CAC News
PHNOM PENH, Cambodia, Aug. 7 — Australia is supporting efforts to expand Cambodia's domestic cashew processing industry, with a new partnership aimed at increasing value-added production, creating jobs, and helping the country retain more economic value from one of its most important agricultural commodities.
In a statement posted on social media on Friday, the Australian Embassy in Phnom Penh said Cambodia is the world's second-largest producer of raw cashew nuts (RCN), but processes only about 5% of its production domestically.
The embassy estimated that limited local processing costs Cambodia more than US$125 million annually in potential revenue, while leaving farmers and traders exposed to fluctuations in raw cashew prices.
To address the gap, Australia is partnering with Olam Food Ingredients (OFI), a global agribusiness with an estimated 20–25% share of the global cashew market. The partnership aims to expand Cambodia's processing capacity by 80 metric tons per day and mobilize up to US$10 million in investment for the domestic cashew-processing sector.
“Australia is committed to attracting quality investments that create jobs and support businesses, helping Cambodia become economically strong and prosperous,” the embassy said.
The initiative comes as Cambodia continues to export large volumes of raw cashew nuts, particularly to Vietnam for processing.
According to the Cashew Nut Association of Cambodia (CAC), Cambodia exported approximately 1.03 million metric tons of RCN during the first half of 2026, generating around US$1.75 billion in export earnings, an increase of 28.9% compared with the same period last year.
Industry stakeholders say increasing domestic processing is essential if Cambodia is to move beyond its role as a major supplier of raw materials and capture a larger share of the value generated by the global cashew industry.
The Australian-backed initiative is therefore expected to provide not only additional processing capacity but also a potential catalyst for investment, technology transfer, employment creation, and stronger value addition within Cambodia's cashew supply chain.
