Cambodia’s making all-out efforts to become ‘cashew king’ by 2030
Cambodia’s making all-out efforts to become ‘cashew king’ by 2030
The ascendency of Cambodia’s raw cashew nut production to number two position in the global ranking overtaking India and just one notch below Ivory Coast to become world number one is both arresting and captivating. Experts believe it’s just a matter of time before the Kingdom will attain the number one position. The government has already earmarked 2030 to achieve the target, and preparations are already underway. Apart from various measures initiated by local and international investors, Prime Minister Hun Manet last week announced a designated cashew industrial zone of more than 500 hectares in Kampong Thom province specially to cater to the demands of international markets. Khmer Times explores the buzz in the cashew nut sector
Cambodia’s global share in cashew nut production is substantial. For the last several years, the production level has been on the rise with experts predicting the Kingdom is poised to outpace traditional cashew powerhouses to become the largest cashew producer by 2030.
As of 2024, the country boasts over 580,000 hectares of cashew plantations, yielding an average of 1.5 tonnes per hectare. According to the latest CAC reports, in the first 10 months of 2024 alone, Cambodia produced over 840,000 tonnes of raw cashew nuts, a whopping 26 percent increase, making it the world’s second-largest exporter of cashews.
Given the ideal agricultural conditions, strong government backing as well as strategic partnerships with international stakeholders, Cambodia in all likelihood could be a significant player in the global cashew market.
On its part, the government has set a vision to make the country the world’s leading cashew exporter, aiming to become the ‘cashew king’ of the future. The ‘National Cashew Policy 2022-2027,’ is primarily crafted to enhance production, processing, market competitiveness, ensuring long-term sustainability and economic diversification.
The cashew policy sets three main objectives: improving production and product quality, increasing industrialization to add 25 percent more value to the cashew harvest 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 in the cashew industry.
Key efforts include enhancing production, improving processing infrastructure, and expanding market access, all of which are contributing to its success.
By focusing on sustainable farming, investing in value-added processing, and strengthening its supply chain, Cambodia is poised to outpace traditional cashew powerhouses. These initiatives are not only improving the livelihoods of local farmers but also driving economic growth and boosting the country’s export potential.
Cashews are an essential crop for Cambodia. Of the 840,000 tonnes of raw cashew nuts produced this year, more than 790,000 tonnes, valued at $1.11 billion were exported to Vietnam alone.
Advancing cashew farming
To expand cashew farming, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) has established modern cashew farming communities in Kampong Thom province. These communities are designed to connect farmers directly with the market, supported by capital and technical resources provided by the government.
As of now, the communities include Kampong Thom Sala Visai (88 members having 255 hectares), Prasat Sambo Rong Roeung (136 members having 586 hectares), and Tamring Kampong Thom (76 members having 460 hectares).
Touch Bun Hour, Secretary of State at the Ministry of Agriculture, said that cashews offer higher profits compared to many other crops due to their relatively low maintenance needs. The average yield per hectare is around 1.5 tonnes, though some regions can see yields up to 4 tonnes per hectare. However, the overall cashew production fluctuates, with recent yields ranging from 780,000 to 900,000 tonnes.
After recognising the potential of cashew products, Prime Minister Hun Manet has recommended that the Economic and Financial Policy Committee take all necessary measures to develop cashew plantations to compete in the international market.
Bun Hour added that the objectives include processing and exporting these products globally and positioning Cambodia to become the world’s leading exporter of cashews through the negotiation of bilateral and multilateral free trade agreements.
“Looking ahead to 2030, I am confident that we will become the global leader in cashews. My first reason is based on the National Cashew Policy 2022-2027, which sets the goal to increase the value-added of cashew processing by 25 percent by 2027,” Bun Hour emphasised.
The Cambodian Cashew Nut Association (CAC) is confident in the Kingdom’s potential to become the world’s top producer within the next few years.
Suy Kokthean, vice president of the CAC, pointed to the increasing production and higher yields, alongside expanding cashew plantation areas. Many farmers are eager to plant cashew trees due to the high prices of quality nuts, leading to a surge in demand for seedlings.
He emphasized that the trend of increased cashew planting is expected to continue, as prices remain strong due to a global supply shortage, which drives up demand.
Despite the positive outlook, Kokthean acknowledged that climate change poses a significant challenge, as extreme weather can affect yields. However, farmers are increasingly equipped with advanced cultivation techniques, thanks to ongoing training from the CAC and MAFF.
In terms of processing, a $12 million cashew processing plant being built by CSNC in Cambodia is expected to begin operations by March 2025. This plant will produce 40 tonnes of cashew nuts daily, targeting markets like China, Europe, the United Arab Emirates and the United States. The first exports from the plant will go to China, particularly Hainan Province, for packaging.
During a meeting with Chinese Ambassador Wang Wenbin, Dith Tina, Minister of Agriculture, Forestry and Fisheries (MAFF), said that Cambodia is ready to welcome investors keen on processing agricultural products including rice, mango, cashew nuts and edible bird’s nests.
“Cambodia is open and always ready to welcome investors keen in processing agricultural products such as rice, mangoes, cashews, edible bird’s nest,” Tina said, adding that Chinese investors can consider investing in Cambodia.
The Minister added that Cambodia has good and delicious cashew nuts that are in need of high-quality value-added exporters who can benefit both farmers and companies.
Strategic investments
In October, MAFF launched a detailed map of cashew cultivation areas across Cambodia, promoting sustainable agricultural practices.
In terms of cultivated land globally, Cambodia ranks third, covering over 580,000 hectares. The country’s cashew sector is expected to continue growing, with processing also set to expand in 2025 due to favourable weather conditions and increased investment from global companies.
Uon Silot, president of the CAC, stated that cashew production is expected to continue increasing, with processing also projected to grow in 2025. “I expect cashew nut processing for export to increase by more than 10 percent next year because numerous companies from Japan, China, and South Korea have shown interest in investing. They are exploring the potential of processing raw cashew nuts from Cambodia for export to international markets,” he said.
Recently, a group of Korean investors visited Kampong Thom province to explore potential sites for establishing a cashew processing and export factory. Their interest is driven by the region’s agricultural potential and Cambodia’s pro-investment policies.
Vongsey Vissoth, Permanent Deputy Prime Minister and Minister in charge of the Office of the Council of Ministers, met with Lee Kee Yun, Director of Heungkuk Industry Company, to discuss potential collaborations.
Lee stated that Heungkuk Industry, a leading South Korean construction materials manufacturer, is seeking 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, Vissoth expressed his full support to Heungkuk Industry’s investment plans and reaffirmed the Royal Government’s commitment to promoting foreign investments. He emphasized the vital role such initiatives play in driving economic growth and creating jobs, particularly in agriculture and agro-industry, which are key government priorities.
“Prime Minister Hun Manet has consistently advocated for the production and processing of cashew nuts with the goal of transforming Cambodia into the world’s largest exporter of cashews, or the ‘cashew king,’” Vissoth remarked.
“The government,” he said, “both at the national and sub-national levels, is eager to welcome new investment projects. The Council of Ministers is committed to supporting investments and strengthening ties between Cambodia and Korea.”
In a related development, Prime Minister Hun Manet recently approved the establishment of a cashew industrial zone in Kampong Thom province, aimed at generating new income for the people living in Zone 3 of the Tonle Sap Lake area.
Mr Hun Manet’s approval follows after a request was made by Kampong Thom Governor Nuon Pharath for the establishment of a cashew industrial zone.
“We will use state-owned land for development, not private land. The state will provide the land, while private companies will contribute projects, working together to establish a cashew industrial zone in Kampong Thom. This initiative will offer residents of Zone 3 and surrounding areas an alternative to farming by providing year-round employment opportunities,” the Premier stated.
The government is committed to turning Cambodia into the world’s top cashew exporter. A proposed cashew industrial zone in Kampong Thom province aims to provide an alternative source of income for local communities, offering year-round employment opportunities in cashew processing.
Governor Pharath told Khmer Times that Kampong Thom province is rich in agricultural and industrial potential, particularly in rice, rubber, cassava, and cashew nuts. The province cultivates about 152,611 hectares of land, producing approximately 221,758 tonnes of cashew nuts annually.
He said Kampong Thom is ideally positioned at the centre of the country for transporting agricultural products, making it easy to gather and export goods via land and water.
“In line with the 7th Royal Government’s policy under Prime Minister Hun Manet’s leadership to make Cambodia’s cashew crop a key export, particularly by adding value and creating jobs, the Kampong Thom provincial administration has engaged with experts to discuss the establishment of an agro-industrial zone,” said Pharath.
“This will serve as a hub for processing and exporting agricultural products, especially cashew nuts, to international markets. The aim is to diversify the provincial economy and create new job opportunities for the local population.”
The proposed agro-industrial zone is planned on an area of more than 500 hectares with feasibility studies underway to explore potential partnerships on the project.
Future of cashew production
Silot said that recently, Cambodia has become the second-largest producer of raw cashew nuts in the world, surpassing India, while the world’s first-largest producer of raw cashew nuts is Ivory Coast.
He said that Cambodian cashew nut industries require more investment of about $329 million to comply with the Cashew National Policy 2022-2027 to develop infrastructures.
“We are close to becoming a global leader in cashew, but just whether we achieve this milestone or not remains to be seen,” Silot underlined.
Hong Vannak, an economist at the Royal Academy of Cambodia, told Khmer Times that transforming Cambodia into the world’s largest producer and exporter of cashew nuts requires an actionable plan and immediate implementation, as 2030 is fast approaching.
“We only have 5 years left, so we need to gather accurate data on the number of plantations in key target provinces. I believe that the cashew association, the Ministry of Agriculture, and provincial agricultural departments already have this information,” he said.
Vannak emphasized several key data points that all stakeholders need to collect, including: (a) the amount of cultivated land, the volume of cashew nut production, quality standards, and other requirements; (b) the number of growers; (c) the quality of the produce; (d) the number of processing facilities in target provinces; and, most importantly (e) the export markets for Cambodian cashews.
However, he said that a major obstacle to the industry is the limited number of enterprises or factories capable of processing cashew nuts. This is a challenge that must be addressed to maximise the economic potential of cashews, which contribute significantly to both household and national economies.
In a notable development, a Japanese real estate developer has helped Cambodia make significant progress toward 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, near Siem Reap, marking a milestone in the country’s efforts to increase its cashew processing capacity, according to Nikkei Asia.
To further promote Cambodia’s cashews globally, the Ministry of Commerce is collaborating with the cashew sector to develop a Cambodian Cashew Collective Mark, which will help increase the international visibility of the country’s cashew products.
