Abstract
Background -
Coffee cultivation thrives in over 40 mid-hill districts of Nepal due to favorable conditions, with Lalitpur and Sindhupalchok standing out as top regions for successful organic coffee production, with Lalitpur ranking second in 2023 and Sindhupalchok fourth, according to The Everest List. These districts were chosen for their production capacity and market dynamics, making coffee farming a rapidly growing occupation for local farmers. Lalitpur excels in coffee productivity, while Sindhupalchok shows significant potential for coffee bean production.
Nevertheless, farmers face various production constraints at the farm level. These challenges encompass land shortages, labor and capital limitations, inadequate irrigation facilities, disease and pest infestations, limited understanding of the entire agriculture system, and a lack of modern techniques and technologies. Agricultural productivity is adversely affected by both biotic and abiotic constraints. Biotic constraints include factors such as diseases, insects, the absence of high-yielding crop varieties, and weed infestations. Abiotic constraints encompass issues like nutrient imbalances, insufficient moisture, drought, heat, and shortages of agricultural inputs such as fertilizers, all of which hinder crop growth and diminish yields.
Objective -
The aim of this study was to identify and analyse the trends and progress in the cultivation area, production, smallholder coffee farmer population, and overall productivity in the regions of Lalitpur and Sindhupalchok, as well as at the national level in Nepal (2013/2014- 2021/2022).
Additionally, it seeks to carry out a comprehensive examination of the challenges in coffee production encountered by smallholder farmers at the farm level, with a particular emphasis on the districts of Lalitpur and Sindhupalchok in Nepal (2022).
Materials and Methods -
Data concerning to the trend of coffee cultivation and production at national and district levels were sourced from the National Tea and Coffee Development Board Nepal (NTCDB). The trend analysis was conducted employing the Linear Trendline tool with Microsoft Excel.
The cross-sectional data for the production constraints at farm level was sourced from the Coffee Cooperative Unions in Lalitpur and Sindhupalchok and was analysed using the Cobb-Douglas production function in IBM SPSS version 29.
Results -
The trend of coffee cultivation indicates that in both of the districts, there has been a decline in coffee cultivation area, production, and productivity. Nonetheless, the number of smallholder farmers is increasing. On a national level, the coffee cultivation area has expanded, but production, the number of farmers, and productivity have all decreased between the years 2013/2014 and 2021/2022.
The analysis of production constraints has shown that in Lalitpur district, labor has a notably positive and significant effect on coffee production, while disease has a significant adverse impact. Conversely, in the Sindhupalchok district, both labor and the coffee production area significantly contribute positively to coffee production.
Conclusion -
Coffee cooperatives should prioritize training for smallholder farmers to sustain and enhance coffee cultivation. District-level studies are needed to address declining coffee production. Expanding cultivation area, improving worker skills, and investing in research for new varieties and disease resistance are crucial for a thriving coffee industry.
Coffee cultivation thrives in over 40 mid-hill districts of Nepal due to favorable conditions, with Lalitpur and Sindhupalchok standing out as top regions for successful organic coffee production, with Lalitpur ranking second in 2023 and Sindhupalchok fourth, according to The Everest List. These districts were chosen for their production capacity and market dynamics, making coffee farming a rapidly growing occupation for local farmers. Lalitpur excels in coffee productivity, while Sindhupalchok shows significant potential for coffee bean production.
Nevertheless, farmers face various production constraints at the farm level. These challenges encompass land shortages, labor and capital limitations, inadequate irrigation facilities, disease and pest infestations, limited understanding of the entire agriculture system, and a lack of modern techniques and technologies. Agricultural productivity is adversely affected by both biotic and abiotic constraints. Biotic constraints include factors such as diseases, insects, the absence of high-yielding crop varieties, and weed infestations. Abiotic constraints encompass issues like nutrient imbalances, insufficient moisture, drought, heat, and shortages of agricultural inputs such as fertilizers, all of which hinder crop growth and diminish yields.
Objective -
The aim of this study was to identify and analyse the trends and progress in the cultivation area, production, smallholder coffee farmer population, and overall productivity in the regions of Lalitpur and Sindhupalchok, as well as at the national level in Nepal (2013/2014- 2021/2022).
Additionally, it seeks to carry out a comprehensive examination of the challenges in coffee production encountered by smallholder farmers at the farm level, with a particular emphasis on the districts of Lalitpur and Sindhupalchok in Nepal (2022).
Materials and Methods -
Data concerning to the trend of coffee cultivation and production at national and district levels were sourced from the National Tea and Coffee Development Board Nepal (NTCDB). The trend analysis was conducted employing the Linear Trendline tool with Microsoft Excel.
The cross-sectional data for the production constraints at farm level was sourced from the Coffee Cooperative Unions in Lalitpur and Sindhupalchok and was analysed using the Cobb-Douglas production function in IBM SPSS version 29.
Results -
The trend of coffee cultivation indicates that in both of the districts, there has been a decline in coffee cultivation area, production, and productivity. Nonetheless, the number of smallholder farmers is increasing. On a national level, the coffee cultivation area has expanded, but production, the number of farmers, and productivity have all decreased between the years 2013/2014 and 2021/2022.
The analysis of production constraints has shown that in Lalitpur district, labor has a notably positive and significant effect on coffee production, while disease has a significant adverse impact. Conversely, in the Sindhupalchok district, both labor and the coffee production area significantly contribute positively to coffee production.
Conclusion -
Coffee cooperatives should prioritize training for smallholder farmers to sustain and enhance coffee cultivation. District-level studies are needed to address declining coffee production. Expanding cultivation area, improving worker skills, and investing in research for new varieties and disease resistance are crucial for a thriving coffee industry.
| Original language | English |
|---|---|
| Number of pages | 3 |
| Publication status | Published - 07 Feb 2024 |
| Event | 68th Annual Conference of the Australasian Agricultural and Resource Economic Society 2024: AARES 2024 - Australian National University, Canberra, Australia Duration: 06 Feb 2024 → 09 Feb 2024 https://www.aares.org.au/AARES2024 (Conference website) https://www.aares.org.au/Events/AARES-2024/program/ (Program) https://www.aares.org.au/files/aares_conference_2024/Abstract_book_2024_01_31.pdf (Abstract book) |
Conference
| Conference | 68th Annual Conference of the Australasian Agricultural and Resource Economic Society 2024 |
|---|---|
| Country/Territory | Australia |
| City | Canberra |
| Period | 06/02/24 → 09/02/24 |
| Other | The AARES 2024 Annual Conference will explore the grand challenges that are facing the Australasian region and beyond, such as biosecurity, climate change, environmental degradation, energy system transitions, and food security. The conference will provide a forum for our Society to explore new opportunities for research and development, and policy practice that can address these grand challenges in securing efficient, effective, and equitable outcomes. Distinguished researchers and professionals will present keynote presentations to inspire and stimulate discussion. The conference will bring together applied and theoretical economists, industry professionals, and policymakers to share their experience and exchange insights. Whether you are an expert in academia, industry, or the public sector, we welcome your valuable contributions. After three years of online and hybrid conferences, we are returning to the usual in-person interactive format for our 2024 conference. The 2024 conference will be our 68th annual AARES conference. |
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