A worker treats cashew nuts at a processing facility in Kampong Thom province in November 2023. Hong Menea
A senior official from the Ministry of Agriculture, Forestry and Fisheries reported a notable increase in domestic cashew nut processing, rising from 5-10% towards the end of 2023 and into early 2024.
The positive trend accompanies the ministry’s efforts, along with industry experts, to attract investment companies to the sector.
Ministry spokesperson Im Rachna said the ministry and relevant partners will continue to enhance local cashew processing and ensure high quality for both domestic supply and international market competition.
“What we want to do is increase processing to the point where our … products can be transformed into finished goods, ready for sale or direct export. However, the key challenges are enterprise and processing,” she added.
Rachna expressed optimism about local investors entering the industry, especially as cashew nut yields are on the rise.
She noted that the country has over 700,000ha of cashew plantations, capable of producing one million tonnes annually, and highlighted that the government is actively promoting increased efforts to boost both domestic and export supplies.
An Dara, president of the Cambodia Cashew Federation (CCF), said that to attract investors, the organisation invited around 30 local processing companies to the World Cashew Conference in early February.
He said this provided an opportunity to showcase the group’s processed cashew to foreign investors, opening up export possibilities.
He also noted that the US Agency for International Development’s (USAID) Harvest III project and the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) have consistently supported the federation in aiding local small- and medium-sized cashew processors.
Dara said some large-scale companies at the conference showed a keen interest in establishing new plants in the country.
“I am hopeful that existing local companies will enhance our processing to a standard of good quality and sufficient quantity to penetrate major markets like China, the US, India, Australia, Japan, South Korea, which demand high-quality cashew nuts. I believe our processing will significantly improve after learning from the experts at the past conference,” he added.
Uon Silot, president of the Cashew nut Association of Cambodia (CAC), stated that the country currently has 41 factories, including only three medium-sized and 38 small-scale factories.
He named the operators of the three mid-sized factories as Santana Agro Products Co Ltd in Preah Vihear province, Welwilling Argicultural Technology (Cambodia) Co Ltd in Kampong Cham province and MTST Agro Product Co Ltd in Tbong Khmum province.
He added that two small factories operate year-round: Chey Sambo Cashew Nut Processing Handicraft in Kampong Thom province and Handcrafted Cashew Nuts Stung Treng (HCST) in Stung Treng province.
“Given the volume of raw cashew nuts we produce annually, we would need about 30 medium-sized factories to process all of them. New processing plants in Singapore and Japan are currently under construction and we expect them to assist in processing our surplus raw cashew nuts once operational,” said Silot.
The association noted that climate change led to the loss of about 100,000ha of cashew trees in 2022, but around 40,000ha were replanted in 2023, according to data from cashew seedling nurseries across the country.
