Nepal Apples



The intended results were an increase in the volume of transactions and increased income for producers. The two year pilot has resulted into mutually profitable contractual agreements between the producers and buyers. In 2010, the District Co-operative Federation (DCF) signed a contract with B.H. Enterprises for the supply of 100 mts of apples, of which 40 tonnes were certified, with the remainder non-certified. Cumulative figures obtained from Jumla District Co-operative Federation show that total transactions involving apples in 2010 and 2011 reached 120 mt. Against the base price of NPR 10/kg, in 2010, DCF records indicate total additional revenue from organic apples at Nrs. 2 million (US$ 27,800) For 402 smallholder farmers, including 84 women, this means that on average they were able to generate US$69 in additional income.

Value addition

The 402 participating households were organically certified (Grower Group Certification) through Organic Certification Nepal (OCN). As a replication and copying effect, three additional villages were also certified (in-conversion in 2011). So as to meet the essential criteria for Grower Group Certification co-operatives in Jumla now have a robust Internal Control System (ICS) that oversees technical and management aspects for external inspection and certification. For the first time, a grade based pricing system has been introduced and higher grade apples are able to fetch a premium price.

Service Provision

15 well trained Local Agriculture Resource Facilitators (LARFs) are providing services to farmers. These LARFs presently work voluntarily, but could potentially evolve as commercial service providers and could be attached with co-operatives so that producers can avail of production related services provided by co-operatives, thereby fostering the extension of co-operatives into rural production pockets.