Economy: Thailand to purchase 400,000 tonnes of cassava and red corn per year from Cambodia

Thailand has formalised a major agricultural trade agreement with Cambodia, committing to purchase 300,000 tonnes of cassava and 100,000 tonnes of red corn per year through the Cambodian Cassava Federation (CFC).

The agreement was sealed during a signing ceremony for a memorandum of understanding (MoU) held in Bangkok during an official visit by Reach Ra, Secretary of State at the Cambodian Ministry of Commerce, who led a CFC delegation to meet with the Thai Chamber of Commerce from 22 to 25 April 2025.

The signing ceremony was attended by 12 Cambodian delegates, including senior officials from the Ministry of Commerce, and 32 representatives from various Thai ministries and agencies, as well as the Thai Chamber of Commerce. The agreement was concluded between the Thai group Koson and the Cambodian Cassava Federation.

During the discussions, the two sides addressed challenges and solutions related to market access, supply chain logistics and the broader trade in processed agricultural products. Discussions also covered other commodities such as soybeans and animal feed ingredients, with a focus on improving trade facilitation and logistics between the two countries.

Economic and agricultural context

Cassava is a vital commercial crop for Cambodia, providing livelihoods for thousands of farmers and contributing significantly to the country's agricultural exports. Cassava production in Cambodia has grown rapidly over the past two decades, with most of the production traditionally exported to neighbouring Thailand and Vietnam.

Red corn is also gaining importance among Cambodian farmers, partly because of its higher price compared to cassava, which is prompting some to shift their crop priorities. The new agreement is expected to further encourage the expansion of cassava and red corn production in Cambodia.

Regional trade dynamics

This agreement underscores Thailand's role as the main buyer of Cambodian agricultural products, a relationship that has been forged by changing regional demand and global market trends. Cambodian cassava, in particular, is highly sought after for its versatility in food production and industrial uses. This agreement is expected to increase income for Cambodian farmers and strengthen bilateral trade relations.

Outlook

Thailand's annual purchase of 400,000 tonnes of cassava and red corn marks a new chapter in agricultural cooperation between Cambodia and Thailand. It is expected to provide a stable market for Cambodian producers, strengthen regional food security and contribute to the economic development of both countries.