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The Better Cambodia > Blog > Invest In Cambodia > Agriculture > Cambodia’s Cashew Industry, A Future of Growth and Prosperity
AgricultureGuests PostsInvest In CambodiaOpinion Piece

Cambodia’s Cashew Industry, A Future of Growth and Prosperity

Last updated: January 29, 2025 3:20 am
Jas Sohl
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Cambodia’s agricultural sector is experiencing a strong rise in cashew production, making the country one of the world’s key suppliers of raw cashew nuts (RCN). In 2024, Cambodia produced approximately 850,000 metric tonnes of RCN, marking a 21% year-on-year increase. Cashew plantations now cover around 580,000 hectares, with expansion plans expected to bring this figure to 700,000. Despite this rapid growth, only 5% of cashews are processed domestically, signalling a need for investment in processing infrastructure.

Contents
Building a Stronger Cashew IndustryCommitment to DevelopmentSustainability and Innovation as Growth DriversA Future of Growth and Opportunity

Government initiatives and private-sector participation are creating the foundation for a stronger domestic processing industry. With 15 processing units currently operating across Kampong Thom, Kratie, Ratanakiri, and Tbong Khmum, Cambodia is making strategic moves toward retaining more of the value chain within its borders.

Building a Stronger Cashew Industry

For years, Cambodia has depended heavily on exporting raw cashews, with 815,000 tonnes (over 95% of production) shipped to Vietnam for processing in 2024. This dependence on a single market has made the industry vulnerable to price fluctuations and trade policy changes. However, a transition is taking place, with a growing emphasis on domestic processing.

The Cambodian government has introduced policies such as tax incentives, subsidised loans, and infrastructure development to encourage businesses to invest in cashew processing. The cost of building a 5,000-tonne warehouse stands at approximately $1 million, and overcoming such financial constraints is key to improving post-harvest efficiency. Expanding processing capacity will allow Cambodia to generate higher revenues, create more jobs, and provide better earnings for farmers.

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Commitment to Development

Cambodia’s cashew industry is seeing active support from both the government and international partners. In 2024, over 1,026 farmers received training through 11 workshops organised by the Cashew Nut Association of Cambodia (CAC). These efforts, along with collaborations with global companies like Mitsubishi Corporation, are helping farmers adopt best agricultural practices and build resilience against climate change.

New storage facilities are also improving the sector’s efficiency. The establishment of three community warehouses has reduced post-harvest losses, while future investments in processing hubs will further boost the sector’s competitiveness. The introduction of modern processing technology is expected to help Cambodia compete with established players like Vietnam and India in the processed cashew market.

In addition, Cambodia is expanding its market reach beyond Vietnam. The country has participated in trade fairs in Japan, China, and Australia, while a newly signed Memorandum of Understanding (MoU) with China’s Customs Association aims to facilitate direct exports. Negotiations with the EU and North America are also being pursued to strengthen Cambodia’s presence in premium cashew markets.

Sustainability and Innovation as Growth Drivers

The rising global demand for sustainably produced goods presents another advantage for Cambodia. International buyers, particularly in Europe and the UK, are prioritising low-carbon footprints and ethically sourced cashews. Cambodia has the potential to tap into these premium markets by adopting organic farming methods, introducing drought-resistant cashew varieties, and ensuring fair trade certification.

At the same time, the use of digital platforms in supply chain management will help connect farmers directly with buyers, reducing dependency on intermediaries and ensuring fairer prices. Advanced processing machinery will further improve efficiency and product quality, helping Cambodia compete at a global level.

A Future of Growth and Opportunity

Cambodia’s cashew industry is moving in the right direction. With a combination of infrastructure development, financial support, and market expansion efforts, the country has the potential to become a leading supplier of both raw and processed cashews. Increasing domestic processing capacity from 5% to higher levels will be crucial in maximising the industry’s profitability and long-term sustainability.

The commitment to modernising infrastructure, expanding trade partnerships, and embracing sustainable practices is setting a strong foundation for future success. With continued investment and collaboration between the government, businesses, and international stakeholders, Cambodia’s cashew industry will bring higher incomes for farmers, new job opportunities, and increased economic contributions to the nation.

The progress made so far is just the beginning. With the right approach, Cambodia can solidify its position as a major force in the global cashew market, ensuring long-term prosperity for its people and its economy.

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ByJas Sohl
A distinguished UK-based social entrepreneur and award-winning impact investor, serves as a Non-Executive Director at The Better Cambodia.
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