STiR coffee and tea magazine

STiR coffee and tea 43 Kar.maCOFFEE organizes trainings and seminars to educate farmers on better cultivation practices and how to increase value-addition, such as this value chain training for growers. Photo credit: Kar.maCOFFEE Founder of Kar.maCOFFEE, Birgit Lienhart-Gyawali has invested in a digital payment and data storage platform to help increase transparency and get money into the hands of farmers faster. Photo credit: Kar.maCOFFEE Now in its second harvest season, the pilot has been implemented in one region, with promising results. It enables transpar- ent cherry collection, tracks payments to individual farmers, and stores harvest, qual- ity, and price data in one location. It also enhances financial visibility for smallholder farmers, allowing them to access banking, credit, and other essential services. Most importantly, the platform also helps farmers understand their prod- ucts better and develop a sense of pride in their produce. A common percep- tion in Nepal is that everything coming from "outside" is more valuable, better, and more admirable. Coffee is a product that Nepali can be proud of, and creating awareness inspires farmers to raise their standards, increase quality, and do more with better intentions. "We believe this platform could be a game changer for countries with simi- lar terrain, farm structures, and sourcing challenges," Lienhart-Gyawali added. "As we prepare to expand its use within Nepal, we're open to conversations with like-minded actors — coffee companies, cooperatives, or NGOs — who are look- ing to learn from this experience or ex- plore training and adaptation in their own contexts." Most significantly, it gradually shifts power toward the farmer, helping them understand not only what they pro- duce but also why it matters. Other Challenges Coffee farming is incredibly labor-intensive in Nepal, and it's all organic. Many of the villages have poor infrastructure, with limited access to water, roads, equipment, or electricity. A major concern is the ongoing exodus of young people, who leave the country by the thousands every month to seek work abroad. As a result, farms are often maintained by older generations, women, and children. At the same time, the cost of Nepali coffee has risen significantly — partly due to a government-set minimum price for cherries that exceeds international norms, and partly due to increasing demand and limited supply. International trade dynamics are shifting. New EU due diligence regulations on deforestation and traceability could limit Nepal's access to key markets. While Nepali coffee is typically organic and grown in regenerative systems, alongside fruits, nuts, and spices, its supply chains are not yet fully documented. Buyers may shift to origins that are better organized logistically and administratively. However, these regulations could highlight Nepal's potential to position itself as a climate-positive, biodiversity-friendly origin if the right systems for verification and traceability are implemented. Production Potential Nepal's coffee plantations are located in high-altitude regions, often at elevations be- tween 800 and 1,600 meters above sea level. The combination of altitude, cool temper- atures, and distinct soil types contributes to the unique flavors found in Nepali coffee beans. Mid-level regions have excellent potential for specialty coffee production due to their suitable microclimates. Nepal primarily produces arabica coffee, and bourbon and typica are some common arabica varieties. Currently, arabica coffee production occupies approximately 3,760 hectares of land, a relatively modest area on the global scale, but coffee can be commercially produced in many parts of the country. According to the National Coffee Producers' Association (NCPA), there are 62 districts with 1.2 million hectares suitable for growing coffee. The 2023 Nepal Trade Integration Strategy identifies coffee as a high-potential export commodity, further emphasizing its economic importance. Government initia- tives provided subsidies for coffee seedlings, irrigation systems, and the establishment of plantations across multiple districts. However, as Nepal moves beyond its status as the Least Developed Country, certain subsidies have begun to phase out. International organizations such as the Korean International Cooperation Agency (KOICA), Japan International Cooperation Agency (JICA), the German Society for In- ternational Cooperation (GIZ), the Swiss Development Organization (HELVETAS),

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