The Cashew nuts Association of Cambodia (CAC) downgraded its 2024 cashew outlook, anticipating a decline of 10 to 30 per cent or more compared to 2023, due to the effects of the El Nino weather phenomenon on crops which either failed to grow or were damaged by infestation. 

CAC president Uon Silot stated on February 13 that in late 2023, the association had predicted a 10 per cent increase in yield for this year. 

However, from February onwards, following reports from members and visits to plantations across 10 provinces, it became apparent that not only would the yield not increase as forecasted, but it would also likely decrease by up to 30 per cent. 

“After monitoring weather conditions, especially in early February, we observed that the yield would drop. The lack of growth in cashew buds, damage to their flowers and destruction by insects were considerable,” he said.

“We haven’t yet calculated the full extent of the impact, but our checks on the plantations indicate that many have been affected. The situation is concerning for our association and could discourage more farmers,” he added.

Silot expressed concern, noting that the weather factor, particularly the El Nino phenomenon, is an insurmountable challenge. 

He said the group had previously warned in 2023 of prolonged weather-related drought and water shortages which would adversely affect plant growth and lead to increased damage by insects. 

“We had advised our members to prepare for this issue. As a result, most members managed to mitigate the impact effectively, with cashew buds growing in December 2023 and January 2024. Therefore, the impact on our farmers has been less substantial. Those most affected are non-members,” he emphasised.

Im Rachna, spokesperson for the Ministry of Agriculture, Forestry and Fisheries, acknowledged the impact of El Nino, saying the Ministry of Water Resources and Meteorology had informed farmers about the phenomenon, urging them to prepare and care for their crops amidst its effects. 

“El Nino’s impact on Cambodia inevitably affects crop yields. However, the agriculture ministry has directed its departments [nationwide] to collaborate closely with farmers, offering techniques to mitigate the phenomenon’s impact ... The CAC has also provided guidance and support to cashew growers in dealing with the issue,” she added.

Rachna noted that domestic processing of cashews had increased from five to 10 per cent between late 2023 and early 2024, while raw cashew nut exports were declining. 

“The ministry, along with concerned partners, will continue to work diligently to enhance domestic processing of cashew nuts. The effort aims to produce high-quality cashews for both the domestic market and international competition,” she highlighted.

The ministry reported that the Kingdom has approximately 472,946ha of cashew cultivation, yielding a total of 709,419 tonnes in 2023.

The country exported roughly 656,000 tonnes of raw cashew to countries including China, Japan, Bangladesh, India, Vietnam and Thailand, and processed cashews to markets such as China, the Czech Republic, Japan, South Korea, the Netherlands, Vietnam and the US.