𝐄𝐟𝐟𝐨𝐫𝐭𝐬 𝐭𝐨 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧 𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐂𝐨𝐟𝐟𝐞𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐆𝐚𝐢𝐧 𝐌𝐨𝐦𝐞𝐧𝐭𝐮𝐦

…𝒎𝒖𝒍𝒕𝒊-𝒔𝒕𝒂𝒌𝒆𝒉𝒐𝒍𝒅𝒆𝒓 𝒎𝒆𝒆𝒕𝒊𝒏𝒈 𝒆𝒙𝒑𝒍𝒐𝒓𝒆𝒔 𝒔𝒖𝒔𝒕𝒂𝒊𝒏𝒂𝒃𝒍𝒆 𝒈𝒓𝒐𝒘𝒕𝒉, 𝒎𝒂𝒓𝒌𝒆𝒕 𝒐𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔, 𝒂𝒏𝒅 𝒇𝒂𝒓𝒎𝒆𝒓 𝒔𝒖𝒑𝒑𝒐𝒓𝒕 𝒊𝒏 𝒁𝒉𝒆𝒎𝒈𝒂𝒏𝒈’𝒔 𝒆𝒎𝒆𝒓𝒈𝒊𝒏𝒈 𝒄𝒐𝒇𝒇𝒆𝒆 𝒔𝒆𝒄𝒕𝒐𝒓.

By Lhendup Wangmo

A Multi-Stakeholder Platform (MSP) meeting was held in Zhemgang on December 26, 2024, aiming to boost the local coffee business ecosystem. The event brought together coffee growers and buyers to foster collaboration and strengthen the coffee value chain under the dzongkhag. Key participants included prominent buyers like Bhutan Mountain Coffee (Paro), Cottage and Small Industries (CSI) (Thimphu), and Ambient Café (Thimphu), as well as Tshogpas from coffee-growing communities in Zhemgang.

The MSP meeting focused on identifying key players in the coffee value chain and clarifying their roles, ensuring a more cohesive and efficient ecosystem. The discussion also highlighted investment areas under the Building Resilient Commercial Smallholder Agriculture (BRECSA) project, which aims to provide coffee growers access to reliable markets while ensuring buyers have a steady supply of quality raw materials.

A public-private partnership (PPP) model was discussed as a potential strategy for enhancing coffee production. This model would combine private sector support for planting materials, infrastructure, and marketing with public sector assistance in administration, logistics, and technical support.

Kesang Jigme, Dzongda of Zhemgang, explained that coffee was selected as a key crop to improve rural livelihoods. “Coffee is a high-value crop that is suitable for the Dzongkhag’s climate, not damaged by wildlife, and easy to manage,” he said. “We chose coffee after careful consideration because it’s in high demand, and we aim to create a thriving coffee industry in the next 3-4 years, supplying both domestic and international markets.”

Pema Thinley, the Tshogpa of Dhigala Gewog, shared his reflections on the meeting, noting that while coffee cultivation has been met with growing interest, many farmers in the upper Kheng region are just beginning to plant coffee. “This is the first time many villagers are engaging in coffee farming,” he said. “We raised concerns about the technical aspects of coffee cultivation, from planting to harvesting. There’s a need for training programs to equip farmers with the right skills.”

He also noted that farmers were uncertain about the equipment necessary for coffee farming. “There’s a lack of awareness about the tools and machinery needed for growing and processing coffee,” Thinley explained. He expressed concern about the fixed pricing structure, where large beans are priced at Nu 150, medium at Nu 130, and small at Nu 100. “Coffee takes nearly three months to harvest, and market fluctuations could affect prices, creating uncertainty for farmers.”

Pema Thinley also stressed the importance of quality saplings. “If the saplings provided to farmers were at least one foot tall, it would improve the success rate of coffee plantations,” he said. “The quality of saplings has been a challenge in the past, but with better planting material, we hope to see better results.”

Tashi Phuntsho, Dzongkhag Agriculture Officer, emphasized the role of the MSP in fostering stronger connections between coffee growers and buyers. He outlined the roles of key buyers like Bhutan Mountain Coffee, Ambient Café, and CSI Market. “We wanted to clarify the roles of both buyers and sellers within the coffee value chain, ensuring a reliable market for our farmers,” Phuntsho said.

He also highlighted the significance of the BRECSA project in ensuring continued production and solidifying market linkages. “Zhemgang’s unique ecological characteristics, with 94% forest cover and three national parks, make it ideal for coffee cultivation without conflicting with wildlife,” Phuntsho said. He explained that coffee farming could be part of a “conservation and livelihood coexistence model,” balancing agricultural development and environmental preservation.

Under the 13th Five-Year Plan, Zhemgang aims to plant at least 300 acres of coffee per year, with a target of 1,500 acres by the end of the plan. This goal could significantly position Zhemgang as a major player in Bhutan’s coffee industry, driving economic growth and sustainable agriculture.

Galay Tshering, Marketing Officer of Bhutan Mountain Coffee, shared the company’s plans to expand into Zhemgang. With a strong presence in Samtse, where 600 households are involved in contract farming, Bhutan Mountain Coffee sees Zhemgang as an ideal region for growth due to its favorable climate.

“We have already started mass coffee planting in Zhemgang, and we have committed to purchasing coffee from local farmers within the next three years,” said Tshering. He expressed hopes to reduce Bhutan’s dependence on imported coffee and emphasized that the company’s goal is to make Zhemgang coffee a significant part of the domestic market. “While exporting in large volumes remains a challenge due to smaller quantities, we aim to ship coffee in larger batches in the future.”

Tshering pointed out that farmers chose Bhutan Mountain Coffee because of the company’s expertise in plantation practices and established markets. “We have the knowledge, resources, and networks to support the farmers, and they trust us to purchase their coffee.”

Zangpo Tshogpa, a representative from Goshing Gewog, expressed optimism about the future of coffee production in Zhemgang. “We have never had the opportunity to grow coffee in Bhutan before, but now we have gained valuable knowledge about coffee cultivation,” he said. “This could be a game-changer for our local economy. We believe coffee can create new markets and employment opportunities for our people.”

The community is excited about the economic possibilities, and many are hopeful that coffee will become a key agricultural product for Zhemgang, contributing to long-term development and sustainability.

Sangay Phuntsho, General Manager of CSI, highlighted the role of the BRECSA project in assessing the market potential for Zhemgang coffee. “We are working closely with farmers to understand production needs and trends in demand, standards, and certification,” Phuntsho explained. CSI has set ambitious production projections, aiming for 600 metric tons by 2029 and 900 metric tons by 2033.

Phuntsho also noted the importance of processing units to add value to the coffee. An eco-hub dedicated to coffee has already been established in Tingtibi, marking a key milestone in the coffee sector’s development. “We’re looking to process and roast the coffee locally, which will help create more value and boost the local economy,” he said.

The coffee project in Zhemgang represents a promising step toward sustainable agriculture, economic empowerment, and environmental preservation. With strong government backing, collaboration between local farmers and buyers, and initiatives like BRECSA, coffee cultivation has the potential to transform Zhemgang into a major coffee-producing region in Bhutan. As the coffee plants begin to thrive, the vision of a prosperous and sustainable future for Zhemgang is becoming more tangible.