https://orcid.org/0000-0002-4058-0877
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Abstract
A field survey was conducted during February–May 2022 in Chhatradev rural municipality and Sitganga municipality with the purpose of analyzing the existing value chain of arabica coffee in Arghakhanchi district of Nepal. A sample size of 110 arabica coffee growers, comprising 55 from each municipality, was selected by using three-stage sampling method for interviews that used a pretested questionnaire. To study the value addition and trading aspects, six collectors and pulper operators and two secondary processors were selected. Descriptive statistics was applied to analyze the data. Input suppliers, producers, collectors, pulper operators, secondary processors, traders, and consumers were identified as key players in the coffee value chain. NTCDB, NARC, CDC, AKC, Coffee Zone, Primary Coffee Cooperatives, Central Coffee Cooperative Union Limited, NCPA, financial institutions, and certification agencies were identified as the enabling environment providers in the value chain. The findings showed that the gross margin of one kg each of fresh cherry production, dry parchment production, green bean production, and coffee powder production was NRs. 26.06, NRs. 92.83, NRs. 107.7, and NRs. 215.06, respectively. Value addition from producers to primary processors was NRs. 109.8 per kg, and the value addition from primary to secondary processors was NRs. 445.6 per kg. Similarly, the value addition from secondary processors to consumers was NRs. 480.58 per kg. The research area’s value chain structure or network was determined to be brief and straightforward. Therefore, it is advised to adopt cutting-edge processing and packaging methods to improve the competitiveness of Nepali coffee in the market.
PUBLIC INTEREST STATEMENT
This study has analyzed how different actors related to value chain analysis interact with each other. Most studies in the past are related to the WSB attack and disease management but this study has assessed the value chain analysis of the coffee subsector by considering functionaries, actors, and enablers associated with the coffee enterprise in Arghakhanchi district of Nepal. Because of the asymmetric market information coupled with no sufficient support, the farmers have little power and trust in the coffee business. This study has explored options for enhancing market access and also analyzed the production system opportunities and problems related to cultivation. This study attempts to analyze profitability at each stage of the value chain in the journey of coffee from cherry to the cup of consumers.
Acknowledgments
The authors owe their sincere and deep gratitude to coffee farmers of Arghakhanchi district for their support throughout this research. Special thanks to our parents whose guidance is always with us.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Additional information
Funding
Notes on contributors
Sushil Khatri
Sushil Khatri is an agriculture graduate from Agriculture and Forestry University. He is a young researcher and youth activist. His area of interest includes pest management, sustainable agriculture, applied economics, and statistics. He had worked as the Control Board Head of International Association of Students in Agriculture and Related Sciences (IAAS) Nepal in 2021-2022. He worked as research intern in Prime Minister Agriculture Modernization Project-Project Implementation Unit (PMAMP-PIU), Arghakhanchi, Nepal.