Story and Photos: Sovannary Ky/ GIZ Cambodia
Phnom Penh, Cambodia – On March 11, 2025, the EU-German Cambodia Partnership for Sustainable Agriculture and Food Systems (EU-German CAPSAFE) project released a cashew value chain analysis, marking an important step to further increase the competitiveness of the Cambodian cashew sector. This comprehensive report not only highlights the sector’s economic significance but also outlines strategic interventions for enhancing value addition and sustainability.
Economic Significance and Growth Potential
The analysis highlights the economic significance of the cashew sector, valued at US$1.072 billion in 2024 and contributing 3.8% to Cambodia’s 2023 GDP. By strategically investing in local processing, the sector’s value could surge to nearly US$2 billion, creating between 26,460 and 38,220 direct jobs from processing 70% of the 2024 crop domestically. This growth potential underscores the importance of enhancing the cashew value chain to maximize economic benefits and create sustainable employment opportunities.
Key Opportunities and Challenges
A key opportunity identified in the analysis is that Cambodia’s cashew sector can thrive by developing an integrated supply chain. This involves investing in processing, management, and marketing to tap into diversified markets, ensuring stable incomes for smallholder families while fostering climate resilience.
Strategic Interventions
The report outlines twenty-three strategic interventions across five areas, focusing on sector organization, value addition, production, human resources and environment. Implementing these interventions will enhance value addition, and sustainability across the value chain.
Co-funded by the European Union (EU) and the Federal Ministry for Economic Cooperation and Development (BMZ), the EU-German CAPSAFE project conducted this analysis report as part of its efforts to support the Royal Government of Cambodia in enhancing the sustainability, competitiveness, and inclusiveness of the cashew value chain. ■
