A worker prepares raw product at the Cashew Nut Processing Handicraft in Kampong Thom province in November. Hong Menea
Despite a nearly 10% decrease in unprocessed cashew nut exports in 2023, industry experts remain optimistic about Cambodia’s potential gains from its local cashew processing chain.
The country’s total agricultural exports amounted to 8,449,414 tonnes, a 1.9% drop from 2022, according to the Ministry of Agriculture, Forestry and Fisheries’ annual report for 2023 obtained by The Post on January 8.
The number included approximately 425,977 tonnes of cashew nuts, valued around $800 million, marking a 9.96% decline in export volume year-on-year.
The National Policy on Cashew Nuts for 2022-2027 was formally introduced by the government, through the Ministry of Commerce in June 2023.
The strategy aims to develop the production, processing and marketing of cashews to ensure sustainability and economic diversification. It also seeks to position the country as a leading producer and supplier of cashew products for local, regional and global markets.
Uon Silot, president of the Cashew nut Association of Cambodia (CAC), stated on January 9 that the decrease in exports is not necessarily detrimental to the country’s economy.
He attributed the decline to the growing capabilities of local shops and processing industries and anticipated that cashew production in 2024 will surpass 2023 levels, with potential yield increases of 10% and price rises of 5%, contingent on favourable weather conditions.
“For 2024, we anticipate a continued decline in the export of raw cashew nuts, yet this should not be viewed negatively. Instead, it will be compensated by an expansion in the capacity of local handicrafts and processing plants, which will enable Cambodia to achieve greater added value compared to exporting unprocessed products,” he stated.
“Currently, an increasing number of handicraft and processing factory owners are purchasing cashew nuts directly from farmers for processing. This marks a change from the past, when nearly all raw cashews were bought by traders and then resold to … processing plants in neighbouring countries, such as Vietnam,” he explained.
The association is planning to meet with the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) to enhance Cambodia’s cashew production and its potential in cultivation, processing and international exports.
The goal is to discuss adjustments in lending conditions, enabling local processors to better compete with neighboring countries in stockpiling and processing before export.
Cambodian processed cashew products have been exported to countries such as Japan, South Korea, China and some EU member nations.
The CAC’s research indicates that 2023 saw the export of 656,000 tonnes of raw cashew nuts, a 7.6% decrease from 2022, earning $837 million, down by 16.9%. Vietnam alone imported 618,000 tonnes of the total.
Khan Kosal, founder of Kosal Farms in Preah Vihear province, spoke with The Post on January 9 about his experience in the cashew industry since 2011.
He noted that 2023 yielded better quality and higher prices for cashews due to favourable weather conditions, with prices ranging from 3,000-6,000 riel ($0.73-$1.47) per kilogramme.
“The overall quality and price of fresh cashew nuts in 2023 improved compared to 2022. However, when compared to 4-5 years ago, they still fall short in terms of quantity, quality and price,” he stated.
“The trend of investment in handicraft shops and cashew processing factories in Cambodia is advancing, following the enhanced quality and flavour of cashew nuts which have garnered increased support from locals, along with a rise in orders from international markets,” he added.
The CAC reported that the Kingdom’s cashew exports have varied over the years: approximately 600,000 tonnes in 2019, 950,000 tonnes in 2020, 1.1 million tonnes in 2021 (accounting for about 24% of global exports) and 670,000 tonnes in 2022.
Cultivation predominantly takes place in ten provinces, covering 652,538ha.
According to the association, cashew trees generally start bearing fruit after 5-6 years, except for the M10 and M23 varieties which bear yields from 2 years of age and continue producing until they are about 25 years old. On average, 1ha of land can produce between 1.5 to 1.8 tonnes annually.
