Hazelnut yield doubles in a year, prices set to rise to Nu.150/kg

Hazelnut yield doubles in a year, prices set to rise to Nu.150/kg

In a remarkable development for Bhutan’s agricultural sector, Mountain Hazelnuts (MH) has reported a 2024 hazelnut harvest totaling 10.4 tonnes, nearly double the previous year’s yield of 5.5 tonnes. This surge in production marks a significant milestone for the company and underscores the growing success of hazelnut cultivation across the country.

Leading this year’s supply are the dzongkhags of Lhuentse, Mongar, and Trashi Yangtse. Lhuentse has notably emerged as the top supplier, contributing 2,303 kg, followed closely by Mongar at 2,255 kg, and Trashi Yangtse at 2,143 kg. This is the first time Lhuentse has claimed the top spot, showcasing the expanding reach of hazelnut farming in the region.

Among the standout growers is Mani Norbu from Trashi Yangtse, who harvested an impressive 300 kg of hazelnuts this year, a dramatic increase from just 26 kg last year. Meanwhile, other growers across the country, including those in Dagana, celebrated their first-ever harvests, signaling a positive trend in hazelnut cultivation.

“I am encouraged to manage my orchard better after having my first harvest of 30 kg of hazelnuts after more than a decade. I hope to have double that next year,” expressed Choten, a grower partner from Radhi in Trashigang. His optimism reflects the growing confidence in the potential for increased yields in the future.

However, not all growers had a smooth season. Ap Kinley Tshering from Samay village under Tseza Gewog, Dagana faced challenges while attending a field trip in Bumthang, resulting in animals consuming a portion of his crop. He managed to harvest 30 kg, double the amount compared to the previous year, but still reflected on what could have been a much larger yield.

Dr. Sean Watson, CEO of Mountain Hazelnuts, expressed his enthusiasm over the harvest, stating, “Great progress has been made with the doubling of the hazelnut harvest in 2024 and confirmatory fruiting on maturing 2022 grafts. With the variety mix now working, harvests and income for growers will only increase each year.”

Regarding pricing, in 2024, the company compensated growers Nu.100/kg for quality hazelnuts. This rate includes a bonus of Nu.49.84 above the guaranteed floor price of Nu.50.16 (approximately 60 US Cents/kg). In 2025, the guaranteed floor price will rise to Nu.59, and to further incentivize growers as yield levels increase, the bonus will double, resulting in an impressive price of Nu.150/kg for hazelnuts.

Understanding the importance of market stability, Mountain Hazelnuts has established the guaranteed floor price in collaboration with the Ministry of Agriculture and Livestock. This model is designed to shield growers from market volatility while ensuring they receive fair compensation for their efforts.

“With this support mechanism, regardless of the volatile market conditions, our growers are assured of payment according to the established floor price,” added Dr. Watson.

As Bhutan’s hazelnut industry continues to grow, both growers and consumers alike can look forward to a promising future, with increased yields and fair pricing, ensuring that the nation’s agricultural ambitions remain on track.

Sangay Rabten from Thimphu