The Asian Development Bank (ADB) has approved a $70m loan to bolster the agricultural value chain and food safety in Cambodia.

The funding will be used to improve the processing of native chickens, mangoes, vegetables and other agricultural products such as cassava and cashews.

The loan has been provided to support the Agricultural Value Chain Competitiveness and Safety Enhancement Project.

The project has been designed to benefit nearly 230 agricultural cooperatives and 50 agribusinesses across six provinces across Cambodia, including Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap, and Tboung Khmum.

ADB Natural Resources principal and agriculture economist Takeshi Ueda said: “Agriculture can contribute to Cambodia’s economic growth and diversification if local small and medium-sized agribusinesses can improve their ability to process high-value agricultural products and market them domestically and overseas.

“Private investment in agriculture, along with better access to credit and high-quality raw agricultural products, will help Cambodian agribusinesses unleash their growth potential, create jobs, and improve rural livelihoods.”

The project will also support the initiatives designed to strengthen food safety and quality across the agricultural products value chain.

The loan amount will be used to upgrade food-safety testing laboratories, in order to gain international accreditation. It will also help agricultural cooperatives adopt good agricultural practices.

The funds will be also used to support the research and development of crop seed varieties and poultry breeds.

The 110km improvement of rural roads will also be performed under the project to increase access between farms and markets.

The project will trial a green financing mechanism, which will be supported by a $5m loan from the Association of Southeast Asian Nations (ASEAN) Infrastructure Fund.

ADB said it will also manage a $25m loan from Agence Française de Développement and a $3m grant from the Japan Fund for Poverty Reduction.