In pursuit of a Nu.50 Billion Agriculture Economy, the Ministry of Agriculture and Livestock (MoAL) has made large-scale commercial farming a priority in the 13th Five-Year Plan (FYP), allocating a budget of Nu. 2,024.10 million, which constitutes 13.51% of the Ministry’s total budget. According to the MoAL, the commercialization initiatives will prioritize commodities primarily imported to meet domestic demand, focusing on emerging markets, particularly institutions such as Gyalsung Academies, schools, hospitals, and others. Additionally, targeted support will be provided for the promotion of high-value crops and high-end specialty livestock products for export earnings.
Complementing subsistence farming to fill production gaps, commercial farms will be operated by progressive individuals, including women and youth, as well as institutes and private entrepreneurs. These farms will primarily utilize identified alienable lands to supply both domestic and export markets. “These commercial farms will operate on vast areas with focused crop production, utilizing modern farming techniques to achieve high productivity. Another salient feature of the farms is the integration of recreational facilities for the farm workers,” the Ministry’s 13th FYP document reads. The document also states that these farms will be linked to domestic markets run by government institutions to ensure their success and continuity. The surrounding communities will benefit from these farms as centers for technology demonstration and diffusion.
The Department of Agriculture will implement three key initiatives to boost commercial agriculture production. The first initiative involves establishing two innovative Hi-Tech Chirup farms at suitable locations, incorporating advanced technologies like smart irrigation, automation, vertical cropping, and integrated pest and nutrient management. Essential infrastructure—such as fencing, internal roads, storage facilities, and recreational areas—will also be developed to encourage youth participation. These farms will grow chili, tomato, onion, and other vegetables required by government institutions, addressing local demand.
The second initiative aims to establish four commercial farms, each covering 100 acres, through an Expression of Interest process targeting private individuals or parties interested in agriculture. Access to land will be facilitated, including support for leasing identified alienable lands as needed. These farms will receive initial investments for chain-link fencing, irrigation infrastructure, and production costs for selected crops, focusing on quinoa and essential vegetables. After establishment, the farms will be responsible for their own operational costs.
The third initiative involves setting up a large-scale commercial farm on 435 acres at Yarjugang, Wangduephodrang. Modeled after the Chirup farm concept, this farm will include protected mega structures, efficient irrigation systems, land development, access roads, and chain-link fencing. The farm will produce a variety of crops, including paddy, wheat, maize, mustard, quinoa, chili, tomato, cole crops, strawberries, and potatoes.
Additionally, the plan prioritizes accelerating domestic meat production by commercializing poultry, piggery, and fishery farming in dzongkhags with high social acceptance. In 2022, Bhutan imported Nu. 3.8 billion worth of livestock products, mainly meat and dairy. The domestic demand for meat (chicken, pork, and fish) was 8,812 MT, of which only 2,262 MT was produced locally, while 6,550 MT was imported. To reduce imports, the 13th FYP will focus on establishing large-scale commercial farms to boost self-sufficiency in meat.
To achieve 50% chicken self-sufficiency, three large-scale broiler farms will be established in Tsirang, Samdrup Jongkhar, and Samtse, each housing 10,000 birds and producing 270 MT of chicken annually. Additionally, state-of-the-art chicken processing plants will be constructed and operationalized in Samtse and Dagana to enhance the chicken value chain.
For 60% pork self-sufficiency, large-scale fattening farms will be set up in Dagana, Sarpang, Samtse, and Samdrup Jongkhar, each with a capacity of 200 fatteners to produce 53 MT of pork annually. A high-tech pig breeding farm, either in Samtse or Samrang in Samdrup Jongkhar, with a capacity of 240 sows, will be established to ensure a sustainable supply of quality piglets.
To reach 15% self-sufficiency in fish consumption, Chirup commercial carp farms will be established in Samdrup Jongkhar and Dagana, each with an annual capacity of 15 MT.
Commercialization will also focus on strengthening farmer groups and cooperatives, with dairy, poultry, and cardamom groups fast-tracked for upgrades. Key interventions will include institutionalizing Internal Control Systems (ICS), capacity building, and providing value-addition equipment. Market linkages to Gyalsung academies, schools, hospitals, other institutions, and Gelephu Mindfulness City (GMC) will be prioritized.
Recognizing the potential for income generation, job creation, and import reduction, the Ministry has outlined support for agrifood enterprises, with 29 existing enterprises set for upgrades. Targeted interventions will focus on value addition, product development, packaging, labeling, branding, logistics, transportation, and distribution, leveraging innovative digital solutions. A well-structured value chain network across the dzongkhags will be established to address post-harvest losses, logistic challenges, and market infrastructure gaps. Key measures include forming aggregator networks, establishing main outlets for products from all 20 dzongkhags, capacity building for value chain actors, and improving digital platforms like commodity exchanges, the Agricultural Marketing Information System (AMIS), e-commerce platforms, and AI-based marketing systems.
Two agrifood economic hubs will be established in Paro and Sarpang to serve as central points in the value chain, coordinating backward integration with farmers and forward integration with domestic, regional, and international markets. These hubs will feature advanced post-harvest facilities, support private sector participation, and aim to create efficient value chains from production to market. The Paro hub will focus on high-value, fresh, and perishable exports like asparagus, strawberries, mushrooms, trout, and broccoli. The Sarpang hub will handle bulk commodities such as ginger, turmeric, areca nut, mandarin, potato, cardamom, and livestock products for both domestic and export markets. Private sector investment and foreign direct investments (FDIs) will be encouraged to operationalize these agrifood eco-hubs.
By Tashi Namgyal, Thimphu