A cashew processor’s action plan unlocks expansion opportunities for many

A Harvest II workshop and program triggers a chain reaction, benefiting Cambodia’s cashew sector

Cashew processing company Handcrafted Cashew Nuts Stung Treng (HCST) was established in early 2021 in a rural community in Cambodia’s Stung Treng province. The processor is committed to developing the cashew sector in Cambodia, expanding its distribution networks, and improving the livelihoods of local women and young farmers by providing increased employment opportunities. 

Feed the Future Cambodia Harvest II initially met HCST at its Cashew Nut World Opportunities workshop where attendees learned about the growing international demand for Cambodia’s organic cashew. Building on the information shared during the workshop, Harvest II partnered with HEKS and cashew expert Jim Fitzpatrick to launch the Export Competitiveness Program. Cashew processor HCST also participated in the export program, working closely with the cashew expert and coaches to build its cashew processing skills and export capacity. 

HCST implemented numerous activities to expand its markets, including developing its marketing and branding

HCST implemented the knowledge derived from the training program and developed a targeted action plan to expand its processing facility, improve processing, and build employee skillsets. facilitating international market expansion and augmenting its domestic markets. 

 Mrs. Muth Chakrya, founder of HCST, recently shared the benefits of participating in the program, “After attending the event from the start until the end, we [HCST] have learned many new things related to the cashew market, like how the world’s cashew market works. We especially understand cashew buyers’ requirements and trends as well as how to communicate with buyers.” 

Harvest II recently awarded a Logistics and Export Facilitation grant to HCST to assist the company establish its processing facility and purchase new processing machinery. The expansion is expected to increase HCST’s capacity tenfold. HCST’s increased capacity will require a larger volume of raw materials, which has led the company to expand sourcing to include the Kampong Cham area and provide production training to cashew producers. 

To ensure quality products from suppliers, HCST partnered with two input supply companies to provide technical training to 110 cashew producers focused on improving production practices and establishing quality standards. Following the training, HCST selected and signed contract farming agreements with seven agents representing 57 cashew producers in Stung Treng province. Contract farming ensures stable pricing for producers and guarantees a reliable supply of quality cashew. 

HCST signs contract farming agreements with producers to ensure a reliable and quality supply of raw cashew.

With the expansion of its processing facility, HCST aims to meet and obtain international standards such as GMP and HACCP. The cashew processor, with Harvest II’s support, recently applied to the Institute of Standards of Cambodia to receive standard labeling approval for five of its products, the first step to receiving the globally recognized certifications. Once these have been approved, HCST will begin the application process for HACCP certification. 

Inspired by Harvest II’s Cashew Nut World Opportunities workshop and Export Competitiveness Program, HCST launched a multipronged action plan to build the capacity of Cambodia's cashew producers through training and contract farming; improve processing by establishing a new processing facility and new equipment; and access domestic and international market opportunities by obtaining internationally recognized certification. HCST’s strategic development approach has resulted in a ripple of benefits that is reverberating across Cambodia’s cashew sector.