CAC News
Kampong Thom, July 2026 — Cambodia's raw cashew nut (RCN) exports continued to grow strongly during the first half of 2026, even as the global cashew market faces tightening supplies, shifting replacement costs and increasing calls for producing countries to expand domestic processing.
Market analysts say supply from major producing countries remains uneven, while processors are balancing high raw material costs against cautious purchasing by importers. Although cashew kernel prices appear stable, replacement costs continue to fluctuate, leaving uncertainty over whether current prices represent a new market floor or merely a pause before another price increase.
"The next few weeks will determine whether stronger demand pushes kernel prices higher or whether cautious buying delays the next rally," industry analyst Jim Fitzpatrick said.
Fitzpatrick noted that many processors located thousands of kilometers from producing countries face significantly higher costs due to freight charges and export taxes.
"The answer is simple—process closer to the origin," he said, emphasizing the economic advantages of expanding processing capacity in producing countries.
Côte d'Ivoire has emerged as a leading example of this strategy. During the first five months of 2026, the country exported a record 44,403 metric tons of cashew kernels, a 51 percent increase compared with the same period last year, strengthening its position as the world's second-largest exporter of cashew kernels after Vietnam.
The country's rapid expansion of domestic processing has enabled more raw cashew nuts to be converted into higher-value products before export. Industry experts say this approach generates greater economic benefits by creating jobs, supporting industrial development, strengthening supply chains and retaining more value within producing countries.
Meanwhile, Cambodia remains one of the world's leading suppliers of raw cashew nuts, particularly to Vietnam's processing industry.
Silot Uon, President of the Cashew Nut Association of Cambodia (CAC), said unofficial data compiled by the CAC indicate that Cambodia exported approximately 1.03 million metric tons of raw cashew nuts to Vietnam during the first half of 2026, generating around US$1.751 billion in export revenue. The figures represent a 28 percent increase compared with the same period in 2025.
Despite the strong export performance, Silot noted that Cambodia continues to process only a relatively small share of its cashew production domestically.
"While Cambodia remains a leading supplier of raw cashew nuts, increasing domestic processing will be essential to capture greater value, create more employment and strengthen the country's competitiveness in the global cashew industry," he said.
As competition intensifies in the global cashew market, industry observers say producing countries that invest in local processing and value addition will be better positioned to benefit from long-term growth and changing market dynamics.
