Cambodia Strengthens Exports of Processed Cashew Kernels

Cambodia is working to increase exports of high-value processed cashew kernels to demanding markets such as Europe, the United States, Canada, China, and Australia, following the recent success of Cambodian cashew kernels in the Japanese market.

According to Mr. Veng Sakhon, Cambodia’s Minister of Agriculture, Forestry and Fisheries, the country is focusing not only on exporting raw cashew nuts but also on building a stronger processing industry to create more value from its domestic cashew production.

Cambodia Has Traditionally Exported Low-Value Raw Cashew Nuts

In 2020, Cambodia exported 218,981 tons of raw cashew nuts, up 8.24% from 202,318 tons in 2019, according to the Ministry of Agriculture, Forestry and Fisheries.

The Cambodian government is currently planning to expand the country’s cashew-growing area to more than 500,000 hectares, with an average yield of around 1.5 tons per hectare per year.

At present, Cambodian raw cashew nuts are mainly exported to Vietnam, India, and other countries for processing into commercial cashew kernels. These processed kernels are then exported to markets such as Japan, Russia, China, Hong Kong, Thailand, France, South Korea, Turkey, Malaysia, and the Netherlands.

=> Read more: Cambodia Exported Its First Cashew Shipment to Japan in May 2021

Cambodian raw cashew nuts are mainly exported to Vietnam, India, and other countries for processing into high-value commercial cashew kernels.

Cambodian raw cashew nuts are mainly exported to Vietnam, India, and other countries for processing into high-value commercial cashew kernels.

Development Direction of Cambodia’s Cashew Industry

The future direction of the Cambodian cashew industry is to work more closely with foreign partners and learn advanced processing technology. By converting raw cashew nuts into high-value commercial kernels, Cambodia can improve profit margins and support the growth of its local cashew processing sector.

Cambodia also aims to develop more cashew-based products such as cashew milk, cashew butter, and other value-added foods. This would help the country consume more of its own raw cashew supply, create a more stable market for local farmers, and reduce dependence on raw material exports.

The announcement was made during Minister Veng Sakhon’s visit to inspect the high-value cashew kernel processing operations of Chey Sambo Cashew, a Cambodian company exporting processed kernels to the demanding Japanese market.

=> Read more: List of Cashew Grades, Standards, and Cashew Classification Methods

Commercial cashew kernels are classified according to international export standards.

Commercial cashew kernels are classified according to international export standards.

Cambodia Expands Domestic Use and Processing of Raw Cashews

Chey Sambo Cashew operates a modern cashew processing facility with an average capacity of around 10 tons of raw cashew nuts per day. From this volume, the factory can produce about 2–3 tons of cashew kernels daily.

Under its contract, Chey Sambor supplies commercial cashew kernels to Top Planning Japan, also known as TPJ.

Ms. Lai Huot, the owner of the factory, said that the company plans to increase its cashew processing output and raise the use of locally sourced raw cashew nuts to 1,000 tons by the end of 2021.

She also said the company will work with the Cambodia Cashew Association to build a new raw cashew warehouse with a minimum storage capacity of 5,000 tons. This will help secure supply volume and maintain contract prices with business partners.

In addition, TPJ is expected to invest further in cashew processing by 2023, with the goal of increasing production capacity to around 2,000–3,000 tons per year.

The Vice President of the Kampong Thom branch of the Cambodia Cashew Association also shared that the association will continue working to expand cultivated land and increase the number of farmers involved in cashew growing.

A corner of a cashew processing factory, where raw cashews are steamed before being shelled for white kernels.

A corner of a cashew processing factory, where raw cashews are steamed before being shelled for white kernels.

Processed Cashews Can Bring More Value to Cambodia

Cambodia has strong potential in cashew cultivation, but raw cashew exports bring much lower value than processed kernels. By investing in processing technology, storage systems, and export-ready quality standards, Cambodia can move higher in the global cashew value chain.

Instead of exporting most raw cashews to other countries for processing, Cambodia can gradually build its own domestic processing capacity. This would help farmers, processors, exporters, and the national economy benefit more from the country’s cashew resources.

The success of Cambodian cashew kernels in Japan shows that the country has a real chance to enter strict, high-value markets. If Cambodia continues to improve quality control, processing capacity, and international partnerships, its processed cashew sector may become much stronger in the coming years.

See more Vietnam cashew kernel products: https://kimmyfarm.com/hat-dieu/nhan

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