Cambodia's cashew industry is facing a critical need for expanded domestic processing facilities as raw nut exports surpassed one million tonnes during the first six months of 2026. According to figures from the Cashew Nut Association of Cambodia (CAC), the country exported approximately 1.03 million tonnes of raw cashews, bringing in $1.75 billion—a 28.9% increase compared to the same period in 2025.

The vast majority of these exports were sent to Vietnam for processing. CAC president Silot Uon noted that while Cambodia is a top global supplier of raw nuts, the lack of local infrastructure means the country misses out on the economic benefits of value-added production. Uon emphasized that developing domestic processing is vital for job creation and enhancing the nation's global competitiveness.

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Industry analyst Jim Fitzpatrick highlighted the logistical and economic advantages of processing closer to the source of production. He pointed out that plants located far from cultivation regions struggle with high transportation costs and export duties. As an example of successful localization, Côte d’Ivoire has significantly increased its processed kernel exports, positioning itself as the world's second-largest exporter of processed cashews behind Vietnam.

While global demand for cashew kernels remains a factor, market analysts are monitoring how production costs and buyer behavior will influence future pricing. For Cambodia, however, the immediate challenge remains transitioning from a raw material exporter to a value-added producer.

Source: Phnom Penh Post