Cambodia Cashew Exports Exceed 1 Million Tonnes, Highlighting Need for Domestic Processing Investment

Cambodia exported over one million tonnes of raw cashew nuts in the first half of 2026, generating approximately $1.75 billion in revenue, a 28.9% increase over the same period in 2025. However, a persistent lack of domestic storage and processing capacity means a significant portion of these raw nuts are exported, primarily to Vietnam, for value-added processing. Industry experts are renewing calls for greater investment in local processing to capture more value within Cambodia. Silot Uon, president of the Cashew Nut Association of Cambodia (CAC), highlighted that the expansion of cultivation and high yields, coupled with limited domestic processing capabilities, leads to large volumes of raw cashews being shipped to Vietnam annually. "Although Cambodia remains one of the world’s leading suppliers of raw cashew nuts, expanding domestic processing has become essential to capture greater value-added, create new jobs, and strengthen Cambodia’s competitiveness in the global cashew industry," he stated. Market analysts observe that supply from major producing countries remains unstable, while processors attempt to balance high raw material costs against cautious purchasing by importers. Although prices for processed cashew kernels appear relatively stable, production costs continue to fluctuate, creating uncertainty about whether current prices represent the market's lowest point or a temporary pause. "The next few weeks will determine whether strong demand pushes kernel prices even higher, or whether cautious buying delays the next upward price movement," said industry analyst Jim Fitzpatrick. Fitzpatrick emphasized the economic advantages of expanding processing capacity in producing countries, noting that many processing plants located far from raw cashew sources face significantly higher operating costs due to transportation expenses and export duties. "The answer is very simple: process closer to where the raw cashew nuts are produced," he added. Côte d’Ivoire (Ivory Coast) serves as a leading example of this strategy. In the first five months of 2026, the country exported a record 44,403 tonnes of processed cashew kernels, a 51% increase from the same period last year, solidifying its position as the world's second-largest exporter of processed cashew kernels, behind Vietnam. The African nation's rapid expansion of domestic processing has enabled a much larger share of its raw cashew harvest to be converted into higher-value products before export. For now, Cambodia is compelled to accept its role as a primary supplier of raw nuts on the global market.