Cambodian smallholder farmers will be able to enhance food security, improve livestock health and value chains, as well as formal trade of livestock and its products, thanks to a $62.9 million concessional grant from Asian Development Bank (ADB).

The mixture of grant and loan funding, part of ADB’s Greater Mekong Subregion (GMS) Cross-Border Livestock Health and Value Chains Improvement Project, will benefit some 40,000 households in six provinces.

They consist of Kampong Cham, Oddar Meanchey, Prey Veng, Phnom Penh, Siem Reap and Takeo.

The project looks at boosting investments in critical infrastructure, institutional and technical capacities, and enabling policies. In addition, infrastructure development will take place in Kandal, Kampong Thom and Pursat to meet nationwide needs for veterinary vaccines and artificial insemination.

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In addition, the project will enhance productivity and resilience of the livestock subsector by reducing risks from transboundary animal diseases, zoonoses, and antimicrobial resistance.

It is also aimed at building up animal health monitoring and service delivery, improving food safety and promoting subregional cooperation across the GMS.

ADB principal climate change for Southeast Asia, Srinivasan Ancha, said the livestock sector is crucial to sustainable rural livelihoods and food security in Cambodia, and offers opportunities to smallholder farmers, including women and small and medium agribusinesses.

“Nearly all cattle and buffaloes are owned by smallholder farmers, although pig and poultry production are increasingly becoming commercialised,” Ancha added.

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ADB’s assistance will enable the subsector to tap into high growth potential brought about by increasing domestic meat consumption resulting from economic growth, urbanisation, population expansion, trade opportunities and progressive improvement in disease control and animal nutrition.

It will also support the implementation of the One Health approach, which aims to sustainably balance and optimise the health of people, animals, and ecosystems.

Private sector engagement will be strengthened while helping livestock administration transition toward digital management systems and information services.

Meanwhile, the project will be financed by a $50 million loan from ADB’s concessional resources, a $12 million Asian Development Fund (ADF) grant, and a $900,000 grant from the Climate Change Fund (CCF).

The ADF provides grants to ADB’s poorest and most vulnerable developing member countries (DMCs), while the CCF aims to strengthen support to low-carbon and climate-resilient development in DMCs.

Additionally, China’s Asian Infrastructure Investment Bank will provide a loan of $43 million to the project, which will be partly administered by ADB.