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Cashew Shelling in Cambodia: Insights into a Growing Industry

By 13 May 2024May 16th, 2024No Comments9 min read

The Kingdom of Cambodia, renowned for its rich history and vibrant culture, is also a significant player in the global agricultural sector. Among its diverse agricultural activities, the cultivation of cashew nuts stands out as a crucial economic backbone for many rural communities. This blog post delves into the intricate world of cashew shelling in Cambodia, exploring its economic, social, and environmental dimensions.

Cashews in Cambodia are not just a crop; they are a vital source of livelihood for thousands of farmers. The cashew shelling industry, although fraught with challenges, presents a unique window into the interplay between traditional agricultural practices and modern economic demands. In the following sections, we will uncover the history, current practices, and future prospects of cashew shelling in Cambodia, offering readers an in-depth look at this pivotal industry.

Cashew trees (Anacardium occidentale), native to northeastern Brazil, found their way to Southeast Asia in the late 19th century. Cambodia, with its conducive climatic and soil conditions, proved to be an ideal environment for cashew cultivation. The introduction of cashew nuts into Cambodian agriculture was initially a supplementary activity to traditional farming, but it quickly grew into a significant agricultural sector by the mid-20th century.

During the 1970s and 1980s, the industry faced numerous setbacks due to political instability and civil unrest. However, the return to peace and the subsequent agricultural reforms of the 1990s provided a much-needed boost to cashew cultivation. Farmers were encouraged through government programs and international aid to adopt cashew farming as a means of improving their livelihoods and stabilizing their income.

Today, cashew cultivation is an integral part of Cambodia’s rural development strategy. It has not only helped stabilize rural economies but has also played a part in the gradual shift from subsistence farming to more commercially viable agricultural practices. The historical journey of cashew cultivation in Cambodia is a testament to the resilience and adaptability of its people.

cashew tree

Current State of Cashew Cultivation

Cashew cultivation in Cambodia has witnessed significant growth over the last two decades. As of today, cashews are grown on over 500,000 hectares across the country, with an annual production that often exceeds 100,000 metric tons. The provinces of Kampong Thom, Kampong Cham, and Battambang are among the key areas where cashew cultivation thrives, leveraging the favorable climatic conditions and fertile soil of the region.

The expansion of cashew cultivation in Cambodia has been largely driven by both government initiatives and private sector investments. The Cambodian government, recognizing the potential of cashews to bolster rural economies, has implemented several policies aimed at enhancing productivity and market access. These include providing farmers with better planting materials, facilitating access to credit, and improving infrastructure such as roads and irrigation systems.

Private enterprises have also played a significant role, with many investing in the entire supply chain from cultivation to processing and export. This investment has not only helped increase the quality and quantity of cashew production but also brought about more stable pricing and better income security for farmers.

However, despite these positive developments, challenges remain. Many farmers still rely on traditional farming methods that are less efficient and environmentally sustainable. There is also a significant gap in terms of technology adoption between larger commercial farms and smallholder farmers, the latter of which make up the majority of cashew producers in Cambodia.

The Process of Cashew Shelling

The process of cashew shelling is both labor-intensive and intricate, requiring careful handling to ensure the quality of the final product. Cashew nuts are unique in that the nut itself is outside the fruit, known as the cashew apple. Once the cashew apples are harvested, the nuts are detached and undergo a drying process to prepare them for shelling.

1. Harvesting and Pre-processing

Cashew nuts are typically harvested manually in Cambodia. Workers climb the trees to pick the ripe apples with attached nuts or collect them from the ground if they have fallen. This labor-intensive process makes harvesting one of the most challenging aspects of cashew production. After harvest, the nuts are sun-dried for several days to reduce moisture content, which simplifies the shelling process.

2. Shelling

Shelling cashew nuts can be done either manually or mechanically. Manual shelling involves using hand tools to crack the hard outer shell without damaging the inner kernel. This method is prevalent in areas where labor costs are lower and is valued for its lower initial investment costs. However, manual shelling is slow and the yield of whole kernels can be inconsistent.

Mechanized shelling has been introduced in some larger processing facilities in Cambodia. These machines can shell cashews more quickly and consistently than manual methods. However, the high cost of machinery and maintenance is a barrier for many small-scale operators.

3. Challenges

The primary challenge in cashew shelling is maintaining the integrity of the kernel. Broken kernels significantly reduce the market value of the product. Additionally, the cashew nut shell contains anacardic acid, a caustic resin that can burn the skin, making the shelling process hazardous without proper protective gear.

cashew nut shelling in cambodia

Economic Impact of Cashew Shelling

The cashew industry is a significant contributor to Cambodia’s economy. It provides a livelihood for hundreds of thousands of individuals, from small farmers to workers in processing plants. The export of cashews brings in valuable foreign exchange, with the majority of the produce being sold to international markets such as Vietnam, India, and the United States.

1. Employment Opportunities

Cashew processing is a major source of employment, especially in rural areas where job opportunities are often scarce. The industry employs a wide range of workers, including harvesters, shellers, sorters, and packers. For many households, cashew cultivation and processing offer a dual income, as they can sell both the nuts and the cashew apples, which are popular in local markets.

2. Export Revenue

Cambodia exported over 150,000 metric tons of cashew nuts in 2020, making it one of the top cashew exporting countries in Southeast Asia. The revenue from cashew exports plays a crucial role in the national economy, contributing to various developmental projects aimed at improving rural infrastructure and services.

3. Impact on Local Economies

The influx of money from cashew exports has a ripple effect on local economies. It boosts demand for goods and services, ranging from agricultural supplies to transportation and retail. This economic activity helps to raise overall living standards and reduce poverty in cashew-growing areas.

Social and Environmental Considerations

The cashew industry in Cambodia, while economically beneficial, has also raised several social concerns, particularly regarding labor conditions. The labor-intensive nature of cashew processing often leads to long working hours under challenging conditions, especially during peak harvest seasons. Moreover, the handling of raw cashews can pose health risks due to the caustic liquid in cashew nut shells, which can cause severe skin irritation and other health issues if proper safety measures are not implemented.

Many workers in the cashew industry are women, who may face additional challenges such as unequal pay, lack of access to childcare, and limited opportunities for advancement. Addressing these social issues is crucial for the sustainable development of the cashew industry, ensuring that the benefits of growth are more evenly distributed among all participants.

Cashew cultivation has environmental impacts that must be carefully managed. The expansion of cashew plantations has sometimes led to deforestation and the loss of biodiversity, particularly when natural forests are cleared for new plantations. Moreover, the intensive use of water for irrigation and the application of pesticides and fertilizers can lead to soil degradation and water resource depletion.

Efforts to mitigate these impacts include promoting more sustainable farming practices such as integrated pest management, organic farming, and agroforestry, which combines cashew cultivation with other types of trees to maintain ecological balance. These practices not only help preserve the environment but can also enhance the resilience of cashew farms to climate variability and extreme weather conditions.

There are several initiatives underway in Cambodia aimed at improving the sustainability of the cashew industry. These include training programs for farmers on sustainable agriculture practices, support for obtaining organic and fair-trade certifications, and the development of local processing facilities to reduce the carbon footprint associated with exporting raw nuts for processing abroad. These initiatives reflect a growing recognition of the need to balance economic growth with social responsibility and environmental stewardship.

Future Prospects and Innovations

1. Technological Advancements

The future of cashew shelling in Cambodia is closely tied to technological advancements. Innovations in machinery and processing techniques can greatly enhance efficiency and reduce the physical strain on workers. For instance, new shelling machines that are more affordable and suitable for small-scale operations can help decentralize the processing industry, bringing more economic benefits to local communities.

2. Market Expansion

As global demand for cashews continues to grow, Cambodia has significant opportunities to expand its market reach. Developing branded, value-added cashew products, such as organically certified nuts or cashew-based snacks, can open up new market segments. Additionally, improving marketing strategies and building strong relationships with international buyers are essential for capturing higher value in the global supply chain.

3. Supportive Policies

The role of governmental and non-governmental organizations (NGOs) in supporting the cashew industry is pivotal. Policies that encourage investment in infrastructure, provide access to finance for smallholders, and promote research and development in agricultural techniques can help sustain the industry’s growth. NGOs also play a crucial role in advocating for fair labor practices and environmental conservation, ensuring that the cashew industry progresses in a way that is beneficial for all stakeholders involved.


As we have seen throughout this exploration of the cashew industry in Cambodia, the sector represents not just an agricultural success story but also a multifaceted challenge that intertwines economic, social, and environmental threads. The industry has certainly come a long way from its modest beginnings, growing into a significant component of Cambodia’s economy and providing essential income for countless rural families.

However, the journey is far from over. The cashew industry stands at a crossroads where the path forward must be carefully navigated to ensure sustainable growth. This includes tackling the ongoing issues of labor conditions, enhancing the environmental sustainability of cultivation practices, and embracing technological innovations that can make cashew processing more efficient and less hazardous.

The potential for growth and improvement is vast. With appropriate support from both the government and international partners, the industry can continue to expand in a way that benefits all parties involved. This could involve more investments in local processing facilities to keep more of the value chain within the country, which would not only boost the economy but also create more skilled jobs for locals.

Moreover, fostering a culture of innovation and sustainability could place Cambodia at the forefront of the global cashew industry, setting a benchmark for others to follow. By investing in research and development and adopting best practices from around the world, Cambodia can enhance both the quantity and quality of its cashew production.

In conclusion, the cashew industry in Cambodia offers a window into the broader challenges and opportunities facing the agricultural sector in developing countries. It exemplifies how a commodity can be both a source of livelihood and a catalyst for broader economic and social development. As stakeholders continue to work towards more sustainable and equitable practices, the cashew industry is poised not only to grow but to thrive, setting a sustainable path forward for generations to come.

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