Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia’s Camcashew signs MoU to export nuts to South Korea

Cambodia’s Camcashew signs MoU to export nuts to South Korea

A woman performs quality checks on cashew nuts at the Cashew Nut Village Shelling Center in Kampong Thom province in 2014.
A woman performs quality checks on cashew nuts at the Cashew Nut Village Shelling Center in Kampong Thom province in 2014. Hong Menea

Cambodia’s Camcashew signs MoU to export nuts to South Korea

Local agricultural firm Camcashew signed a memorandum of understanding (MoU) with an obscure South Korean company yesterday with the aim of exporting 10,000 tonnes of processed cashew nuts next year, claiming that the two firms had reserved $100 million to fund the agreement.

Camcashew, a joint venture between a Cambodian and Malaysian firm, signed the MoU with Kim Ki Chul, president of South Korea’s Naroo Marine Company Limited.

Syaiful Hazreen, director of Camcashew, said yesterday that $80 million would be spent to purchase 40,000 tonnes of raw cashew nuts while the remaining $20 million would be spent on purchasing a 400-hectare plot of land and machinery for processing the raw kernels.

“So far, we have only supplied cashew nuts to the local market, but right now we have an agreement that ensures that Korea will buy processed cashews from us,” he said, adding that the company hopes to start exporting in February of next year.

“We hope that in the future we can export more kinds of agricultural products [to Korea] in addition to cashew nuts,” he added.

While the $100 million MoU is only valid for one year, both companies have committed to extending the agreement providing Camcashew can successfully meet the export requirements.

To do that, Camcashew intends to sign supply contracts with cashew farmer associations in the provinces of Kampong Thom, Kampong Cham, Kratie, Ratanakiri and Preah Vihear. Those provinces hold a total of 30,000 hectares of cashew fields.

According to data from the Ministry of Agriculture, Forestry and Fisheries, Cambodia produces a total of about 104,000 tonnes of raw cashews annually. Most production comes from the provinces of Kampong Thom and Kampong Cham, which account for 29 percent and 18 percent respectively.

In the first 11 months of this year, Cambodia exported 71,293 tonnes of raw cashews to Vietnam, Thailand, China and India. Vietnam alone absorbed 98 percent of these exports.

MOST VIEWED

  • US to ramp up sanctions after ‘flawed’ national polls

    At a press conference on Wednesday, the US State Department announced that it would expand visa sanctions on the Cambodian officials and individuals it deems responsible for “undermining democracy” in Cambodia. At the briefing, spokesperson Heather Nauert reiterated that the department regarded the July 29 elections

  • US names new ambassador to Cambodia

    US President Donald Trump on Friday appointed W Patrick Murphy as the new US Ambassador to Cambodia, replacing incumbent William A Heidt. A press release posted on the White House’s website said nominee W Patrick Murphy is currently acting principal deputy assistant secretary at

  • Kingdom is at a crossroads between East, West after poll

    It was dubbed a success by caretaker prime minister Hun Sen after the electoral victory of his Cambodian People’s Party (CPP), which is poised to take all seats in the National Assembly. But the July 29 national election has not been positively looked at by

  • Final poll results confirm first single-party Assembly

    IN an unprecedented situation in Cambodian politics, the official results of the July 29 national elections have declared that the Cambodian People’s Party (CPP) will take all 125 seats in the National Assembly on the back of it receiving 76 per cent of the votes. The National