EU backs Cambodia agribusiness upgrade to boost exports

PHNOM PENH, Mar 27, 2026 (KPT) — The European Union has pledged fresh support to Cambodia’s agribusiness sector with a €2 million ($2.3 million) grant to establish a National Agricultural Laboratory aimed at lifting export competitiveness and food safety standards.

The facility, part of the EU-German Cambodia Partnership for Sustainable Agriculture and Food Systems (CAPSAFE), will provide ISO-accredited testing to ensure compliance with international sanitary and phytosanitary rules — a prerequisite for access to high-value markets such as Europe.

EU Ambassador Igor Driesmans said the investment marked a shift from raw commodity production to higher value-added processing. “By investing in critical infrastructure like the National Agricultural Laboratory and supporting small businesses, we are helping Cambodia strengthen its position in global markets,” he said.

Alongside the lab, 29 small and medium-sized enterprises in cashew, pepper and mango will receive technical assistance and co-financing under the EU-German GATE programme to improve standards and expand market reach.

German Ambassador Stefan Messerer said the partnership aimed to bridge local producers with international buyers while creating jobs and raising incomes. “Our approach goes beyond opening markets — it helps build sustainable value chains and long-term resilience,” he said.

Additional projects include positioning Cambodia as a sustainable sourcing hub for Europe and scaling up climate-resilient mango processing to cut post-harvest losses.

The EU said its “Team Europe” approach combines investment, expertise and private sector engagement to support Cambodia’s economic transformation as it prepares to graduate from Least Developed Country status by 2029.