CAC News

Kampong Thom, May 14, 2026 — The Cashew Nut Association of Cambodia (CAC) has held its third meeting with iDE Canada to finalize cooperation plans for a new pilot initiative aimed at strengthening Cambodia’s local cashew processing industry and supporting women-led enterprises.

Following the discussions, iDE Canada agreed to enter into a partnership with CAC to launch the SHE Investment Fund – Cashew Nut Facility (SHEIF-CNF) pilot project in Kampong Thom province.

The initiative forms part of iDE’s broader agriculture value-chain and blended finance strategy designed to help smallholder farmers and agribusinesses transition from subsistence farming to commercially sustainable operations.

Addressing the Financing Gap

According to iDE, the project focuses on solving the long-standing “Missing Middle” financing challenge facing Cambodia’s cashew processors, particularly women-owned and family-run small and medium-sized enterprises (SMEs).

Although Cambodia is one of the world’s leading producers of raw cashew nuts, approximately 95% of its harvest is still exported for processing abroad, mainly to Vietnam. Silot, chairman of CAC, says this limits Cambodia’s ability to capture higher-value income from finished products.

One of the biggest obstacles for local processors is access to working capital. Since the cashew harvest lasts only around three months, processors must secure enough raw material to operate throughout the year. However, traditional bank loans often require land titles as collateral, preventing many SMEs from expanding operations.

As a result, many local factories operate only three to six months annually due to insufficient raw cashew nut supplies.

Innovative Financing Model

To address these challenges, the SHEIF-CNF project introduces a dual financing structure combining inventory support and revenue-based financing.

Under the proposed Warehouse Receipt System (WRS), the fund will purchase raw cashew nuts directly from farmer cooperatives and store them in managed warehouse facilities.

Women-led processing enterprises will then be able to access the raw materials gradually throughout the year. For businesses lacking upfront capital, the fund will provide raw cashew nuts in exchange for a percentage of future sales revenue after processed kernels are sold.

Promoting Circular Economy Practices

The initiative also promotes circular and regenerative business models aimed at improving profitability and sustainability in the cashew sector.

Technical assistance will support processors in utilizing cashew byproducts, including:

• Extracting Cashew Nut Shell Liquid (CNSL)
• Using shells as biomass fuel for boilers
• Producing biochar for agricultural applications

According to project estimates, these innovations could add between $70 and $900 in net value per tonne to processing operations.

Strengthening Women’s Economic Leadership

iDE described the SHEIF-CNF as its flagship pilot project in Cambodia, designed to create a commercially viable and socially impactful investment model centered on women’s economic leadership and rural family prosperity.

The partnership is expected to contribute to Cambodia’s broader efforts to expand domestic processing capacity, strengthen local value chains, and position the country as a higher-value player in the global cashew industry.