1. Support for Trade and Economic Capacity Building
Trade and Private Sector Development (TPSD) Project Ministry of Commerce
Support for Trade and Economic Capacity Building
Highlights of Strategic Plan ( ) of NTCDB for Coffee Sub-sector Development
Badri P Bastakoti
Kathmandu
07 May 2017

2. Overview of coffee sector in Nepal 2014/15
Production in 2014/15
mt Green Bean
Plantation Area
2618 ha in 41 districts
Number of Producers
32,186
Price for Fresh Cherries
Rs. 75- Rs 83 per kg
Volume Currently exported
99.8 tons of green bean (mainly to South Korea, Japan, China, Germany)
Total market value (estimated) – US$ 7.00 per kg for green beans in the domestic/international markets
US $ 3,245,060 (NRs. Equiv= 343,976,360)
Average Value generated annually by one coffee farmer
NRs. 10,687

3. Comparison of return of coffee cultivation vis-ὰ-vis other crops
Net Return (Rs/ha/year)
Net returns compared to
Maize
Millet
Maize + Millet
Coffee
34,190
4.33
3.3
1.87
Coffee + Banana
61,774
7.83
5.96
3.38
Coffee + Ginger
51,683
6.55
4.98
2.83

4. Coffee Growing districts in Nepal

5. District-wise Area and Production of Coffee (2014/15)

6. Coffee green bean production in Nepal (2004/05 to 2015/15)
Fiscal Year
Area (ha)
Production GB (MT)
Productivity (Kg/ha)
2004/05
1078
200
185.5
2005/06
1285
312
242.8
2006/07
1296
270
208.3
2007/08
1450
265
182.7
2008/09
1531
334
218.1
2009/10
1630
419
257.0
2010/11
1752
502
286.5
2011/12
1760
523
297.1
2012/13
1750
457
261.1
2013/14
1911
429
224.5
2014/15
2381
463
194.4
2015/16
2618
434

7. Coffee in Nepal: An Opportunity
Climate and soil condition of Mid-hills of Nepal is suitable for growing Arabica coffee. Coffee in Nepal is 100% Arabica.
Opportunity for production of high grown, organic specialty coffee. High international demand (estimated ~6000 mt)
Participation of small farmer.
Expanding domestic market

8. Rural employment generation through processing industries.
Productivity can be increased up to 1550 kg GB/ha through proper management, adequate shading and manuring practices (AEC 2006)
Nepal can enjoy duty free access for coffee beans under trade preferences for LDCs in major coffee importing countries.

9. Coffee in Nepal: Some Challenges
Production
Low production volume (may lead to diseconomy of scale)
Sporadic plantation rather than pocket area
Low attention on shade, irrigation and orchard management
Infestation of WSB and CLR (recently)
Inconsistent quality (delay in pulping; difficulty in organic certification etc.
Complicated certification process.

10. Processing:
Lack of proper infrastructures for processing
Lack of monitoring for standard and quality control at different level of processing
Marketing, quality and institutional development
Lack of institutionalization of marketing through cooperatives (in the interest of smallholders)

11. Implementation of coffee logo/quality standardization and monitoring
Implementation of traceability system
Organic and fair trade certification

12. Strategic Plan of the NTCDB 2017-2022
Vision:
“one of the leading producers and exporters of Arabica specialty coffee in the world”
Goal:
“Farming of organic Arabica specialty coffee in all potential districts of Nepal through commercial orientation”

13. Strategic Directions and outcomes of NTCDB’s Strategic Plan
Strategic Direction 1: High Quality Production and Enhance Productivity
Outcome: Increased production of Nepali Arabica Coffee by 100% (to 1000 MT) by the end of 2022
Coffee plants grown healthy and free of pests and any diseases
Coffee Production Area expanded (additional 1500 ha)
Productivity of coffee plants improved (by 50%)
Organic certification process established
Smallholders’ cooperatives promoted
Dry parchment produced through wet processing (90%)
Monitor Mechanism and system established to ensure progress

14. Strategic Directions and outcomes of NTCDB’s Strategic Plan
Strategic Direction 2: Policy Formulation
Formulate Enabling Coffee Subsector Policy
Revised Coffee Policy made active for promotion of coffee subsector
E-commerce Policy developed for coffee subsector
All institutions (I/NGOs, traders, producers’ cooperatives associations and any other relevant organisations) working on coffee subsector development -are regulated (one door policy)

15. Strategic Directions and outcomes of NTCDB’s Strategic Plan
Strategic Direction 3: Management and coordination
Strengthen Management and Coordination of Coffee subsector
Coffee Subsector Working Group reconstituted and made functional
Linkages established with Financial Institutions for relevant financial products for coffee subsector
A separate Coffee Division made functional within NTCDB

16. Strategic Directions and outcomes of NTCDB’s Strategic Plan
Strategic Direction 4: Market Promotion
Sell Nepali Coffee in domestic and international markets with Nepal Coffee Logo
Nepali coffee sold in domestic and international markets with Nepal Coffee Logo
Organic and Fair Trade Certified (6 and 2 districts)
Quality based pricing system made operational
National standard for coffee developed and implemented for market promotion

17. Strategic Directions and outcomes of NTCDB’s Strategic Plan
Strategic Direction 5: Institutional Strengthening and Capacity Development of Coffee Subsector
Strengthen Technical and Managerial Capacity of NTCDB and Associated Institutions
CD plan for NTCDB & stakeholders developed and made operational
Technical knowledge and skills of CCUs, DCPA , Traders and other stakeholders enhanced
Organisational Management Capacity of stakeholders (CCUs, PCCs) strengthened
Management Information System (MIS) Developed and Implemented

18. Thank you!