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According to information confirmed by Uon Silot, President of the Cashew Nut Association of Cambodia (CAC), the Japanese-owned company TPJ plans to make a major investment in Cambodia’s cashew sector.
The company intends to build two large-scale cashew processing factories in Kampong Thom and Kampong Cham between 2022 and 2025. The goal is to strengthen exports to Japan and other international markets.
=> Related article: Japanese Company Plans to Invest in Cambodia’s Cashew Processing Industry
Plan to Build Two Cashew Processing Factories
Uon Silot said on January 13 that TPJ (Top Planning Japan Co., Ltd.) had received approval from its parent company in Japan to build the factories. The decision came after the company completed studies on the proposed factory locations.
Each proposed site covers about 6 hectares.
The two factory sites are located in Kampong Thom and Kampong Cham. These provinces were selected because they have fertile land suitable for cashew cultivation. Nearby provinces may also be used as raw material sourcing areas because they have large cashew-growing regions.
According to Uon Silot, “The company may break ground this year or next year. It plans to process 20,000 tons of cashews per year at each factory for export to Japan.”
=> Read more: Cambodia Expands Cashew-Growing Areas as Demand Increases
Cambodia Wants to Process More Cashews Locally
According to Uon Silot, “Cambodia was once again ranked among the world’s leading exporters of raw cashew nuts in 2021. Most of its raw cashew exports, about 85%, were shipped to Vietnam, with a total volume of around 1.1 million tons.”
He added that Cambodia wants to process part of this raw cashew volume domestically to increase the country’s production capacity and add more value to its cashew industry.
The planned cooperation with a Japanese company to build two large cashew processing factories in Cambodia is seen as an important opportunity.
Once the two factories are fully operational, they are expected to produce around 40,000 tons of finished cashew kernels each year. While this volume may not significantly affect global demand, Silot believes the facilities could encourage further growth in Cambodia’s cashew processing sector.
“The goal of the Cashew Nut Association of Cambodia is not only to export raw cashew nuts, but to process them into finished products,” he said.
=> Read more: Cambodia Wants to Increase Exports of Processed Cashew Kernels
Building the Reputation of Cambodian Cashew Kernels
Lai Huot, owner of the Kampong Thom-based cashew processing business Chey Sambor, explained that Cambodia’s cashew export market is improving.
More food companies are looking to source Cambodian cashews, especially partners from Japan. This shows that international buyers are paying more attention to Cambodia’s processed cashew products.
Lai Huot said her company would look for opportunities in the coming years to cooperate, invest in factories, or join other projects that can help expand Cambodian cashew kernels into international markets.
=> Read more: 85% of Cambodia’s Raw Cashew Nuts Are Exported to Vietnam
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