Cambodia has knocked off Ivory Coast to become Vietnam’s biggest supplier of raw cashew nuts. Earlier it was the African nation that held the position. The General Department of Customs of Vietnam made the announcement on Saturday.
As per figures in 2024, January to May saw Cambodia take the number one position as Vietnam’s biggest supplier of cashew nuts. Close to 760,000 tons of products worth in excess of $971 million marked a 39 percent increase in volume and 29 percent in value from the previous year.
The processing capacity of Vietnam is 3.5 to 4 million tons of cashew nuts for export. The processors however are heavily dependent on the purchase of raw materials for nearly 90 percent of unprocessed products which are imported.
As the global leader in the export of cashew nuts, Vietnam accounts for as much as 80 percent of cashew exports. It has held on to its leadership position for 16 years in a row. It currently has its sights set on $4 billion in cashew exports after touching $3.6 billion in 2023.
Continuing the endeavour to provide assistance to the cashew nut industry, the government held a forum in Kampong Thom Province on Friday. The event was held under the chairmanship of Sok Dara, Director General of the Regulatory Authority and ACSEP-PIU1 Project Manager and Prem Ratha, Deputy Governor of Kampong Thom Province.
Organised by the Regulatory Authority of the Ministry of Economy and Finance on the promotion of credit schemes, the body tasked with the implementation of the Agricultural Chain Price Promotion and Agricultural Safety Promotion Project (ACSEP-PIU1) to aid the Cashew nut Association of Cambodia (CAC). The purpose of the forum was to provide knowledge and information about credit loans and help credit agencies disburse information about lending options.
Earlier last month, a Korean institute made a presentation to Lim Heng, Vice President of the Cambodian Chamber of Commerce at the Office of the Chamber of Commerce in Phnom Penh on June 24, 2024. The Korea Energy Research Institute sought the cooperation of the chamber for the conversion of cashew shells into bioenergy and organic fertilisers.
CAC does not want to compete with Vietnam in terms of cashews, said Silot Uon, President of Cashew Nut Association of Cambodia (CAC). “We stand on mutual interest. However, CAC has been trying to establish a suitable environment for processing plants to help stabilise the price of RCN for farmers,” he told Khmer Times.
In the short- and medium-term, there is little chance to challenge Vietnam’s position in the world cashew market, said Andreas Groetschel, Founder and Owner, Kamya AgriTrade. The long-term supply chains established by Vietnamese companies and the financial resources they have at their disposal, either through government schemes or through the international companies that are invested in their companies, are far, far bigger than in Cambodia.
The Cambodian government can craft policies that attract efficient and innovative investments, said Takayuki Imahashi, Business Planning Officer, Mirarth Agri Tech Co Ltd. Such strategic moves would not only bolster the cashew sector’s growth but also create a win-win situation for both Cambodia and the investing countries.
This synergy can lead to technological advancements, increased productivity and diversified uses of cashew products, ultimately fulfilling the objectives of the National Cashew Policy.
