Enhancing Income Opportunities and Local Energy Supply Through Utilization of Agricultural By-Products: A Case Study of Cashew Production in Rural Cambodia

Rural communities in developing countries face rising livelihood vulnerability due to climate change, agricultural price volatility, and dependence on linear production systems. This study examines whether circular utilization of cashew by-products can strengthen rural economies through a field-based case study in rural Cambodia. Primary data were collected through on-site observations, semi-structured interviews with farm owners and rural workers, and farm-level economic assessments. The results indicate that cashew apple juice processing is not financially viable as a standalone activity under prevailing wage and market conditions, producing negative net profits across all examined processing volumes. By contrast, integrating cashew apple utilization with other by-products shows more favorable outcomes. Cashew nut shells and pruning residues generate relatively stable supplementary income for farm operators, while cashew apple collection creates additional employment opportunities, particularly during off-harvest periods and low-yield years, helping to stabilize household labor income. Rather than relying on capital-intensive technologies, the observed practices represent low-cost and locally feasible circular economy approaches suitable for medium-sized commercial farm-based systems, with potential analytical transferability to smallholder contexts. Overall, these findings suggest that integrated by-product utilization may reduce income volatility and support sustainable rural community development in similar cashew-producing contexts.