IJERD – International Journal of Environmental and Rural Development (2021) 12-2

Research article
erd

Possibility of Value Addition on Traditional Rice Liquor in
Cambodia
MITSURU HAMANO
Faculty of Agriculture, Shinshuu University, Nagano, Japan

TAKASHI KURODA
Graduate School of Bioagricultural Sciences (graduated), Nagoya University, Aichi, JapanCHIM CHAY
Faculty of Agro-Industry, Royal University of Agriculture, Phnom Penh, Cambodia

BORATANA UNG
Cambodia and Japan High-quality Agricultural Products, Phnom Penh, Cambodia

KASUMI ITO*
International Center for Research and Education in Agriculture, Nagoya University, Japan
Email: kasumito@agr.nagoya-u.ac.jp
Received 30 December 2020

Accepted 21 September 2021(*Corresponding Author)

Abstract Rice liquor is one of the traditional alcoholic beverages produced by small-scale
farmers in rural areas. However, rice liquor production faced deficits and low profitability
due to low sales price and productivity, frequent production failure, and low quality. It was
hypothesized that improving the quality could increase the product value and the profitabilityof rice liquor production. The key modifications of production techniques to improve rice
liquor quality include sanitary control of the working place, equipment, and raw material, andproduction process and quality management. However, it remains unclear if improving the
product quality may result in value addition on traditional rice liquor in Cambodian markets.
This study aimed to assess the possibility of value addition on the traditional rice liquor in
Cambodian markets. First, consumers had structured interviews with questionnaires to
identify consumption trends and preferences on rice liquor and other alcoholic beverages.
Second, liquor produced with the modified techniques underwent consumer tests on its
quality and sales price in 2009. Finally, quality liquor with the required registration forcommercialization was trialed to identify the possibility of adding value to the products in
Phnom Penh markets from 2010 to 2011. The survey results found that traditional rice liquor
was consumed more in rural areas than the urban areas. More males consumed rice liquor
than females, who mostly consumed medicinal and fruit liquor. A consumer test was
conducted with tasting, observing bottled products, and labeling after a quality check. Both
Cambodians and foreigners' evaluated liquor produced with modified techniques andindicated the possibility of putting a higher price as commercialized products. After
registering for commercialization, the quality rice liquor was trialed for marketing and sales.
These activities attracted several supermarkets, restaurants, and souvenir shops, and a sales
contract was agreed for more than ten times higher than the sales price at the local markets.
These results showed that the traditional rice liquor with value addition might gain market
shares by ensuring product quality and safety.
Keywords value addition, agro processing, rural development, marketing, rice liquor

INTRODUCTION
Value addition to agricultural products is expected to increase farmers' incomes and reduce poverty
in rural areas (Royal Government of Cambodia 2006; Royal Government of Cambodia, 2013). Rice
liquor is one of the traditional alcoholic beverages produced by small-scale farmers in rural areas. ItⒸ ISERD

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contributed to income generation combined with pig farming, which became profitable by using rice
liquor residue that reduces feeding costs. However, rice liquor production faced deficits and low
profitability (Yagura et al., 2010). Main factors of low profitability include low sales price andproductivity and frequent production failures, and many producers recognized the issues of low
quality (Hamano et al., 2020). It was hypothesized that improving quality could increase theprofitability of rice liquor production (Hamano et al., 2020).
The general production methods of traditional alcoholic beverages from rice in Vietnam andLaos have been clarified (Kozaki et al., 2002; Kozaki et al., 2005). Kozaki (2007) also revealed the
production methods of traditional brewed and distilled liquor from rice in Cambodia. Yamamoto andMatsumoto (2011) identified the production methods of starter culture and its raw material for rice
liquor and wine in Cambodia. Hamano et al. (2014) identified the key modifications of production
techniques to improve rice liquor quality, such as sanitary control of working place, equipment, andraw material, and production process and quality management.
However, it remains unclear if improving product quality may result in value addition on
traditional rice liquor in Cambodian markets.
OBJECTIVE
This study aimed to assess the possibility of value addition on the traditional rice liquor in Cambodian
markets.
METHODOLOGYThis study employed a series of action research (Greenwood and Levin, 1998; Popplewell andHayman, 2012) to examine the possibility of value addition on the traditional rice liquor throughinterview surveys on consumption behavior, consumer tests on quality, and marketing and sales trials
in domestic markets of Cambodia.
First, structured interviews were conducted with questionnaires to the consumers to identify the
consumption trends and preferences on the rice liquor and other alcoholic beverages during the Water
Festival and One Province One Product Exhibition (OPOP) in 2008 at the capital city, Phnom Penh
(Fig. 1). Second, rice liquor produced with the modified techniques by rice liquor farmers in Takeo
Province was provided for consumer tests on its quality and sales price during the OPOP in 2009 at
Phnom Penh. In order to set up the trial sales prices, the sales conditions of the local rice liquor andother commercialized alcoholic beverages were clarified by conducting market surveys in Takeo
province and Phnom Penh in advance. Third, the trial marketing and sales of the quality liquor withthe required registration for commercialization were conducted to identify the possibility of adding
value on the products at Phnom Penh markets from mainly 2010 to 2011. Finally, the possibility ofthe value addition on rice liquor was discussed with the necessary conditions.

Fig. 1 Target area
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RESULTS AND DISCUSSION
Trends and preference of consumers: The interview survey was performed with questionnaire on
alcoholic beverage consumption to the Water Festival visitors in Phnom Penh, the capital city of
Cambodia. The interviews were conducted to 111 males and 121 females, and 230 valid answers
were obtained. Most interviewees at 94% came from provinces outside Phnom Penh.
Table 1 shows the alcoholic beverage consumption behavior of the interviewees. The results
indicated that beer is consumed by 73.5% of the interviewees, with rice liquor at 59.6% and herb
liquor at 54.8%. More people drink beer than rice liquor and herb rice liquor processed from the rice
liquor, followed by palm wine at 46.1%, and fruit rice liquor at 33.1%, which are both traditionallyproduced and consumed in Cambodia. On the other hand, the traditional rice liquor, herb rice liquor,
and palm wine were more frequently drunk on a daily (5-7 times/week) or weekly (1-4 times/week)basis than beer. Rice liquor, herb liquor, and palm wine were consumed by 27.4%, 21.4%, and 14.8%,
respectively, more than once per week (both 5-7 times/day and 1-4 times/week), while beer was
consumed by 11.3%. On the other hand, whiskey and wine were consumed a few occasions per year
(1-11 times/year).
Table 1 Consumption of alcoholic beverage by the interviewees

Note: Most interviewee (94%) were from provinces out of Phnom Penh.
*Palm wine and rice wine were brewed alcoholic beverages without distillation like rice liquor.

Table 2 shows the interview results during the One Province and One Product Exhibition in2008 about the rice liquor consumption comparing urban and rural residences. Interviews wereconducted with 393 visitors and obtained 337 valid answers (by 303 male and 34 female) consistedof 202 from Phnom Penh and 135 from other provinces out of Phnom Penh.
The results indicated that both urban and rural people consumed rice liquor since more than
59.9% by Phnom Penh visitors and 66.7% by consumers from other provinces. The weekly (1-2times/week) or daily drinkers (Everyday) shared 13.9% at Phnom Penh and 17.0% at other provinces.
Although rural people tended to consume rice liquor more frequently, people in Phnom Penh also
consume traditional products.
Table 2 Consumption behavior of rice liquor in urban and rural areas
Phnom Penh

Other provinces

Answer%Answer%AnswerTotal%

No drink
Drink

81
121

40.1
59.9

45
90

33.3
66.7

126
211

37.4
62.6

1-5times/year
1-3times/month
1-2times/week
Everyday

68
25
20
8

33.6
12.4
9.9
4.0

48
19
13
10

35.6
14.1
9.6
7.4

116
44
33
18

34.4
13.1
9.8
5.3

Total

202

100.0

135

100.0

337

100.0

The interviewees were asked about their impression of the rice liquor quality (Table 3). Amongthe answers, 116 (34.4%) recognized rice liquor as low quality at a nearly same ratio in Phnom Penh
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and from provinces, while 76 (22.6%) evaluated it as high quality. Among the 116 interviewees who
answered “low quality”, the reasons were described and appearances of keywords were counted. As
a result, “added industrial alcohol” or “other kinds of harmful chemical” was 47 (41.6%), followedby “bad for health” at 23 (20.4%), “unstable quality” at 14 (12.4%), and “no quality control” at 13(11.5%).
Table 3 Impression on traditional rice liquor
quality in urban and rural areas

High quality
Low quality
No idea
No-answer
Total

Phnom Penh
Number
%
41
20.3
70
34.7
79
39.1
12
5.9
202
100.0

Other Provinces
Number
%
35
25.9
46
34.1
43
31.9
11
8.1
135
100.0

Table 4 Factors of low quality
Add industrial
alcohol/chemical
Bad for healthNo standard/ Various
quality
No quality control
Add water
Others
No idea
Total

Frequency

%

47

41.6

23

20.4

14

12.4

13
3
11
2
113

11.5
2.7
9.7
1.8
100.0

*Frequency of key words in the answers to the openended question. 108 out of 116 respondents answeredand 113 key words were counted. No answer by 8
respondents.

Current sales price and its quality: Hamano et al. (2013) identified the modified production
techniques for quality improvements by improving sanitary conditions and quality control throughtrial productions with a selected farmer in a rural area of Takeo province. Consumers recognized theimproved quality and high possibility of commercialization in the trial rice liquor during consumers'
tasting tests, comparing with the farmer's liquor in the One Province and One Product Exhibition in2008. However, people were suspicious about the quality and safety control of the local rice liquor
as shown in Table 3. It indicated that the consumers refused pay high value without the guarantee ofthe products quality and safety under a strict production control.
During the OPOP exhibition in 2009, the quality liquor was provided to the second consumer
test with tasting and observation of the rice liquor products, which have been developed to ensure
the necessary conditions for the commercialization. The rice liquor was produced under strict quality
management, such as ensuring the sanitary condition of raw material, equipment, and production
place, checking and recording the production process, measuring the alcohol degree, and conducting
the sensory tests for checking taste, fragrance, color, and smell. The rice liquor was packaged withsealed glass bottles. Front and back labels were attached to the bottle with the product logo mark andnamed as “Sraa Takeo,” which means rice liquor from Takeo province in Khmer language. The label
included the information on producers, and product information such as alcohol percentage, rawmaterial, and production process with strict sanitary and quality control (Fig. 2).

Checking fermentation
Recording production

Sensually test and alcohol
degree check

Final sensually test andalcohol degree check

Bottling and labelingFig. 2 Quality check during the rice liquor productions
Fig. 3 shows comparison results of retail prices of general rice liquor at local shops between
Phnom Penh and Takeo province. The price setting at Phnom Penh has three price ranges of R2,000– R3,000/L (USD0.5–0.75), while the price at Takeo province has only one price range at R2,000/L.
It seemed that the Phnom Penh market could be more sensitive in differentiating the prices andⒸ ISERD

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quality. However, the prices and the alcoholic degree did not have a significant correlation. It meansthat the traditional rice liquor was not clearly evaluated its quality with price setting.

Fig. 3 Rice liquor price (Riel/L) and alcohol contents
The prices of the trial products for commercialization were also based on the production costand market survey results on alcoholic beverages in Phnom Penh. Table 5 shows the retail prices at
10 shops, including supermarkets and local shops. Local liquor was sold at USD0.5–1.0/L in local
shops and supermarkets. On the other hand, imported whiskey, vodka, and wine were sold at USD5/L
in the lowest price, and USD10–20/L in general. The alcohol contents varied from 20%–40% in thecase of distilled liquor.
Consumer tests on its quality and sales price: For the consumer test, two trial products withdifferent alcohol degree at 25% with a green label and 40% (alc/vol) with a black label, and one local
liquor from the market in Phnom Penh were provided to the OPOP exhibition visitors in 2009 at
Phnom Penh to compare the liquor quality and examine the marketability of the packaged products(Fig. 4). The total number of interviewees was 349, consisting of 332 Cambodians (314 males and
18 females) and 17 foreigners (14 males and 3 females). Among the Cambodians, 86.5% lived in
Phnom Penh, and 13.2% were from other provinces. The eight foreigners included were Japanese,
Americans, and Europeans.
Table 5 Sales of alcoholic beverages in different retailers

Note: Rice liquor (local shops) were distributed with plastic container from local farmers and sold after putting in reused PET bottle without showing any information such as alcoholic contents and raw material.

The results of interviews after the tasting and observations of the products most interviewee
preferred the trial products sharing Sraa Takeo 25% (alc/vol) and 40% (alc/vol) at 50.7% and 40.7%
of total answers respectively (Table 6). The fragrances of two Sraa Takeo products were highly
evaluated that more than 66% of interviewees recognized them as the more preferred aromas, while
only 23.8% preferred the aroma of the local rice liquor (Table 7). The color of Sraa Takeo products,
which were mostly transparent, were preferable for the consumers, while nearly 70% of theⒸ ISERD

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interviewees described the cloudy local liquor as unpreferable, as it usually appeared in general local
rice liquor in Cambodia (Table 8). The prices set per 500-mL bottle, which were USD5 for Sraa
Takeo 25% and USD8 for Sraa Takeo 40%, were recognized as the appropriate price for commercial
products by respectively 56.7% and 53.2% of all interviewees, even though the local rice liquor was
sold at USD0.75/L (Table 9).
Green label:
25% alc/volat USD5.00
Black label:
40% alc/volat USD8.00

Sample of quality rice liquor
products

Samples for tasting

Interviews after tasting andobservation of the products

Fig. 4 Consumer tests during One Province One Product exhibition in 2009
Table 6 Preference of rice liquor
Sraa Takeo 25%
Sraa Takeo 40%
Local rice liquor
Total

Table 7 Evaluation on fragrance of rice liquor

Answers (%)
177 (50.7)
142 (40.7)
30 (8.6)
349 (100.0)

Aromatic
Notaromatic
No idea
Total

Table 8 Evaluation on color of rice liquor

106 (30.4)
242 (69.3)

Sraa
Takeo
25% (%)
321 (92.0)
27 (7.7)

1 (0.3)1 (0.3)1 (0.3)349(100.0)349(100.0)349 (100.0)

Local rice
liquor (%)
Good
Bad
No
idea
Total

Local rice
liquor (%)
83 (23.8)

Sraa Takeo
25% (%)
232 (66.5)

Sraa Takeo
40% (%)
236 (67.6)

266 (76.2)

116 (33.2)

112 (32.1)

0 (0.0)349 (100.0)

1 (0.3)349 (100.0)

1 (0.3)349 (100.0)

Table 9 Evaluation on price setting of trial
rice liquor

Sraa Takeo
40% (%)
314 (90.0)
34 (9.7)

Reasonable
Appropriate
High

Sraa Takeo
25% (%)
2 (0.6)198 (56.7)
149 (42.7)

Sraa Takeo
40% (%)
3 (0.9)186 (53.3)
160 (45.9)

Total

349 (100.0)

349 (100.0)

Questionnaires about the place of drinking rice liquor were answered to be mainly consumed at
the house (Fig. 5), while the other alcoholic beverages were consumed at house and restaurant(Fig. 6). On the other hand, rice liquor was purchased directly from producers at 36.0% and local
markets at 30% (Fig. 7). Other alcoholic beverages were bought from local markets, street stoles,
and at supermarkets (Fig. 8). These results indicated that the traditional rice liquor has not been
introduced to the supermarkets and restaurants, where popularly high valued alcoholic beverages
were served and sold. In other words, high-quality rice liquor could have room to enter those markets.
Trial marketing and sales of the quality rice liquor: Based on the consumers' concerns for
unsafety of the rice liquor especially by the contamination of the industrial alcohol and otherchemical material into the products, it was assumed that the safety control has remained as afundamental issue toward value addition on rice liquor product. Thus, the trial rice liquor was
packaged by glass bottle and sealed cap after completing the commercial registration under the
Ministry of Commerce and manufacturing registration under the Ministry of Industry, Mine, andEnergy with quality test which certify the alcohol degree, appropriate acidity and no contaminationof methyl alcohol.
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Fig. 5 Drinking place of rice liquor

Fig. 6 Drinking place of other alcoholic beverageFig. 7 Buying place of rice liquor

Fig. 8 Buying place of other alcoholic beverage

After the required registrations for commercialization in terms of business (company)
registration, tax, small-medium manufacturing and product test, and trademarks, the Sraa Takeo 25%
and 40% were trialed for marketing and sales from 2010 September. The marketing and promotion
activities targeted around 80 clients including 4 supermarkets and 7 minimarts, 10 souvenir shops,
50 restaurants, 7 hotels in Phnom Penh and Siem Reap (Fig. 9).
These activities resulted to get 35 clients who bought Sraa Takeo 25% and 40% at least one
time and sell at the suggested consumer price consumer price at USD5 for Sraa Takeo 25% and
USD8 for 40% with 500 ml in minimum which were more than 10–16 times higher price than thelocal rice liquor price at the local markets during the 1st year. Then two supermarkets, threerestaurants/bar, six souvenir shops repeated to purchase the products within the first-year sales.

Supermarkets

Restaurants

Bars

Souvenir shops

Fig. 9 Marketing and sales of Sraa Takeo 25% and 40%
Figure 10 shows the first-year results of the sales every 3 months. The average monthly sales
were about 100 bottles in the first 6 months and increased to 200 bottles in the second 6 months. The
main clients were several souvenir and food shops and restaurant in the first 6 months and 2
supermarkets in the second 6 months in Phnom Penh, and a part of sales were accepted by souvenir
shops in Siem Reap, a famous tourism area.
Hamano et al. (2013) has clarified that the rice liquor production techniques can be modified
for quality improvement based on the local famers' processing know-how without introducing high-Ⓒ ISERD

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cost material and equipment and difficult techniques from other countries. Keeping the sanitarycondition and quality control were the fundamental technical improvements.

Sales amount in 2011
Sraa Takeo 25%

Sraa Takeo 40%

700
600

500
400
300

200
100
0
Oct~Dec

2010

Jan~MarApr~Jun

Jul~Sep

Oct~Dec

2011

Fig. 10 Sales (bottle numbers) of Sraa Takeo
Local markets in general did not have significant differences in the values on the traditional rice
liquor even though the alcoholic percentage was different. Thus, the commercialized markets suchas supermarkets, restaurants and bar, or souvenir shop that sold the high value alcoholic beverages
in the urban areas could be considered as possible markets for value addition.
In order to enter those markets, the rice liquor with improved quality should be developed ascommercialized products with commercial registration including not only business andmanufacturing registration but also obtaining the certification on product safety and quality from theauthorized laboratories. In addition, the products packaging with bottling, sealing, and labeling withnecessary information to indicate the product name, product quality, raw material, and producers.
One year marketing and sales activities to the high value markets in urban areas revealed thatsupermarkets and souvenir shops, and also restaurants and bars have accepted to sell the high-quality
rice liquor at USD5-8 which were 6-10 times higher than the local products. Some of them becomefrequent buyers and continuously purchased. These indicated that there were needs of the traditional
rice liquor by both domestic consumers and international customers. In the following year, thesouvenir shops in the international airports at Phnom Penh and Siem Reap accepted the Sraa Takeo.
The one of the largest chain supermarkets in Cambodia also continuously purchased the Sraa Takeoand extended the sold stores in their distribution system. In December 2020, at the time of writing
this paper, the products have been continuously sold in these retail markets.
These results indicated the high possibility of value addition on the traditional rice liquor in thedomestic markets of Cambodia through the quality improvement and the safety control. However,
the efforts of the marketing and promotion activities or further product development should benecessary for the further market extension and sustainable commercialization.
CONCLUSION
This study was conducted by using action research method to examine the possibility of value
addition through conducting the interview surveys on consumption behavior, market survey on theprice setting of local rice liquor, and impression on quality of the trial products for thecommercialization with tasting and observation. Finally, the sales of the commercialized products
were trialed in the domestic markets. These results indicated the possibility of value addition on the
traditional rice liquor under ensuring not only the high and stable quality but also the product safety
under the appropriate quality control and testing.

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ACKNOWLEDGMENTS
We thank Professor Tetsuo Matsumoto for his supervision and instruction of this study, and Mr.
Mitsuhide Fujimoto and Mr. Iwao Fukaya for their technical supports during the quality
improvement and commercialization of the rice liquor; This study was supported by Grants-in Aid
for Scientific Research (No. 20405045) and Cooperation Bases System (34-G-G0003) from the
Ministry of Education, Culture, Sports, Science and Technology of Japan.
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