CAC News

ABIDJAN — Côte d’Ivoire has reaffirmed its position as the world’s leading producer and exporter of raw cashew nuts (RCN), producing more than 1.5 million tonnes in 2025, or over 25% of global production.

The West African country has held the position of the world’s largest raw cashew producer and exporter since 2021, reinforcing its importance in the global cashew supply chain.

Beyond production, Côte d’Ivoire is making significant progress in developing domestic processing. More than 660,000 tonnes of raw cashew nuts were processed locally in 2025, pushing the country’s processing rate above 42%.

The growth in both production and processing is strengthening the role of cashews in Côte d’Ivoire’s agricultural economy and increasing the country’s influence in international markets.

Cambodia Produces More Than 1 Million Tonnes but Processes Only 2.6%

Cambodia has also emerged as a major global cashew-producing country. The country produced approximately 1.03 million tonnes of raw cashew nuts in 2025, making it the world’s second-largest RCN producer.

However, Cambodia’s domestic processing capacity remains far behind its production potential.

Only around 26,000 tonnes of RCN were processed domestically in 2025, equivalent to approximately 2.6% of the country’s total production.

The wide gap between production and processing highlights one of the biggest challenges facing Cambodia’s cashew industry: how to transform its position as a major raw-material supplier into a competitive processing and value-added industry.

Infrastructure and Strong Export Demand Shape Cambodia’s Industry

Several factors contribute to Cambodia’s low domestic processing rate.

One major constraint is the limited infrastructure and investment in the cashew-processing sector. Compared with the scale of Cambodia’s raw cashew production, domestic processing facilities remain insufficient to absorb a significant share of the crop.

At the same time, Cambodian farmers have access to strong demand from foreign traders, particularly buyers from Vietnam, China and India, who offer competitive prices for raw cashew nuts.

This creates an important economic trade-off for the Cambodian industry.

On one hand, the availability of competitive buyers allows farmers to sell their raw nuts quickly and can provide them with attractive farm-gate prices. On the other hand, the strong export market for RCN reduces the immediate incentive and pressure to invest in large-scale domestic processing.

Two Sides of Cambodia’s Cashew Industry

Cambodia’s current situation therefore presents what could be described as two sides of the same industry.

The relatively slow development of domestic processing means Cambodia captures only a small portion of the potential value generated after the raw nuts leave the farm. Processing, packaging and finished-product manufacturing could create additional employment, industrial activity and export value inside the country.

At the same time, farmers can benefit from strong competition among international buyers for Cambodian RCN. The presence of Vietnamese, Chinese and Indian traders provides farmers with established markets and contributes to stronger demand for their harvest.

The challenge for Cambodia is therefore not simply to increase processing, but to develop a processing industry that can compete effectively with the existing raw-nut export market while continuing to protect farmers’ interests.

International Promotion Must Be Matched by Domestic Capacity

The gap between international market promotion and domestic processing capacity is another issue that deserves greater attention.

Several international non-governmental organizations and development programs have invested substantial donor funding in promoting Cambodian cashew products and supporting access to international markets, particularly in Europe.

However, successfully promoting Cambodian cashews internationally requires more than market access and branding. The country also needs sufficient processing capacity, consistent quality, food-safety systems, logistics, financing and reliable supply chains to meet the requirements of international buyers.

Without these foundations, increased international demand could be difficult to convert into sustained commercial opportunities for Cambodian processors and exporters.

From Production to Value Addition

The contrasting experiences of Côte d’Ivoire and Cambodia illustrate two different stages of development in the global cashew industry.

Côte d’Ivoire has combined its position as the world’s largest RCN producer with rapid investment in domestic processing, allowing it to capture a growing share of the value generated within its own economy.

Cambodia, meanwhile, has built a strong production base but continues to rely heavily on exports of raw nuts.

With more than 1 million tonnes of annual production, Cambodia has the raw-material foundation required to develop a much larger processing industry. The key question is whether investment in infrastructure, technology, financing and market development can advance quickly enough to transform Cambodia from a major RCN producer into a major value-added cashew-processing hub.

Reference: In Côte d’Ivoire