Cambodia is set to export M23 in-shell cashew nuts to China, worth around $35 million in the initial phase, with plans to expand exports to $400 million in the future.
The M23 variety is known for its large kernels, delicious flavor and superior nutritional value.
A memorandum of understanding on the supply was signed between the Ministry of Commerce with China Bonded Port Group and Men Sarun MDR on March 11.
The partnership is expected to boost cashew nut exports to China while sending a positive signal to attract more Chinese investors, supporting the expansion of agricultural exports into global markets.
Samheng Bora, Secretary of State at the Ministry of Commerce and chairman of the Export Promotion Task Force, met Jiang Xiaofei, director of the Overseas Enterprise Expansion Working Committee of the China Institute for Innovation and Development Strategy.
They discussed advancing Cambodia’s agro-industry sector and its value chains, which play a key role in its sustainable growth.
The discussion mainly focused on strengthening cooperation in economic, trade and investment ties between the countries, while exploring opportunities to boost Cambodian agricultural exports.
The export deal has been attributed to the active coordination and business-matching efforts of the task force, which plays a crucial role in linking Cambodian exporters with international buyers.
The photo shows the MoU on the “Supply Contract of Cambodian Cashew Nuts” was signed between the Ministry of Commerce with China Bonded Port Group Co., Ltd., and Men Sarun MDR Co., Ltd on March 11. Photo: Ministry of Commerce.png
Raw Cashew Prices Rise as Production Falls
The price of raw cashew nuts has soared to over $1.74, or 7,000 riel per kilogram, compared to 2025, when it was around 5,000 riel.
However, production has declined due to unfavorable weather conditions.
Cashew Nut Association of Cambodia (CAC) president Uon Silot noted that the price jump coincides with a decline in domestic production due to unfavorable weather conditions and restrictions on exports from several West African countries, in which their governments plan to strengthen domestic processing industries.
Chhim Sovanntha, the owner of a cashew farm in Kampong Thom province, said he was surprised by the price surge but regretted not being able to harvest much due to weather conditions, particularly unseasonal rains.
Sovanntha, who owns more than 10 hectares of cashew farmland, said he has lost between 20 and 30 percent of his yield, noting that other farmers have experienced similar circumstances.
While acknowledging that the rising price is a positive sign for farmers, Silot also expressed concern that it could create difficulties for local processing enterprises competing to buy raw cashew nuts due to declining production.
If the situation worsens, it could lead to a shortage of supply for the domestic processing chain and affect international competitiveness.
“However, the association is closely monitoring the issue to find appropriate solutions,” Silot said.
In 2025, Cambodia exported one million tonnes of raw cashew nuts, generating an estimated $1.5 billion, up 27 percent on 2024.
Source: Cambodianess
Share:
<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
