palm sugar exploitation.

(*) According to: Community Forestry Program in Ang pro Loeung Area, Oudong district, Kampong Speu province. Document given by the Forestry Department of Kampong Speu.

2.1 Selected areas for the study

According to phase I findings, the mission decided to focus on the following villages of Damnak Reang commune because they have easy road access, a great proportion of palm sugar producers, and potentials for palm fiber development (a big number of young palm sugar trees).

Pou – Trapeang Run

These villages are located 2 or 3 km away from the road No 26. About half of the families produce the palm sugar (40% in Pou, 50% in Trapeang Run). No other palm tree product is produced for sale.

These villages are characterized by a high level of emigration towards Phnom Penh:

� 30% adults of Pou work in the factories of Phnom Penh, or as cyclo

� 35% adults of Trapeang Run work in Phnom Penh.

According to opinions of the villagers present during our meetings, people who live in Phnom Penh are in general employed at very low wages and would be been willing to return to the village if opportunities really existed.

Moreover, the women and the men of these villages are particularly motivated to diversify their productions for they see their income decreasing year after year.

These villages can develop a special strategy of trade thanks to their proximity with the No26 road, with products such as palm vinegar for example.

Tumnup Bak – Thmey Ping Pong-Doek Peang

These three villages are very close one to the other. The proportion of sugar manufacturers is very high (45%

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in Tumnup Bak, 45% in Thmey Ping Pong, 22% in Doek Peang).

Tumnup Bak village is the central village of the commune of Damnak Reang, where the chief of commune resides. Project PRASAC has worked in this village for a long time and the inhabitants have shown a great dynamism in innovative activities (Improved Cook Stoves, reforestation...)

In Tumnup Bak is one of the largest palm sugar trader of Damnak Reang commune. He collects the palm sugar in many neighbouring villages, an can sell as much as 2 ton per day in peak season.

The pagoda of Tumnup Bak resides is an important factor of local activity. The chief of the monks has there a great influence on the population, and his support within a project would increase the chances of success.

Doek Peang and Thmey Ping Pong are very close and linked to Tumnup Bak In these villages, complementary sources of income come from the collection of resins (collected in Kampong Chnang province)

Kraing Knor – Chambak Run

These villages are isolated a little from the large axis of communication, 10 km of the road No 26.

These villages have also a high proportion of palm sugar producers, 51% families in Kraing Knor, 62% in Chambak Run). No other product of the palm sugar trees is sold in the village (except some roofing materials).

2.2 Marketing issues

2.2.1 Roads

One can access to the APL forest by the road No 26 (Road 4 – Bat Doeung) ( 23 km from Bat Doeung to Tnol Soten in about 30 minutes).

The authorities asked the trucks coming from Thailand to the west of Phnom Penh to use this road rather than road No5 (Sisophon-Phnom Penh).

So this road will probably become an important commercial road and this makes it possible to consider good marketing prospects for the future.

2.2.2 Secondary roads

The roads in the APL are sandy (as is the soil too). The road No 33 crosses the APL from the North East to the South West. It is passable as the bridges have been rebuilt by the district authorities with the help of PRASAC.

2.2.3 Markets

The principal markets around APL are :

� Oudong (On the road No 5) � Baichan: on the No4 road, ( 23 km away from of Phnom Penh on road No 4). � Tnol Soten, 33 km away from Phnom Penh on road No 4). � Bat Doeung, (at Northern edge of APL) on the road No 26, at half way between the market of Tnol

Soten and the Oudong market (road no 5). � Trapeang Tnot, (Kandal province) near Borset mountain at 11 km of Bat Doeung.

(Bat Doeung and Trapeang Tnot being the most commonly markets mentioned as important for the APL traders).

2.2.4 Marketing practices of the APL farmers

In APL, most of the farmers we met sell their products at the farm gate to local traders who then bring the products to local markets or bigger traders.

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It seems that if the merchants don't come to their gate, farmers simply don't collect or keep the products. As we could see, they are completely dependant on the merchants and barely take any initiative of commerce.

Moreover, people have a very individualistic approach regarding the marketing of their products. We had no examples of farmers selling products together.

3. PALM SUGAR TREES

3.1 Palm sugar trees (Borassus Flabellifer) in Ang Pro Loeung Forest

3.1.1 Number and age of palm sugar trees

The palm sugar tree (scientific name : Borassus Flabellifer, called Tnaot in Khmer) is present everywhere in Ang Pro Loeung Forest. There are no statistics in the villages but we could do the following estimation:

We know that about 50% of the APL families (indication given by the CGFP-GTZ baseline survey, October 2000) produce palm sugar and use 20 trees on average. So, there are about 25 000 adult palm sugar trees in exploitation. According to the survey done by REPLIC (The sugar palm tree in Cambodia, analysis and development potential, June 2000), the rate of exploitation is below 20%, so to say, there are more than 125 000 adult sugar palm trees in APL forest.

Many factors indicate that the number of palm sugar trees will remain very high for a long time in the area:

� All the people we met said they were very concerned with the future of their children, and, as did their parents, they plant new trees to allow new generations to continue the production of palm sugar. (Remark: In Pou village, we even found a plantation of 50 palm sugar trees planted by a old man for his grand son).

� Palm sugar trees can last more than 100 years. People usually don't cut them because the wood can only be used for making rafters, is not good combustible and has not a high commercial value.

� People don't consider that sugar palm trees have negative impact on the rice cultivation. � Palm Sugar trees easily germinate and grow, in domestic or wild environment. They are very resistant;

even if the leaves are eaten by oxen or cows, they can recover.

Number of palm sugar trees in some villages (estima tions given by the chiefs of village)

Note: In general, according to the farmers we interviewed, there are as many young trees than adult trees in the villages, so to say about 125 000 young trees in APL.

3.1.2 Use of the palm sugar trees

Sugar palm trees start to flourish at the age of about 20 years. At this time, one can extract the sap to make the palm sugar. It is more profitable to tap the older trees (over 30) because their sap contains more sugar and the yield is steadier. One can tap palm sugar tree until it dies (up to 100 years old).

The leaves of the young palm trees (between 5y to 20y) can be used for making fiber: The base of the leaves is beaten into fibers which are then dried at sunshine and used for making small basic brooms.

Villages Adult palm trees (over 20 years)

Palm trees in production

Young palm trees (less than 20 years).

Pou 800 400 1 250

Trapeang Run 8000 800

Kraing Knor 5 500 1200 4 500

Tumnup Bak 8 000 800

Thmey P. Pong 5000 1200

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3.1.3 Ownership

In 1979, APL families were given 6 palm sugar trees by the authorities. Some palm trees were even allocated in other people's property. In general, no farmer mentioned or complained of any kind of problem or litigation about the property of palm sugar trees.

Nowadays, families may own more than 60 adult trees. According to the Department of Forestry, the ownership of a palm tree only allows to cut it for domestic purposes, not for sale. However farmers consider they can use their trees as they want and sometimes sell the trees as rafters (about 4 $ / tree).

The hiring of the palm trees for sugar manufacture is also very common, the rental is paid by some kilos of sugar.

4. PRODUCTIONS: ANALYSIS AND POTENTIAL DEVELOPMENT

4.1 Palm Sugar

4.1.1 Quantities

The quantity of palm sugar produced in APL varies according to the variation of the selling prices rates and vice versa. In year 1999, the exchanged quantities were very high, and the price rate were low (300 riels in average). In 2000, the number of producers significantly fell causing a raising of prices (600 riels in average).

Note: The district of Oudong is the biggest zone of production of palm sugar in Cambodia (According to : The palm sugar tree in Cambodia, analysis and development potential, REPLIC, June 2000).

According to the survey conducted by GTZ in 2000 (GTZ-CGFP, baseline survey in Oudong district, Kampong Speu province, October 2000) about 50% families in APL are palm sugar producers. If we consider that one family can produce about 1.3 ton/ year (average from the GTZ survey, Jan 2000), the total production of sugar in APL is about 1 450 tons of sugar.

The total economical value varies from 125 000 USD (at low selling price: 350 riels/kg) to 220 000 USD (at good selling price: 600 riels/kg).

By comparison, if we consider that every family has on average 0.6 ha of paddy field (PRASAC benchmark survey 1999), and the yield is 1.5 tons/ ha, the total production of rice in APL is about 2 100 tons. Therefore, the economical value is about 190 000 USD (@ 350 riels/kg).

Economical importance of rice and palm sugar in APL forest.

Following the collapse of the prices on 1999, many people stopped doing palm sugar so the prices have raised up to a better level in 2000. Thus, many people who had stopped after the 1999-2000 season are resuming production in 2001. This might entail again surpluses, and possibly again a fall of the prices in 2001.

Variation of the number of palm sugar producers in some villages of APL

Rice Palm Sugar

Economical value /year 190 000 USD 125 000 – 220 000 USD

Villages Total number Number of

families

Families doing palm sugar

production in 1999/2000

Families doing palm sugar in

2000/2001

Variation

Pou 73 20 30 +50 %

Trapeang Run 64 8 22 +175 %

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4.1.2 National Trends

According to the REPLIC study (The palm sugar tree in Cambodia, Analysis and Development potential, June 2000) on the National scale, the demand for palm sugar is gradually decreasing (mostly because of the importation of white sugar from Thailand and the end of palm sugar exportation to Vietnam).

4.1.3 Social and gender issues

The 3 greater operations concerning the processing of the palm sugar are the collection of fuel-wood, the harvest of the juice, and the cooking of palm juice into palm sugar.

The harvest of the juice is a male business whereas the collection of fuel-wood as well as cooking is carried out by women.

In all the villages where we went, women are the most motivated with the idea of reducing these painful tasks, by selling the juice directly of producing vinegar for example.

4.1.4 Income analysis of a palm sugar producer in APL forest (village Pou)

The production of palm sugar is a source of auxiliary incomes in dry season. The season usually starts in December or January right after the paddy harvest, and finishes at the time of the plantation of the paddy-seedbeds in May or June.

The first expenditure of the producer is fuel-wood, which is increasingly expensive year after year, according to the indications given by the producers. (In Pou village, villagers said that the same amount of wood is now 50% more expensive than it was 2 years ago)

The following producer (who can be consider as a typical example of the area) has 20 trees, and produce approximately 12 kg of sugar/day at the beginning of season, and 10 kg in mid season.

Table of the income statement of this palm sugar pr oducer

Kraing Knor 97 30 50 + 66%

Chambak Run 48 15 30 + 50%.

Tumnup Bak 79 36 40 + 11 %

Thmey Ping Pong 99 30 45 + 50 %

Doek Peang 73 11 16 + 45 %

TOTAL : 533 150 (28%) 233 (44%) + 55%

Qty Unit price Total in riels Total $

SALES OF PALM SUGAR

January (production 12 kg /day) 372 1000 372000 93

01.February- 15 June (prod:10kg/day) 1350 600 810000 202.5

TOTAL : 1182000 296

EXPENSES

Raw materials 389000 97.25

Wood 1 300000 300000 75

Poppeel 1 40000 40000 10

Additive (to whiten the sugar) 7 7000 49000 12.25

Rental of trees (free in this case)

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4.1.5 Evolution of the household income according to selling price of the palm sugar

This table shows the evolution of the income of the producers according to the selling price. At 400 riels/kg (daily income: 0.6$), most of the producers we met consider that the production is not enough profitable.

Note:

Average selling price in 2000 : 500- 600 riels/kg Average selling price in 1999: 300 - 350 riels/kg

4.1.6 Technical improvement of the palm sugar production

4.1.6.1 Improved cook stoves

A dissemination program of improved cook stoves was undertaken by PRASAC in 1999. According to PRASAC staff, 24 improved cook stoves were built in APL area. We could note that no improved cook-stoves has been replicated so far by the population of APL.

The reasons given by the villagers consist of:

� The difficulty of the farmers of replicating themselves the stove because they don' t know the technique of construction.

� Moreover, many farmers rely on local contractors to build their stoves, who were not trained yet at these techniques (*)

� Lack of significant impact of the existing improved cook stoves. � The technique of the improved cook stove (ICS) is based on the principle of the two hearths, whereas

Depreciation 125000 31.25

Replacement of 100 ampong every 2 years 50 1000 50000 12.5

Replacement of 40 ladders every 2 years 20 2500 50000 12.5

Depreciation of 2 pans every 6 years 20000 5

Depreciation of small equipment 5000 1.25

TOTAL : 514 000 128.5

RETURNS PER YEAR 668000 167

RETURNS PER MONTH 121455 30

RETURN/DAY 4048.5 1.01

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many farmers prefer to use only one hearth for cooking.

(*) One can recommend that the dissemination of ICS technology include the training and the support to local micro entrepreneurs usually involved in palm sugar cook stoves.

4.1.6.2 Other sources of fuel

The area of APL does not have sufficient rice plantations to hope to replace wood by rice husk. It is indeed necessary to collect the husk of 20 ha of paddy, so to say more than the production of 50 farmers to feed only one sugar producer, which is not realistic in APL forest. (information collected in : La production de sucre de palme au Cambodge, GRET, 1991)

Alternative energy trials undertaken by the PRASAC in this zone (oil, bio gas) did not give any promising results.

However, during a visit on the field, CFSP (Cambodian Fuel Saving project) team leader, Mr Iwan Baskoro has expressed the possibilities of improving the cooking process of the juice by introducing new cooking pans.

4.1.6.3 Quality

According to the farmers of APL, premium given for a better quality is not sufficient to justify an effort in the manufacture of sugar. The only constraint required by the palm sugar traders is to put an additive in the sugar (which toxicity could not be checked).

Last year a study about the improvement of quality was undertaken by the ITC did not highlighted possible concrete ideas for quality improvement.

4.1.7 Marketing chain

4.1.7.1 The local traders

Each village has local traders who can store products and ensure their routing towards Phnom Penh. In general these traders rent vehicles to transport the goods towards the large palm sugar market of Phnom Penh(Psa Depot).

Income of a local trader of palm sugar (turn over: 20 tons of sugar /year, Trapeang run village)

Note: Some traders used to speculate on the price on palm sugar. However, because of the deterioration of the market, most of the traders we met prefer to negotiate and sell quickly.

4.1.7.2 Carriers.

There are no trucks (and even no cars) in APL forest. The traders having a truck

are located in Bat Doeung, Tnol Soten, or Trapeang Tnot. According to our interviews the hiring of a 2,5 ton

Qty Margin Total margin (riels) Margin ($)

SALES : 20000 100 2000000 500

EXPENSES :

Rental of trucks 8 100000 800000 200

Labor : 8 10000 80000 20

Financial costs (loan provided by wholesaler)

1000000 5% 50000 12.5

TOTAL : 930 000 232.5

RETURN PER SEASON 267.5

RETURN PER MONTH 44.6

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truck is about 100 000 riels from APL to Phnom Penh.

4.1.7.3 Psa Depot market in Phnom Penh

According to traders that we have interviewed, the totality of the sugar of APL is dispatched on the market Psa Depot in Phnom Penh where about 50 palm sugar wholesalers reside. From the Psa Depot market, the sugar is dispatched on the different Phnom Penh markets through retailers.

Many traders also buy at Psa Depot, and bring this sugar to provinces (Kampong Cham, Kampong Thom...) where there are no palm sugar production.

4.1.7.4 Income statement of a palm sugar whole-saler at Psa Depot

Trader : Ms Hout Mouy Eng.

Qty Unit price Total (riels) Total (US$)

SALES :

December / February

Sales of 1 st quality 45000 1050 47250000 11813

Sales of 2 nd quality 52500 950 49875000 12469

March – May



June – August



September-November


Sales of 2nd quality 30 000 600 18000000 4500

TOTAL : 277500 274125000 68531

EXPENSES

Raw materials 277500 261150000 65288

December / February

1 st quality 45000 1000 45000000 11250

2 nd quality 52500 900 47250000 11813

March – May

1 st quality 45000 800 36000000 9000

2 nd quality 52500 700 36750000 9188

June – August

1 st quality 37500 700 26250000 6563

2 nd quality 45000 600 27000000 6750

September-November

1 st quality 37500 680 25500000 6375

2 nd quality 30000 580 17400000 4350

Other expenses. 5600000 1400

Rental of market place 1 800000 800000 200

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4.1.7.5 Marketing chain and margins of the palm sugar from APL (December 2000)

Globally, the marketing chain of the palm sugar is well organized, the margins and income of the middle men do not seem excessive.

However, on should note that farmers are rather ignorant about the marketing of palm sugar (marketable quantities, price, qualities), that may explain why they produce with excess one year and too little the following year.

An information and/or regulation system of the palm sugar would allow the farmers to take better decision in organizing their production.

5. ALTERNATIVE USES OF THE SUGAR PALM TREE

5.1 Opinions collected about future of palm sugar a nd possible diversification

We questioned the villagers about the future of palm sugar, and the possibilities of diversification. Not having material time to make an exhaustive investigation, we interviewed the villagers present at our village meeting.

Workers 4 1200000 4800000 1200

Amortization 210333 53

Big scale meter 45333 11

Replacement of buckets 15 11000 165000 41

Taxes : 408000 102

Patent, taxes 12 36000 408 000 102

TOTAL 267368333 66842

RESULT PER YEAR 6756667 1689

RESULT PER MONTH 563056 141

Buying Selling Margin

Production at the village (Trapeang Run) 1000

Local storage 1000 1050 50

Transportation to Phnom Penh 1050 1100 50

Storage at Psa Depot 1100 1150 50

Transport to the retailer (by motodop) 1150 1200 50

Retailer 1200 1300 100

Final Client in Phnom Penh. 1300

Total 1300 300

Villages Alternatives to palm sugar

Pou � If we have no palm sugar occupation, we will go to Phnom Penh. There are already 30 persons of the village working in Phnom Penh and garment factories.

� People would like to improve palm sugar production with Improved Cook stoves, but nobody knows how to do it.

� They would like that young people stay and work in the village, but there is no job for them.

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In general, producers did not identify possible local alternatives to the palm sugar. However, they are conscious of the lack of future of the palm sugar in APL, in particular due to the scarcity of wood. Most of them said they would be ready to diversify, if something was proposed to them.

Moreover, in villages like Pou, or Trapeang Run, the villagers clearly expressed their capacity to pay for a diversification training.

5.2 Palm Juice

In APL, the juice of palm is totally used for cooking to obtain the palm sugar. The juice may sometimes be drunk fresh, or transformed in wine, but in negligible quantity.

(Knowing that 50% of the families of APL collect 60 liter juice (3 liters/tree), the total quantity of juice produced every day is about 70 000 liters/day, so to say about 12 millions liters from January to June)

5.2.1 Pasteurized juice

The palm juice is an unstable product which turns into wine in a few hours. To be preserved, it must absolutely be beforehand pasteurized (heated with 100C) during a few minutes in order to eliminate the bacteria which cause alcoholization.

The pasteurization of 60 liters juice of palm takes approximately 30 minutes with a traditional hearth (information given by Ma Vany, responsible of economical affairs at the Ministry of Women Affairs) whereas sugar palm cooking takes approximately 2h30.

In the case of APL, because of its distance of any urban centers, it is difficult for us to recommend the manufacture of pasteurized juice on a large scale.

However, inhabitants of Pou and Trapeang Run villages, who have a very easy access to the road No 26, may have an outlet of a some tens of liters per day if one finds a packaging suitable for the transportation.

5.2.2 Juice for pigs

� People seem very motivated to pay for training if that allows a diversification of palm products.

Trapeang Run � People want to continue palm sugar, but they note that the price of wood is more expensive every year. (For example a bundle of wood was about 300 riels in 1998 is now about 500 riels.)

� Two families have decided to go into cashew nuts production. However, they don't receive technical support.

� Villagers said they are ready to pay for a training if necessary.

Kraing Knor � According to the chief of village, the life in the village seems fine since the price of palm sugar has raised, but if some body would come to buy directly the juice instead of the sugar, the producers would be very happy.

Tumnup Bak � Situation of palm sugar has improved in year 2000. Prices were higher than in 1999, so we hope that the situation will be better.

� Our alternative to palm sugar is to leave the village, to go to Phnom Penh as cyclo driver, or to cut Bamboos in Thailande

� We could do more fiber, but we don't know how to sell it.

Thmey Ping Pong � The only alternative to palm sugar is to leave the village. There are already 20 persons in Phnom Penh.

� People can also go and collect resins but is not really an alternative, because the market is limited.

Doek Peang � The production is already very limited in the village. Many people are busy with other activities such as resin collection

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The juice of palm can be used as feeding for pigs (Preston and Borin, FAO, 1995) in addition to rice bran and protein (soya or fish). Because of the lack of fish as well as the absence of soya cultivation, it is impossible to promote the use of palm juice for the pigs in Oudong district.

5.3 Palm vinegar

5.3.1 Present situation

5.3.1.1 Production

Most of the APL villagers know the manufacture of the palm vinegar and appreciate the taste of it. They affirm capacity to make it by leaving a bottle full of juice of palm in the sun during about fifteen days.

On the other hand, they usually do not trade it for they don' t have orders from external traders, and the market is impossible locally because this product is very already widespread in the surrounding areas.

5.3.1.2 Marketing

Oudong markets have some salesmen of palm vinegar, but they sell in very small quantity: 0.5 to 1 liters per day. The selling price of this vinegar is about 400 to 500 riels, whereas the manufactured white vinegar from Thailand is about 2700 riels for a 70 cl bottle.

It should be noted that the majority of the pickles which one finds in these markets are made with palm vinegar. A seller of pickles told us that he needs about 30 liters of palm vinegar every month to do his pickles.

All the salesmen affirm that the customers appreciate much the vinegar of palm, for it is natural content.

5.3.2 Potential development

5.3.2.1 Quality

Nowadays, Thai vinegar is the most expensive but the most frequently sold in Phnom Penh because of its quality. Indeed, since the incidents of 1998 (some people died after consuming adulterated vinegar), many Cambodian and in particular the restaurant owners avoid buying Cambodia or Vietnam manufactured vinegar.

In the Cambodia cooking, the other sources of acidity can come from lemon juice and tamarin.

Sources of acidity used every day in some Phnom Pen h restaurants.

A small survey made in these restaurants of Phnom Penh revealed to us that cooks are ready and will be happy of using palm vinegar if they could have a absolute guarantee of quality.

5.3.2.2 Daily quantities

According a short basic survey, there are about 515 vendors of vinegar in total on the 6 biggest markets of Phnom Penh, which sells roughly 3000 liters a day.

Restaurants Lemon Vinegar

Lagona 150 unit Thai vinegar

Snaday Ta Ouv 50 –100 Thai venigar

Dara 50 –100 No vinegar

Sovan Machha 50-70 No vinegar

Phum Meas 50 1 liter/day Thai vinegar

Tata 100 1 liter/day

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There are 254 restaurants in Phnom Penh which use roughly one liter every day.

In Bat Doeung, Baichan, Tnol Soten, Trapeang Tnot markets there are about 60 sellers of vinegar who sell about 100 liters a day.

In conclusion, Palm Vinegar could be a good substitute to palm sugar production since it allows the transformation of the juice in a marketable product without any cooking operation, but unfortunately the possible market around APL are quite low.

However, if a marketing chain from APL to Phnom Penh could be organized through the existing palm sugar traders and carriers, the mission consider that it is worth trying to launch some local vinegar-processing pilot projects in order to test the market.

5.4 Palm fiber

5.4.1 Present production

The treatment of fiber is a long and tiresome process. To obtain palm fiber, the base of the leave is extracted from the tree then beaten during ten or fifteen minutes using a bar of iron or a stick. One then obtains mixed up fiber beams which needs to be combed to obtain a clean and quite smooth fiber. The fiber must then be cut to the length wanted by the customer, according to the type of brushes to be realized.

According to the villagers of Tuol Vihear, a qualified person can produce daily 2 kg of fiber. Taking into account the price given by traders (approximately 1000 riels for a kg of fiber), the daily income is about 2 000 riels (0.5$).

The production of fiber is limited by the fact that only the trees of 5 to 20 years can provide good raw leaves to produce fiber.

According to a counting that was carried out in Pou, and Trapeang Run villages, the number of trees which can be exploited is about half of the total number of young trees so to say, about 60000 trees all over APL forest.

Since a tree can provide approximately 10 leaves per annum, and a leave gives approximately 100 grams of good quality fiber (measurement made on fiber of the village of Tuol Vihear), total fiber capacity in APL is about 60 000 kg.

Traders pay from 1000 riels (0.25 $) to 1500 riels per kg (0.375 US$) according to the quality. The total marketable value of fiber in APL is between 16 250 US$ and 24 375 $.

5.4.2 Palm Fiber brooms producers.

At present, the palm fiber is used in the manufacture of brushes for the local market.

In each village, one or two craftsmen produces very rough palm fiber brooms in the villages. These small brushes are sold between 300 and 500 riels inside the village or at the local markets. In Bat Doeung market for instance, total sales of brushes are approximately 6 units per day, that is to say 2000 units per annum, for a commercial value of 250 USS per annum.

The technology of manufacture of the brushes could be very easily improved in order to produce street brooms, hand brushes, WC brushes. For this, one need to import simple techniques (from India or in Sri Lanka) which could be replicated and diffused by micro-enterprises centers.

5.4.3 Income analysis of some fiber producers

a/ Fiber brooms producers (activity of a family wit h 2 active persons), Oudong district.

Qty/year Unit price Total in riels Total in US$

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5.4.4 Social and gender aspects

The fiber producers in the villages are in general the poorest villagers. They are often women who do not have husbands to climb with the trees in order to seek the juice of palm. Manufacture of fiber is thus a primarily female activity.

5.4.5 Productivity and quality

The lack of productivity is a limiting factor of the production of fiber in APL. Indeed, the amount of work required to manufacture one kilo of fiber is not compensated by the price offered by the manufacturers.

In order to launch the market of fiber, it is thus advisable to study the technological means to increase the productivity of fiber production, in particular investing in the development of simple tools to beat fiber.

On the other hand, the quality of the fiber is a determining factor is the selling price. Farmers need to be aware and trained about the quality requirements of this kind of products.

5.4.6 Marketing

5.4.6.1 Thai market

Thailand can be an interesting outlet for the Cambodian fiber. In Thailand, the population of palm sugar trees has strongly decreased. Palm sugar trees are mainly located in the extreme south of the country, where, according to a visit I did there in 2000, there are no fiber producers.

Actually, most of the APL inhabitants produced fiber in 1999, for a large order coming from Thailand, and supervised by a local trader of bat Doeung (Mr. Ung Hong Chu). They all agree to estimate that the price given at the time was too weak in comparison with the work required (about 1000 riels/kg depending on the quality).

So, because of following problems this operation could not take again place in 2000:

� Producers complain that the price given for fiber is too low in comparison with the required workload (*) � The local trader claims that the quality of the fiber provided by the farmers is not good, and that he had

to reprocess the fiber himself to even obtain a sufficient export quality. This caused over-costs, which limited his profitability

� Moreover, this trader said that he had no enough information concerning the quality standards and other features desired by the final client, so he cannot adapt the product. He would thus wish to negotiate

Sales :

From January to May 1500 300 450000 112.5

Expenses : 0 0

Total returns per year 450000 112.5

Total return per month 90000 22.5

b/ Fiber producers (for a family with 2 active pers ons)

kg/year Unit price Total in riels Total in US$

Sales :

From January to May : 375 1000 375000 93.75

Expenses : 0 0

Total returns per year 375000 93.75

Total return per month 75000 18.75

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himself with the Thai client, but he does not have the direct contact.

(*) However, most of them said they were ready to resume this work if the price of fiber is increased.

The families which produce fiber cannot produce palm sugar and conversely, for the workload is too important. This activity could therefore be a good substitute to palm sugar production.

If the market can be secured in collaboration with the clients , as well as tools to improve the productivity and quality be developed, many families could be interested in switching from palm sugar production to this new activity.

5.5 Handy-craft production

In all the visited villages of APL, all families produce functional palm leave products such as mats, hats, baskets but these items are used or sold locally.

People also produce roofing materials made of palm leaves. However, this activity remains very local. These palm leaves roofing materials are not sold outside the villages, because these roofing materials are quite widespread.

Close to Tnol Soten, Oudong and Baichan markets (in a radius of 10 km), there is a strong activity of production and commerce of these items

(mats: 1000-2000 riels, hats (300 riels), baskets (from 1000 to 1500 riels), palm leaves roofing material (150 riels each...), brooms (500 riels each).. for these markets.

It should be noted that the traders we met often complain about that the quality of the Cambodian products is lower than the quality of the same Vietnamese products (it is in particular true for the hats and brushes).

Regarding handy craft for tourists, we only found villages which produce this kind of handy-craft outside APL, close to the Oudong mountain. These products were manufactured on order of Tuol Tom Pong traders (Russian market); baskets, pockets..

For instance, in the village of Sra Po, women manufacture more than 2000 articles (for about 500$) every 2 weeks. According to these women, the volume of activities has been in constant increase, in particular for the last 2 years. However, the design of the product has not changed for the last years.

Handy-craft for tourist could be potentially realizable on APL, but would require the installation of a specific training center and marketing assistance.

5.6 Palm wine

The palm wine is an activity primarily related to the proximity of the cities. The very few palm wine producers whom we hear about exploit their trees in a maximum radium of 5 km of a market place (On producer in Tropeang Prey for example at about 3 km from Bat Doeung market).

We couldn't meet any palm wine producer in activity in APL, so we analyzed the income situation of a palm wine producer who exploits 7 trees in Kandal province and sell his wine near Phnom Penh.

Qty/year U.price Total in riels Total in US$

SALES

Glasses of Palm wine (from Dec to June, 15 liters per day.)

12 600 200 r 2 520 000 630

EXPENSES

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5.7 Palm fruits

The palm fruits represent a modest additional source of income for villagers of APL all year long. According to seasons, they can sell fresh fruits, ripe fruits, or germinated fruits.

� Fresh palm fruits are sold to local tourists of Phnom Baset in dry season (100 riels/ 3 units). � During rainy season, ripe fruits are given to the animals as a source of energy. In addition, during wet

season, farmers put pits in the soil for germination, and can sell some hundred of them to local merchants. (Germinated palm fruits contain sweet starch). Some farmers assured us to be able to make an income of 10 000 riels every month of rainy season with this activity.

In general, the income generated by palm fruits is relatively low. However, one should note that ripe fruits contain a jelly that has anti bacterial properties (according to the Palmyra Development Board in Sri Lanka). If this jelly could be used in the cosmetic industry (for making natural soaps and shampoos), this could create a big demand. A great investment in researches (and/or partner ship with a foreign cosmetic company) would be necessary to confirm and exploit this opportunity.

5.8 Other forestry products

5.8.1 Resins

Certain villagers of APL (20 families in Tmey Ping Pong, 2 families in Tumunp Bak, 15 in Doek Peang villages) are used to collecting resin (sap of trees) in Kampong Chang province.

This sap, called Mereak is a resin used for waterproof the boats, baskets and other fishing equipment.

Mereak comes from a tree called Kreul (Mallanorhea Laccifera, Anacarliaceae) which produces as from the age of 30 years approximately. The collection consists in making a hole in the trunk of the tree, and then put fire inside to collect the sap.

According to the villagers of Doek Peang, It seems that before 1979 one could find this kind of trees in Oudong district, but since these time, it has practically disappeared (there are still only some very old trees at Tumnop Bak pagoda).

Mereak is a toxic sap, which in contact with the skin can cause important inflammations.

2 producers can collect about 40 kg / month. Each kilo of Mereak is sold locally at about 8000 riels per kg. Since there are no necessary input in the production of resin, a family can make a good additional income of

General costs : 79000 19.75

Rental of 7 trees 7 7000 49000 12.25

Poppeel 1 20000 20000 5

Small equipment 10000 2.5

Depreciation : 69833 17

Replacement of ampong 20 1000 20000 5

Replacement of ladders 7 2500 17500 4.4

Bicycle (80$, every 15 years) 21333 5

Jars (replacement of jars every 6 years) 11000 2.75

TOTAL : 148 833 37.2

RETURNS PER YEAR 592.8

RETURNS PER MONTH 84.6

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about 40 $ every month.

In general , the most common resin areas are primarily areas of forest, such as Kampong Thom, Siem Reap, Stung Treng. Kampong Chnang province (where the villagers of APL usually go) produces very little quantity of resin.

5.8.1.1 Marketing of resins in Cambodia

(The following information comes from traders in K Thom, and Phnom Penh)

The principal market of the resins is in Kampong Thom. There are mainly 2 kind of resins in Cambodia :

� Choeutal (dipterocarpus) sap is collected on trees which are usually more than 40 years old. In high season, the export of these resins can reach 5 to 10 tons per day. One can collect this resin in two ways:

� Liquid resin (Cho teuk) obtained by heating the inside of the trunk. It is the most appreciated resin by Thai traders. It is sold in plastic bags (selling price is about: 2000 riels/kg).

� Hard resin (Cho Chan) obtained by bleeding on the trees, or obtained by collecting the pieces of dry sap fallen naturally from the trees. The sap is then crushed to be marketed in Vietnam or Thailand (selling price: 1300 riels/kg).

� Mereak : The external demand for Mereak is nowadays very low. According to traders, this is because of the poor yield of the Kreul (Mallanorhea Laccifera, Anacarliaceae), and because of the strong toxicity of the resin. Thu, Mereak is primarily used locally (for the fishing vessels).

From information we collected after the traders of Phnom Penh and Kampong Thom, the market of resins in Cambodia is stable, and the demand for Mereak is specifically decreasing because Thai and Vietnamese traders prefer cheaper and less toxic resins such as Choeutal (dipterocarpus) sap.

5.8.2 Coconut and other fruit trees

Coconut can be sold in three 3 possible products:

� The non ripe coconut (for juice), bought to the farmer at 250 riels each (A great part of these coconuts are sold for tourists visiting Phnom Baset).

� The ripe coconut bought (for flesh), at 400 riels each. � The germinated coconut (growth) is sold between 1000 and 1200 riels each to planters.

The number of coconuts sold by family vary between 100 and more than 1000 per year. Coconut sales generated an income of 25 000 (6,2 $) and 250 000 (62 $) per household.

Concerning other fruit trees like mango, papayas, the production is exclusively consumed or exchanged locally.

5.8.3 Cashew nuts

5.8.3.1 Marketing and production.

Since the cashew nut crop start in March, it was not possible to have any figures about the marketed quantities in APL. However, producers said the marketing is easy since cashew nut traders come usually every two days during the season to collect the raw cashew (which are then exported to Vietnam). The selling price of raw cashew which varies from 2500 riels to 3500 riels per kg are considered quite interesting by the producers.

Because they see that the marketing of cashew nuts is easy, villagers who own free land have started cashew nuts plantations. However, all the producers we met complained about the lack of technical support, especially in the choice of the seedlings, pest management. Usually, they use local techniques, and local seeds, but are deprived when problems occur.

We met villagers having plantations of cashew nuts in the following villages:

� In Trapeang Run, 2 families, one has about 160 trees, the other one has 60. Both plantations are recent.

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� In Trapeang Veng, an old farmer has already more than 1000 trees of which 200 are in full production. � In Tuol, there is one plantation of about 160 trees. � In Thmey Ping Pong, 1 man has a plantation (1ha) which gives him about 600 000 riels income/year.

This plantation was done in the 60s and is regularly maintained by the owner. � A plantation of 5 ha along the road No. 33.

5.8.3.2 Potential

Nowadays, cashew nut is a commodity in full international expansion. Vietnamese plants several tens of thousands of hectares each year, but seeks also raw nut from Cambodia to feed their processing factories. There are therefore a possible market for exportation. In addition, possibilities exist within the National market (The Cambodian market is 100 tons cashew kernels every year, according to Agrisud, French NGO specialized in agriculture and food processing).

Because the available land in APL is limited, and one cannot envisage to plant enormous plantations of cashew nuts.

However, the mission suggests that the organizations who works in the areas (such as PRASAC and World Vision) study and propose adequate technical support for those who have or intend to launch out these plantations.

5.9 Cycle of palm activities in APL forest.

5.10 Summary of the potentials of palm productions in APL forest

Month 1 2 3 4 5 6 7 8 9 10 11 12

Activity

Rice seedbeds, re planting X X X X X

Rice harvest X X

Collection of juice and cooking of palm sugar X X X X X X X

Palm fiber activities X X X X X X X

Vinegar X X X X X X

Handy-craft X X X X X X X X X X X X

Fresh fruits (refreshing) X X X X X X

Ripe fruits for animals X X X X X

Germinated pits for starch X X X X X X X

Other forestry activities:

Cashew nuts (collection of fruits) X X X

Collection of resins (Mereak). X X X X X X X X

Coconuts X X X X X X X X X X X X

Production Present production Technical

aspects

Marketing aspects Possible intervention

Palm sugar Production globally decrease because of the competition of

Lack of wood. Regular Increase of the cost price.

Diminution of the existing market.

Better organize the information on marketing.

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6. PROPOSALS

According to the information we got, the mission proposes 2 concrete actions concerning the products of the palm sugar trees in APL:

� Support to the fiber and fiber brooms production. � Pilots projects of palm vinegar production

6.1 Development of palm Fiber

6.1.1 Objective

Develop a comprehensive project of study and support (technical and marketing) of the palm fiber production in APL forest.

6.1.2 Target areas and groups

Even if the current number manufacturers of brushes is relatively low, all the villages of APL can manufacture fiber, in particular in the communes of Chansen, Damnak Reang and Meanchey.

6.1.3 Marketing support

The information that were collected during this mission are not sufficient to draw complete conclusions on the marketing potentials of fiber, especially regarding exportation.

The mission thus proposes to undertake a more thorough study in Thailand and Malaysia, within the

white sugar. Not much to expect regarding tourist market (low quantities) and export ( expensive procedures)

Palm fiber

Only local brooms production.

Palm fiber for Thai market (1999)

Productivity very low.

Potential may exists at national, regional and international level.

Make research on marketing.

Develop tools to improve the productivity and quality.

Palm vinegar Only for local consumption

Logistical problem.

Quality: how to guarantee a steady quality.

Good perception of potential individual clients and restaurants.

Train, promote, palm vinegar in a small number of villages.

Palm wine

Only for local consumption.

Difficult pasteurization.

NA.

Palm Juice. Only for local consumption

Logistical problem : How to get quickly palm juice to market place.

Demand existing in Phnom Penh.

Develop pilot initiatives along road No26.

Mereak (waterproof resin).

No existing trees in APL.

Toxicity, scarcity.

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manufacturers of brushes using palm fiber in order to study volumes, demands, constraints, and evolution of palm fiber uses in these countries.

If this study is conclusive, the mission also proposes to put in direct contact Thais purchasers and the Cambodian producers and traders, in order to create a proper customer-suppliers relation ship.

The mission also recommends that a focus person be found within the Forestry Department to follow all the questions relating to palm fiber and, if possible, to all the palm sugar tree products.

6.1.4 Technological support

The most important technical criterion to develop palm fiber is the improvement of the productivity and quality.

Regarding productivity, it is necessary to undertake a technical research in order to develop simple tools or technique to improve the beating of the leaves without creating lesions of the fiber.

This research could be undertaken within by a micro-enterprise center or technological school.

The technical school Don Bosco has expressed great interest to study this problematic and if necessary design adequate tools.

For that, Don Bosco would need practical elements on the manufacture of the fiber (description, photographs, demonstrations), financial means to conduct a research in order to design of adapted tools. (Contact: Michele Mottolese, such: 023 219 680, [email protected])

With regard to quality, it will be necessary to train the producers about the requirements of the final customers (who are the broom manufacturers). Moreover, the palm fiber trader ensures that Thais are ready to pay 1700 riels/kg of very good quality fiber.

All in all, if the productivity is increased by 50%, and if a very good quality is obtained, the daily household income could be

2 *1,50 = 3 kg *1700 riels, so to say 5 100 riels

(1,275 $) per day, 38.3 $ per month

The household income would then be 25% higher than an average palm sugar producer (see chapter 4.1).

6.1.5 Improvement of fiber brooms productions

Technological improvements are also possible at the level of the brushes manufacture. One step would be to widen the range of brushes currently manufactured to white-wood handle brushes adapted to different uses.

One could thus design, instead of the simple small bamboo brush:

� Hand brushes � Domestic brushes, � Streets brooms...

The mission proposes to submit this task of improvement to the micro-enterprises centers existing in the province. The design of these brushes can be found in brochures of appropriate rural technologies or directly from the writer.

Once under control, these new technologies could be proposed to the micro-entrepreneurs involved in wood processing and fiber making (There are two entrepreneurs who could develop this production in APL.

6.2 Palm vinegar processing in APL

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6.2.1 Objectives

Conduct a pilot project in order to explore the feasibility of palm vinegar production for the Phnom Penh market :

� To train the villagers with basic techniques as regards with the transformation of the palm juice into vinegar.

� To support (financially and technically) initiatives of local production of this product within the villages of APL.

� To integrate the marketing of palm vinegar through the present marketing palm sugar marketing chain (carriers, traders, wholesalers).

� To support with a appropriate selling campaign the distribution of this product in Phnom Penh markets and restaurant.

6.2.2 Targets groups

Whereas men are mainly occupied in the collection of the palm juice, women proceed the cooking of juice, the harvest of wood.

In the meeting we had in villages, they very clearly express their will to remove or decrease the constraining task of sugar cooking.

It is thus important to work on this diversification activity with women.

Pou, Trapeang Run or Tumnup Bak villages can be recommended for this kind of project since they are very close to road no 26, and have proved a strong motivation regarding possible diversification.

6.2.3 Expected results

The present marketing price of vinegar in the surroundings varies around 400 riels/liter. (400 riels in market: 300 riels ex-farm + 100 riels for transportation to local markets)

The operations of processing vinegar consists in letting the juice transform itself into vinegar for one month, then package and seal out jerricans of 10 liters (under good hygiene conditions).

Expenses would include detergents and plastic shrinking film to seal off the jerricans. (about 5 $ per month).

The investment of every micro entrepreneur would be :

� 6 plastic 200 liter - tanks (20 $ each jar) (lasting 3 years each): 120 $ � 20 jerricans (10 liters each) at 2.3 $ each (lasting 1 year each): 46 $ � Small equipment (funnel, pipes, filters)'': 10 $

The Income statement of a potential palm vinegar producer could then be:

So, a family who produces 30 liters of vinegar per day can make more returns than a family who process 60 liters of juice into sugar.

6.2.4 Possible organization of the project

The methodology of the pilot projects could be based on the setting up of small processing training units in the villages.

Per day Per year

Sales 30 L * 300 r = 9000 r (2.25$) 9000 r *180 d = 1 620 000 r (405$)

Expenses 0.16 30 $

Depreciation 96/180 days = 0.53 $ 120/3 + 56 = 96 $

Income 1.50 $ 280 $

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Technically, this unit consists of a simple covered building which can shelter the training sessions, the basic equipment as well as a small storage for the raw material

This unit would be used as a basis for the organization of training, of demonstration practices within a clean and dedicated framework. The unit is equipped with the basic material to carry out training, processing, and quality control.

In addition to the vinegar, one can teach the farmer with other food processing activities such as the pasteurization of the palm juice.

The average cost of such a unit would be about 4 000 USD (2 500 for the building, 1500 for the equipment).

An additional work will be necessary to define the technical and budgetary aspects of the project according to selected options.

6.2.5 Technical assistance

Technical assistance would be required for the following steps :

� Training of all the interested women. � Installation of a financial support based on micro-credit. � Monitoring, councils during the production. � Support for the processing of packaging. � Quality control. � Promotion and sales

The logistic/financial support for these operations could be provided by organizations and projects operating in the zone such as PRASAC, World Vision, GRET/EMT (micro credit).

Technological support to the project could be provided by the Food Industry Engineers of the ITC (Institut de Technologie du Cambodge). Contact person : Mr Pascal Durand Carrier, [email protected].

6.2.6 Quality control

The decisive key factors of the launching of this product relate to quality. Even if the customers seems interested by the product, they are extremely concerned by

quality and will require guarantees at this level. To have a chance of success, it is thus advisable to set up a strict quality control procedure, in collaboration with the appropriate administrative related bodies.

6.2.7 Marketing and selling

The mission recommends that the agents of the usual palm sugar marketing network be included in the marketing process in order to profit from synergy with the palm sugar. The costs of transport and marketing would be thus optimized. In particular, some wholesalers of Psa Depot will have to be contracted for the main storage of the vinegar .

Initially, it is preferable that producers prepare bulk quantities (packaging of 5 or 10 liters) in order to avoid excessive expenditure in packaging. With regard to labels, it is advised to call upon specialized designers.

For the launching of the sale campaign, a group of salesmen will have to be financed during a few weeks to approach the restaurants and the retailers. If the sales are successful, retailers will take over and will come to be supplied in Psa Depot as they do it today with the palm sugar.

6.2.8 Institutional framework

As the targeted group is primarily female, it seems interesting to imply the Ministry of Women Affairs as partner of such project. The economic section of the Ministry of Women Affairs, (Contact: Mrs. Ma Vany, tel: 012 868 317) has significant experience in the economical assistance for women groups.

Moreover, Ministry of Women Affairs has an office in Kampong Speu, and voluntary relay members in every

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commune.

ANNEXES

Terms of reference

A recent study of villages in Oudong district highlighted the importance of the sugar palm tree . Many families within the area are dependent on sugar production to provide their main source of income. However, sugar production places a great strain on local forest resources, due to the high demand of firewood.

One of the forestry extension activities in Oudong is to examine ways of reducing firewood consumption, in order to reduce the pressures on the resource base. Whilst households are reliant on firewood for cooking, mostly this fuel comes from around homesteads, paddy fields and the village. Sugar production requires a far greater amount of firewood than does cooking, and is collected from further afield, including the state forest.

Firewood reduction strategies will, therefore, initially be focused towards the sugar producers. Options include the reduction of sugar production through the introduction of mechanisms for the production and marketing of other parts of the sugar palm tree, and the reduction of firewood use in sugar production through the introduction of improved stoves. The latter is already being implemented in the area.

Objective of the study

Main objective of the planned study is to provide detailed information on how to:

1. better integrate the sugar palm tree into sustaining household livelihoods, through the identification of those uses of the tree alternate/additional to sugar production.

2. market these products (prices, ways of transport, expected income for farmers etc.) 3. improve existing palm sugar production practices 4. compare marketing of palm sugar versus alternative palm tree products

Activities

In order to examine the feasibility of support to such alternate income-generating opportunities for households, this study will examine the potential marketing mechanisms and income from a range of products from the sugar palm tree, in comparison to those associated with the present sugar production activities.

The existing report " The Sugar Palm Tree in Cambodia" (Prasac-Replic 6/2000) identifies potential palm products within the country, and includes information related to marketing, financial and technical issues related to each product. This detailed report to PRASAC will provide background information to the study, and will be translated into actions in Oudong, through interviews with villagers currently owning sugar palm trees, and people involved in local market mechanisms. In particular, information will be gained relating to:

� marketable amounts of the various products � cycles of production � production per family/tree � means and costs of transportation � production expenditure and expected income � preparedness of villagers to participate in such diversification � age and growth rates of palm trees � recommendations regarding the improvement of existing sugar palm production practices � recommendations concerning other crops/agro-forestry alternatives, such as cashew nuts.

List of references

� REPLIC/ PRASAC. Jean Pierre Mahe. June 2000. The sugar palm tree in Cambodia, Analysis and Development Potential.

� GTZ-CGFP baseline survey in Oudong district, Kampong Speu province, October 2000. � Cambodian Fuel Saving Project. 2000: Socio Energetic study, Palm Sugar production in the province of

Kampong Chnang. � GRET, Pierre Daubert. 1991: La production de sucre de palme au Cambodge.

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� ANON. Not dated: Community Forestry Program in Ang pro Loeung Area, Oudong district, Kampong Speu province.

� FAO. Preston and Borin. TR 1995. Conserving Bio Diversity and the environment and improving the well being of poor farmers in Cambodia by promoting pig feeding system using the juice of the sugar palm tree (Borassus Flabellifer).

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