Under The Radar: Nepal’s Coffee Potential

Nepal is commonly associated with the phrase in reference to its stunning landscapes, cultural diversity, and courageous citizens. Over the years, the country has primarily been known for mountaineering and trekking, but a nascent industry is beginning to receive its due attention and is relatively helping to drive the country's economy: coffee production. It is not among the age-old commercial crops of Nepal, though coffee farming in this country has proved a lot. At the same time, change in caffeine culture around the world, especially among the young world, has provided new opportunities for Nepal's coffee industry. This essay delves into past history and current situation, and future prospects of coffee farming in Nepal and revolves around whether the growing global enthusiasm for coffee can spark up the economy of this country.

History and Development of Coffee Farming in Nepal
Coffee farming in Nepal began rather humbly but is now poised for growth. Thus commenced the story with the arrival of a hermit named Hira Giri from Myanmar (then Burma) with coffee seeds in the year 1938, and his planting the seeds at Aapchaur of Gulmi district. For decades afterward, coffee farming was a small-scale, almost forgotten activity overshadowed by traditional crops. It started in 1968 when the government of Nepal imported coffee seeds from India. Nepal Coffee Company (NeCCo) was formed in the year 1983, succeded by the Coffee Development Center in the year 1984: this formed the base of coffee as a commercial crop for the country.

All of these certainly laid the ground, but coffee remained restricted to a comparatively small area and pada in Nepal for several decades. Rough topography, lack of infrastructure, and the poor technical wisdom made it difficult for the country to spread its coffee cultivation. However, the potentiality of coffee farming in Nepal was realized only when the state and multiple non-governmental organizations started earnestly extending their technological and financial support to the farmers. In more than 32 districts, coffee cultivations have gained ground today. Many farmers and entrepreneurs with more than 6,000 are now involved in the industry.
Coffee Processing in Nepal

The procedure of how coffee has been processed very much relied on variation, in the quality of processing methods that relate to both 'Dry' and 'Wet' methods utilized by the farmers. The wet method, mostly in the practices, needs a number of careful steps to be undertaken: Fresh ripe berries are handpicked, sort out according to stages red and green berries, and sold to pulping centers where the berries are pulped, fermented, washed, and dried to parchment stage. These are further hull into green beans at processing centrals. They can be then exported or consumed domestically.

Even though Coffee cultivation in Nepal has seen some development, it is yet a very labor-intensive activity that requires a great deal of focus and attention to be concluded. The processing of coffee is also one of the lengthiest procedures globally as they require precise conditions at every stage. Much of coffee is being added to the feat in Nepal because the sector has good values in the market with much return. Concerns from the farmers in Nepal, such as coffee-seeking tendencies over other crops and the decrease in field sizes, are all due to the increasing value of coffee and its domestic and international demands.
Economic and Social Impact of Coffee Farming in Nepal

Commercialization of coffee farming in Nepal has transformed the agriculture scenario and had major contributions to the lives of the farmers and local communities. The shift from traditional crops to coffee cultivation has sustained the income of farmers, enabling them to uplift their living standards. The increasing demand for coffee in both local and international markets has opened up new economic opportunities for farmers, primarily in the rural parts of the country where other economic activities are done in very limited quantities.

The phenomenon attributed to coffee farming that has greatly contributed to Nepal's economy is the Himalayan Arabica Coffee as the creation of the Himalayan espresso of coffee. So, the prevailing soil, water, altitude, and climate in the region have shaped this unique variation of Arabica coffee, thereby earning this coffee worldwide renown for quality. In fact, the Specialty Coffee Association of America has identified Nepal as one of the best countries to have the ecology suited to create the quality coffees. This development has helped to press Nepalese coffee to greater heights than ever thought before, rising to an extent in which export markets in such countries as Japan, Korea, the United States, and the United Kingdom have been opened up to it.

Most significantly, coffee growing in Nepal can provide an opportunity to alleviate some of the most desirable environmental and social maladies in this country. For instance, the hills of Nepal, which are already reeling under the impact of such negative growth drivers as soil erosion, intermediately changing climatic conditions, and a marked increase in incidences of landslides mainly due to mass deforestation, can benefit a lot from coffee cultivation. Coffee plants serve to retain the soil and to prevent its further degradation, thus engaging into the making of coffee an ecologically doing thing. What is more, the introduction of coffee farms and centers of its production opens workplaces for thousands of people among locals, especially women, who become more financially independent and contribute to the general improvement of the living condition here.

The Untapped Potential of Coffee Farming in Nepal
The country is said to have an estimated 1 million ha of land capable of producing coffee. But only a fraction of it is currently being cultivated. There, the annual production of coffee cherries stands at around 1,753 tons versus an approximated volume demand of 7,000 tons in the local market alone. This gap vis-à-vis the production and volume of demand shows huge potential in coffee farming in Nepal.

For the past five years, Nepal's production has shown a gradual increase. Coffee production in 2017/18 was 463.58 MT, which increased to 532.33 MT in 2018/19. Production dropped to 530.78 MT in 2019/20, then rose again to 544.72 MT in 2020/21, and finally reached the highest at 550.00 MT in 2021/22. This suggests a compound growth rate of about 18.6% from 2017/18 to 2021/22. Local demand is growing, and so far, the production levels remain awfully low to match this increasing demand, hence more room for development in the sector.

Several factors have led to the underutilization of Nepal's coffee farming potential. technical know-how as well as expertise in the farmers, level of support by the governmental and nongovernmental organizations towards expanding coffee cultivation are insignificant. Besides, there are great difficulties associated with processing, marketing, and exporting coffee. For Nepal to fully develop its potential in coffee farming, investment in infrastructure, training, market development, and all other areas must galvanize around coffee production.

Global Caffeine Culture and Its Implications for Nepal
Though many challenges lie before the coffee sector in Nepal, the global obsession with coffee is in itself a golden opportunity. The drink has risen beyond being an everyday drink to become a culture, part of a lifestyle among the youth. The amazing rise of specialty coffee, health benefits coming from reasonable coffee drinking, and the integrations with technology into the coffee experience have all joined forces to brew this global coffee craziness.
For many, coffee shops are places where you hang around even to meet your dates, study, or unwind. The dim interior and aroma of coffee provide an ambiance in which to relax or conduct one's business, which can be either of a work or leisure nature. This very sociable trend in coffee culture has provided the impetus behind the global coffee boom and is a wave that Nepal can ride upon.

Moreover, the younger generation has started to appreciate specialty coffee, thus creating a demand for quality and ethically sourced beans. This trend is moving from quantity to quality and is blending well with the scenario in Nepal: the production of Himalayan Arabica Coffee, very much famed for its top quality flavor and aroma. With such an image, easily Nepal could grab this position as a producer of premium specialty coffee, tap the global trade in increasing numbers, hence boosting export returns.

Increased demand has also been propitiated by health perceptions, as shown by research studies that have indicated some of the health benefits of moderate coffee consumption: reducing risk for some health conditions and improving good heart health. This turns coffee from a caffeine source into a possibly healthful beverage and thus makes it more attractive to consumers interested in health.

This infusion of technology into the experience of coffee drinking has also made it more participatory. There are developed mobile apps in ordering coffee. There are even subscription services for specialty beans, and there is social media where coffee lovers share their brew and findings—all contributing to the modern-day coffee culture as it has expanded worldwide. This is the level of digital connectivity that makes a global community of coffee enthusiasts in a real-time manner, expanding the new frontier for Nepalese coffee.

Challenges and The Way Forward
Although Nepal gives very good potential toward coffee farming, a number of problems come up and need to be resolved even for the growth of the industry in a sustainable manner. One is infrastructural and technical, where low levels of infrastructure and technical know-how are a hindrance to the scale-up of production and better quality by the farmers. In respect, investments regarding the training program, research and development, and infrastructure are of critical importance in helping surmount the entry barriers, hence enhanced productivity in farming coffee in Nepal.

Then, there is still the restriction towards the accessed markets, be it local or international dimensions. Nepalese coffee has received recognition in some of the niche markets; it is yet to receive recognition from mainstream consumers. Engaging in marketing and partnering with key international buyers in global coffee events can push Nepalese coffee production closer to mainstream consumers.

Attention should also be given to sustainability in coffee farming with respect to Nepal. Though growing coffee prevents soil erosion and encourages reforestation, due considerations must be given for the existence of biodiversity and the conservation of natural resources. The implementation of such sustainable growing conditions and encouragement in production might be a better way to ensure that coffee growing contributes to the environment, in economic sustainability.
Finally, the government and other principals need to work hand in hand to realize an environment that will support the coffee industry. The can better be accomplished through policy frameworks that favor the coffee farmers, financial incentives that will stimulate investments within coffee farming, and facilitate access to credit by the small-scale farmers. In specific, the partnership between public and private sectors and international organizations is very central for engendering full value addition of Nepal's coffee sector.

It also is an undiscovered gem that can alter the economy of Nepal and people's lives. From its humble beginning to its status as a commercial crop, the journey made by coffee in Nepal reflects the resolute and resourceful farming communities. Yet the burgeoning demand for high-quality, specialty coffee worldwide is an opportunity for a country like Nepal to emerge as a premier producer of specialty coffee.

The challenge, now, for Nepal is to remove these shortfalls which are reflected in beat-up infrastructure, lack of market access, and weak sustainability, and build on its potential. Nepal may change its coffee farming to be an engine of economic growth by investing in the industry, promoting sustainable farming practices, and cashing in on the global coffee culture. Transitioning a hitherto totally forgotten crop into a global commodity does not come without challenges. However, the right kind of support and investment presents an opportunity for Nepal to develop its coffee industry, of which the benefits will be seen in the increased prosperity of the country and all its citizens.

Unlock the latent potential of the coffee industry in Nepal. The world is increasingly embracing coffee culture, and Nepal needs to fall into this rhythm as a major global coffee player. It is not only a source of pride but economic transformation in the country as a result of the development of quality, sustainability strategy, and market development. The impending future of the Nepalese coffee industry, something to be proud of, the resilience of the people, their innovation, and growth.

The writers Dipen Sharma and Shankar B.K are MBA III Trimester students at SAIM College.