Impact of Smallholder Agricultural Cooperatives on Market Participation of Vegetable Farmers in Cambodia: A Case Study of Svay Rieng Agro-Products Cooperative

Abstract

Agricultural cooperatives play a crucial role in improving Cambodian farmers’ participation in vegetable markets. Cambodia’s vegetable sector is afflicted by the dual problems of supply and quality; the country imports huge amounts of vegetables from Vietnam and Thailand, and most domestic vegetable production is still inorganic. This quantitative study shows the impacts of Svay Rieng Agro-Products Cooperative (SAC) on its members’ participation in vegetable markets. Data was collected from a survey of 44 SAC members and 20 non-SAC members in Svay Rieng province. A market participation index was used to measure the level of respondents’ market participation. Based on the quantity of vegetables sold, the 64 sample farmers represent four levels of market participation across 52 market participation scores: level 1 includes scores 4-16 (35.9% of total respondents); level 2 scores 12-32 (32.8%); level 3 scores 24-36 (17.2%); and level 4 scores 32-52 (14.1%). T-test analysis shows that the participation in vegetable market of SAC members is higher than that of non-members. Logit model reveals that variable of growing vegetables as a primary source of household income is positively related to the probability of selling vegetables to SAC. Tobit model is used to determine factors affecting market participation levels of SAC members. The study revealed five factors as critical variables affecting effective market participation: 1) education level of household head, 2) receiving market information, 3) volume of vegetable production, 4) distance to main market, and 5) the extent to which vegetable growers supply SAC. The study stresses the importance of agricultural cooperatives in improving famers’ participation in vegetable markets. Plus, the results concerning the probability of selling vegetables and level of participation in vegetable markets can usefully contribute to informing and improving the royal decree and prakas on agricultural cooperatives in Cambodia.