A worker shows a handful of raw, unprocessed cashew nuts at a factory in Kampong Thom province. Post Staff
Cambodian cashew nuts which are processed in the Kingdom are starting to make their mark on the international market. A Taiwanese company has announced its intention to purchase 3,000 tonnes of processed nuts, noted Uon Silot, president of the Cashew Nut Association of Cambodia (CAC).
Speaking to The Post on March 28, Silot explained that after inspecting the quality and taste of the Kingdom’s nuts, Taiwan-based company, Ju Hua Chang International Co., Ltd., announced plans to purchase 3,000 tonnes for export to the Taiwanese market.
Last week, the company shipped 2.3 tonnes of processed nuts from two enterprises in Kampong Thom and Banteay Meanchey provinces to Taiwan. Silot explained that this marks the beginning of the company’s procurement plans.
He also noted that Taiwanese traders offer higher prices than many other foreign buyers and are even willing to sign contracts with 50 advances, to ensure that factories have the capital they need to procure raw cashew nuts to complete orders.
“Over the next 3 years, the company plans to purchase 3,000 tonnes of processed cashews from Cambodia. This will account for approximately 30% of Taiwanese market demand,” he said.
“Due to the large volume of the order, the company has requested the cooperation of CAC to find capable suppliers and processing operations that will be willing to work together with them,” he added.
According to Silot, three enterprises have already agreed to supply processed cashew.
“We expect more factories to agree to work with Ju Hua Chang International Co., Ltd, according to their demand,” he continued.
Silot explained that Taiwan demands around 10,000 tonnes of processed cashews per annum, with most of them coming from Vietnam or India.
A British company has also agreed to purchase processed nuts from an enterprise in Stung Treng province, with plans to export 500 tonnes in May. In a separate contract, a Japanese company has announced the purchase of 400 tonnes from a modern agricultural community in Kampong Thom province.
However, Silot highlighted a potentially serious issue.
“We (CAC) are concerned that we might not have enough processing capacity to meet demand. Specifically, in 2024 and early 2025, the Kingdom’s cashew nut harvest decreased significantly due to unfavourable weather conditions,” he warned.
This decline in yields has also led to higher prices for raw cashew nuts, he explained.
According to Silot, there are currently 52 cashew nut processing enterprises in Cambodia, of which six are medium-sized factories (with a production capacity of 7,000 to 140,000 tonnes per year). The remaining 48 enterprises are small family-run businesses that do not produce year-round.
The Cashew Nut Association of Cambodia has reported that for the 2024 harvest, approximately 850,000 tonnes of raw cashew nuts were collected. 815,000 tonnes were exported, a 21% increase compared to 2023. The total value of the exports was approximately $1.15 billion, up 26.15%.
Due to a lack of working capital and processing plants, Cambodia exported about 795,000 tonnes, or 97.54% of exports, to Vietnam, which has a long-established processing industry.
At present, 700,000 hectares are under cashew cultivation, 580,117 of them established and producing nuts. The remainder consists of newly planted land.
