Cashew nuts grow on a plantation in Kratie province. - Supplied
PHNOM PENH: Cambodia will soon have its first agro-industrial park dedicated solely to cashew nuts in Kampong Thom province, following the government’s approval. The country is recognised as one of the world’s top producers of cashews.
Speaking at the closing ceremony of the Ministry of Land Management, Urban Planning and Construction’s annual meeting on Nov 26, Prime Minister Hun Manet highlighted that the establishment of agro-industrial parks across the country would bring significant benefits to local communities and contribute to national economic growth.
He stated, “The governor of Kampong Thom has requested a cashew nut industrial park. I have agreed, and state land will be used to establish it, not for private ownership, but still as state land. The state provides the land, while the private sector will bring in the project to jointly create the ... park.”
Additionally, he encouraged local leadership to actively engage with authorities and private sectors from other countries to attract more domestic and foreign investments to their provinces.
Uon Silot, president of the Cashew nut Association of Cambodia (CAC), told The Post on Nov 28 that the government’s decision to create the industrial park will bring numerous benefits to those involved in cashew production.
He explained that the establishment of the park is a strategy to accelerate the development of the cashew industry.
He said that it will serve as a hub for cashew processing factories and offer shared resources and incentives to encourage investment.
He clarified, “This planned agricultural-industrial park will be similar to a special economic zone [SEZ]. It is essential for factories that process cashew nuts. The aim is to reduce production costs and allow Cambodian products to be more competitive in the international market.”
Silot expressed hope that investments in the park will benefit from incentives similar to those in SEZs, including tax exemptions, financial support and simplified export-import procedures. Currently, due to the lack of consolidation, the price of processed Cambodian cashews is the highest, making it difficult to compete internationally.
He provided an example, explaining that if a cashew processing factory exists, there should also be an oil extraction plant to utilise the discarded shells.
He said another facility could process the shells into biofuel or industrial products. These complementary factories would help reduce transportation costs and lower production expenses.
Silot mentioned that the provincial authorities are preparing approximately 200 hectares of land for the initiative, though he is not yet aware of the precise location.
He added, "Although the authorities have not yet established the park, the CAC has already allocated 60 hectares of land for a pilot project to showcase the benefits of such parks to the public."
According to the CAC, during the first 10 months of 2024, the country harvested 840,000 tonnes of fresh cashew nuts, marking a 26% increase compared to the same period in 2023. More than 790,000 tonnes were exported to Vietnam, reflecting a 31% increase, with earnings of $1.11 billion, a 9% year-on-year rise.
Silot noted, however, that the output of processed cashew in 2024 declined compared to 2023.
He said the decrease is primarily attributed to two factors: the rising price of fresh cashew nuts in the international market and a lack of working capital for domestic processing enterprises.
Nonetheless, he expressed optimism for 2025.
He confidently stated, "We are optimistic that in 2025, the export of processed cashew nuts will surpass 2024 levels, as many international-standard cashew processing companies will commence operations."
According to the Ministry of Agriculture, Forestry and Fisheries, the country currently has around 700,000 hectares of land dedicated to cashew cultivation. Of this, approximately 580,000 hectares are being harvested, with about 120,000 newly planted. The annual yield is estimated to range between 800,000 and one million tonnes. - The Phnom Penh/ANN
