A partnership launches a processor into international exports

 Capturing added value and employing women in Cambodia’s horticulture sector

Illustrating determination and innovation, the owner of Chey Sambo Cashew Nut Processing Handicraft (CSC) Ms. In Laihout began her career as a cashew farmer and has expanded her technical knowledge and business skills working in various capacities in the cashew subsector. Drawing on her initial experience and her boundless energy, Ms. Laihout developed CSC’s targeted mission, aiming to sell Cambodia’s processed cashew in domestic and international markets by establishing contract farming agreements with producers, thus ensuring a consistent quantity and quality of raw cashew nuts. CSC is also dedicated to empowering women, prioritizing the employment of local women to work in its processing facility. 

Presenting at a workshop organized by the Ministry of Agriculture, Forestry, and Fisheries last year, CSC met and forged a business partnership with the Japanese company Top Planning Japan (TPJ). This relationship paved the way for CSC to launch exports of its premium processed cashew. The two parties signed a business agreement and TPJ loaned CSC $280,000 to construct a medium-sized factory in Kampong Thom province, expanding the company’s processing capability and facilitating the export of cashew nuts. TPJ also provides working capital to purchase raw cashew nuts, enabling year-round processing. 

An employee manually sorts and grades the cashew nuts to ensure high-quality product

Feed the Future Cambodia Harvest II awarded an Investment Accelerator grant to CSC to help catalyze further investment in its production capacity. The cashew processor invested $305,776 to upgrade the factory’s equipment, including a peeling machine, DC-shell machine, grading machine, vacuum packing machine, waste-water treatment, and other equipment. The new equipment facilitated compliance with international food safety standards, environmental requirements, and expanded production capacity, increasing the local and international competitiveness of CSC’s processed cashew.

Ms. Laihout proudly shared, “The grant helped CSC improve the capacity of processing to respond to market demand, now there are many buyers ordering finished cashew products from the factory.” Ms. Laihout is a pioneer in helping the country capture added value from this valuable commodity, grown by tens of thousands of smallholder farmers.

The factory was completed and equipment installed in December 2020, and processing launched at the beginning of 2021. Though delayed slightly due to pandemic-related travel restrictions, TPJ’s initial eight-ton order was successfully delivered in the beginning of June 2021, and a second nine-ton order has already shipped and is expected to arrive in mid-July.  The two parties have made formal arrangements and CSC will continue exporting seven to ten tons of processed cashew to Japan per month.

CSC is dedicated to promoting gender equality, employing a majority of women in its factory. 

Aiming to access additional international markets, CSC is participating in Harvest II’s Export Competitiveness Program for Local Cashew Processors, facilitated by cashew expert Jim Fitzpatrick in collaboration with HEKS.  The integrative program helps domestic processors build competitiveness and resilience by raising awareness about growing demand in the sector, providing SMEs a blueprint to access the most relevant opportunities, and guiding actors as they build their cashew processing and exporting capacity.  The cashew processor is also working with TPJ to unlock other international export opportunities by applying for hazard analysis critical control point (HACCP) certification.

To supplement supply and meet international demand, the business partners are also working together to test the products of small, local cashew processors and CSC will purchase semi-processed product from processors that meet TPJ’s standards.

Ms. Laihout is dedicated to empowering women and promoting development in Cambodia’s horticulture sector. Utilizing a holistic action plan, CSC continues working with Harvest II and other partners to capture every opportunity to learn, improve, and expand – promoting prosperity and sustainability across Cambodia’s cashew subsector.