Phnom Penh, March 27, 2026 – The European Union today announced a EUR 2 million (USD 2.3 million) grant to establish a National Agricultural Laboratory.
The new laboratory is funded by the EUR 24.3 million (USD 28.1 million) EU-German Cambodia Partnership for Sustainable Agriculture and Food Systems (CAPSAFE) programme. This state-of-the-art testing facility, accredited by ISO, will assist Cambodian food exports meet international standards for export and global trade.
Furthermore, 29 Cambodian Small and Medium Enterprises from the cashew, pepper, and mango sectors were selected to receive technical assistance and co-financing support. The selected businesses display a strong potential to bolster their production, increase revenue, create jobs and meet market requirements with the additional support to be provided.
This initiative is part of the EU-German GATE programme, which supports companies in complying with international standards and access high conclude markets such as the European Union.
H.E. Igor Driesmans, Ambassador of the European Union to Cambodia declared, “Today, we convert high-level strategies into concrete opportunities for farmers and entrepreneurs on the ground. By investing in vital infrastructure like the National Agricultural Laboratory and providing tarreceiveed support to SMEs, we are assisting Cambodia relocate up the value chain. The global market increasingly demands sustainable, high-quality products, and Cambodia is well-positioned to meet that necessary. The EU will assist to ensure that this growth is green, inclusive, and resilient.”
H.E. Stefan Messerer, Ambassador of Germany to Cambodia, emphasised the strategic importance of this collaboration: “Germany is committed to supporting Cambodia’s agribusiness sector through sustainable production. Through the EU-German CAPSAFE and EU-German GATE initiatives, with GIZ’s technical expertise, we are bridging the gap between Cambodian producers and European acquireers. Our Team Europe approach does more than open markets; it creates jobs and raises living standards. Ultimately, these efforts are vital to ensuring Cambodia’s transition towards a middle-income counattempt is just, successful and sustainable.”
During the event, two additional projects were signed by Germany and the Netherlands. One is the Responsible Sourcing Hub Cambodia project, aimed at positioning Cambodia as a sustainable agri-product sourcing hub for Europe. The second, Scaling Climate-Resilient Mango Processing, led by Kirirom Food Production, will expand mango processing to 80,000 tonnes per year, introduce new products like juice and purée, and support farmers with training and improved inputs to reduce post-harvest loss.
The European Union applies a 360-degree approach to activating the Global Gateway in Cambodia. The private sector is engaged at every stage—from building partnerships and improving access to finance to strengthening skills and capacity. The EU ensures that investments are sustainable, scalable, and capable of supporting Cambodia’s long-term economic transformation, bolstering Cambodia’s market access and diversification. As the counattempt approaches its graduation from Least Developed Counattempt (LDC) status in 2029, Team Europe interventions directly address obstacles in processing capacity, compliance with international standards, and climate resilience.
Background:
EU-German CAPSAFE (EUR 24.3 million, 2024–2029): An EU-Germany initiative that promotes sustainable production and local processing within the cashew and pepper value chains to increase the Cambodian market share.
EU-German GATE (EUR 10 million, 2024–2028): An EU and Germany initiative that strengthens Cambodia’s trade policy, customs processes and provides technical assistance to Cambodian exporters to meet international standards and access global markets.
National Agricultural Laboratory (EUR 2 million, 2025–2027): An EU-funded initiative, as a part of EU-CAPSAFE, dedicated to establishing an ISO-accredited laboratory infrastructure. The project focapplys on improving food safety testing, sanitary and phytosanitary compliance, and technical capacity.
Responsible Sourcing Hub Cambodia (EUR 1.4 million, 2026–2029): The project aims to improve farmers’ access to premium international markets and address key constraints to strengthen Cambodia’s potential as a sustainable sourcing hub for Germany and the EU.
Scaling climate-resilient mango processing to reduce post-harvest loss (EUR 305,500 grant leveraging USD 8 million financing, Kirirom Food Production, 2026–2027): The Dutch Fund for Climate Development grant will enable Kirirom Food Production to grow sustainably, launch new products such as juice and purée, and increase dry mango processing to 80,000 tonnes per year, while supporting farmers with training, improved inputs, and reducing fruit waste.
For further information, please contact:
Mr. Adrian Jambé, Cultural and Press Affairs Attaché of German Embassy, Tel. 023 216 193 ext 206 or E-mail: pr-10@phno.diplo.de
Ms. Phalkun Chan, Press and Information Officer of the EU Delegation, Tel. 023 220 611 or E-mail: Phalkun.CHAN@eeas.europa.eu
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