Sector Profile Cashew Nuts

CASHEW NUTS SECTOR PROFILE
Value Chain Unit

Trade Promotion Department
Ministry of Commerce, Cambodia
October 2010
This Sector Profile was prepared by the members of the Value Chain Information Unit within the
Trade Promotion Department of the Ministry of Commerce.
Additional inputs were provided by a research team set up by H.E. Cham Prasith, Senior Minister,
Minister of Commerce.
- Mr. Chea Vorak, Trade Promotion Department

- Mr. Tim Raya, Trade Promotion Department
- Mr. Chhean Potry, Bilateral Trade Department
- Mr. Hang Vanny, Trade Preferences Systems Department
- Ms. Ith Sokum, Multilateral Trade Dep.
- Mr. Kann Viseth, Multilateral Trade Department
- Mr. Mom Chantra, Trade Preferences Systems Department
- Mr. Ngoun Sumlli Vong, Customers Protection and Dispute Settlement and General Department
- Mr. Nhin Vanareun, GSP Department
- Ms. Nirng Vachna, Trade Statistics and Information Department
The teams were supported by two advisers to the Trade Promotion Department:
- Dr. Michael Freudenberg, International Trade Centre (ITC)

- Dr. Ralf Mueller, Gesellschaft fuer technische Zusammenarbeit (GTZ),
Centre for International Migration and Development (CIM)
The teams carried out desk research and field visits to Rattanakiri Province in June 2010 to better
understand the domestic business environment that affects actors in the cashew nuts value chain.
The Ministry of Commerce would like to thank the United Nations Development Programme (UNDP),
the International Trade Centre (ITC), and the Deutsche Gesellschaft fuer Technische Zusammenarbeit
(GTZ), Centre for International Migration and Development (CIM) for financial support.
Contents
Cashew nuts sector profile
World market................................................................................................................................................................................................ 2
Cambodia’s exports.................................................................................................................................................................................... 7
Domestic supply capacity. ....................................................................................................................................................................... 9
Constraints.................................................................................................................................................................................................. 15
Strategies and activities......................................................................................................................................................................... 16
Recommendations................................................................................................................................................................................... 17
Outlook and investment opportunities. .......................................................................................................................................... 19
References.................................................................................................................................................................................................. 22
Annex............................................................................................................................................................................................................ 24
List of Tables
Table 1. Main cashew nut producers in the world, 2008............................................................................................................. 3
Table 2. World market for cashew nut products, 2008................................................................................................................. 3
Table 3. Top exporters of cashew nuts products, 2008................................................................................................................. 4
Table 4. Top importers of cashew nut products, 2008.................................................................................................................. 5
Table 5. Top importers of cashew nut products, 2001-2009 (USD million)........................................................................... 5
Table 6. Top producers, exporters and importers of cashew nuts in the world................................................................... 6
Table 7. Information provided by CAMIS on cashew nuts........................................................................................................... 6
Table 8. Cambodia’s exports of cashew nuts: Cambodian versus mirror statistics (USD 1,000).................................... 7
Table 9. Destination markets for Cambodia’s exports of cashew nuts, 2001-2009 (USD 1,000)................................... 8
Table 10. Top cashew nut-producing provinces in Cambodia, 2007..................................................................................... 10
Table 11. Yields among the main cashew nuts producers in the world, 2008. ................................................................. 11
Table 12. Cashew nut harvest season in main producing countries..................................................................................... 11
Table 13. Processing of raw cashew nuts to kernels.................................................................................................................... 13
Table 14. International comparision of raw cashew nuts to kernel out-turn. ....................................................................14
Table 15. Dynamism of world production for selected commodities................................................................................... 20
Table 16. Attractive markets for raw cashew nuts (080131), 2008. ...................................................................................... 21
Table 17. Attractive markets for cashew nuts without shell (080132), 2008..................................................................... 22
List of Figures
Figure 1. Cashew nut production in the world, 1961-2008 (tons)............................................................................................ 2
Figure 2. Average FOB prices (USD/lb) of W-320 grade cashew nut kernels in India........................................................ 6
Figure 3. Simplified value chain of cashew nuts in Cambodia.................................................................................................... 9
List of Annex
Annex Table 1. Main raw cashew nuts producers, 2008........................................................................................................... 24
Annex Table 2. Top exporters of raw cashew nuts, fresh or dried (HS 080131), 2008................................................... 24
Annex Table 3. Top exporters of cashew nuts without shell, fresh or dried (HS 080132), 2008................................ 24
Annex Table 4. Top importers of raw cashew nuts, fresh or dried (HS 080131), 2008. ................................................. 25
Annex Table 5. Top importers of cashew nuts without shell, fresh or dried (HS 080132), 2008................................ 25
Annex Table 6. Cambodia’s exports of cashew nuts, 2008 (mirror data)............................................................................ 25
Annex Table 7. Attractive markets for fresh or dried cashew nuts, in shell (080131), 2008........................................ 26
Annex Table 8. Attractive markets for fresh or dried cashew nuts, shelled (080132).................................................... 26
Annex Table 9. Top cashew nuts producing provinces in Cambodia, 2008. ....................................................................... 27
Cashew nuts sector profile 1

Cashew nuts sector profile
Why a sector Cashew nuts have a high impact on rural employment and provide a good use of low
profile on resource land for farmers. Cashews are important, especially for poorer segments of
cashew nuts? the rural population, as their cultivation requires comparatively few inputs. Cashew nuts
are also considered a poor people’s crop and rich people’s food. It is a high-value crop
with good long-term market prospects: demand for this luxury commodity is increasing
with income.
It is estimated that there are about 22,000 farmers and a total of 38,000 employees
in the cashew value chain, including seasonal labour. Currently, almost all cashew
nuts are exported in unprocessed form, but an additional 10,000 direct jobs could be
created if the entire Cambodian raw cashew nut production was processed and
packaged domestically (EIC, 2007).
World market
Main producers World production of raw cashew nuts grew 12-fold in the past 50 years, from less than
300,000 tons in 1961 to 3.7 million tons in 2008 (Figure 1). Growth has accelerated in
the past decade, and production almost doubled from 2000 to 2008, due to an increase
in the worldwide cultivated area of 27 percent and in the average world yield of more
than 50 percent (Table 1).
Vietnam, India and Nigeria are by far the largest cashew nut producers in the world,
together accounting for about two-thirds of total world production. Between 2000
and 2008, Vietnam and Côte d’Ivoire more than quadrupled their production, and the
Philippines increased production by a factor of 15.
There is no reliable data available on Cambodia’s cashew nuts production. One study
estimated production of raw cashew nuts between 30,000 and 50,000 tons in recent
years, and about 60,000 tons in 2008 (DAI, 2008). This would make Cambodia among
the 15 largest cashew nuts producers in the world, representing between 1 percent and
2 percent of world production. With 1.2 million tons, Vietnam produced about 20 times
more cashew nuts than Cambodia.
Figure 1. Cashew nut production in the world, 1961-2008 (tons)
Source: FAO, FAOSTAT.
2 Cashew nuts sector profile

Table 1. Main cashew nut producers in the world, 2008
Level 2008 Dynamism 2000-08 (Index 2000=100)
Area Yield Production Area Yield Production
harvested (tons/ha) (1,000 tons) harvested
(1,000 ha)
1. Vietnam 403 2.96 1,191 206 214 440
2. India 868 0.77 665 127 101 128
3. Nigeria 330 2.00 660 127 111 142
4. Côte d'Ivoire 660 0.42 280 375 118 442
5. Brazil 741 0.32 240 114 152 173
6. Indonesia 308 0.46 143 55 371 204
7. Philippines 28 4.08 112 162 992 1,605
8. Tanzania 94 1.05 99 104 78 82
9. Mozambique 60 1.42 85 120 122 147
10. Guinea-Bissau 212 0.38 81 101 110 111
12. Cambodia 60 1.00 60 .. .. ..
Total 4,098 0.91 3,720 127 152 194
Source: FAO and MAFF(data for Cambodia is estimated). For more detailed information, see Annex Table 1.
Statistics on International trade statistics distinguish two cashew nut products according to the
internationally processing steps. The Harmonized System (HS), which is an international trade
traded products nomenclature covering more than 5,000 product items at the most detailed level
(6 digits), distinguishes two types of cashew nuts:
Cashew nuts in shell, fresh or dried (HS 080131), are unprocessed

and also called raw cashew nuts.
Cashew nuts without shell, fresh or dried (HS 080132). The shell of
the raw cashew nut is removed after boiling and drying. The processed
cashew nuts are also called kernels.
The world market for cashew nuts represented almost USD 3 billion in 2008.
World imports of processed cashew nuts (without shell) are more than two times larger
than raw cashew nuts (in shell): USD 1.9 billion compared to USD 0.9 billion. Though
smaller, the world market for raw cashew nuts was more dynamic than the market for
processed cashew nuts (Table 2). It seems that even though transportation costs suggest
processing should be carried out relatively close to the cultivation site, cashew nuts are
increasingly traded in unprocessed form, as processing requires economies of scale and
specific competitive advantages.
Only the smaller part of world production of cashew nuts is traded internationally.
The sum of world imports of raw cashew nuts (728,000 tons) and processed cashew nuts
(362,000 tons), almost 1.1 million tons, may include double-counting and thus over-
estimate trade, but this accounts for less than 30 percent of total world production
(3.7 million tons).
Table 2. World market for cashew nut products, 2008
Raw cashew nuts Cashew nuts without shell
(HS 080131) (HS 080132)
World exports World imports World exports World imports
Value 2008 (USD million) 724 911 2,101 1,982
Quantity 2008 (1,000 tons) .. 728 398 362
Unit value 2008 (USD/ton) .. 1,252 5,280 5,476
Value growth 2004-2008 (%/year) 15 14 11 13
Quantity growth 2004-2008 (%/year) 14 11 7 7
Source: ITC’s Trade Map.

Main exporters World exports of raw cashew nuts are dominated by African countries, and processed
cashew nuts by Vietnam and India.
- Exports for raw cashew nuts (in shell) are dominated by African countries:
Seven of the 10 largest exporters are in Africa. The three largest - Cote d’Ivoire,
Guinea-Bissau and Ghana - account for 57 percent of world exports. With an
export value of USD 34 million and a world market share of 4.7 percent in 2008,
Cambodia is the eighth biggest exporter in the world (Table 3). Some African
countries once had substantial processing industries before this was widely
abandoned. Since then exports of unprocessed cashew have dominated.
- For processed cashew nuts (without shell), Vietnam and India are the biggest
exporters in the world, with a combined world market share of almost 75 percent,
followed by Brazil (9 percent). Cambodia exported only USD 12,000, making it the
74th biggest exporter in the world. With annual growth of 18 percent between
2004 and 2008, Vietnam outpaced the world market (11 percent), while India and
Brazil lost market share because exports barely grew (by 5 percent and 3 percent,
respectively).
Table 3. Top exporters of cashew nuts products, 2008
Exporters Value Share of Quantity Unit value Growth in Growth in
(USD world (1,000 tons) (USD/ton) value quantity
million) exports ( %) 2004-2008 2004-2008
(%/year) (%/year)
Raw cashew nuts (HS 080131)
World 724 100.0 .. .. 15 14
1. Côte d'Ivoire 171 23.6 312 548 20 22
2. Guinea-Bissau* 125 17.2 91 1,374 10 3
3. Ghana 118 16.3 70 1,683 .. 119
4. Benin* 84 11.5 86 969 16 12
5. Tanzania* 72 10.0 67 1,085 0 -2
8. Cambodia 34 4.7 8 4,087 20 35
Cashew nuts without shell (HS 080132)

World 2,101 100.0 398 5,280 11 7
1. Vietnam 883 42.0 161 5,492 18 17
2. India 667 31.8 123 5,436 5 0
3. Brazil 196 9.3 35 5,537 3 -4
EU-27 190 9.0 31 6,157 .. ..
4. Netherlands 105 5.0 18 5,950 2 -2
5. U. Arab Emirates 44 2.1 9 4,700
Source: ITC’s Trade Map. Trade for countries marked with * is estimated through mirror statistics.
For more detailed information, see Annex Table 2 and Annex Table 3.
Main importers For raw (unprocessed) cashew nuts, there were 81 importing countries in 2008, but the
world market was dominated by two countries, which together accounted for almost
95 percent of world imports: India (USD 645 million, corresponding to a world market
share of 70 percent) and Vietnam (USD 220 million, 24 percent) (Table 4). The nextbiggest
importer, France imported less than USD 13 million.
Between 2004 and 2008, imports from India grew more slowly (+8 percent per year)
than world imports (+14 percent), and much slower than that of Vietnam, which grew by
38 percent. This data underlines the increasing importance of Vietnam for processing of
the world’s cashew nuts.
An examination of unit value suggests that import unit values in India (USD 982 per ton)
are substantially lower than those in Vietnam (USD 4,087) and most other countries.
Further research is needed to understand these differences.
For cashew nuts without shell, the main destination markets are the United States and
the European Union, each importing about USD 650 million, corresponding to a world
market share of 33 percent. Three EU countries are among the top 10 importers in

the world: Netherlands, Germany, and the United Kingdom. Between 2004 and 2008,
the mature US market lost momentum, as imports grew substantially more slowly
(3 percent per year) than world imports (+13 percent). In contrast, several big importers
show impressive growth rates: China (about 120 percent per year), the Russian
Federation (about 90 percent) and Iran (almost 200 percent). India continues to be the
world’s largest consumer country of processed cashew nuts, but it feeds this demand
with domestically processed cashew nuts.
Table 4. Top importers of cashew nut products, 2008
Exporters Value Share of Quantity Unit value Annual Annual Tariff
(USD world (1,000 (USD/ton) growth in growth in faced by
million) imports tons) value quantity Cambodia
(%) 2004-2008 2004-2008 (%)
(%) (%)
World 911 100.0 728 1,252 14 11 ..
1. India 643 70.6 655 982 8 7 0
2.Vietnam 219 24.0 54 4,087 38 54 0 (a)
EU-27 23 2.5 4 6,185 .. .. 0
3. France 13 1.4 2 5,834 20 12 0
4. United States 8 0.9 1 6,581 29 19 0
5. Brazil 7 0.8 9 729 .. .. 10

World 1,982 100.0 362 (b) 5,476 13 7 ..
EU-27 673 34.0 116 5,817 .. .. 0
1. United States 651 32.8 112 5,788 3 -2 0
2. Netherlands 226 11.4 40 5,660 19 13 0
3. Germany 109 5.5 19 5,702 24 20 0
4. United Kingdom 101 5.1 19 5,260 9 7 0
5. Australia 87 4.4 15 5,905 11 6 0
Source: ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through
mirror statistics. For more detailed information, see Annex Table 4 and Annex Table 5.
(a) Vietnam’s tariff for Cambodia is 0% according to the Cambodia-Vietnam bilateral agreement.
(b) World total for quantity and unit value was recalculated excluding Egypt (which has wrong quantity data).
Table 5. Top importers of cashew nut products, 2001-2009 (USD million)

2001 2002 2003 2004 2005 2006 2007 2008 2009
World 135 297 351 454 580 496 536 911 ..
1. India 91 254 294 379 474 402 369 643 539
2. Vietnam 23 24 36 55 84 67 130 219 ..
EU-27 3 4 7 8 11 13 17 23 ..
3. France 0 2 5 6 9 10 11 13 13
4. United States 5 9 6 4 2 3 7 8 8
5. Brazil 0 0 0 0 0 0 0 7 3

World 731 743 854 1,132 1,345 1,287 1,557 1,982 ..
EU-27 224 211 276 334 459 492 568 673 ..
1. United States 362 365 398 569 566 525 579 651 597
2. Netherlands 70 58 108 108 147 171 193 226 ..
3. Germany 46 37 40 42 67 74 89 109 147
4. United Kingdom 40 39 44 70 92 85 101 101 83
5. Australia 23 29 38 51 62 61 63 87 69
Vietnam and India import raw cashew nuts for domestic processing and subsequent
export of cashew nuts without shell. The two countries are the biggest producers and
biggest importers of raw cashew nuts in the world, while being also the world’s largest
exporters of processed cashew nuts (Table 6). Processing capacities in both countries
exceed domestic production of raw cashew nuts considerably. To a lesser extent, Brazil
and Indonesia follow the same pattern.

Table 6. Top producers, exporters and importers of cashew nuts in the world
Raw cashew nuts (%) Cashew nuts without shell (%)
30 producers 52 exporters 81 importers 85 exporters 142 importers
1. Vietnam (31) 1. Côte d'Ivoire (24) 1. India (71) 1. Vietnam (42) 1. United States (33)
2. India (18) 2. Guinea-Bissau (17) 2. Vietnam (24) 2. India (32) 2. Netherlands (11
3. Nigeria (17) 3. Ghana (16) 3. France (1) 3. Brazil (9) 3. Germany (6)
4. Côte d'Ivoire (7) 4. Benin (11) 4. United States (0.9) 4. Netherlands (5) 4. U. Kingdom (5)
5. Brazil (6) 5. Tanzania (10) 5. Brazil (0.8) 5. UAE (2) 5. Australia (4)
6. Indonesia (4) 6. Indonesia (7) 6. Netherlands (0.3) 6. Germany (2) 6. UAE (4)
7. Philippines (3) 7. Nigeria (5) 7. South Africa (0.3) 7. Indonesia (1) 7. China (4)
8. Tanzania (3) 8. Cambodia (5) 8. U. Kingdom (0.2) 8. Tanzania (1) 8. Canada (3)
9. Mozambique (2) 9. Mozambique (2) 9. Venezuela (0.16) 9. Belgium (0.9) 9. Russian Fed. (2)
10. Guinea-Bissau (2) 10. Mexico (0.4) 10. Spain (0.11) 10. Mozambique (0.7) 10. Japan (2)
12. Cambodia (2)

Source: FAO, ITC’s Trade Map and Market Access Map. * countries with mirror statistics.
Prices It appears that there is no international reference price for cashew nuts, whether raw
nor processed. There are some sources, especially Indian ones, that publish weekly price
data, but it has not been possible to obtain a series of prices over several years (Figure 2).
Price information in Cambodia on cashew nuts in local markets is available from
the Cambodia Agricultural Market Information Service (CAMIS). The Agricultural
Marketing Office (AMO), Department of Planning and Statistics (DPS) within MAFF,
collects weekly market wholesale price information. Table 7 gives an example of the
information provided, which, unfortunately, does not seem to exist as a time series
that can be downloaded.
Figure 2. Average FOB prices (USD/lb) of W-320 grade cashew nut kernels in India
Source: Cashew Week (August 16-21, 2010) (www.cashewinfo.com).
Table 7. Information provided by CAMIS on cashew nuts
Province Market Date Price (Riel/kg)

Kampong Cham Boeung Kok Market 23-03-2009 2,800
Kampong Cham Cereal Shop Bosskhnor 28-06-2010 4,400
Kampong Chhnang Cereal Shop Phsar Krom 31-08-2009 3,800
Source: Cambodia Agricultural Market Information Service (CAMIS), http://camis-kh.org.
The farm gate price fluctuates strongly during the season. According to EIC (2007),
prices are low at the beginning of the harvest in February to March (most growers sell
cashew nuts at the same time because they need the cash), tend to go up until Khmer
New Year (mid-April), start to fall again (as people need cash), and rise towards the end of
the season (as the supply become limited).

Cambodian cashew farmers are constrained to sell their products at a disadvantage.
The bargaining power between Cambodian sellers and Vietnamese buyers is asymmetric.
Cambodian sellers depend on Vietnamese demand, and have no alternative but to take
whatever price is being offered, because there is no domestic processing industry, and
Cambodia has failed so far to build distribution channels to alternative cashew processors,
such as India. Therefore, prices offered for Cambodian raw cashew nuts depend heavily
on the difference between Vietnam’s domestic raw cashew supply and the demand from
Vietnam’s cashew processing industry. This exposes Cambodian cashew nut farmers to
the risk of strong fluctuations in the volume and price of cashew nuts.
Global prices of cashew kernels are shaped by prices of competing tree nuts such as
almonds, walnuts, and pistachios (www.commodityonline.com/commodities/plantation/
cashew.php).
Cambodia’s exports
Issues with It is difficult to assess the volume and value of Cambodia’s exports because of lack of
Cambodian reliable, official data. Cambodia reported trade data to the United Nations Statistics
trade statistics Department (Comtrade database) until 2004, and then again in 2008, while so-called
mirror statistics - those reported by Cambodia’s trade partners to the United Nations
Statistics Division - are available until 2008 (and even until 2009, but without Vietnamese
imports) (Table 8). However, the two sources can differ and thus suggest different
interpretations. For example, in 2008, Cambodia raw cashew nuts exports were USD
914,000 according to Cambodia’s data, while Cambodia’s trading partners reported
having imported more than USD 34 million from Cambodia. The remainder of this sector
profile uses mainly mirror statistics.
A second problem is that official statistics do not take into account informal exports
and thus underestimate Cambodia’s exports.This problem occurs with both Cambodian
statistics and mirror data.
Table 8. Cambodia’s exports of cashew nuts: Cambodian versus mirror statistics
(USD 1,000)
Importers 2001 2002 2003 2004 2005 2006 2007 2008

Cambodian statistics
Total cashew nuts 0 681 1,047 166 .. .. .. 915
080131 Cashew nuts, in shell 0 648 761 20 .. .. .. 914
080132 Cashew nuts, without shell 0 33 286 146 .. .. .. 1
Mirror statistics
Total cashew nuts 1,355 2,694 8,291 14,648 20,268 18,454 21,022 34,073
080131 Cashew nuts, in shell 1,355 2,694 7,776 14,297 18,568 17,648 20,731 34,061
080132 Cashew nuts, without shell 0 0 515 351 1,700 806 291 12
Cambodia’s Cambodia is among the biggest exporters in the world of cashew nuts in shell, but is
performance only a small player for cashew nuts without shell. Almost all cashew nuts are exported
relative to in the form of raw cashew nuts (Table 8), as Cambodia lacks processing facilities (currently,
its main there is no industrial cashew processing in Cambodia but only very basic “home-made”
competitors processing at village level for local customers). Cambodia’s exports of raw cashew nuts
have recently increased because of the development of Vietnamese processing capacity.
- Exports for raw cashew nuts (in shell) are dominated by African countries:
Seven of the 10 largest exporters are in Africa. The three largest – Cote d’Ivoire,
Guinea-Bissau and Ghana – account for 57 percent of world exports. With an
export value of USD 34 million and a world market share of 4.7 percent in 2008,

Cambodia was the eighth biggest exporter in the world (Table 3). However,
this data underestimates Cambodia’s position in world raw cashew trade
considerably as most Cambodian exports are conducted informally.
- For processed cashew nuts (without shell), Vietnam and India are the biggest
exporters in the world (with a combined world market share of almost 75 percent)
followed by Brazil (9 percent) and the Netherlands (5 percent). With annual
growth of 18 percent between 2004 and 2008, Vietnam outpaced the world
market (growth of 11 percent), while India and Brazil lost market share.
Cambodia exported only USD 12,000 in 2008, making it a marginal exporter.
Cambodia’s For both cashew nuts products, Cambodian exports are concentrated on only a few
current markets partners.
- Raw cashew nuts were exported almost exclusively to Vietnam from 2001 to 2008.
In 2005 and 2006, and again in 2009, a small part of Cambodia’s exports went to
India (Table 9). With large increases in processing capacity in Vietnam, there has
been a substantial increase in the production of cashew nuts in
Cambodia, much of which is smuggled over the border.
- Cashew nuts without shell were exported only to Canada in 2008, but were
previously also exported over several years to Vietnam and the United States.
Table 9. Destination markets for Cambodia’s exports of cashew nuts, 2001-2009

(USD 1,000)
2001 2002 2003 2004 2005 2006 2007 2008 2009
Total 1,355 2,694 7,776 14,297 18,568 17,648 20,731 34,061 ..
Vietnam 1,355 2,694 7,776 14,297 18,419 17,351 20,731 34,061 ..
India 0 0 0 0 149 297 0 0 681

Total 0 0 515 351 1,700 806 291 12 ..
Canada 0 0 270 53 56 20 144 12 5
Vietnam 0 0 0 0 1,319 630 73 0 0
United States 0 0 150 298 325 111 74 0 0
Hong Kong (SARC) 0 0 95 0 0 0 0 0 0
Thailand 0 0 0 0 0 44 0 0 0
China 0 0 0 0 0 1 0 0 ..
Cambodia’s Cambodia has favourable market access conditions in most importing markets for
market access cashew nuts. Tariffs for Cambodian cashew nuts in most regional markets are low, and
conditions Cambodia enjoys substantial preferential access in some markets. Cambodian cashew
nuts are imported into Vietnam duty free, according to the recent Cambodia and Vietnam
bilateral agreement.
- Tariffs faced by Cambodian exporters for raw cashew nuts are 0 percent in India
and Vietnam, and in most large importing countries (Table 4). In most markets,
Cambodia enjoys the same market access conditions as Côte d’Ivoire – the
largest exporter in the world and thus Cambodia’s main competitor – but has a
substantial tariff advantage in Vietnam: 0 percent for Cambodia compared to 30
percent for Côte d’Ivoire.
- For processed cashew nuts, tariffs faced by Cambodian exporters are 0 percent
in most large importing countries, except in Thailand (40 percent) and Iran (50
percent). In most markets, Cambodia enjoys the same market access conditions as
Vietnam – the largest exporter in the world and thus Cambodia’s main competitor.

Domestic supply capacity
Main actors The main actors in Cambodia’s cashew nut value chain are farmers and collectors and
traders, while it appears that there are no longer any market-relevant processors in
Cambodia.
- Farmers: Cashew nut producers tend to be smallholders or medium-size farms,
though there are also large farms. The average farm size is 3 to 5 ha, ranging from
small “farmer gardens” where cashews are cultivated to 2,000 ha for Agro Star, the
biggest cashew plantation company in Cambodia. There are no official statistics
available concerning the number of Cambodian cashew nut farmers. USAID and
DAI (2006) estimated that there were about 22,000 farmers, and a total of 38,000
employees involved in the cashew value chain, including s
easonal labour.
- Collectors and traders/exporters: Collectors are village-level middlemen that buy
(often mixed and mostly un-graded) raw cashew nuts at the farm gate, store them
for a day or two under the house, and then sell them to medium-size and larger
traders or exporters, often from Vietnam. Cambodian traders do not specialize in
cashew nuts only, but are generalists that trade various commodities depending on
the season, including rice, cassava, soybean, mung beans, and sesame.
- Processors: The value chain effectively ends with the trader/exporters, because
there are no longer any significant cashew nuts processors in Cambodia.
Three industrial scale cashew processing factories in Cambodia have failed in the
past 10 years, for reasons having mostly to do with local management styles
and business environment constraints (DAI, 2007). The last processing companies
in operation in Cambodia, Khmer Agricultural Product (KAP) and Cam Ag in
Kampong Cham, have closed down. EIC (2008) estimated that 10,000 direct jobs
would be created if all raw cashew nuts were processed and packaged
domestically.
The value chain of the Cambodian cashew industry is characterized as follows
(Figure 3). Usually, farmers sell their produce to local collectors in the village or commune.
The local collectors consolidate the raw cashew nuts at the village or commune level,
and sell them on to a local broker. The cashews are then sold to domestic processors – or
were, when they were active – or to Vietnamese processors. The cashew nut industry
in Cambodia consists basically of cultivating, harvesting, and trading raw cashew nuts.
Figure 3. Simplified value chain of cashew nuts in Cambodia
Cashew farmers
Village/district collectors
Provincial traders
Cashew processor Foreign importers

(kernel production)
Domestic roasters Foreign processors
Domestic importers Foreign roasters and distributors
Domestic retailer Foreign retailers
Domestic consumer market International consumer market
Source: Trade SWAp Pillar 2 Task Team on cashew nuts (2008).

Production in Cambodia’s cashew nut production can only be estimated. Neither MAFF nor FAO
provinces publishes regularly yearly statistics for Cambodia. Therefore, studies estimate production
data indirectly, by multiplying existing data on the cultivated area (MAFF) by an estimate
of average yield.
- The area that is cultivated for cashew nuts has increased in recent years, from
about 50,000 ha in 2004 to some 60,000 ha in 2005 (EIC, 2007) and to around
80,000 ha in 2008 (Phnom Penh Post, 20 August 2009).
- Average yield of cashew nuts in Cambodia is estimated to be around 1 ton/ha
(ranging from 0.5 to 1.5 tons/ha).
- This method gives an estimate for a particular year, e.g. 60,000 tons in 2008
according to the medium scenario of 1 ton/ha (Table 10).
Cashew nuts are grown in most provinces in Cambodia, but three provinces
account for almost 80 percent of total area and presumably of production: Rattanakiri,
Kampong Cham and Kampong Thom. Other large producers include Siem Reap,
Mondulkiri, Kratie and Koh Kong.
Table 10. Top cashew nut-producing provinces in Cambodia, 2007

Province Area (ha) Low scenario: Medium scenario: High scenario:
yield of 0.5 ton/ha yield of 1 ton/ha yield of 1.5 ton/ha
Production (tons) Production (tons) Production (tons)
1. Rattanakiri 21,562 10,781 21,562 32,343
2. Kampong Cham 17,765 8,883 17,765 26,648
3. Kampong Thom 7,515 3,758 7,515 11,273
4. Siem Reap 2,795 1,398 2,795 4,193
5. Mondulkiri 2,734 1,367 2,734 4,101
6. Kratie 1,912 956 1,912 2,868
7. Koh Kong 1,835 918 1,835 2,753
8. Takeo 966 483 966 1,449
9. Pursat 750 375 750 1,125
10. Kampot 612 306 612 918
(...)
Total 60,453 30,227 60,453 90,680
Source: DAI (2008). For more detailed information, see Annex Table 9.
Cultivated area, The cultivated area for cashew nuts has increased in recent years, from about
production, yield 50,000 ha in 2004 to some 60,000 ha in 2005 (EIC, 2007) to around 80,000 ha in 2008
(Phnom Penh Post, 20 August 2009).
Cambodia’s cashew nuts yields are lower than in Vietnam but higher than in India.
Cashews are generally considered an easy-to-plant-crop, and farmers often do not pay
much attention to which variety they choose and do not take much care in farming, thus
affecting quality and yields (in fact, many farmers do not pay any attention to their
cashew trees until the nuts fall down). Average yield of cashew nuts in Cambodia is
estimated to be around 1 ton/ha, while yields are 2 tons/ha in Nigeria, almost 3 tons/ha
in Vietnam, and even 4 tons/ha in the Philippines (Table 11). On the other hand,
Cambodia has higher yields than India, Côte d’Ivoire, Brazil and Indonesia.

Table 11. Yields among the main cashew nuts producers in the world, 2008
Production Level of yield Change of yield
(million tons) (tons/ha) (2000=100)
1. Vietnam 1,191 2.96 214
2. India 665 0.77 101
3. Nigeria 660 2.00 111
4. Côte d'Ivoire 280 0.42 118
5. Brazil 240 0.32 152
6. Indonesia 143 0.46 371
7. Philippines 112 4.08 992
8. Tanzania 99 1.05 78
9. Mozambique 85 1.42 122
10. Guinea-Bissau 81 0.38 110
12. Cambodia (est.) 60 1.00 ..
World 3,720 0.91 152
Source: FAO and MAFF (data for Cambodia are estimated). For more detailed information, see Annex Table 1.
Yield is influenced by many factors, including soil, variety and age of the cashew trees,
maintenance and farm management. According to DAI (2008), output per hectare and
thus income for farmers could be increased substantially – to as much as 5 tons/ha –
merely by using improved varieties and horticultural practices.
Farmers often have little knowledge and no incentive to produce high quality cashew
nuts. The quality of raw cashew nuts (RCN) is mainly measured by the moisture content,
the size of the nuts (number of RCN/kg), and the quantity of usable kernels per kilogram
of raw cashew nuts (DAI, 2008). Farmers, especially small ones with little storage capacity,
tend to sell as soon as possible because they need cash: they often pick unripe (green)
nuts and do not dry them, which increases mould damage. Another reason for the
haste is the problem of theft, which can affect 10 to 20 percent of all nuts (DAI, 2008).
As a result, collectors typically buy mixed (ungraded) lots at low prices from the farmers,
and dry and grade the cashew nuts themselves.
Table 12. Cashew nut harvest season in main producing countries

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cambodia x x
Vietnam x x x x
India x x x x
Nigeria x x x x
Cote d’Ivoire x x x x
Brazil x x x x
Indonesia x x x x x x x
Tanzania x x x x
Mozambique x x x x x x
Source: CashewInfo.com (www.cashewinfo.com/home.asp?file_id=seasonality) for countries other than
Cambodia.
Collecting and Virtually all harvested raw cashew nuts are marketed through a system of collectors
trading and traders for export. As farmers consume hardly any of their own cashew nuts, they
sell their entire harvest to collectors and traders, depending on the location and size of
their farms. Small-scale farmers especially depend on collectors to forward their cashews
to traders, resulting in discounts to the prices they get. For cashew farms in more remote
areas, either collectors arrange the transport to larger traders (at price discounts more or
less equivalent to the distance the nuts are to be transported) or the farmers have to, or
prefer to, arrange transport themselves. At least in those provinces and districts where
cashew farming is very common (especially Rattanakiri, Kampong Cham and Kampong
Thom), it seems that collecting is a competitive business, but price margins are higher
than for crops due to factors such as the higher risk of price fluctuations.

Little attention is paid by collectors and traders to the quality of raw cashew nuts.
Especially at collecting level, hardly any attention is paid to the quality of the rawcashew
nut. Only in the late harvest (when the rainy season has started), price adjustments might
be made according to moisture and size (based on visual inspection). This can vary with
some traders, but even larger traders often buy cashews for a standard price (ADI 2009).
Provincial traders depend mostly on neighbouring countries, as no alternative

distribution channels to other markets have yet been formed. Even though traders might
have a strong position at provincial level and can control considerable shares of the local
production, they are often disadvantaged when it comes to export. Besides very limited
raw cashew exports to Thailand (mostly from the Western provinces), Cambodia’s raw
cashews are sold almost entirely to Vietnam. Even the larger traders are often unable or
disinclined to do the export themselves, but instead deliver the cashews only to border
checkpoints where Vietnamese buyers or agents take the crop and arrange border
procedures (mostly informally). It seems to be a common practice that Vietnamese
buyers only pay Cambodian cashew traders for a previous consignment once the next is
made, and thus keeping these Cambodian traders tied to them. Margins have fallen in
recent years due to increasing competition in both raw cashew trading and collecting.
Cashew nuts are sold shortly after being purchased due to capital and storage
constraints. As cashew traders with limited storage facilities normally trade many kinds of
crops (rice, cassava, soybean, etc.) and capital costs are high (even larger traders are
often very reluctant to take credit from banks), they normally store cashews only for a
short period, so as to invest the revenue as soon as possible in other crops. This prevents
them from benefiting from significant price increases after harvest. It also constitutes a
major constraint for processing factories as, after the harvest, they have almost no
opportunities to obtain considerable quantities of raw supply within Cambodia.
(This forces them to make their entire purchase for a whole processing season during
the four-month harvest period.)
Kampong Cham and Rattanakiri serve as export gates for Cambodian raw cashew
nuts. Traditionally, Kampong Cham (Trapeang Phlong) is the export gate for Cambodian
cashews. However, with increasing cultivation in Rattanakiri, cashews are now exported
directly more and more from this province. However, due to specific issues at the border
checkpoints in Rattanakiri (which restrict direct cashew exports to Vietnam to certain
players such as those cooperating with the large-scale cashew processor OLAM),
Kampong Cham remains an important distribution channel for cashew nuts grown in
Cambodia’s Northeast.
Processing The main objective of processing is to remove the valuable cashew kernel from the shell
capacity with as little damage as possible. Whole kernels command a higher price than do broken
pieces. Table 13 shows the main steps of processing raw cashew nuts to kernels.
Former investments in cashew processing have failed in Cambodia. In the past 10 years,
three cashew nut processing factories have been established but all stopped operation
within a few years for various reasons:
- The first cashew nut processing factory was established in Santuk in Kampong
Thom, but at a very small-scale and using mostly basic technology. The factory
operated for a few years and stopped in 2002, after the Thai investor first left the
country and later died, leaving his Cambodian partner with insufficient capital and
market access for continuing the business.

Table 13. Processing of raw cashew nuts to kernels
Step Activity
Sorting Raw cashew nuts are sorted by size.
Humidity Raw cashew nuts are soaked to ensure consistent moisture content to prevent scorching
control (burning) during the heating process.
Raw cashew nuts are heated (steamed) to soften the shell. This causes the kernel inside to
Heating
become loose and easier to remove.
Raw cashew nuts are placed in a centrifuge to remove the cashew nut shell liquid, (CNSL)
Centrifuge
a somewhat caustic phenolic material with industrial uses.
Each cashew shell is split open longitudinally using a treadle-powered cutting machine, and
Shelling
the kernel inside is immediately taken out by hand.
Drying The skin-on kernels are dried in an oven at low heat for a few hours to loosen the skin (testa).
The skin of each kernel is removed by hand using a small knife, and the kernel is preliminarily
Peeling
graded visually according to quality.
The whole cashew kernels are individually graded by hand according to count per pound.
The cashews of each grade are inspected according to the quality standards for that grade.
Grading
Because India is the world’s largest cashew nut producer, its quality standards are adopted
internationally. There are however some variations among large customers.
Quality The cashew kernels are then put through a set of quality assurance measures: oven heating,
Control metal detection, dust removal, UV sterilization and a visual inspection conveyor.
For North America and Europe, the cashew kernels are vacuum packed in multilayer barrier
pouches of 11 kg (25 pounds). In some cases a modified atmosphere of low oxygen and high
Packing
carbon dioxide or nitrogen is used to prevent infestation. These pouches are placed, one each,
in a carton. For delivery in Asia, a traditional tin box is sometimes used.
Source: McNaughton, Iv et al. (2005), taken from DAI (2008).
- The second company, KAP (Khmer Agricultural Product) in Kampong Cham, was
larger than the one in Kampong Thom, but was still small-scale, with a processing
capacity of 1,250 tons of raw cashew nut/year (McNaughton 2005). KAP seemed
to have found a niche in producing certified organic cashew nuts for the US and
Canadian markets. However, besides weaknesses in quality management and
capital, KAP sold most of its produce to only one buyer. Once this buyer stopped
ordering, after having experienced SPS-related (Sanitary and Phyto-Sanitary)
quality problems (infestation) with the delivered produce, KAP tried to survive by
producing small quantities of cashew nuts for the domestic and Vietnamese
market, but finally failed in 2007-08.
- Cam Ag, the latest attempt to set-up a cashew nut processing factory in Cambodia,
was created by the former main buyer from KAP’s cashew nuts. With Cambodian
partners, this US-investor in 2008 established a processing factory in Kampong
Cham province (Ponhear Krek District), with the intention of processing cashew
nuts for export to the North American market. Despite having a more substantial
production capacity than earlier cashew nut processing investments in Cambodia,
this company stopped operations after just two years due to a combination of
reasons (issues between the owners, lack of initial profitability due to low kernel
out-turn (the ratio of kernels to whole nuts) and unprofessional factory
management).
All processing factories investments in Cambodia suffered from weak factory
management and low productivity. Even though modern technology is becoming
increasingly important, cashew nut processing today is still very labour-intensive. In order
to ensure high productivity – high kernel out-turn and low content of broken kernels – it
is vital to have skilled labour. As the cashew nut sector in Cambodia has no long-standing
experience in processing on which to build, each new investor in this business had to
train and supervise his own staff. However, low kernel out-turns in the former processing
factories (Table 14) caused a major competitive disadvantage for Cambodian-processed
cashews in international markets and left only niche markets.

Table 14. International comparision of raw cashew nuts to kernel out-turn
Country Out-turn (%):
Percentage of kernels in the total weight of raw cashew nuts that are processed
India 31
Vietnam 31
Brazil 31
Guinea Bissau 30
Ivory Coast 30
Indonesia 30
Mozambique 25
Kenya 24
Madagascar 24
Cambodia (Cam Ag) 22-24
Source: DAI, ADI, IDE (2008); Technoserve Mozambique.
Besides ineffective processing, the low kernel outturn is also a result of low quality
of raw cashew nut (RCN) supply. Tests indicate that, with better handling, significantly
higher out-turns can be achieved with the RCN quality produced by Cambodian farmers.
This out-turn rate could be as high as about 28, compared to 22-24 currenty.). However,
not those currently achieved in the major processor countries (India, Vietnam, Brazil)
due to weak post-harvest handling of RCN. (As mentioned earlier, there is no grading
system in place when RCN are purchased from farmers. This creates incentives for
farmers to sell their produce before it is well dried.)
High capital costs in Cambodia discourage entry into cashew nut processing for investors
without access to international capital markets. As neither farmers nor collectors/traders
store raw cashew nuts for periods longer than a few weeks, a future cashew processor
needs to purchase his entire raw materials for one processing yearduring the harvest
period from February to May. Given the high interest rates in Cambodia (compared to the
competitor Vietnam) this constitutes a high barrier for those investors who have to rely
on domestic credit. High energy costs in Cambodia exacerbate the lack of competitiveness
in processing.

Constraints
Constraints Farmers Collectors/traders Processors
Knowledge / No or very limited knowledge --- No local capacity available to manage

Management / about inputs (seedlings, fertilizers, cashew-processing factories: train and
Entrepreneurship pesticides) and cultivation supervise staff, provide quality management
techniques (e.g. distance between (qualified managers need to be recruited
trees, cutting of branches, from abroad, e.g. Vietnam, India).
diseases), causing low yields.
Large-scale farms are often
unproductive due to lack of
professional management.
Material inputs Inputs (seedlings, fertilizers, Competition with Fierce competition for input provision
pesticides) need to be imported other collectors with Vietnamese processors (who can
because of lack of domestic and foreign pay higher prices due to better processing
supporting industries. (Vietnamese) facilities).
buyers for raw
Limited access to quality inputs Limited off-season raw cashew nut
cashew nuts.
(use of low-yield clones, inventories available.
“organic-by-default” farming).
Inability to import raw cashew nuts from
other origins for processing “off-season”.
Cashew processors need to purchase the
entire raw materials for one processing
year in the harvest period February-May.
Land Unclear land ownership (only --- ---

about 10% of farmers have land
titles) discourages long-term
investments (cashew trees carry
yield after 3-5 years and can be
used for 20 years or longer).
Labour As more people from rural areas --- No labour available experienced in cashew
move to booming cities, unskilled processing (need for in-house training and
day workers are increasingly in effective supervision).
short supply for harvesting.
Low output per worker, leading to high
processing costs.
Technology --- --- Processors were small scale and applied

basic technology. Small-scale processing
does not provide many opportunities for
modern technologies.
Finance Unfavourable credit conditions Unfavourable credit Unfavourable credit conditions (including
(high interest rates, limited loan conditions force absence of warehouse receipt finance
scale, complicated and long collectors and system) restrict processors’ ability to buy
credit procedures, strict collateral traders to sell raw materials (to run the factory all year)
requirements in the absence of cashews early to and limits investment in the expansion and
land titles for most farmers) limits Vietnam (limited modernization of processing capacity.
access of farmers, especially small benefits from price
Indian and Vietnamese raw cashew
farmers, to finance. rise after harvest).
producers and processors have greater
Shortage of finance prevents access to capital at lower costs.
farmers from buying quality inputs
and forces them to sell cashew
nuts immediately after harvest,
often resulting in poorly-dried
cashew with low prices.

Constraints Farmers Collectors/traders Processors
Infrastructure No support infrastructure, such as High formal High energy cost to operate the processing
adequate extension services and and informal factory (fuel, electricity).
research institutes. transportation costs.
High transportation cost (including informal
High transportation costs road fees), and long and expensive export
(weak infrastructure, cost of fuel), procedures (including informal fees), are
which reduce farmers’ revenues significant burdens for overseas exports.
and limit the number of potential
buyers.
Technical No incentive for farmers to Collectors/traders Non-tariff trade barriers (such as SPS
standards, quality separate low and high quality nuts offer no or little requirements) in many importing countries
(because collectors pay standard price incentives for impose significant barriers for Cambodian
prices). better quality. cashew nuts.
Marketing and Demand for raw cashew nuts in As there are no Export to international markets either via
distribution Cambodia is currently limited longer any pro Vietnam (competitor) or at relatively
channels to the Vietnamese demands for cessing factories, high-costs through Sihanoukville.
processing. cashew traders
Very small domestic market.
depend on
Limited negotiation power
Vietnamese Limited knowledge of alternative markets
compared to buyers
importers with (other than Vietnam).
(collectors, traders).
strong market
Very limited international marketing expe-
Price information often comes power.
rience.
from buyers that have an interest
Cambodia failed to
in low prices.
develop alternative
marketing channels
for raw cashew nuts
(e.g. India).
Business The business environment is Lengthy processing No foreign lead investors in the processing
enabling perceived as unfavourable by of export business due to the perceived unfavourable
environment foreign investors, preventing lead documentation business environment.
investment in cashew farming and unpre-dictable
(including contract-farming export transaction
systems). costs.
Source: Adapted from DTIS (2007), Trade SWAp Pillar II Cashew Nuts Task Team (2008), DAI (2008), Slayton (2009), USDA (2010), and own
research and interviews with stakeholders.
Strategies and activities

Royal Government There is no explicit national strategy on cashew nuts, although the DTIS (2007) iden-tified
of Cambodia cashew nuts as one of the 19 sectors with potential for exports. The government considers
cashew nuts as one of the sectors where a domestic processing industry can be established
in a sustainable manner.
The Government counts, in particular, on Vietnam to develop the Cambodian cashew nut
sector. Ministry of Commerce authorities from Kampong Thom and Kampong Cham have
held discussions with their Vietnamese counterparts from Binh Phuoc and Dong Nai
provinces about the possibility of setting up processing factories in Cambodia with
Vietnamese help (Phnom Penh Post, 20 August 2009). The Vietnam Cashew Association
(Vinacas) signed an agreement to cultivate 2,000 ha of cashew trees in Kampong Cham
and Kampong Thom (Vietnamnet.vn, 13 April 2010).

Recommendations
The following summarizes the main action points for the Government, development partners and the private
sector to address specific constraints.
Possible solution Illustrative interventions National partners

for implementation
Knowledge / Training for cashew Extend network of trainers in pilot provinces (trained by MAFF
Management / farmers in improved IFC and GTZ) to more districts in the two pilot provinces
Entrepreneurship cultivation (Kampong Cham and Kampong Thom) and to new
techniques provinces (especially Rattanakiri).
Use existing capacities (trained organization development MoC

trainers) to organize more cashew farmers in associations
or communities (in order to ease implementation of
cultivation trainings).
Include subjects in training curriculum such as seed MAFF

selection, planting, weeding, budding, grafting, pruning,
fertilizing, irrigating, pest-management, inter-cropping,
post-harvesting, etc.
With regard to small-scale farmers, include especially MAFF

organic cultivation methods into training curriculum, as
these farmers often lack the financial capacities to use
chemical fertilizer and pesticides.
Develop sustainable long-term funding mechanism for MAFF,

trainer network, e.g. by cooperating with private sector private sector
(incl. involve large-scale farming companies such as
Agro-Star or lead investors in contract farming such as
international processing companies).
International lead Provide investment incentives to an international cashew MEF, CDC

investment in processing company (lead investor) with management
cashew processing capacity to conduct internationally competitive cashew
processing (in contrast to former cashew processing
investments that had been dominated or weakened by
inexperienced local partners).
Material inputs Access to Identify and support key suppliers and nursery services MAFF
appropriate in key provinces (Rattanakiri, Kampong Cham,
agricultural inputs Kampong Thom) that could provide local farmers with
(fertilizer, seeds, quality inputs (high yield clones, fertilizer, pesticides).
etc.) for improved
Conduct regular quality control on inputs provided by
cultivation
these input sellers.
Provide a certificate to these input sellers which will
signal to farmers where to buy quality inputs.
Ensure effective control on import of inputs (fertilizer, MoC, MAFF

pesticide) according to existing law.
Stop illegal import of black-listed low quality or high
poisoning fertilizer and pesticides (basic legislation is
already available but not implemented).
Ensure that more product information is available in MoC, MAFF

Khmer language (in contrast to product information
available only in Vietnamese, Thai or Chinese).

Possible solution Illustrative interventions National partners
for implementation
Land Land titles Provide small-scale farmers, especially those who lack Ministry of Land
influence and protection, with land titles that enable them Management,
to make long-term investment in improved Urban Planning
cultivation. and Construction
Labour International lead Provide investment incentives to an international cashew CDC

investment in processing company (lead investor) that has the expertise
cashew processing and management capacity to train and supervise
Cambodian labour in cashew processing (see also
Knowledge / Management / Entrepreneurship).
Technology International lead Provide investment incentives to international cashew CDC

investment in processing company (lead investor) that introduces latest
cashew processing technology in cashew processing (see also Knowledg /
Management / Entrepreneurship).
Finance Financial Provide legal framework to introduce in Cambodia new MEF

infrastructure for finance tools such as warehouse receipt finance system
cashew-related (this would allow traders or processors to use their raw
business cashew nuts as collateral for bank credit).
Consider credit-promotion programmes for agro-sector. MEF
Infrastructure Reduced energy Attract future cashew processing investors in Special CDC
costs for processing Economic Zones that offer Vietnamese energy supply.
Technical Grading system Introduce grading system based on international market MAFF
standards, requirements to provide incentives to farmers/collectors
quality to supply quality.
International Strengthen food quality testing authorities MAFF

recognized (laboratory, equipment, training).
food testing
Marketing/ Access to Conduct market research to identify international buyers MoC, MAFF
Distribution alternative (processors) and traders of RCN in the region.
channels export markets
(than Vietnam) Invite traders from alternative markets to explore
for traders Cambodian RCN and meet Cambodian traders.
and farmers Organize market study trips for Cambodian traders to
major RCN markets such as India.
International lead Provide specific incentives to international investors in CDC

investment in cashew processing (e.g. through export processing zones).
cashew processing
Business Enabling Reduction of Negotiate with Vietnam in order to ensure (regionally) MoC
Environment exportation costs equal tariff-free market access for Cambodian RCN.
(Currently, provincial government officials at the
Vietnamese side of the Rattanakiri border levy an
(informal) fee on Cambodian raw cashew nuts to protect
local production of local Vietnamese farmers).
Reduce formal and informal export costs in Cambodia MoC

by making export processes more transparent and by
reducing the number of government agencies involved
(cross-cutting issue for all export-related agro-products
in Cambodia).

Outlook and investment opportunities
Outlook The prospects for developing a vibrant cashew nuts sector in Cambodia seem quite favourable,
but differ between cultivation and processing.
- For cultivation of raw cashew nuts, prospects are positive. There is substantial world
demand for cashews, and historically, world production for cashew nuts has outpaced
most nuts and many other commodities. Since 2000, world production for cashew nuts
has almost doubled, as compared to growth of 40 percent to 50 percent for hazelnuts,
pistachios, areca nuts (betel nuts) and almonds (Table 15). Since 1961, world production
of cashew nuts has increased by a factor of 12, second only to pistachios (which grew
25-fold).
- For processing, the lack of competitive processing capacity in the country represents
an important opportunity foregone. There is a chance to develop the industry in
Cambodia, though it is far from sure whether potential investors are willing to take
this chance.
Domestic production can be easily expanded, as there is plenty of land available that is
suitable for planting cashew nut trees. Cashew nut trees can grow “even on sandy and
infertile soil not suitable for most other cash crops” (GTZ, 2005). GTZ (2005) estimated this land
area in Cambodia at up to 10 million ha.
Many Cambodian farmers are currently getting out of the cashew nut industry, while
Vietnamese by contrast are about to invest in Cambodia to produce raw cashew nuts and to
set up processing plants. This seemingly contradiction between the behaviour of Cambodian
and Vietnamese actors is due to different strategies.
- Many Cambodian farmers get out of cashew nuts and change to crops that are perceived
as more profitable, such as rubber and cassava. Growing cashew nuts used to be an
attractive business for Cambodian farmers as it used to be highly profitable (GTZ, 2005).
At current market prices, one hectare of cashews yields around USD 1,000 worth of
product per year, compared with nearly USD 2,500 for rubber and cassava (Phnom Penh
Post, 30 September 2008). The newspaper also quoted one farmer who switched from
cashew nuts to rubber: “Cashew nut yields once a year and is bought at low prices from
middlemen to go to Vietnam.” In contrast, “rubber yields daily and is purchased at high
prices from rubber factories within the province.”
- In contrast, Vietnamese processors are looking into investment opportunities abroad,
including in Cambodia. This is because the Vietnamese processing industry needs a
regular – or increasing – supply of raw cashew nuts, in particular because Vietnamese
farmers are also reducing cashew cultivation, for reasons similar to why Cambodian
farmers get out. One report mentioned the potential risk that an increase in production
of raw cashew nuts in Vietnam might drive down the price of raw cashew nuts in
Cambodia in the near future (EIC, 2007). However, more recently, Vietnam has reduced
the area under cultivation and invested in more profitable crops such as rubber. As a
result, Vietnam’s production decreased from 2008 to 2009 by 52,000 tons or 15 percent
(commodityonline.com, 11 May 2010).
A recent newspaper article (Vietnamnet.vn, 13 April 2010) reported:
- The Vietnam Cashew Association (Vinacas) signed an agreement to cultivate 2,000 ha of
cashew trees in Kampong Cham and Kampong Thom. Over the next five years, the final
area under cultivation could increase several times. Vinacas will provide Cambodian
farmers with support, including seedlings and training on processing and cultivating
techniques to meet standards required by importing countries.

- Cashew growing and processing companies in Dong Nai Province are expected to set up
processing plants in Kampong Thom Province. The Vietnam Development Bank (VDB)
is to offer 20 major Vietnamese cashew companies preferential short-term loans to
invest in machinery and equipment to improve the industry’s processing capacity.
Processing facilities in Cambodia could lower dependence on Vietnamese buyers and
processors. This would also benefit the farmers who currently suffer from the fact that raw
cashew nuts are transported to and processed in Vietnam, reducing their farm-gate prices.
Table 15. Dynamism of world production for selected commodities
Commodity Production Index Index
(million tons) 1961=100 2000=100
2008 1961 1970 1980 1990 2000 2008 2000 2008
Cashew nuts, with shell 3.7 100 178 161 255 667 1,294 100 194
Hazelnuts, with shell 1.1 100 211 231 308 372 577 100 155
Pistachios 0.6 100 230 367 1,318 1,819 2,737 100 150
Arecanuts 1.0 100 97 127 215 307 454 100 148
Almonds, with shell 2.1 100 90 121 174 195 279 100 143
Chestnuts 1.3 100 95 79 81 158 212 100 134
Walnuts, with shell 1.7 100 132 160 179 259 347 100 134
Coconuts 61.1 100 110 135 178 213 256 100 120
Groundnuts, with shell 38.2 100 128 120 164 246 271 100 110
Natural rubber 10.6 100 141 177 246 332 500 100 151
Soybeans 231.0 100 163 301 403 600 859 100 143
Maize 822.7 100 130 193 236 289 401 100 139
Cassava 233.0 100 138 174 214 248 327 100 132
Rice, paddy 685.0 100 147 184 240 278 318 100 114
Source: FAO, FAOSTAT.
Investment The Cambodian cashew nuts sector offers opportunities for both domestic and international
opportunities investors:
Production increase
There is potential to further increase production as plenty of arable land is available and there
remains room for yield improvements. DAI (2008) estimates that output per hectare could be
increased substantially – from 1 ton/ha to up to 5 tons/ha – simply by using improved varieties
and horticultural practices.While a five-fold increase does not seem reasonable in the
medium-term, the Vietnamese yield of 3 tons/ha seems like a realistic target.
Contract farming
There are significant opportunities for agri-business investment in integrated contract
farming, provided a lead investor is available to provide farmers with inputs and knowledge.
Processing for exports

The conditions for processing in Cambodia have not been favourable, as witnessed by the
failure of three processing companies in recent years. As the framework conditions improve
in Cambodia, an international lead investor could avoid the problems that contributed to the
failure of the former processors (limited processing capacity, insufficient management and
marketing experience, etc.).
Niche markets
There are good market prospects for organic cashew nuts. In many countries, there is an
increasing customer awareness and demand for “fair trade” and “origin based” products.
Because Cambodian cashew nuts farmers use little pesticides and herbicides, most production
is “organic by default”. This could command higher prices, but in general the product is not
certified as “organic”. Cambodian exports of organic cashews to the United States have

stopped, but organic cashew contract farming is starting in Rattanakiri for processing in
Vietnam (Cashew Nuts Task Team). However, SRP (2005) reported that “organic” nuts are
mixed with “normal” nuts when they are processed in Vietnam, thus limiting the incentives
to plant or certify organic cashew nuts in Cambodia.
There is also potential to exploit cashew by-products, such as cashew butter from broken
nuts, cashew nut shell liquid (CNSL) for industrial and medicinal purposes and the juice of
the cashew apple that can be processed further (Food Chain, 2001). The by-products of
course can only be produced in Cambodia once a viable processing industry is in place.
Potential In order to identify promising markets to diversify Cambodia’s exports, the International
future Trade Centre (ITC) developed a Market Attractiveness Index that takes into account three
markets for dimensions: size of importing markets; dynamism of imports over the last five years; and
Cambodia to the market access conditions that apply to an exporter country and its main competitors.
diversify its Applied to Cambodia, the following markets are considered most attractive.
exports
For raw cashew nuts, Vietnam and India – which together account for 95 percent of world
imports – are the most attractive markets for Cambodia (Table 16). Since Vietnam is already
Cambodia’s main export destination, India seems a particularly promising diversification
market. India is a mature market, growing by 14 percent between 2004 and 2008, but less
dynamic than smaller importers, such as Brazil, China, Indonesia, the United Kingdom and
the Netherlands. India offers Cambodia duty-free access to its market, but does so also to
its main suppliers – Cote d’Ivoire, Guinea-Bissau and Benin – so that potential Cambodian
exporters have neither a tariff advantage nor a tariff disadvantage.
For cashew nuts without shell, the most promising markets are in Europe (Germany, the
Netherlands and the United Kingdom), followed by China and the United States (Table 17).
Those markets offer tariff-free access to Cambodia. However, Cambodia has neither a tariff
advantage nor a tariff disadvantage compared to its main competitors, such as India,
Vietnam, Brazil and Myanmar, because exports from these countries also enter at a zero
tariff rate.
Though the United States is by far the largest importer in the world, it is a mature market
and grew only 3 percent per year between 2004 and 2008. Germany and the Netherlands
are smaller, but more dynamic than the United States. Two countries are among the top
10 most attractive markets mainly because of their growth: China more than doubled its
imports of cashew nuts every year between 2004 and 2008 (+141 percent), while Russia’s
imports also rose rapidly (+95 percent).
Table 16. Attractive markets for raw cashew nuts (080131), 2008
Market Share Market Tariff Cambodia’s Main competitors
of market growth applied tariff advantage in this market
in world 2004-2008 to (+) or
imports (% per Cambodia disadvantage (-)
(%) year) (%) (%)
1. Vietnam 24.0 42 5 22 C. d’Ivoire, Nigeria, Indonesia
2. India 70.5 14 0 0 C. d’Ivoire, G.-Bissau, Benin
3. France 1.4 21 0 0 Vietnam, India, Turkey
4. Brazil 0.8 High 10 0 Côte d’Ivoire, Nigeria
5. United States 0.9 23 0 0 Brazil, India, Vietnam
6. Netherlands 0.3 141 0 0 India, Vietnam, Denmark
7. United Kingdom 0.2 317 0 0 India, Italy, Vietnam
8. South Africa 0.3 56 0 0 Vietnam, Tanzania, India
9. China 0.0 High 0 6 Mali, Nigeria
9. Indonesia 0.1 371 0 5 Australia, Benin, C. d’Ivoire
Source: ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through mirror
statistics. For more detailed information, see Annex Table 7.

Table 17. Attractive markets for cashew nuts without shell (080132), 2008
Market Share of Market Tariff Cambodia’s Main competitors
market in growth applied to tariff advantage (+) in this market
world 2004-2008 Cambodia or disadvantage (-)
imports (% per (%) (%)
(%) year)
1. Germany 5.5 27 0 0 India, Vietnam, Brazil
2. Netherlands 11.4 20 0 0 Vietnam, India, U. Kingdom
3. U. Kingdom 5.1 10 0 0 Vietnam, India, Italy
4. China 3.9 141 0 0 Vietnam, Myanmar, Brazil
5. United States 32.8 3 0 0 Vietnam, India, Brazil
6. Australia 4.4 14 0 0 Vietnam, India, Indonesia
7. U. Arab Emirates 4.1 33 5 0 India, Vietnam, Mozambique
8. Russia 2.0 95 0 0 Vietnam, Brazil, Tanzania
9. Canada 3.0 6 0 0 Vietnam, Brazil, India
10. France 1.9 21 0 0 India, Germany, Brazil
Source: ITC’s Trade Map and Market Access Map. Trade for countries marked with * is estimated through mirror
statistics. For more detailed information, see Annex Table 8.
References
Main DAI, ADI and IDE (2008): “Cambodia SME Development in Selected Agri-Sectors/Value Chains,
references Final Scoping and Design Report”, July 2008. A report prepared for the International Finance
Corporation/Mekong Private Sector Development Facility (IFC/MPDF) by Development
Alternatives Inc (DAI) in association with Agricultural Development International (ADI) and
International Development Enterprises (IDE).
EMC Emerging Markets Consulting (2008), “Trade Project Cambodia: Cassava Industry Study.”
Final report for UNDP Cambodia, April.
Trade SWAP Pillar 2 Cashew Nuts Task Team (2008), “Cashew Sector: Supply Capacity Constraints
and Technical Assistance Strategy,” presentation.
Further Cashew Week (various editions), www.cashewinfo.com.

reading
CDRI Cambodia Development Resource Institute (2010), Cambodia Development Review,
Returning to a High growth Economy – Policy Priorities and Action for Growth and Sustainable
Development: The 4th Cambodia Outlook Conference, Volume 14, Issue 2, April-June.
EIC Economic Institute of Cambodia (2007), Cambodia’s Export Diversification and Value
Addition, Chapter 9: Cashew Nuts: A Sector with High Potential for Value Addition.
EIC (2007), Export Diversification and Value Addition for Human Development, January.
EIC (2007), Trade and Industrial Policy Environment in Cambodia: Policies to Promote Exports
in Potential Sectors, May.

FAO Food and Agriculture Organization of the United Nations (undated, 2008 or 2009),
Agriculture in Cambodia: A Sector Situation Analysis.
Food Chain: The International Journal of Small-scale Food Processing: Number 28, May 2001,
Special issue dedicated to cashew processing and marketing, ITDG.
GTZ (2005), The Cambodian cashew industry: Assessment of opportunities and constraints for
rural employment and export revenue generation. GTZ, Phnom Penh.
ITC International Trade Centre (2007), Export Potential Assessment in Cambodia.
MAFF Cambodia Ministry of Agriculture, Forestry and Fisheries (2008), Agricultural Statistics
Bulletin, Statistics Office, Department of Planning and International Cooperation.
McNaughton (2005): The Cambodian Cashew Industry, Phnom Penh.
Ministry of Commerce and United Nations Development Programme (UNDP) Cambodia (2007),
Cambodia’s Trade Integration Strategy: Executive Summary and Action Matrix, Prepared under
the Trade Related Assistance for Development and Equity (TRADE) Project, December.
Phnom Penh Post (30 September 2008), “Cambodia: Cashew market crumbling.”
SRP (2005). A Summary of an Economic Analysis of the Value Chain of the Cashew Nut Industry
in Cambodia.
UNCDF United Nations Capital Development Agency (2010), Local Development Outlook
Cambodia, Executive Summary, April.
USAID and DAI (2006), Cambodia MSME Program, Value Chain Assessment Report: Cashews,
January.
Varanashi, K.M. (2006). Organic Cashew Nut Cultivation. Report with Recommendations
on Study cum Training Activity in Cambodia (for Trade Promotion Cambodia, GTZ/GOPA).
Vietnamnet.vn (13 April 2010), “Vinacas to grow cashew in Cambodia.”
Websites FAOSTAT, FAO Food and Agriculture Organization, (http://faostat.fao.org/site/339/default.aspx).
ITC International Trade Centre, Trade Map and Market Access Map,
(www.intracen.org/marketanalysis).
MAFF Cambodia Ministry of Agriculture, Forestry and Fisheries,

(www.maff.gov.kh/eng/statistics/index.html).
The Cashew Export Promotion Council of India (CEPCI), (www.cashewindia.org).

Annex
Annex Table 1. Main raw cashew nuts producers, 2008
Rank in production Level in 2008 Index 2008 (2000=100)
Area harvested Yield Production
Area harvested Yield Production
(ha) (tons/ha) (tons)
1. Vietnam 402,700 2.96 1,190,600 206 214 440
2. India 868,000 0.77 665,000 127 101 128
3. Nigeria 330,000 2.00 660,000 127 111 142
4. Côte d'Ivoire 660,000 0.42 280,000 375 118 442
5. Brazil 741,036 0.32 239,702 114 152 173
6. Indonesia 308,129 0.46 142,536 55 371 204
7. Philippines 27,517 4.08 112,334 162 992 1,605
8. Tanzania 94,000 1.05 99,100 104 78 82
9. Mozambique 60,000 1.42 85,000 120 122 147
10. Guinea-Bissau 212,000 0.38 81,000 101 110 111
11. Benin 215,000 0.29 62,000 116 133 155
12. Cambodia (est.) 60,000 1.00 60,000 .. .. ..
13. Thailand 24,000 1.00 24,000 109 100 109
14. Ghana 62,000 0.27 17,000 477 48 227
15. Malaysia 7,000 1.86 13,000 100 100 100
(…)
Total 4,097,637 0.91 3,720,306 127 123 194
Source: FAO and (data for Cambodia is estimated). Highlighted numbers show countries that are among the top 10 performers in the world.
Annex Table 2. Top exporters of raw cashew nuts, fresh or dried (HS 080131), 2008
Exporters Value exported Share in world Trade balance Quantity Unit value Annual growth Annual growth
in 2008 exports in 2008 exported in (USD/ton) in value in quantity
(USD 1000) (%) (USD 1000) 2008 (tons) 2004-2008 (%) 2004-2008 (%)
World 724,440 100.0 -186,825 .. .. 15 14
1. Côte d'Ivoire 170,955 23.6 170,949 312,229 548 20 22
2. Guinea-Bissau* 124,861 17.2 124,861 90,869 1,374 10 3
3. Ghana 117,839 16.3 117,822 70,032 1,683 119
4. Benin* 83,530 11.5 83,530 86,164 969 16 12
5. Tanzania* 72,292 10.0 72,292 66,599 1,085 0 -2
6. Indonesia 51,037 7.1 50,542 56,587 902 1 1
7. Nigeria 38,796 5.4 38,796 ..
8. Cambodia* 34,061 4.7 34,061 8,333 4,087 20 35
9. Mozambique 15,040 2.1 15,040 .. -11
10. Mexico 2,770 0.4 2,657 830 3,337 49 89
Source: ITC’s Trade Map. Countries marked with * did not report in 2008 and their trade is estimated through mirror statistics.
Annex Table 3. Top exporters of cashew nuts without shell, fresh or dried (HS 080132), 2008
Exporters Value exported Share in world Trade balance Quantity Unit value Annual growth Annual growth
in 2008 exports in 2008 exported in (USD/ton) in value in quantity
(USD 1000) (%) (USD 1000) 2008 (tons) 2004-2008 (%) 2004-2008 (%)
World 2,101,017 100.0 119,100 397,952 5,280 11 7
1. Vietnam 883,261 42.0 878,107 160,839 5,492 18 17
2. India 667,107 31.8 666,157 122,731 5,436 5 0
3. Brazil 196,061 9.3 196,055 35,410 5,537 3 -4
EU27 189,577 9.0 -477,990 30,791 6,157 .. ..
4. Netherlands 104,953 5.0 -121,027 17,640 5,950 2 -2
5. U. Arab Emirates 44,130 2.1 -37,537 9,389 4,700 .. ..
6. Germany 30,493 1.5 -78,835 4,850 6,287 76 77
7. Indonesia 26,718 1.3 25,470 10,403 2,568 36 46
8. Tanzania* 24,026 1.1 24,026 4,393 5,469 56 29
9 Belgium 18,379 0.9 -17,496 3,324 5,529 4 0
10. Mozambique 15,171 0.7 15,171 3,300 4,597 19 6
(…)
Cambodia* 12 0.0 -121 2 6,000 -57 -21

Annex Table 4. Top importers of raw cashew nuts, fresh or dried (HS 080131), 2008
Importers Value Share in Trade balance Quantity Unit value Annual Annual Tariff faced
imported in world imports in 2008 imported in (USD/ton) growth in growth in by
2008 (%) (USD 1000) 2008 (tons) value quantity Cambodia
(USD 1000) 2004-2008 2004-2008 (%)
(%) (%)
World 911,265 100.00 -186,825 728,003 1,252 14 11 ..
1. India 643,339 70.60 -642,411 655,459 982 8 7 0
2.Vietnam 219,076 24.04 -219,066 53,597 4,087 38 54 0 (a)
EU-27 22,545 2.46 -20,520 3,645 6,185 .. .. 0
3. France 12,619 1.38 -12,501 2,163 5,834 20 12 0
4. United States 7,825 0.86 -5,575 1,189 6,581 29 19 0
5. Brazil 6,898 0.76 -6,885 9,467 729 .. .. 10
6. Netherlands 3,131 0.34 -2,008 452 6,927 144 83 0
7. South Africa 2,570 0.28 -2,553 404 6,361 70 55 0
8. United Kingdom 2,124 0.23 -1,545 265 8,015 405 250 0
9. Venezuela 1,478 0.16 -1,478 73 20,247 .. .. 15
10. Spain 972 0.11 -930 192 5,063 15 -1 0
(a) Vietnam’s tariff for Cambodia is 0% according to the Cambodia-Vietnam bilateral agreement.
Annex Table 5. Top importers of cashew nuts without shell, fresh or dried (HS 080132), 2008
Importers Value Share Trade Quantity Unit value Annual Annual Tariff faced
imported in world balance in imported in (USD/ton) growth in growth in by
in 2008 imports (%) 2008 2008 (ton) value quantity Cambodia
(USD 1000) (USD 1000) 2004-2008 2004-2008 (%)
(%) (%)
World 1,981,917 100.0 119,100 361,900a 5,476 13 7 ..
EU-27 673,410 34.0 -483,833 115,768 5,817 .. .. 0
1. United States 650,664 32.8 -639,712 112,415 5,788 3 -2 0
2. Netherlands 225,980 11.4 -121,027 39,923 5,660 19 13 0
3. Germany 109,328 5.5 -78,835 19,173 5,702 24 20 0
4. United Kingdom 101,105 5.1 -92,068 19,220 5,260 9 7 0
5. Australia 86,787 4.4 -85,913 14,697 5,905 11 6 0
6. U. Arab Emirates 81,667 4.1 -37,537 18,120 4,507 5
7. China 78,176 3.9 -78,151 26,401 2,961 123 131 0
8. Canada 60,460 3.1 -59,447 10,196 5,930 3 -4 0
9. Russian Federa-
40,004 2.0 -39,957 8,927 4,481 92 102 0
tion
10. Japan 39,903 2.0 -39,903 6,171 6,466 3 -2 0

(a) World total for quantity and unit value was recalculated excluding Egypt (which has wrong quantity data).
Annex Table 6. Cambodia’s exports of cashew nuts, 2008 (mirror data)

Product label Export value Trade balance Annual growth Annual growth Annual growth Share in Ranking
2008, USD 2008 in USD in value in quantity of world world exports, in world
1000 1000 2004-2008, 2004-2008, imports % exports
%, p.a. %, p.a. 2004-2008,
%, p.a.
Cashew nuts, in shell,
34,061 34,061 20 35 14 4.7 8
fresh or dried
Cashew nuts, without
12 -121 -57 -21 13 0 75
shell, fresh or dried

Annex Table 7. Attractive markets for fresh or dried cashew nuts, in shell (080131), 2008
Market Cambodia’s Market’s Share of Market Absolute Tariff Cambodia’s Main competitors
export to total market in growth in variation of applied to tariff in this market
the market imports world value market (USD Cambodia advantage
(USD 1,000) from imports (%/year) 1,000 ) (%) (+) or
world (USD (%) disadvantage
1,000) (-) (%)
1. Vietnam 34,061 219,077 24.0 42 165,762 5 22 Côte d’Ivoire, Nigeria, Indonesia
2. India 0 643,337 70.5 14 266,204 0 0 Côte d’Ivoire, G.-Bissau, Benin
3. France 0 12,616 1.4 21 6,725 0 0 Vietnam, India, Turkey
4. Brazil 0 6,898 0.8 High 6,898 10 0 Côte d’Ivoire, Nigeria
5. United States 0 7,825 0.9 23 4,416 0 0 Brazil, India, Vietnam
6. Netherlands 0 3,132 0.3 141 3,039 0 0 India, Vietnam, Denmark
7. United Kingdom 0 2,125 0.2 317 2,118 0 0 India, Italy, Vietnam
8. South Africa 0 2,570 0.3 56 2,136 0 0 Vietnam, Tanzania, India
9. China 0 174 0.0 High 174 0 6 Mali, Nigeria
9. Indonesia 0 493 0.1 371 492 0 5 Australia, Benin, Côte d’Ivoire
11. Bulgaria 0 870 0.1 High 870 0 0 Netherlands, Germany, Greece
11. Kazakhstan 0 265 0.0 High 265 0 4 China, Vietnam, Singapore
13. Austria 0 918 0.1 128 884 0 0 India, Ireland, United Kingdom
14. Poland 0 432 0.0 High 432 0 0 India, Vietnam, Turkey
15. Finland 0 98 0.0 165 96 0 0 Netherlands, Vietnam, Denmark
15. Czech R. 0 118 0.0 High 118 0 0 India, Slovakia, Germany
15. Latvia 0 79 0.0 High 79 0 0 Netherlands
Source: ITC’s Trade Map and Market Access Map. Calculations by ITC.
Annex Table 8. Attractive markets for fresh or dried cashew nuts, shelled (080132)
Market Cambodia’s Market’s Share of Market Absolute Tariff Cambodia’s Main competitors
export to total market growth in variation of applied to tariff in this market
the market imports in world value market Cambodia advantage
(USD 1,000) from world imports (%/year) (USD 1000) (%) (+) or
(USD 1,000) (%) disadvantage
(-) (%)
1. Germany 0 109,328 5.5 27 67,341 0 0 India, Vietnam, Brazil
2. Netherlands 0 225,978 11.4 20 117,698 0 0 Vietnam, India, United Kingdom
3. U. Kingdom 0 101,107 5.1 10 31,660 0 0 Vietnam, India, Italy
4. China 0 78,175 3.9 141 75,860 0 0 Vietnam, Myanmar, Brazil
5. United States 0 650,666 32.8 3 82,690 0 0 Vietnam, India, Brazil
6. Australia 0 86,789 4.4 14 36,015 0 0 Vietnam, India, Indonesia
7. U.A. Emirates 0 81,668 4.1 33 66,307 5 0 India, Vietnam, Mozambique
8. Russia 0 40,003 2.0 95 37,251 0 0 Vietnam, Brazil, Tanzania
9. Canada 12 60,459 3.0 6 11,774 0 0 Vietnam, Brazil, India
10. France 0 38,526 1.9 21 20,840 0 0 India, Germany, Brazil
11. Sweden 0 23,349 1.2 72 20,711 0 0 Netherlands, India, Germany
12. Belgium 0 35,876 1.8 16 15,823 0 0 Netherlands, India, Vietnam
12. Spain 0 33,834 1.7 18 16,585 0 0 India, Vietnam, Germany
14. Thailand 0 20,125 1.0 55 16,610 5 4 Vietnam, Myanmar, India
15. Japan 0 39,903 2.0 7 8,958 0 0 India, Vietnam, Kenya
16. Vietnam 0 5,153 0.3 High 5,153 5 31 Nigeria, Brazil, Tanzania
17. Norway 0 16,934 0.9 27 10,480 0 0 Vietnam, India, U. Kingdom
18. Greece 0 17,679 0.9 17 8,325 0 0 India, Vietnam, Netherlands
18. Korea, Rep of. 0 5,368 0.3 47 4,226 0 6 India, Vietnam, Indonesia
18. Poland 0 8,345 0.4 68 7,307 0 0 India, Vietnam, Brazil
Source: ITC’s Trade Map and Market Access Map. Calculations by ITC.

Annex Table 9. Top cashew nuts producing provinces in Cambodia, 2008
Province Area (ha) Output at 0.5 ton/ha Output at 1 ton/ha Output at 1.5 ton/ha
Rattanakiri 21,562 10,781 21,562 32,343

Kampong Cham 17,765 8,883 17,765 26,648
Kampong Thom 7,515 3,758 7,515 11,273
Siem Reap 2,795 1,398 2,795 4,193
Mondulkiri 2,734 1,367 2,734 4,101
Kratie 1,912 956 1,912 2,868
Koh Kong 1,835 918 1,835 2,753
Takeo 966 483 966 1,449
Pursat 750 375 750 1,125
Kampot 612 306 612 918
Preah Vihear 570 285 570 855
Kampong Speu 334 167 334 501
Svay Rieng 306 153 306 459
Kampong Chhnang 264 132 264 396
Banteay Meanchey 215 108 215 323
Prey Veng 135 68 135 203
Battambang 77 39 77 116
Oddar Meanchey 71 36 71 107
Kep Town 17 9 17 26
Kandal 16 8 16 24
Phnom Penh City 2 1 2 3
(...)
Total 60,453 30,227 60,453 90,680
Source: DAI (2008).

Ministry of Commerce
Lot 19-61,MoC Road (113 B Road), Phum Teuk Thla

Sangkat Teuk Thla, Khan Sen Sok, Phnom Penh
Kingdom of Cambodia
Tel : (855) 23 213 067
http: //www.moc.gov.kh
United Nations Development Programme
Pasteur Street, Boeung Keng Kang

P. O. Box 877, Phnom Penh, Cambodia
Tel : (855) 23 216 167 or 214 371
Fax : (855) 23 216 257 or 721 042
E-mail : registry.kh@undp.org
http: //www.undp.org

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Sector Profile Cashew Nuts

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CASHEW NUTS SECTOR PROFILE

Value Chain Unit

- Mr. Chea Vorak, Trade Promotion Department

- Dr. Michael Freudenberg, International Trade Centre (ITC)

Cashew nuts sector profile 1

Figure 1. Cashew nut production in the world, 1961-2008 (tons)

Source: FAO, FAOSTAT.

2 Cashew nuts sector profile

Total 4,098 0.91 3,720 127 152 194

Cashew nuts in shell, fresh or dried (HS 080131), are unprocessed

Cashew nuts sector profile 3

Cashew nuts without shell (HS 080132)

4 Cashew nuts sector profile

Cashew nuts without shell (HS 080132)

Table 5. Top importers of cashew nut products, 2001-2009 (USD million)

Cashew nuts without shell (HS 080132)

Cashew nuts sector profile 5

12. Cambodia (2)

Source: Cashew Week (August 16-21, 2010) (www.cashewinfo.com).

Table 7. Information provided by CAMIS on cashew nuts

Province Market Date Price (Riel/kg)

Source: Cambodia Agricultural Market Information Service (CAMIS), http://camis-kh.org.

6 Cashew nuts sector profile

Importers 2001 2002 2003 2004 2005 2006 2007 2008

Cashew nuts sector profile 7

Table 9. Destination markets for Cambodia’s exports of cashew nuts, 2001-2009

Cashew nuts without shell (HS 080132)

8 Cashew nuts sector profile

Figure 3. Simplified value chain of cashew nuts in Cambodia

Cashew processor Foreign importers

Domestic roasters Foreign processors

Domestic importers Foreign roasters and distributors

Domestic retailer Foreign retailers

Domestic consumer market International consumer market

Source: Trade SWAp Pillar 2 Task Team on cashew nuts (2008).

Cashew nuts sector profile 9

Table 10. Top cashew nut-producing provinces in Cambodia, 2007

10 Cashew nuts sector profile

World 3,720 0.91 152

Table 12. Cashew nut harvest season in main producing countries

Cashew nuts sector profile 11

Provincial traders depend mostly on neighbouring countries, as no alternative

12 Cashew nuts sector profile

Source: McNaughton, Iv et al. (2005), taken from DAI (2008).

Cashew nuts sector profile 13

Source: DAI, ADI, IDE (2008); Technoserve Mozambique.

14 Cashew nuts sector profile

Knowledge / No or very limited knowledge --- No local capacity available to manage

Land Unclear land ownership (only --- ---

Technology --- --- Processors were small scale and applied

Cashew nuts sector profile 15

Strategies and activities

16 Cashew nuts sector profile

Possible solution Illustrative interventions National partners

Use existing capacities (trained organization development MoC

Include subjects in training curriculum such as seed MAFF

With regard to small-scale farmers, include especially MAFF

Develop sustainable long-term funding mechanism for MAFF,

International lead Provide investment incentives to an international cashew MEF, CDC

Ensure effective control on import of inputs (fertilizer, MoC, MAFF

Ensure that more product information is available in MoC, MAFF

Cashew nuts sector profile 17

Labour International lead Provide investment incentives to an international cashew CDC