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Cambodia is losing an estimated $677 million annually to land degradation, with more than 40 per cent of the Kingdom’s land now affected by declining soil health, according to agricultural experts and industry leaders.
The degradation is largely driven by deforestation, monocropping and unsustainable practices, they warned, adding that deteriorating soils are increasingly threatening farm profitability, food security and the long-term competitiveness of the agricultural sector.
The warning was delivered during the Healthy Soil: Investing in Cambodia’s Agricultural Future workshop, held in Phnom Penh on June 4. The event was organised by EuroCham Cambodia’s Agribusiness Committee, in partnership with Swisscontact in Cambodia and Innovation for Sustainable Agriculture (ISA2).
It brought together agribusiness companies, government officials, development partners and farmers to discuss the growing economic consequences of soil degradation and explore practical pathways toward more sustainable agricultural production.
Presenting the latest findings, Daniel Nugraha, country director of Swisscontact in Cambodia, noted soil degradation has become a critical business issue rather than merely an environmental concern.
According to data presented at the workshop, approximately 42 per cent of Cambodia’s land is experiencing medium to strong degradation due to a combination of deforestation, continuous monocropping and unsustainable farming practices.
The consequences are increasingly visible across the agricultural sector, where declining soil fertility is forcing farmers to rely on larger quantities of synthetic fertilisers and chemical inputs to maintain production.
As production costs rise, profit margins narrow, leaving farmers more vulnerable to market fluctuations and climate-related shocks.
“Cambodia’s agriculture sector is at a turning point,” Nugraha said.
“Soil degradation is no longer just an environmental concern. It is a direct threat to farmer profitability and the long-term competitiveness of our agribusiness sector,” he added.
Agriculture remains a cornerstone of Cambodia’s economy, supporting millions of rural households and contributing significantly to employment and exports.
Experts warned that years of intensive cultivation and land-use pressures are placing increasing strain on soil resources that underpin agricultural productivity.
The workshop heard that if current trends continue, farmers may face mounting costs while struggling to maintain yields, creating a cycle that could undermine rural livelihoods and national food production.
Despite the challenges, presenters also highlighted growing evidence that regenerative agricultural practices can reverse soil degradation while improving farm profitability.
Field data shared during the workshop showed that farmers adopting practices such as no-till farming, cover cropping and biochar-based fertilisers recorded substantial productivity gains compared with conventional farming methods.
Maize yields increased by 26 per cent, cassava rose by 33 per cent and rice production improved by 24 per cent.
Financial returns appeared even more striking.
According to the data presented, cassava farmers using conservation agriculture techniques achieved profit levels nearly five times higher per hectare than farmers relying on conventional production methods.
Nugraha acknowledged that transitioning to regenerative agriculture requires patience and investment.
He noted that many farmers face a two-to-three-year adjustment period before reaching break-even, a factor that often discourages adoption despite long-term benefits.
“The good news is that the evidence is clear: farmers who invest in regenerative practices see real gains in yields, lower input costs and greater resilience to climate shocks,” he said.
“Healthy soil is a business asset. The transition takes patience, but the rewards are permanent,” he said.
Participants noted that improving soil health extends beyond individual farming decisions and requires coordinated action throughout agricultural value chains.
Ingrid Van Ginkel, vice-chairperson of EuroCham Cambodia’s Agribusiness Committee and managing director of Husk Venture, said suppliers of agricultural inputs play a significant role in shaping farming practices and influencing soil outcomes.
She noted that farmers’ decisions regarding fertiliser use, residue management and pest control are often guided by the products available in the market and recommendations from suppliers.
Research presented during the workshop suggested that many farmers remain hesitant to adopt soil-friendly practices because they are perceived as costly, complex or risky.
As a result, adoption rates remain limited despite evidence of economic benefits.
Van Ginkel argued that agri-input companies could become an important driver of change by helping farmers access products and services that improve soil quality while generating financial returns.
“Farmers will not embrace green production if their balance books are in the red,” she said.
“This means that we need to make sure farmers get a positive return on investment from the first application of products that support increasing soil health,” she added.
She added that healthy soil should be viewed as both an environmental and economic priority.
“Climate change and depleted soils are a threat to food security,” she said.
“Healthy soil is not just a nice sustainability story; it is a risk management strategy,” she explained.
The workshop also examined broader barriers preventing wider adoption of regenerative agriculture across Cambodia.
A panel discussion involving representatives from the private sector, government and agricultural research institutions explored challenges including financing constraints, technical knowledge gaps and the need for stronger partnerships across the agricultural sector.
Panellists included Dipen Joshi, business and sustainability head at Olam Cambodia; Leng Vira, agronomist at the Department of Agricultural Land and Fertiliser Management; and Chan Sereiratha, vice-chairperson of EuroCham Cambodia’s Agribusiness Committee and country manager of East-West Seed.
Speakers agreed that scaling sustainable farming practices will require collaboration among businesses, farmers, investors, development organisations and government agencies.
They also stressed the importance of creating market incentives that reward sustainable production and encourage investment in long-term soil health.
Closing the event, Sovithy Sothy, chairperson of EuroCham Cambodia’s Agribusiness Committee and chairperson of 8S Agro-Industry Co Ltd, called for stronger alignment among stakeholders to build a more resilient agricultural sector.
As Cambodia seeks to modernise its agricultural economy while adapting to climate change, industry leaders argued that restoring soil health may prove essential not only for environmental sustainability but also for maintaining productivity, profitability and food security in the decades ahead.
For many participants, the message was clear: protecting soil is no longer simply an environmental objective but an economic necessity for the future of Cambodian agriculture.
