Australia Commits to Strengthening Cambodia’s Cashew Processing Capacity

PHNOM PENH, May 7, 2026 (KPT) — Australia has reaffirmed its commitment to supporting Cambodia’s agricultural sector by helping expand cashew processing capacity, strengthen agri businesses and promote sustainable growth in the agri food industry, the Australian Embassy in Phnom Penh said Wednesday.

Cambodia is the world’s second largest producer of raw cashew nuts, yet less than 10 percent of its harvest is processed domestically, limiting value added potential and export earnings. To address this gap, Australia is partnering with two Cambodian processors to improve drying yards, grading machines and storage facilities, while also providing post harvest training for farmers.

The initiative is expected to create about 100 jobs and help stabilize incomes for up to 1,000 households in Kampong Thom and Preah Vihear provinces.

Kampong Thom, one of Cambodia’s largest agricultural provinces, produces more than one million tons of rice annually and nearly 200,000 tons of cashew nuts from about 160,000 hectares of plantations.

The announcement comes as Cambodia seeks to expand downstream processing and strengthen the global competitiveness of its agricultural exports. The Ministry of Commerce recently granted Geographical Indication (GI) status to Kampong Thom Cashew Nut, recognizing its distinctive quality, geographic origin and traditional cultivation methods.

Cambodia earned an estimated $1.5 billion from exports of one million tons of raw cashew nuts in 2025, a 27 percent increase from the previous year, according to the Cashew Association of Cambodia.

The association reported total production of 1,020,757 tons, highlighting resilience despite climate related disruptions. President Oun Silot said strong export performance was achieved even after severe weather in March threatened harvests.