Bhutan’s hazelnut bet seeks to turn farms into a higher-value business

Farmer Pema Dema once knew little about hazelnuts when she was first enlisted to cultivate them on her land in Bhutan's Thimphu region. Commenting on the deep valley and terraced rice fields below her farm, the 58-year-old quipped, "I had no idea what kind of nut it was." Now, she nurtures over 140 hazelnut trees on the steep slope overlooking her residence, even using them in her traditional salted suja tea for guests.

Pema is among the thousands of Bhutanese farmers growing hazelnuts as part of a social enterprise aiming to help subsistence farmers develop a high-value crop.

Mountain Hazelnuts, initiated in 2009 as Bhutan's first 100-percent foreign direct investment project in agriculture, faced numerous challenges. Roughly 40 percent of Bhutan's workforce is in agriculture, but production remains largely subsistence-based due to the mountainous terrain. Steep slopes prove difficult to plough and are prone to topsoil erosion during heavy rains.

Recognizing this issue, hazelnuts emerged as a promising solution. They thrive at high altitudes and on mountainsides, require no ploughing, and their root systems help stabilize the soil. Additionally, hazelnuts represent a high-value crop with a burgeoning market, and the trees can yield for decades.

In 2011, Mountain Hazelnuts distributed its initial saplings to over 145,000 plants across 800 growers. Each farmer's land was assessed for suitability and to ensure the crop did not displace anything. Growers were permitted to utilize only land that was fallow or degraded, with the goal of enhancing Bhutan's overall farming output while improving the country's soil quality.

Despite the initial setbacks and learning curves, the project is gradually gaining momentum. Dawa Dhendup, an 82-year-old farmer, embraced the hazelnut trees on a steep section of his farm where he had struggled to cultivate potatoes. His enthusiasm was evident as he harvested nuts from his 1,400 trees while wearing sunglasses to protect his eyes post-cataract surgery. Mountain Hazelnuts now has approximately 9,000 families cultivating hazelnuts on 6,000 acres of land across Bhutan.

However, the project's progress has not been without hurdles. Production did not align with pollinizer saplings during early planting, necessitating mass grafting of pollinizer plants into orchards. The pandemic further disrupted outreach services, leaving farmers disconnected from advice on crop management. Climate change also posed a threat, as the initial hazelnut variety required three months of cool temperatures for proper development.

Lower altitude trees received as little as six weeks of chilly weather. To address this, Mountain Hazelnuts turned to grafting, employing stock from Georgia that needed fewer "chill-hours" for plants growing between 1,600 and 2,400 meters (5,250 and 7,870 feet).

In a favorable outcome, hazelnut trees take several years to bear fruit. However, due to the various setbacks and extended waiting periods, some farmers abandoned the project. Yet, both Pema and Dawa reported that neighbors who had given up were now contemplating the possibility of resuming hazelnut cultivation.