Cambodia’s rise to second place in the world’s raw cashew nut production ranks ahead of India and just one point behind Ivory Coast for the top spot.
Experts believe it is only a matter of time before Cambodia takes the number one spot.
The government has set a target of 2030 to achieve the goal, and preparations are already underway.
In addition to various measures initiated by local and international investors, Prime Minister Hun Sen last week announced the designation of a cashew industrial zone covering more than 500 hectares in Kampong Thom province to meet international market demand. The Khmer Times will provide an insight into the potential of the cashew sector as follows:
Cambodia’s international share of cashew nut production is high. In recent years, production levels have increased, with experts predicting that Cambodia will surpass other countries to become the largest cashew nut producer by 2030.
As of 2024, Cambodia had over 580,000 hectares of cashew nut plantations, yielding an average of 1.5 tons per hectare. According to the latest report by the Cambodian Cashew Association, in the first 10 months of 2024, Cambodia produced over 840,000 tons of raw cashew nuts, an increase of 26 percent, making it the world’s second largest cashew exporter.
Given favorable agricultural conditions, strong government support, as well as strategic partnerships with international stakeholders, Cambodia has the potential to become a major player in the global cashew market.
On the other hand, the government has set a vision to make Cambodia the world’s leading cashew exporter, aiming to become the “cashew king” in the future. The ‘National Cashew Policy 2022-2027’ has been developed to increase production, processing, market competitiveness, ensure long-term sustainability, and diversify the economy.
The cashew policy sets three main goals: improving production and product quality; accelerating industrialization to add another 25 percent value to cashew harvesting and processing by 2027; and promoting market diversification and trade facilitation to strengthen export opportunities. The ultimate goal is to boost Cambodia’s global share of the cashew industry.
Key efforts include boosting production, improving processing infrastructure, and expanding market access, all of which are contributing to the country’s success.
By focusing on sustainable farming, investing in value-added processing, and strengthening the supply chain, Cambodia will be well-positioned to challenge traditional cashew-producing countries.
These initiatives will not only improve the livelihoods of local farmers, but also boost economic growth and boost the country’s export potential.
Cashews are a key crop for Cambodia. Of the 840,000 tons of raw cashews produced this year, more than 790,000 tons, worth $1.11 billion, were exported to Vietnam.
Boosting cashew farming
To expand cashew cultivation, the Ministry of Agriculture, Forestry and Fisheries has established modern cashew farming communities in Kampong Thom province.
These communities are designed to directly connect farmers with markets, supported by capital and technical resources provided by the government.
So far, the communities include Kampong Thom, Sala Sektar (88 members, 255 hectares), Prasat Sambor Rung (136 members, 586 hectares), and Tamring Kampong Thom (76 members, 460 hectares).
Mr. Toch Bunhour, Secretary of State at the Ministry of Agriculture, said cashew nuts offer higher profits compared to other crops due to their low maintenance requirements.
The average yield per hectare is about 1.5 tons, although some areas can achieve yields of up to 4 tons per hectare. However, overall cashew yields vary, with recent yields ranging from 780,000 to 900,000 tons.
After recognizing the potential of cashew products, Prime Minister Hun Sen recommended that the Economic and Financial Policy Committee take all necessary measures to develop cashew plantations to compete in the international market.
He added that the objectives include processing and exporting these products globally and making Cambodia the world’s leading cashew exporter through the negotiation of bilateral and multilateral free trade agreements.
“Going forward to 2030, I am confident that we will be the world leader in the cashew sector,” he stressed.
My first reason is based on the National Cashew Policy 2022-2027, which sets a target to increase the added value of cashew processing by 25 percent by 2027.”
The Cambodian Cashew Association (CAC) is confident in Cambodia’s potential to become a top global producer in the coming years.
Mr. Suy Kokthean, Vice President of CAC, highlighted the increase in production and high yields, along with the expansion of cashew planting area. Many farmers are keen to plant cashew seedlings because the price of high-quality nuts has led to an increase in demand for cashew trees.
He stressed that the trend of cashew cultivation is expected to continue to increase as prices remain high and global supply shortages are driving demand.
Despite the positive outlook, he acknowledged that climate change poses significant challenges to yields. However, farmers are being equipped with advanced cultivation techniques from the CAC and the Ministry of Agriculture.
In terms of operations, a $12 million cashew processing plant being built by CSNC in Cambodia is expected to start operating in March 2025.
The plant will produce 40 tons of cashews daily, targeting markets such as China, Europe, the United Arab Emirates and the United States. Initial exports from the plant will go to China, specifically Hainan Province for packaging.
In a meeting with Chinese Ambassador Wang Wenbin, Minister of Agriculture, Forestry and Fisheries Dith Tina said Cambodia is ready to welcome investors interested in processing agricultural products including rice, mangoes, cashew nuts and sorghum.
He added that Cambodia has good and delicious cashew nuts that need additional high-quality exporters, which can benefit both farmers and companies.
Strategic investment
In October, the Ministry of Agriculture, Forestry and Fisheries launched a map of cashew cultivation areas in Cambodia to promote sustainable agricultural practices.
In terms of cultivated land worldwide, Cambodia ranks third with over 580,000 hectares.
The country’s cashew sector is expected to continue to grow, with processing also set to expand by 2025 due to favorable weather conditions and increased investment from global companies.
CAC President Uon Silot said that cashew production is expected to continue to increase, and processing is also forecast to increase by 2025.
“I expect cashew processing for export to increase by more than 10 percent next year, as many companies from Japan, China and South Korea have shown interest in investing.
They are exploring the potential of processing raw cashew nuts in Cambodia for export to international markets.”
A group of Korean investors recently visited Kampong Thom province to explore potential locations for setting up a cashew processing and export plant.
Their interest was fueled by the region’s agricultural potential and Cambodia’s investment-supporting policies.
Deputy Prime Minister and Minister in Charge of the Cabinet Office, Mr. Vongsey Vissoth, met with Mr. Lee Kee Yun, CEO of Heungkuk Industry, to discuss potential cooperation.
Lee stated that Heungkuk Industry, a leading South Korean construction materials manufacturer, is looking to diversify its investment portfolio and is particularly interested in cashew processing in Cambodia due to the country’s agricultural potential and favorable investment climate.
During the meeting, Mr. Vongsey Vissoth expressed his full support for Heungkuk Industry’s investment plans and reaffirmed the government’s commitment to encouraging foreign investment.
He emphasized the important role that these initiatives play in boosting economic growth and job creation, especially in the agriculture and agro-industry sectors, which are key priorities for the government.
He added, “Prime Minister Hun Sen has been a strong advocate for cashew nut production and processing, with the goal of transforming Cambodia into the world’s largest cashew nut exporter, or the “Cashew Emperor.”
He added, “Both national and sub-national levels welcome new investment projects.
The Council of Ministers is committed to supporting investment and strengthening ties between Cambodia and Korea.”
Prime Minister Hun Sen recently approved the establishment of a cashew industrial zone in Kampong Thom province, aiming to generate income for people living in the third zone of the Tonle Sap Lake region.
His approval came after a request from Kampong Thom Governor Nuon Pharath to establish a cashew industrial zone.
He added that we will use state land for development, not private land. The state will provide the land, while private companies will contribute to the project, jointly establishing a cashew industrial zone in Kampong Thom province.
The initiative will provide people in the third zone and surrounding areas with an alternative to farming, providing year-round employment opportunities.
The government is committed to transforming Cambodia into a world-class cashew exporter.
The proposed cashew industrial zone in Kampong Thom province aims to provide an alternative source of income for local communities by providing year-round employment opportunities in cashew processing.
Kampong Thom Governor Nuon Pharath told the Khmer Times that Kampong Thom province has rich agricultural and industrial potential, especially in rice, rubber, cassava and cashew. The province has an area of 152,611 hectares, producing 221,758 tons of cashew nuts annually.
He said Kampong Thom province is well-located in the center of the country for agricultural transportation, making it easy to collect and export goods by land and sea.
He added that under the leadership of Prime Minister Hun Sen, in increasing Cambodia’s cashew exports, especially value addition and job creation, the Kampong Thom provincial administration has engaged with experts to discuss the establishment of an agro-industry.
“This will serve as a processing and export center for agricultural products, especially cashew nuts, to the international market.”
The aim is to diversify the provincial economy and create new job opportunities for local people.”
The proposed agro-industrial zone is planned on an area of over 500 hectares, with a feasibility study to explore potential partnerships on the project.
The Future of Cashew Production
Mr. Oun Seilot said that Cambodia has recently become the world’s second largest producer of raw cashew nuts, ahead of India, while the world’s largest producer of raw cashew nuts is Côte d’Ivoire.
He said that the Cambodian cashew industry requires an additional investment of about US$329 million to implement the 2022-2027 national policy to develop infrastructure.
“We are close to becoming a world leader in the cashew sector, but whether we achieve this remains to be seen,” he stressed.
Hong Vannak, an economist at the Royal Academy of Cambodia, told the Khmer Times that transforming Cambodia into the world’s largest producer and exporter of cashew nuts requires urgent action plans and implementation as 2030 approaches.
“We only have five years left, so we need to collect accurate data on the number of farms in key target provinces. I believe the Cashew Association, the Ministry of Agriculture and the provincial departments of agriculture already have this information.”
He highlighted some key data that all stakeholders need to collect, including (a) the amount of cultivated land, the amount of cashew production, quality standards and other requirements; (b) the number of growers; (c) the quality of the product; (d) the number of processing facilities in the target province; and most importantly, (e) the export market for Cambodian cashew nuts.
However, he said that the main obstacle to the industry is the limited number of enterprises or factories with the capacity to process cashew nuts. This is a challenge that must be addressed to maximize the economic potential of cashew nuts, which contribute significantly to the household and national economy.
Japanese property developers, on the other hand, have helped Cambodia make significant progress towards its goal of becoming the world’s top cashew exporter.
In early June, Mirarth Holdings celebrated the completion of a small cashew processing plant in Kampong Thom province, a milestone in the country’s efforts to increase its cashew nut processing capacity, according to the Nikkei Asia newspaper.
To further promote Cambodian cashew nuts worldwide, the Ministry of Commerce is collaborating with those from the cashew nut sector to create a Cambodian cashew nut brand that will help increase the international visibility of the country’s cashew nut products.
