Cambodia’s BRM Agro has risen to prominence in the rice industry by fusing a deep family legacy with modern sustainability initiatives. Founded in 2015 by Chan Ang, the company draws strength from a 100-year family heritage in rice farming, which was tragically discontinued during the Khmer Rouge regime.

After a successful global career at Shell, ANZ, and the World Bank’s International Finance Group, Chan Ang, who had retained an interest in rice production and had kept a small hobby farm, returned to his roots and committed to transforming his country’s agricultural sector.

BRM Agro was formed as a joint venture between Ang and the Atsawin Cambodia Fund led by Patrick Davenport, Richard Neville, and Jeremy King.

Davenport, an American-born serial entrepreneur with extensive experience in private equity management, has spent 35 years living and working across Asia, including over 20 years in Cambodia. He collaborates closely with Chan Ang in managing the company on behalf of all stakeholders.

BRM Agro offers a compelling investment opportunity for family offices in Singapore and Hong Kong focused on impact investing, where returns come not just from monetary gains but also in the form of ecological and social benefits.

Sustainability and growth

BRM Agro follows a vertically integrated model. It manages over 2,000 hectares of prime freehold farmland and works closely with smallholder farmers on another 3,000 hectares. This approach ensures efficient operations and fosters environmental sustainability through regenerative agriculture.

A key project, backed by UK and US aid agencies, focuses on reducing chemical inputs and methane emissions in rice farming to meet the growing demand for sustainable and traceable rice.

Aiming to become Cambodia’s top rice exporter by 2028, the company has invested in production capacity, drying facilities, and critical infrastructure.

Davenport points out that the company is trying to modernize rice farming in Cambodia by introducing innovations like laser levelling to improve efficiency. This process allows for precise field grading, ensuring uniform water distribution to reduce waste and increase crop yield.

In addition, BRM Agro undertakes advanced seed selection and uses fertilizers and pesticides in a controlled way to boost productivity. The company makes sure that the smallholder farmers it works with adopts these practices to improve sustainability, traceability, and output quality.

Impact investing and carbon credits

The company also benefits from partnerships with development finance institutions, bridging Cambodia’s financing gaps while advancing UN Sustainable Development Goals, such as improving rural incomes and empowering women. Of the 2,000 smallholder farmers it is working with, 73% are women.

Furthermore, the company’s environmentally sustainable practices offer the potential for carbon credits, presenting a potential new revenue stream as global demand for climate-positive initiatives rises.

Younger generations of investors in family offices, particularly in Hong Kong and Singapore, are increasingly interested in impact-driven projects that balance profitability with positive social outcomes, a generational shift the founders believe aligns perfectly with BRM Agro’s model of sustainability and growth.

Financing challenges

Despite its success, BRM Agro faces hurdles, especially regarding access to working capital.

Davenport says Cambodia's banking system trails regional peers like Thailand and Vietnam, creating challenges for farmers to secure affordable credit. He also highlights how microfinance institutions can charge steep interest rates, often as high as 25%, limiting farmers’ ability to expand or adopt sustainable practices.

Without sufficient working capital, many smallholding farmers struggle to scale, despite BRM Agro’s efforts to assist them with financing for seeds, fertilizer, and technical support.

Compelling investment opportunity

Food security in Asean, a region with over 680 million people, is critical to ensuring the region’s sustainable development and stability.

With growing populations and urbanization, the region faces challenges in meeting rising food demand, particularly in the face of climate change, which threatens agricultural productivity. Strengthening food security in the region requires investing in resilient agricultural systems and promoting sustainable farming practices.

Investing in Cambodia’s rice farming sector through companies like BRM Agro offers significant opportunities, particularly for family offices seeking to align their portfolios with impact-driven ventures.

The company’s projects not only improve rural incomes but also reduce methane emissions and promote biodiversity.

With the company seeking US$8 million in working capital, family offices have a unique opportunity to invest in a business that promises both financial returns and measurable social impact.

In these times of heightened market volatility, agriculture presents a stable, long-term investment opportunity. Unlike sectors prone to rapid fluctuations, agriculture operates on a 10-year investment horizon, providing predictable returns.

As BRM Agro continues to expand and strengthen its sustainability practices, the company is not just positioning itself as a leader in Cambodia's rice sector but also as a persuasive choice for long-term, high-impact investment in Southeast Asia.