Cashew sector sees export growth amid climate challenges

Cashew sector sees export growth amid climate challenges

Cambodia experienced a 15 per cent increase in export volume over the past five months. However, farmers experienced rising costs due to an increased reliance on pesticides and disease management, according to the Cashew Nut Association of Cambodia (CAC)’s quarter report.

The CAC’s quarter report, released yesterday, stated that the association has released a May report detailing the impact of climate change on the country’s cashew production during the 2024–2025 season.

It added that unusual weather patterns—including prolonged cold, excessive rainfall, and increased pest outbreaks—disrupted nut development and harvesting, leading to quality issues and higher post-harvest losses.

“Despite these setbacks, Cambodia saw a 15 percent increase in export volume over the last five months. However, farmers experienced rising costs due to an increased reliance on pesticides and disease management,” read the report.

The report added that CAC also successfully stabilised market prices, maintaining an average of 5,300 riels per kilogram. The CAC emphasised that continued investment in innovation and climate adaptation is crucial for securing the future of Cambodia’s cashew industry.

President of the Cashew Nut Association of Cambodia (CAC), Uon Silot, stated that, reflecting on the first quarter of 2025, the cashew sector has encountered both opportunities and challenges, highlighting the importance of collaboration and innovation.

“We remain committed to sustainable growth, resilience, and economic progress. I commend our farming communities, whose dedication drives our achievements. Special thanks to NGOs, investors, and government institutions for their invaluable support in advancing our initiatives. Through continued cooperation, we will build a thriving and sustainable future for Cambodia’s cashew industry,” said Silot.

The Cashew Nut Association of Cambodia (CAC) has been actively fostering collaborations and expanding opportunities within the cashew industry through significant engagements and strategic initiatives.

According to the CAC, Cambodia produced 850,000 tonnes of cashew nuts last year, representing a 26.8 per cent increase, and exported 815,000 tonnes of cashew nuts, a 31 per cent increase. However, exports to Vietnam remained stagnant at 793,453 tonnes.

Prime Minister Hun Manet said last week that he hopes that one day Cambodia will become the king of cashews and Kampong Thom province will be a core producer (leading to better livelihoods for farmers here).

The government also announced the allocation of a special budget of $35 million in a stimulus package to support the provision of low-interest loans to modern agricultural communities over a three-year period, starting from the current year and ending in 2027.

The Prime Minister stated that the government is expanding the development of modern agricultural communities in the provinces and covering other high-potential crops such as cashews, rubber, and durian.

The modern agricultural communities focus on specific strategic crops, including rice, vegetables, cashews, and pepper, covering an area of 1,421 hectares.

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