VALUE CHAIN ANALYSIS OF COFFEE SUB-SECTOR IN GULMI DISTRICT, NEPAL

Daxina Chand ()
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Daxina Chand: Faculty of Agriculture, Agriculture and Forestry University, Rampur Chitwan, Nepal

Malaysian Journal of Halal Research Journal (MJHR), 2024, vol. 7, issue 1, 11-18

Abstract: World-wide popular beverage Coffee is getting popularity in Nepal as well, both in terms of consumption and production. However, several problems exist at production, processing and marketing. Hence, a study was carried out in Gulmi district, Nepal during April 2022 with an aim to analyse the value chain of coffee in Nepal, which explored the functional and economic linkage among the actors, interviewing 60 coffee producers, 3 pulper operators and 3 secondary processors. Three years of data regarding production, processing and marketing were analysed by using descriptive and analytical methods with SPSS (version 25) and MS Excel 2013. The study identified key players of coffee VC as input suppliers – supplying seedlings and other inputs; coffee producers – producing fresh cherry; pulping operators – producing dry parchment; secondary processors – producing green beans. Economic analysis of coffee producer, pulper operator and secondary processor showed that cost of production of fresh cherry, dry parchment and green bean was Rs 77.08/kg, Rs 422.3/kg and Rs 798.24/kg respectively. Benefit Cost analysis of these major players of coffee VC showed that coffee enterprise is a profitable business with BC ratio 1.11, 1.12 and 1.17 respectively. Furthermore, the study found that there’s value addition of Rs 99.73/kg from fresh cherry to dry parchment, Rs 305.38/kg from dry parchment to green bean and Rs 488.72/kg from green bean to powder coffee. The study provided evidence to the argument that secondary processors were most benefited in the value chain compared to coffee producers and pulper operators.

Keywords: Value-chain, B:C ratio; Coffee Production; Marketing (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:zib:zbmjhr:v:7:y:2024:i:1:p:11-18

DOI: 10.26480/mjhr.01.2024.11.18

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