PHNOM PENH — The Cambodia - Viet Nam Foods Company (Cavifoods) on March 30 opened a rice-milling plant in Phnom Penh that is expected by May to have the largest capacity and best product quality of any milling plant in the country.
When the plant opens its second production line in May, it will become fully operational, with a total capacity of 40,000 tonnes, according to Doan Anh Sang, Cavifoods chairman.
Cavifoods has three shareholders, Viet Nam's Cambodia Investment and Development Company (IDCC), Viet Nam Southern Food 2 Corp (Vinafood2) and the local company Green Trade, which represents 33 per cent, 37 per cent and 30 per cent, respectively, of the nearly US$8 million in charter capital.
The company targets exporting 250,000 tonnes per year by 2015, which would represent 25 per cent of rice exports from Cambodia, according to Tran Bac Ha, chairman of the Association of Vietnamese Investors in Cambodia and chairman of the Bank for Investment and Development of Viet Nam, a major shareholder in IDCC.
Apart from the new rice-mill, which also has a storehouse system, Cavifoods will hire processing agents.
In Cambodia, Cavifoods also trades rice, pesticides and fertilisers as well as operates agricultural services.
Cambodia's Minister of Trade Chom Proseth praised the co-operation project that helped promote his country's rice-processing industry to reach international standards, including reaching a low broken-rice rate. The latter would help increase rice exports, he added.
Cambodia's strategy is to produce 4 million tonnes of rice by 2015, of which 1 million tonnes would be exports.
Cavifoods also plans to develop a packaging factory in Cambodia, according to Sang. — VNS