Strengthening of the Cambodian rice industry The partners will establish a parboiled rice plant in Cambodia. Parboiled rice is high quality rice and is healthier than white rice. The target market will be mainly the EU market because it is possible to export rice from Cambodia to the EU market duty and quota free. This was negotiated by the World Trade Organisation. The aim is to encourage the development of world poorest countries. Due to this fact the export from Cambodian rice to Europe increases rapidly and tripled in 2011. Now it is the moment to invest in a parboiled rice mill and export from Cambodia to the EU market under the favourable conditions.The partners are experienced in rice milling and trade. The applicant, Alesie Food Holland B.V. and local partner Signature of Asia Co Ltd have been business partners for a couple of years. Signature of Asia asked Alesie Food to set up a rice mill together. This idea was adjusted to a parboiled rice mill. Alesie Food already owns parboiled rice mills. The one in Suriname was also established with help of PSI. The third partner is Caribecom Holding B.V. that has experience in the marketing of (parboiled) rice. The partners will establish a joint venture.The project location will be in the region of Phnom Penh.The project is new for the country and will introduce the technique for the production of parboiled rice. It will create 50 jobs and 40 farmers will supply the paddy. A cooperative of farmers will be established. All staff workers will be trained to work in the rice mill. The farmers will be trained in improving the quality of the paddy.Corporate Social Responsibility (CSR)The joint venture will present a copy of a CSR policy not only for the partners but also for the joint venture. It will be an example and therefore published on the public website of the company. The policy includes ILO labour rights, health and safety, environmental protection by using biomass energy for boiling and drying of the paddy, personal development and capacity building, minimum age for employees of 18 years, fringe benefits etc. Furthermore, bribery is unacceptable and workers will be trained on how to prevent this. Child labour is not tolerated and the joint venture demands the same from the farmers’ cooperative.Impact•	Employment and working conditionsThe joint venture will ensure good and safe working conditions including showers and toilets at the production location, wearing of safety helmets and protective clothing provided by the joint venture is obliged.The salaries will be 15% more than average paid in the industry.Free lunches for all workers will be offered. A compensation of medical costs also for the direct families of the workers will be given if it is not covered by the health insurance paid by the joint venture.Workers will be trained for their jobs and will follow a HIV/AIDS prevention programme. The training gives the workers a better position on the labour market.•	Innovation / Transfer of knowledgeThe project is innovative and will introduce a new product on the market, a new production method and has a positive effect on the rice sector in Cambodia.•	Chain effectsThe joint venture will be active in establishing the farmers’ cooperative that will provide the paddy to the rice mill. The farmers will be trained to improve their yield. In the contract with the farmers’ cooperative is a statement about not using child labour. The farmers’ cooperative is the main supplier of the joint venture. Other local companies will be involved in transport, services as accounting and insurances.Although the joint venture will sell mainly on the EU market, the local market will be supplied with parboiled rice as well. The customers will be able to buy the healthier parboiled rice. For diabetic the parboiled rice is much better to consume than white rice because it has a lower GI index.•	Impact on the sectorThe joint venture is not scared to share their knowledge about parboiled rice and will organise a press conference. The joint venture will also give presentations about the parboiled rice mill to the government, rice miller associations in Cambodia and other rice millers. The joint venture will be glad to answer questions about the technique etc from millers, now and in the future.•	EnvironmentThe plant will use the waste product paddy husk as fuel for the drying process of the paddy. It will also be used to heat the water for parboiling the paddy. The farmers’ cooperative will use mainly organic fertilisers.•	Position of womenThe joint venture aims that at least 30% of the workforce will be women. Women with children under 16 years will be allowed more flexible working hours than men.•	Impact on food safetyThe project has a positive impact on food security. It will improve the yield per hectare by training the farmers. The parboiled rice will be stored 2 till 3 years longer than normal rice what is positive for food security. To set up a parboiled rice mill to process 5,400 Mtons paddy per year and export 1,800 Mtons milled parboiled rice mainly to Europe and the local market.