PHNOM PENH, Oct 21 — Cambodia’s increasing cashew nut production will lift global supply to 5.5 million metric tonnes this year, as the kingdom joins world’s top producers Ivory Coast, India, and Vietnam.
Traditional producers are optimistic for a bumper crop of the nut that is gaining popularity in the international commodity markets due to burgeoning demand from downstream activities.
“(Production) of raw cashew crop is at 5.5 million metric tonnes. Bright spots are Cambodia and Tanzania, where production is growing at a good rate.
“I don’t think there will be any effect (due to heavy rainfall). Cashew trees are relatively strong and can withstand variations,” Mangalore-based All India Cashew Association President Bola Rahul Kamath told Bernama.
Ivory Coast dominates world cashew nut production with over a million metric tonnes. India ranks second with 800,000 metric tonnes and Vietnam exports nearly 700,000 metric tonnes annually.
According to the Cashew Nut Association of Cambodia, local farmers produced about 940,000 metric tonnes of raw cashew nuts from January to August this year, generating RM6 billion (US$1.4 billion) in export earnings.
Cambodia’s diverse agro-climatic conditions make it conducive for cashew planting. Farmers grow the large-sized M23 variety, which is resistant to weather conditions and resilient against pests and diseases, on about 300,000 hectares.
Its unique creaminess, crunch, and earthy flavour make Cambodian nuts popular among importers.
Industry experts forecast that Cambodia is capable of producing 1.2 million metric tonnes by 2030, with acreage expanding to about 1.4 million hectares.
“Our cashew nuts are popular in the world because of their taste, texture, and health benefits. Vietnam needs the M23 variety to mix with African cashew to add value.
“About 95 per cent of Cambodian cashew nuts are exported to Vietnam, and now we are trying to diversify to countries like China and India,” association president Silot Uon told Bernama.
Indian importers will soon experiment with the Cambodian nuts that will be used as ingredients in their downstream activities.
Market watchers value the global market at RM30 (US$7 billion), and by 2031, it is projected to touch a staggering RM42 billion (US$10 billion).
The industry is buoyed by strong demand from urban consumers who fancy plant-based healthy diets and rising usage of cashew kernels in downstream processes such as milk production, varieties of nut-based snacks, and confectionery.
Rising supply in the international market is unlikely to impact prices due to the robust demand for the commodity.
“Prices have been relatively stable this year. The increase in production is absorbed due to a sharp increase in consumption in the Chinese market,” said Kamath.
According to the Vietnam Cashew Association, China imported nearly 100,000 metric tonnes of cashews from Vietnam in the first seven months of this year, reported Vietnam News.
African Cashew Alliance’s website said over 2.5 million African farmers produce half the world’s cashew supply.
Annually, the world consumes about 600,000 metric tonnes of cashew nuts, said the alliance.
Cashew harvesting is a popular cash crop in developing countries, from Africa to South-east Asia, generating employment and foreign exchange, and supporting the agriculture sector. — Bernama
Malay Mail – Money
