PHNOM PENH – Cambodia's cashew nut industry is booming, with exports to Vietnam surging and domestic production reaching record highs.

In the first 10 months of 2024, Cambodia exported 790,000 tonnes of raw cashew nuts to Vietnam, generating approximately $1.11 billion. This represents a 31 percent increase compared to the same period last year.

Furthermore, Cambodia solidified its position as the world's second-largest exporter of raw cashew nuts, shipping 83 million tonnes globally in the first seven months of the year.

Domestic production also saw significant growth, with Cambodia producing 84 million tonnes of cashew nuts from January to October, a 26 percent increase compared to the same period in 2023, according to the Cashew Nut Association of Cambodia (CAC).

Uon Silot, president of the CAC, said Vietnam is the biggest market for Cambodia's raw cashew nuts. This big reliance on exporting to Vietnam is because Cambodia doesn’t have enough capacity to process the raw cashew nuts. Only 10 percent of raw cashew nuts are processed in Cambodia, while 90 percent are processed in Vietnam.

He said that the CAC aims to reduce raw cashew nut exports to foreign countries, especially Vietnam, by 70 percent in the upcoming years.

Cambodia can achieve this goal by establishing at least 35 more medium-sized processing factories. Currently, Cambodia has a total of 45 cashew processing factories, with 39 of them being small-sized and only six being medium-sized, said Silot.

Silot highlighted that Cambodia has the potential to become a major player in the global cashew nut industry, thanks to increased investment. The country is particularly renowned for its M23 cashew variety, prized internationally for its large kernels, delicious flavor, and superior nutritional value.

Cambodia's cashew nut industry is poised to become a major driver of economic growth. The country aspires to be the world's top cashew nut exporter, leveraging its potential to cultivate high-quality nuts, said Silot.

To achieve this goal, the Ministry of Agriculture, Forestry, and Fisheries (MAFF) is spearheading a new initiative. The first modern agricultural community dedicated to cashew cultivation has been established in Tumring, Kampong Thom province. This community, comprising 76 households, oversees 458 hectares of land already producing bountiful harvests.

Khim Finan, a spokesperson MAFF, explained that the establishment of modern agricultural communities is designed to revolutionize cashew farming in Cambodia. The goal is to shift from traditional, family-based practices to a more commercial model.

Finan anticipates that this transition will significantly boost competitiveness in terms of production costs and quality. Farmers within these communities will reap numerous benefits, including access to better markets and support for sustainable agricultural practices.

Currently, Cambodia exports between 700,000 and 800,000 tonnes of cashew nuts (with shells) annually, fetching a price of $1 to $1.50 per kilogram. This translates to a yearly revenue of approximately $1 billion.

However, Finan believes that the true potential of the cashew nut industry lies in domestic processing and export. By taking on these value-added activities, Cambodia could increase the industry's worth by a factor of 3 to 4.

In addition to the modern agricultural community, the Ministry of Agriculture also released ‘The Map of Cashew Growing Area in Cambodia’ on October 25. The book outlines the total land of cashew cultivation in Cambodia, which is 580,117 hectares and is expected to yield approximately 816,459 tonnes of cashew nuts per year.

The map can serve as a clear guide for investors and development partners, fostering their investment in the cashew industry without hesitation. This initiative will contribute to the vision of transforming Cambodia into the world's leading exporter of cashew nuts and the future ‘Cashew King’.

Originally written in Khmer for ThmeyThmey, this story was translated by Chhuon Kongieng for Cambodianess.

The article was modified to correct the total number of raw cashew nut exports from 79 million tonnes to 790,000 tonnes.