Profitability and Efficiency of Chili Production in Cambodia

Project Objective

The overall objective of the study is to:

• Knowing about the current situation of chilies production in Cambodia, in terms of area, yield, and income of householder farmers,
• Understand the cost and profit components of chilies production per hectare, including household unpaid labor, inputs, transportation, and other costs,
• Understand the production frontier or maximum yield per hectare of chilies, based on the best practices and technologies available in the country,
• Finding out the cost-efficiency of farmers in producing chilies, compared to the potential cost and profit at the production frontier,
• Learning about the optimal land size for chilies production, considering the scale economies and land fragmentation issues,
• Understanding the market demand for chilies products, both locally and internationally, and what is the market absorbing capacity for different types of chilies

Project Description

Chilies are one of the most important and widely consumed spices in Cambodia, as well as a source of income for many smallholder farmers. However, chilies production faces several challenges, such as low productivity, high input costs, pest and disease outbreaks, lack of quality seeds and planting materials, poor post-harvest handling and marketing, and climate change impacts. These factors affect the profitability and sustainability of chili production and limit the potential for value addition and export.