A processor under the Cashew Nut Association of Cambodia (CAC) has signed a major agreement to purchase 6,000 tons of fresh cashew nuts, reinforcing efforts to expand domestic value addition and improve incomes for farming communities.

The agreement follows a business-to-business (B2B) matching event organized by CAC in August 2025 to connect processors directly with agricultural producers and stimulate investment in Cambodia’s cashew industry.

Khmer Agro Cashew Co Ltd, a newly established Cambodian agribusiness founded in 2025, signed a two-month production contract earlier this month with six agricultural communities in Prek Prasab district, Kratie province. The deal covers the supply of the M23 cashew variety during the 2026 harvest season.

The company operates with a processing capacity of 50 tons per day and plans to begin full-scale operations by mid-2026. Managing Director Ea Kokchheng said the firm will procure quality-standard cashew nuts for processing and export to key international markets, including Japan, Taiwan and Europe.

Officials said the contract price aligns with prevailing market rates offered by intermediaries. However, by sourcing directly from farmer groups, the company aims to ensure more stable demand, reduce intermediary dependency and enhance rural livelihoods.

According to the CAC, Cambodia generated approximately US$1.5 billion in 2025 from exporting one million tons of raw cashew nuts, marking a 27 percent year-on-year increase. The new 6,000-ton agreement is expected to support the government’s push to increase local processing capacity, retain greater value within the country and strengthen income security for cashew farmers.

Reference KPT English