Cashew Nut Value Chain Development: A Case Study of Tha Mueang Subdistrict, Ubon Ratchathani Province, Thailand

Abstract

Background: Ubon Ratchathani Province, Thailand continues to face structural poverty, especially among smallholder farming households whose incomes remain unstable and largely dependent on primary agricultural production. In Tha Mueang Subdistrict, Don Mot Daeng District, more than 25,000 cashew trees are cultivated, producing over 112 tons of raw cashew nuts each year. Despite this strong production base, most farmers still sell their harvest as raw materials through middlemen. Farmers also have limited opportunities to organize collectively and often lack knowledge in farm management, soil improvement, and product value addition. As a result, average productivity remains only about 103 kilograms per rai (approximately 644 kilograms per hectare), which is significantly lower than the provincial average. This short and weak value chain has become a major constraint preventing poor households from increasing their income. For this reason, this research focused on strengthening the cashew value chain through a community-based participatory process in order to improve household income and support stronger local economic development.

Objectives: This study aimed to examine how the cashew value chain in Tha Mueang Subdistrict, Don Mot Daeng District, Ubon Ratchathani Province could be strengthened to improve access to livelihoods and increase income among cashew-growing farmers and poor households. The study explored the existing structure of the value chain and the key constraints affecting income generation through a participatory analysis process with farmers and community enterprise members. At the same time, the research supported improvements in production practices and product value addition through collective learning and cooperation within the community enterprise. The goal was to develop a more inclusive value chain that benefits poor households and strengthens the local grassroots economy.

Methodology: This research applied a Participatory Action Research (PAR) approach, with members of the Lam Sebok Muang Mueang Cashew Community Enterprise playing a central role in identifying problems, designing solutions, and implementing activities. Government agencies and academic institutions provided technical support throughout the process. The work was carried out through three main processes. First, the project strengthened community enterprise members through participatory discussions that linked production challenges with income-related problems. Members jointly analyzed the cashew value chain and worked together to identify solutions. Knowledge-sharing workshops and training sessions were organized with experts from the Faculty of Agriculture, Ubon Ratchathani University. These activities included soil analysis, compost production, systematic orchard management, and irrigation system installation. Peer learning among members also helped reduce production costs and improve productivity per rai. For the next process, the project supported cashew processing activities through the development of the SREBOK brand. Raw cashew nuts were upgraded into processed products such as herb-roasted cashew nuts, salted roasted cashews, and cashew cookies. Packaging was designed, market testing was conducted, and a business plan for cashew cookies was developed to strengthen entrepreneurial skills among members. Finally, the project expanded collaboration networks with government agencies and educational institutions to support the long-term development of a more complete and sustainable value chain.

Results and Findings: The study found that strengthening the cashew value chain through a participatory community process created improvements across all stages of the value chain—from upstream production to midstream organization and downstream marketing. At the upstream level, community enterprise members improved orchard management through soil analysis, appropriate fertilizer application, varietal improvement, and irrigation system development. As a result, 39 model learning plots were established as shared learning spaces. At the midstream level, the formation of a community enterprise enabled members to set a purchasing price for cashew nuts that was 3 Baht (approximately 0.1 USD) per kilogram higher than the price offered by middlemen, increasing farmers’ bargaining power. At the downstream level, new processed products were successfully developed under the SREBOK brand, including herbal roasted cashews, salted roasted cashews, and cashew cookies. Packaging improvements and market testing helped the community increase product value and expand marketing channels in practical ways. Following the 2024 harvest season, income among 74 poor member households increased from 6,432 to 7,183 Baht (approximately 200 to 223 USD) per month, representing an increase of 11.69%. Other members also benefited from improved technical knowledge, higher selling prices, and stronger bargaining power when dealing with traders.

Outcomes, Impact, and Sustainability: The development of the cashew value chain in Tha Mueang Subdistrict produced important outcomes at the household, group, and community levels. These included improved production capacity among farmers, stronger community enterprise management, increased income shares for poor households within the value chain, and stronger cooperation among local development partners. The collective learning process strengthened both social capital and human capital within the community, enabling members to become more self-reliant and better prepared to expand future economic activities. At the policy level, the Tha Mueang Subdistrict Administrative Organization integrated support for the Lam Sebok Mueang Muang Cashew Community Enterprise into its five-year local development plan. The enterprise will receive annual financial support of 100,000 Baht (approximately 3110 USD) from fiscal years 2025 to 2027, helping ensure the continuity and sustainability of the initiative.