The FINANCIAL — IFC, a member of the World Bank Group, and the private-sector window of the Global Agriculture and Food Security Program (GAFSP) will jointly invest $9 million in Mountain Hazelnuts, to boost incomes and create jobs for Bhutanese farmers. Other financing will be provided by the Asian Development Bank (ADB). IFC and ADB will each provide $3 million with an additional $6 million in support from GAFSP.
The equity investment will allow Mountain Hazelnuts, an organization promoting hazelnut production among smallholder growers in Bhutan, to provide hazelnut saplings, agricultural inputs, and cropping advice to local farmers free of charge. Up to 15 percent of Bhutan’s population is expected to eventually benefit from the project, according to IFC.
“The hazelnut trees will be planted on fallow land and degraded mountain slopes that otherwise have no commercial use for the farmers,” said Daniel Spitzer, Chairman and CEO of Mountain Hazelnuts. “Once the trees produce hazelnuts, we will purchase the crop from the farmers at a guaranteed minimum price and market the hazelnuts to international buyers.”
The project allows participating farmers to significantly increase their income by selling hazelnuts. Mountain Hazelnuts will also provide farmers with access to global knowledge and best practices.
“Mountain Hazelnuts’ business model is simple but promises significant development impact,” said Alzbeta Klein, IFC Director of Manufacturing, Agribusiness, and Services. “IFC’s, ADB’s, and GAFSP’s support will help diversify income-earning opportunities for small farmers, including women, increase access to new markets, and improve the environment by sequestering carbon with 10 million new hazelnut trees and rehabilitating degraded mountain slopes.”
Discussion about this post