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Cambodia

Cambodia: Market & Seasonal Monitoring Update - November 2024

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Environmental factors influencing prices

Global food prices showed an upward trend in the first eleven months of 2024, driven by ongoing geopolitical conflicts, the impact of the El Niño phenomenon on global trade and agriculture – particularly in the first half of the year – and the imposition of food export restrictions by major producing countries.

In November 2024, the FAO global food price index continued to rise by 0.5% compared to October 2024 (MoM) and 5.7% compared to November 2023 (YoY), driven by price increases for most commodities in the index, with vegetable oil seeing the largest price hike. However, the FAO all rice price index showed a 4.0% decrease MoM and 8.0% decline YoY, largely driven by increased market competition, and currency depreciations against the United States dollar.

In November 2024, the global rice production, projected by USDA, remained high, driven by increased harvesting areas worldwide and favorable weather conditions in major producing countries.

While some regions of the world may benefit from the emergence of La Niña between late 2024 and mid-2025 – boosting agricultural output and improving transportation – others may face significant risks to food security, energy production, and overall economic stability.

To better understand how global shocks impact food availability and accessibility, and market functionality in Cambodia, the World Food Programme (WFP) tracks primary food prices and market dynamics across 58 markets nationwide. Since January 2024, interviews are conducted remotely by a call centre, with more than 750 food and non-food traders, as well as market chiefs, during the third week of each month to assess supply and demand (See Methods). Additionally, monitoring extends to gasoline and diesel.

Key Findings

In November 2024, the estimated cost of the WFP basic food basket (BFB) was 113,348 riels (USD 27.6) per person per month, a 2.1% decrease from October. This drop was mainly due to lower prices for most items, especially morning glory, which offset price increases in vegetable oil and snakehead fish. While urban markets showed a 6.6% decrease, rural markets experienced a 2.4% increase, making the cost of BFB higher in rural areas. Compared to November 2023, the average cost of the BFB decreased by 2.5%, with urban markets down 6.6% and rural markets up 1.7%.

The surveyed markets continued to function well in November 2024, while the number of customer visits to markets remained relatively low. This low trend was possibly due to the rising popularity of alternative options like small food stores.

In November 2024, Cambodia experienced below-average rainfall. Despite this, vegetation conditions remained favorable, and the harvesting of wet-season paddy rice has been completed across 1.2 million hectares. ENSO forecasts suggest that La Niña conditions are likely to persist until February 2025, potentially bringing above-normal rainfall and normal temperatures from December 2024 to February 2025.