Cambodia’s cashew nut processing industry is in dire need of more investment to fulfill its potential. With the country’s abundant raw cashew nut supply, Cambodia is an ideal location to become a leading global producer of processed cashew nuts. Currently, the lack of investment in the country means that this potential cannot be fully realized. The industry needs investors to step in and provide the capital necessary to fund the installation of modern technologies and equipment to process cashews on a large scale.

85% of Cambodia’s Raw Cashew is Exported to Vietnam

Cambodia is a country blessed with ideal natural conditions for cashew tree growth. However, due to the absence of domestic processing factories, the vast majority of Cambodia’s raw cashew nut production, accounting for 80-85%, is exported to neighboring Vietnam for processing into finished cashew kernels. Vietnam has emerged as Cambodia’s biggest trading partner in the cashew industry. That is one of the main reasons for the Cambodian government, In recent years, has shown a greater interest in developing its cashew processing industry through incentives such as tax breaks to investors who establish processing factories. Such incentives are meant to attract foreign investors and build the country’s capacity in the processing sector.

=> Read more: 85% Of Cambodia’s Raw Cashew Is Exported To Vietnam

Cashew is One of the Cambodia Government’s 12 priority crops

The Cambodian government has recently approved the “Draft National Policy on Cashew 2022-2027” with the goal of strengthening the cashew product industry, both domestically and internationally. This policy aims to make Cambodia a major producer and supplier of cashew products by creating a more competitive environment for production and marketing. Cashew is one of the 12 priority crops encouraged by the Cambodian government to support farmers to diversify their crops and increase their income. With the implementation of this policy, it is expected that cashew will become a significant contributor to the country’s agricultural sector, providing more job opportunities and boosting the economy.

Cambodia’s Ministry of Commerce has expressed its optimism for the future of the cashew industry in Cambodia, noting that the policy will provide essential support for cashew farmers and processors, as well as create a framework for sustainable growth in the industry. This new policy is in line with the government’s efforts to promote the development of the agricultural sector, which has the potential to become a key economic driver for Cambodia. With the support of the government, the farmers and producers of cashew products can look forward to a brighter future that will benefit both them and the country at large.

=> Read more: Cambodia’s Cashew 2023 Forecast: 500,000 – 700,000 Tonnes of Raw Cashew Nuts

Cashew Growing Area in Cambodia 2009 to 2023

Over the past decade, cashew cultivation in Cambodia has experienced significant growth, according to recent agricultural statistics. Starting in 2009, the area dedicated to growing cashews in the country began to rapidly expand, increasing from 66,513 hectares to a whopping 800,000 hectares by the year 2021.

However, this upward trend was not to last. As climate change continues to impact regions across the globe, Cambodia has been no exception. In 2022, the area of land allocated for cashew cultivation shrunk to 700,000 hectares due to the negative effects of climate change. This decrease is still significant, yet lessens the number of hectares under cultivation by only 100,000.

What is notable about this jump in cashew cultivation is the rate at which it occurred. From 2009 to 2021, the area of land under cashew cultivation saw an incredible increase of 12 times its original size. While the expansion has slowed down in the most recent year, the trend of growth and expansion in this industry has been promising.

Cambodia’s Cashew Farmer - Kampong Thom Province

Cambodia’s Cashew Farmer – Kampong Thom Province, Cambodia

Cambodia’s Cashew Nut Industry Needs More Investment

In March 2023, Visit Pursat province, Cambodia’s Prime Minister, Hun Sen, expressed his desire for Cambodia to become the world’s leading supplier of cashew nuts. He conveyed this message while addressing a gathering of more than 300 families in Pursat province.

To achieve this goal, the Prime Minister emphasized the need for increased investment in cashew processing infrastructure and its supporting facilities. Presently, Cambodia boasts the highest yield of cashew nuts worldwide. However, to make the most of this advantage, Cambodia needs more investment in processing to convert raw nuts to finished products that can be exported globally. Notably, cashew nuts are a popular product in the healthy life, vegan, and tourism sector.

Cambodian worker are processing raw cashew nuts

Cambodian workers are processing raw cashew nuts

Uon Siloth, who is the President of the Cashew Nut Association of Cambodia, has noted the Prime Minister’s calls for investment in the sector. He believes that the message will encourage investors to consider cashew nut processing investment. The cashew nut industry has great potential, and investing in this sector promises a good return on investment. With the Prime Minister’s statement, investors will likely view local raw cashew processing investment as a viable option.

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