Project Snapshot: DFCD and Bayon

This disclosure notice summarises SNV’s support to Bayon Heritage Holding Group (Bayon), a Cambodian agribusiness and one of the country’s largest fertiliser distributors, with a network of approximately 3,200 dealers across 22 provinces. Through its Midori brand, Bayon produces organic compost from locally sourced agricultural residues, including rice straw, animal manure and sugar cane waste. The company aims to expand production from approximately 5,000 to 24,000 tonnes per year, strengthening the availability of locally produced organic fertiliser while improving soil health, farmers’ climate resilience and agricultural productivity.

Cambodian agriculture faces increasing climate risks, including drought, extreme heat and erratic rainfall, compounded by degraded soils and a high dependence on imported fertilisers. The project will support Bayon in strengthening its environmental and social management systems, sustainable sourcing and feedstock traceability, gender equality and social inclusion (GESI), and organic certification readiness. It will also support product development, field trials, farmer training and market adoption. By converting agricultural residues into compost, Bayon aims to reduce open burning and associated emissions, improve soil water retention and nutrient availability, and create additional income opportunities for farmers supplying agricultural waste.

The project is supported by a €220,000 grant from the DFCD Origination Facility, complemented by €90,000 in co-financing from Bayon, and is expected to help prepare the company to mobilise approximately US$5.16 million (€4.47 million) in follow-on financing. If the planned investment and expansion are realised, Bayon aims to reach at least 10,700 farming households, support more sustainable management of approximately 19,260 hectares of agricultural land and create additional income opportunities for approximately 5,100 farming households supplying agricultural residues. By scaling locally produced organic fertiliser, the project seeks to strengthen climate-resilient agriculture, reduce dependence on imported inputs and support a more circular and inclusive agricultural economy in Cambodia.