
In May 2023, the BAO MAN Rubber Processing Company expressed an interest in engaging with a rubber farmer cooperative in its rubber supply chain at national and international manufacturing.
Rubber is one of the main agricultural commodities that the government has been promoting for its economic development. To be able to engage in the global markets, for instance, the EU, the rubber value chain needs to ensure high quality to environmental standards, non-deforestation, and inclusive business. To get the sector to that level, the NGOF has been working with the General Directorate of Rubber (GDR) to promote Environmental Social Governance (ESG) safeguards by encouraging small and medium-scale farmers to form an agriculture cooperative (AC) and to be officially recognized by the MAFF to gain maximum benefit from the rubber value chain and to secure the supply chain with the highest standards to ESG.
The NGOF works to promote ESG safeguards in the rubber sector through an engagement with the private sector to pilot an inclusive and sustainable business model. The significant change resulted from a series of activities conducted by NGOF. Those included: In March 2023, the NGOF organized a meeting with GDR to discuss cooperation in the area of small and medium-scale rubber plantations. The cooperation plan considers the area of capacity building, meetings, workshops, and research to increase the capacity of small and medium-scale rubber farmers. On the other hand, it is also looking at the possibility of working with a rubber investor in Cambodia to promote small and medium-scale rubber plantations in the supply chain of the investor. In May 2023, in collaboration with GDR, the NGOF organized a meeting with Mr. Cung Fuo Kun, Director of BAO MAN INDUSTRIAL CO., LTD to understand the rubber supply chain, challenges, and the needs of the company to secure their supply chain to meet current demand and future demand concerning the high standard of environmental and social. In the meeting, GDR shared the need to mobilize individual rubber farmers to form a rubber Agriculture Cooperative to engage in the rubber value chain. As a result, the BAO Man company expressed its interest in engaging the ACs in its supply chain.