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Climate Risk and Cambodia's Vegetable Farmers: Revealing Hidden Risks and Rethinking Resilience

THE INSURANCE TIMES

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August 2025

Cambodia's agricultural backbone is increasingly threatened by climate shocks, particularly droughts and floods. According to the Cambodian Development Resource Institute, 62% of losses are flood-related and 36% drought-related. These disruptions are worsened by limited water infrastructure-only 20.6% of agricultural holdings have access to irrigation, despite 67% of land being cultivated.

- Ali Tareque Parvez External Collaborator - Inclusive Insurance Asia Social Finance Programme International Labour Organization

Climate Risk and Cambodia's Vegetable Farmers: Revealing Hidden Risks and Rethinking Resilience

Agriculture at the Heart of Cambodia's Economy

Cambodia, with its population of approximately 17.4 million, remains deeply reliant on agriculture for livelihoods and economic growth. In 2024, the sector contributed 16.7% of GDP, slightly down from 17.1% the previous year, while employing around 3 million people (36-37% of the national workforce). More than 60% of Cambodians live in rural areas, with approximately 78% of rural households depending on farming, forestry, or fishing.

The Climate Challenge: Droughts on the Rise

Cambodia's agricultural backbone is increasingly threatened by climate shocks, particularly droughts and floods. According to the Cambodian Development Resource Institute, 62% of losses are flood-related and 36% drought-related. These disruptions are worsened by limited water infrastructure-only 20.6% of agricultural holdings have access to irrigation, despite 67% of land being cultivated.

The effects of this vulnerability were starkly visible in early 2024, when a prolonged drought impacted several key provinces, including Siem Reap, Kampong Thom-two of Cambodia's leading vegetable-growing regions.

Vegetable Farming: Essential, But Exposed

Vegetables are particularly sensitive at all growth stages-germination, flowering, and fruiting-suffering from issues like rot, wilting, and reduced yields during prolonged droughts or intense rains. In areas without irrigation (67% of Cambodia's farmland lacks it), drought severely hinders vegetable production; if the dry season starts late, planting must be delayed, further reducing seasonal yields (source). Natural disasters-especially droughts and floods-pose severe risks to Cambodia's vegetable sector, impacting yield, income, nutrition, and rural resilience. The lack of irrigation infrastructure and increasing climate variability further intensify these challenges.

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