Project Report on Cashew Processing in Cambodia – Reference Guide

Comprehensive Investment Prospectus: Cambodia Cashew Processing Venture

Executive Summary

Opportunity Overview:
This investment prospectus presents a compelling opportunity to establish a small-scale cashew nut processing facility in Cambodia cashew producing provinces. This report analysis demonstrates a robust business model with significant potential for sustainable profitability and regional economic impact.

Use this Guide as reference only and general purpose knowledge.

Investment Highlights:

Projected 20-Year Net Present Value: US$4,286,201.59
Benefit-Cost Ratio: 1.23:1
Annual Processing Capacity: 960 Metric Tons of Raw Cashew Nuts
Strategic Location in Emerging Agricultural Processing Market

Market Context: Cambodia’s Cashew Landscape

Industry Positioning

Cambodia stands at a critical juncture in the global cashew value chain. While traditionally a raw material exporter, the country possesses unique competitive advantages that create an exceptional investment environment:

Superior Raw Material Quality

Recognized internationally for exceptional flavor profiles
Higher Kernel Outturn Ratio (KOR) of 27% compared to regional competitors
Attractive characteristics for health-conscious global markets

Governmental Support Mechanisms

Income tax exemptions for Small and Medium Enterprises (SMEs)
Policy frameworks encouraging agricultural value addition
Strategic initiatives to develop domestic processing capabilities

Detailed Cashew Project Specifications

Technical Infrastructure

Processing Technology: Small-scale automatic cashew nut processing machinery
Daily Processing Capacity: 3.2 Metric Tons
Annual Production Potential: 960 Metric Tons
Key Technological Features:
Addresses skilled labor limitations
Mitigates health risks associated with manual processing
Enables consistent quality control

Investment Cost Breakdown

Capital Expenditure (Total: US$507,603)

Fixed Investment Components:

Warehouse Construction: US$240,000
Processing Machinery: US$173,350
Diesel Generator: US$10,000
Transportation Vehicle (3-MT Truck): US$30,000
Initial Staff Training: US$2,000
Operational Compliance Costs: US$2,920

Working Capital Allocation

Raw Cashew Nut Inventory: US$48,000
Operational Reserves: US$2,133

Financial Projections

Revenue Streams

Projected Annual Revenue: US$2,357,568
Composition:

Whole Cashew Kernel Sales: US$1,944,000
Split Cashew Kernel Sales: US$388,800
Cashew Shell By-product Sales: US$24,768

Operational Cost Structure

Annual Operating Expenses: US$1,538,343
Key Cost Categories:

Raw Material Procurement: US$1,440,000
Labor Costs: US$48,000
Utility Expenses: US$37,693
Additional Operational Expenses: US$12,650

Risk Assessment and Mitigation Strategies

Identified Challenges

Raw Material Acquisition

Competitive pressure from Vietnamese buyers
Potential price volatility
Mitigation: Long-term farmer contracts, diversified sourcing strategies

Operational Efficiency

Limited skilled labor pool
High electricity costs
Mitigation: Comprehensive training programs, energy-efficient technologies

Sensitivity Analysis

Critical Vulnerability Points:

Kernel Prices: Below US$8/kg for whole kernels
Raw Cashew Nut Prices: Exceeding US$2/kg
Recommended: Maintain flexible pricing strategies, quality focus

Strategic Recommendations

Competitive Differentiation

Quality Enhancement

Invest in processing technology
Implement rigorous quality control
Target premium international markets

Value Chain Integration

Develop direct farmer relationships
Create transparent, fair procurement mechanisms
Invest in farmer training and support programs

Market Diversification

Develop both domestic and international market channels
Explore niche markets (organic, premium health segments)
Build strong branding around Cambodian cashew quality

Investment Attractiveness Indicators

Positive Signals

Robust Net Present Value
Government support mechanisms
Growing global demand for high-quality cashew kernels
Potential for significant economic impact

Cautionary Considerations

Requires active management
Sensitive to global commodity price fluctuations
Ongoing investment in skills and technology

Conclusion: A Strategic Agricultural Investment

The proposed cashew processing venture represents more than a business opportunity—it’s a strategic investment in Cambodia’s agricultural transformation. By combining advanced technology, quality focus, and strategic market positioning, investors can participate in a venture with strong financial potential and meaningful economic development impact.

Recommended Next Steps

Conduct detailed on-site feasibility assessment
Develop comprehensive business plan
Engage with local agricultural authorities
Secure initial capital and technology partnerships