Submitted to Hariyo Ban Program WWF Nepal P.O. Box 7660, Baluwatar, Kathmandu

Hariyo Ban Program Livelihood Interventions (FINAL REPORT)

Knowledge and Learning Document 26 June 2019

39- Prachin Marga, Naya Baneshwor, Kathmandu, Nepal; Tel: +977 (1) 4463021; Fax: +977 (1) 4483427 Email: [email protected] Visit us at: www.narma.org.np

Final report

Hariyo Ban Program Knowledge and Learning Documentation of Livelihood Interventions

26 June 2019

NARMA Consultancy Private Limited 39- Prachin Marga, Naya Baneshwor, Kathmandu, Nepal P.O. Box 13536, Kathmandu Nepal Tel: +977 (1) 4463021 Fax: +977 (1) 4483427 Email: [email protected] Visit us at: www.narma.org.np

Table of Contents

ACRONYMS AND ABBREVIATIONS ...... I EXECUTIVE SUMMARY ...... II 1. INTRODUCTION ...... 1 1.1 BACKGROUND ...... 1 1.2 OBJECTIVES OF THE STUDY ...... 1 1.3 APPROACH AND METHODOLOGY ...... 1 1.3.1 Study framework and areas of inquiry ...... 1 1.3.2 Methodology ...... 2 1.4 COVERAGE ...... 4 1.5 LIMITATIONS ...... 4 1.6 STRUCTURE OF THE REPORT ...... 5 2. LIVELIHOOD INTERVENTIONS IN HARIYO BAN ...... 6 2.1 INTRODUCTION ...... 6 2.2 THEORY OF CHANGE ...... 6 2.3 TYPES OF ENTERPRISES SUPPORTED ...... 7 2.4 NATURE OF SUPPORT ...... 7 3. KEY FINDINGS: LEARNINGS FROM THE LIVELIHOOD INTERVENTIONS ...... 9 3.1 INTRODUCTION ...... 9 3.2 LEARNINGS BY AREAS OF INQUIRY ...... 9 3.2.1 Appropriateness of interventions ...... 9 3.2.2 Inclusiveness and equity ...... 13 3.2.3 Effectiveness of market-based intervention vis a vis equity-based model ..... 15 3.2.4 Market linkages including the involvement of the private sector ...... 16 3.2.5 Collaboration, linkages and partnerships ...... 18 3.2.6 Outcomes & effect of interventions ...... 21 3.2.7. Sustainability of interventions ...... 22 4. SUMMARY AND CONCLUSIONS ...... 26 4.1 CONCLUSIONS ...... 26 4.1.1 Reduced threats to target species ...... 26 4.1.2 Market based livelihood alternatives developed and promoted ...... 27 4.1.3 Community readiness to adapt and benefit from climate change increased .. 28 4.2 RECOMMENDATIONS ...... 28

LISTS OF DOCUMENTS CONSULTED ...... 30

ANNEXES ...... 31 ANNEX 1: AREAS OF INQUIRY AND INDICATORS ...... 32 ANNEX 2: LIST OF ENTERPRISES AND GRANTS STUDIED ...... 33 ANNEX 3: STUDY ENTERPRISES ...... 35

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Acronyms and Abbreviations

ACA : Annapurna Conservation Area BZCFUG Buffer Zone Community Forestry User Group BZUC : Buffer Zone User Committee CARE : Cooperative for Assistance and Relief Everywhere DCPA : District Coffee Producers Association CF : Community Forestry CFUG : Community Forestry User Group CHAL : Chitwan Annapurna Landscape FECOFUN : Federation of Community Forestry Users in Nepal GoN : Government of Nepal HH : Households NCPA Nepal Coffee Producers Association NTNC : National Trust for Nature Conservation PS : Private Sector PWBR : Participatory Well Being Ranking RF : Revolving Fund RM : Rural Municipality SGP : Small Grants Program SBKI : Sagar Bee Keeping Industry TAL : Terai Arc Landscape WBR : Well Being Ranking WWF : World Wildlife Fund

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Executive Summary

Hariyo Ban phase two is a five year programme implemented in the Chitwan Annapurna Landscape (CHAL) and Tarai Arc Landscape (TAL) with the objectives of improving conservation and management of CHAL and TAL landscapes and by reducing climate change vulnerability in these landscapes. Livelihoods intervention or development of market based livelihood alternatives is an expected result under the biodiversity objective intended to contribute to this objective by raising the economic status of the beneficiaries and weaning them off of their dependency on forest.

This study consisted of studying the commercial enterprises implemented as part of the livelihood interventions and review of relevant reports to document knowledge and learnings The overall objective of this task is to produce a valuable document on livelihoods interventions supported by the Hariyo Ban Program with strong ownership of the partners and stakeholders.

A study framework was developed and applied to guide the steps of a participatory and reiterative methodology that focused on the processes initiated to determine and implement the interventions, inputs applied, intended as well as unintended outcomes achieved and the lessons learnt therein.

The study adopted an inductive inquiry method, where semi-structured questionnaires were administered in the form of Focused Group Discussion (FGD) and semi-structured interviews with key stakeholders. The FGDs and KI interviews were guided by the seven areas of inquiry:  Appropriateness of interventions (relevance to Hariyo Ban goal)  Inclusiveness and equity  Effectiveness of market based model vis a vis equity based  Market linkages and involvement of private sector  Collaboration, linkages and partnerships  Outcomes/effects of intervention  Sustainability of interventions

Out of a total of 59 enterprises implemented, 16 enterprises under regular program and 2 enterprise supported under Small Grant Projects (SGP) were studied. The enterprises studied included 9 small, 5 medium and 2 large enterprises as per the definition of Hariyo Ban. This included 7, 4, 3 and 2 enterprises implemented by WWF, NTNC, FECOFUN and CARE Nepal respectively. The SGP were implemented by WWF engaging Sagar Bee Keeping Industry and Organic Valley Private Ltd. The enterprises were situated in Banke and Kanchanpur Districts of TAL landscape and Kaski, Tanahu, Chitwan and Nawalparasi Districts of TAL landscape.

All the interventions or enterprises were implemented through NRM based oragnisations such as the CFUGs and BZFUGs located adjacent to biodiversity hot spots like Panchase Protected Forest, Chitwan National Park and Shuklaphanta National Park. As a result, majority of beneficiaries and participants of the enterprises were from poor and forest dependent households (HHs) among which most were women, including women from dalit, ex Kamaiya and ethnic minorities.

Hariyo Ban support to these enterprises were in the form of financial support through grant and establishment of a revolving fund. Technical support was provided for skills development and operation and management capacity building in the form of trainings (on site and off site) and learning visits to relevant ongoing projects/activities elsewhere. Support modality also included material inputs such as seedlings, manure, tools and equipment.

Some of the key findings from this study are that due to a parallel development of increased income from the implementation of the enterprises, improved transportation system in the rural

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areas and increased availability of LPG and biogas access and affordability to use LPG and biogas, dependency of the peoples on forest resources has decreased. Likewise, increased planting of fodder trees and grasses in and around own farm as well as in leased land has also drastically reduced the need for these beneficiaries to depend on forest for livestock. The study revealed that by providing alternative livelihood opportunities to forest dependent HHs living in and around biodiversity hot spots and strengthening their capacities to engage and manage the enterprises successfully, threats to target species of plants and animals have reduced. A well planned and managed enterprises as implemented by the Hariyo Ban are likely to contribute to reduce the climate change related risks but need no be screened enterprises through appropriate bio-diversity threat and climate change risks before the initiation of enterprises.

Implementation of the program activities through CFUGs and BZUGs provided opportunity to engage the poor, deprived and climate vulnerable HHs in the enterprises. Most of CFUGs and BZCFUGs have carried out PWBR to identify and select the real needy HHs for participating and benefiting from the enterprises. But, some enterprises, by its nature, included poor and deprived women and ethnic groups. This suggests that whether to undertake PWBR or not depends on the type of the enterprise.

The study identified six market based livelhoods implemented. Table below assesses the sustainability prospects of these six models.

SN Market Models Sustainability Representative study enterprise prospect 1 Using an intermediary agent to link Medium  Wool Weaving, Padampur, producers/beneficiaries and the traders Chitwan specifically selling labor  Kanthamala Srijanshil Women Group, Tanahu 2 Direct marketing products or services by Medium  Babu Kuwa Fishery Group, the enterprises/group marketing- no Banke Ayadhyapuri Homestay, intermediary Chitwan 3 Enterprise producing partially processed High Machhaapuchhre Uttam Coffee products and selling the products for Cooperatives, Kaski further value addition and marketing to a private trader 4 Members of the enterprises selling their Low Vegetable Production and products individually in the market Marketing, Khair Kandra, Kanchanpur 5 Buy back arrangement between the Medium Turmeric Production and producers and trader Processing, Nawalparasi 6 Recruitment of private trader to undertake High Bael Juice Production and processing and marketing by the CF Processing, Tanahu

Lastly, this report has provided a few recommendations:

 Develop a participatory biodiversity assessment tool for screening livelihoods enterprises from the perspective of potential threat to biodiversity conservation including risks to climate change, shocks and stresses so that beneficiaries internalize reasons to qualify the support received from the program from the beginning.  Link livelihoods interventions to the microfinance mechanism and guarantee beneficiaries to subsidize the payment of interest together with the loan instalment payment from the income earned from the respective enterprise.  Provide flexibility to the prospective beneficiaries to select the enterprise themselves within the overall goal and objectives of the Hariyo Ban  Give priority to the marketing skills development and promotion of value addition technologies.

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1. INTRODUCTION

1.1 Background

The Hariyo Ban Program Phase II, funded by United States Agency for International Development Aid (USAID), is implemented in two important landscapes of Nepal- the north south Chitwan Annapurna Landscape (CHAL) and the east-west Terai Arc Landscape (TAL). The goal of this program is to increase ecological and community resilience. Like phase I, this phase is also implemented by a consortium of four partners led by World Wildlife Fund (WWF) in 15 districts of TAL and CHAL. The other three partners of WWF are Cooperative for Assistance and Relief Everywhere (CARE), National Trust for Nature Conservation (NTNC) and the Federation of Community Forestry Users in Nepal (FECOFUN). This second phase program was initiated in July 2016 for a period of 5 years after the successful completion of the first phase.

The Phase II has two core interwoven components – biodiversity conservation and climate change adaptation with livelihoods, governance and gender equality and social inclusion (GESI) as cross-cutting themes.

This report documents knowledge and learning of the livelihoods interventions implemented by the Hariyo Ban Program through the four consortium partners. This study was undertaken by NARMA Consultancy Pvt. Ltd. Kathmandu between April to June 2019.

1.2 Objectives of the Study

The overall objective of this study is to produce a valuable document on livelihoods interventions supported by the Hariyo Ban Program with strong ownership of the partners and stakeholders. The scope of the work includes:

 Review of Hariyo Ban program documents including annual work plans, semi/annual performance reports, Monitoring, Evaluation and Learning (MEL) plan and other documents with a focus on livelihoods  Data entry and analysis  Compilation, synthesis and report preparation  Interaction with key stakeholders and gather information from the field  Finalize report based on the comments from Hariyo Ban team

1.3 Approach and Methodology 1.3.1 Study framework and areas of inquiry

While documenting the lessons, the links between project processes with the outputs and outcomes have been explored. This has helped to carefully track meaningful events and enabled reflection and analysis of these events to understand what was going on, how it went on and why it happened. This study largely focused on the social, environmental and institutional aspects or the circumstances when intervention was carried out. Figure 1.1 below illustrates the study framework used in this study.

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Figure 1.1: Study Framework

Context Context What was outcome/achievements?

Intended

Inputs Positive

Outputs Outcomes Livelihoods Lessons interventions Outputs Learned

Positive and Negative

Process

Not intended

How outcomes were achieved Context (process) Context

Within the above broad framework, the study sought answers to the following questions while documenting knowledge and lessons.  Why particular activities or interventions were designed? What was the rationale?  How were those activities implemented?  Who was involved in the implementation?

1.3.2 Methodology

The study adopted the inductive inquiry method, where semi-structured questionnaires were administered in the form of focused interviews with different types and categories of stakeholders either individually or in a group. The study was based on information collected from primary sources supplemented with the information from secondary sources. It comprised of a desk review, intensive participatory discussions with the beneficiaries and consultations with a wide range of stakeholders. Within the above broad framework, the study focused on the following areas of inquiry.

Areas of inquiry

 Appropriateness of interventions (relevance to Hariyo Ban goal)  Inclusiveness and equity  Effectiveness of market-based model vis a vis equity based  Market linkages and involvement of private sector  Collaboration, linkages and partnerships  Outcomes/effects of intervention  Sustainability of interventions

Annex 1 presents indicators by the areas of inquiry.

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Figure 1.2 presents the sequential steps used in the preparation of this knowledge and learning document.

Figure 1.2: Study methods

Study Method

Interactions with Desk Review Field visit Partners and Key Stakeholders

Triangulation and Draft Knowledge and Learning Document Preparation

Debriefing to project team

Final Product

Desk review

At the onset of the study, the study team collected and collated available documents and resources at the program, especially Annual Work Plans (Year- 1, 2 and 3), Annual Performance Reports (Year 1 and Year 2), Semi-annual Performance Reports (Year 1, Year 2 and Year 3), Value chain studies, Business plans and Relevant Small Grant Reports. During the desk review, the study:

 Mapped different type of the enterprises (small, medium and large) carried out across the landscape, including the number of beneficiaries  Reviewed process followed for execution of market-based livelihoods interventions,  Assessed the availability of information about answering key questions related to knowledge document

Based on this, the study team prepared a data collection matrix focusing on key questions of the study. This include information that exists in the currently available documentation and that needs to be further explored.

Selection of enterprises for knowledge and learning documentation

The review of the enterprise database revealed that Hariyo Ban had supported 59 enterprises (41 small, 14 medium and 4 large enterprises). In terms of the partners, WWF Nepal had supported the highest number of enterprises followed by FECOFUN, NTNC and CARE Nepal respectively. In addition, Hariyo Ban also administered small grants program (SGP) to ensure innovation, capacity building, research testing and/or promoting innovative science and technology, piloting new approaches, concepts or tools so as to support program beneficiaries.

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1.4 Coverage

Of 15 districts covered by the Hariyo Ban, this study selected six districts namely Kaski, Tanahu, Chitwan and Nawalparasi from CHAL and Banke and Kanchanpur from TAL in consultations with the WWF. This included province no 3, Gandaki, Province 5 and Sudurpaschim province. Given the geographic scaterness and limited time, the study selected 27% of the enterprises, i.e. 15 enterprises for the detail field investigation. In addition to it, it included 1 training and 2 SPGs. The study distributed the sample size based on population probability to the size by categories of enterprises and partners. However, the sample size was increased to ensure fair representation of all partners and the nature of interventions. Table 1.1 below presents the distribution of sample by enterprise size and partners.

Table 1.1: Number of studied livelihood interventions by types

Grand Livelihood Implementing Enterprises Total interventions Partners Large Medium Small CARE Nepal - 1 (Bel juice) 1 (Poultry) 2 3 (Vegetables, Enterprises FECOFUN - Goat) 3 2 (Wool, NTNC - Dairy) 2 (vegetable) 4 2 (Tea, 3 (Kanthamala, WWF Nepal 2 (Homestay) Coffee) Fish, Honey) 7 Total 2 5 9 16 Transfer of Cerana Bee colony from Wooden Small grants WWF local made hives to modern Bee Hives NA Programs Organic turmeric production and marketing WWF through contract farming NA Total 2 5 9 16

Majority of the households participating in this study are among the forest dependent households and members of CFUGs of adjoining community forests. Members of the Wool Weaving enterprise in Padampur were resettled recently from Chitwan Nationa Park. Members of the enterprises visited in Madi,: Thangkhola, Chitwan; Devghat, Tanahu; Bamdi and Babu Kuwa, Banke were part of the resettled community who originally came from adjoining hill districts. Similarly the members of the Bihani and Bikash Krishi Group, Krishnanagar, Kanchanpur are solely consisting of members who were recently resettled “freed kamaiyas” or bonded laborers. The Kanthamala enterprise in Dodretar, Tanahu consisted solely of “dalit” women.

Annex 2 presents the list of 18 enterprises.

1.5 Limitations

This study has included different types and categories of enterprises which could be reached and studied within a short period of time and resources available. However, it could not cover all the commodities supported through the livelihoods interventions and SPGs. Some commodities have been missed out. Likewise, considering the geographical spread and scattering of the enterprises, the study has been conducted in six districts representing both landscapes- CHAL and TAL. The study was carried out through the qualitative method only using checklists and semi-structured interviews. As a result, findings presented in this report could not be triangulated through quantitative methods like beneficiary/household survey.

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1.6 Structure of the Report

This report is organized into four chapters. The first introductory chapter presents background of the study, objectives, methodology and limitations. Second chapter briefly introduces livelihoods interventions implemented by the Hariyo Ban and the theory of change envisaged by the livelihoods interventions. Chapter 3 presents key findings including knowledge and learnings. Lastly, summary, conclusions and recommendations are presented in Chapter 4.

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2. LIVELIHOOD INTERVENTIONS IN HARIYO BAN

2.1 Introduction

Livelihood interventions is a cross cutting program within all the major components of Hariyo Ban namely biodiversity conservation and climate change adaptations. The livelihood interventions are carried out with a premise that poverty in forest dependent people is a root cause and a major threat to biodiversity conservation in Hariyo Ban landscapes. Natural resources are key assets for the poor for their livelihoods, but in some places overharvesting of firewood, timber and other forest products including overgrazing is resulting in deforestation and degradation of forests. If environmental degradation continues, they may have no option but to settle inside forests, resulting in encroachment (another major threat). Presence of people in and around the forest for livelihood activities may result in human-wildlife conflict, or conflict may occur when wild animals raid livestock or crops, affecting people’s livelihoods. The program is focused on the creation of alternative livelihood opportunities with the twin goal of reducing community dependence on unsustainable extraction of forest resources and contributing to biodiversity conservation simultaneously. Specifically, the livelihoods interventions aim to deliver economic benefits to the people involved in conservation and natural resources management, promote climate-smart and conservation friendly market- based livelihoods and diversify the employment opportunities. Hariyo Ban program has been promoting market-based livelihood interventions in the following different categories:

 Small-scale enterprises: This refers to the enterprises having part-time employment and investment of less than NRs 2.5 million. This include vegetable, pig, goat, dairy, wool spinning, fish farming, skill-based training, clay jewelry etc.  Medium enterprises: Refers to enterprises having full-time employment of 1-10 persons and investment of NRs 2.5 to 20 million. This includes Coffee, Cardamom, Bael juice, Citrus, Broom grass, Cinnamon etc.  Large enterprises: Refers to enterprises with more than ten persons with an investment of more than NRs 20 million. Ecotourism enterprises are supported in this category.

Interventions for livelihoods improvement implemented by Hariyo Ban Partners as cross- cutting theme in TAL and CHAL area have provided tremendous opportunities for knowledge management and learning with respect to the planning, selection, implementation and sustaining livelihoods related interventions in similar settings and contexts as that of the Hariyo Ban areas. Documentation of knowledge and sharing lessons learned is vital to work to contribute to the future advancement of conservation and development activities.

2.2 Theory of Change

Hariyo Ban implements market based livelihoods interventions under the biodiversity objective Hariyo Ban also implements the Small Grant Programs (SGP) which is based on competitive proposals submitted by various organisations so as to contribute to the main goal and objective of the program. As stated, the main goal of the program is to increase ecological and community resilience in the CHAL and the TAL; and its main objective is to improve its conservation and management reducing its climate change vulnerability. The program expects three interventions to increase income, employment and reduce dependency on forest resource of the program beneficiaries, and also contribute to reduce gender and inclusion gaps in order to ultimately help in reducing threats to biodiversity and climate vulnerability.

Figure 2.1 below presents theory of change as conceived under the livelihoods improvement components in the Hariyo Ban program.

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Figure 2.1: Theory of Change under Livelihoods Interventions in Hariyo Ban rogram

Livelihoods Increase Interventions income

Enterprises

Biodiversity Threats

Dependency on Reduced Training/Materials Forest and GESI Gaps reduced Support Adaptive Capacity on Climatic Shocks and Stresses Enhanced Small Grant Increase Employment

2.3 Types of Enterprises Supported

The list of enterprises provided by the program reveals that to date it had supported 59 enterprises, comprised of 41 small, 14 medium and four large enterprises (Table 2.1). In terms of the partners, WWF Nepal had supported the highest number of enterprises followed by FECOFUN, NTNC and CARE Nepal. According to the Hariyo Ban record, 3,874 households have been benefitted by these enterprises.

Table 2.2: Number of enterprises supported by HB partners

Partners Large Medium Small Grand Total CARE Nepal 2 2 4 FECOFUN 16 16 NTNC 4 3 7 WWF Nepal 4 8 20 32 Grand Total 4 14 41 59

2.4 Nature of Support

Hariyo Ban program through its implementing partners have various tools and mechanisms to provide support to the enterprises.

Capacity building support consisted of trainings to build or enhance their technical skills directly by Hariyo Ban partners or by private sector agencies through Hariyo Ban small grants such as for organic vegetable farming, off season vegetable growing, IPM and manure making and management for vegetable enterprises. Similarly, in dairy enterprise trainings on shed management, animal health amongst other were provided. Goat keepers were trained on construction of improved goat pens while members of homestay enterprises were trained

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on hospitality, cooking, tourist guide and waste recycling and handicraft making. These training were both site based as well as conducted in training centers at the respective district Head Quarters.

Although most farmer members associated with vegetable enterprises have been producing vegetables before joining the enterprise, those engaged in dairy kept cows and those opting for handicrafts (kanthamala) were already making them. Homestays and Bael juice production were two new areas for the participating members of the enterprises. They lacked basic technical skills and knowledge to move from subsistence to commercial and market based undertaking. Capacity building support through several training was provided Hariyo Ban and many other agencies including Tara Gaun Bikas Samiti for home stays. Hariyo Ban and its implementing partners provided training on the operation and management of the enterprise (and groups and associations), business plan preparation and management, development of network and linkages with service providers like local government bodies and private sector and most importantly on the market promotion. Hariyo Ban facilitated linkage and partnership development to ensure strengthened capacity, e.g. Intrepid etc.

Capacity building also paid attention to learning by directly witnessing and experiencing successful examples to emulate in their own enterprises. Visits were organized to facilitate this learning and exchange process by Hariyo Ban and its implementing partners within the country.

Financial support included two types of models- revolving fund and grant. Revolving fund is a system where grant recipients will be provided a definite amount of cash to initiate enterprise as a seed money through natural resource based entity such as the CFUGs. The fund provided as a loan to the grant recipients have to be return to the management entity (CFUGs) as per the agreed terms and conditions with a small interest levied so that the fund could be used later to distribute the support to other needy members. Grant: The grant is provided to the members of the enterprises, specifically to that of the large and medium enterprises such as home stay, fisheries and coffee based on the needs and demands of the local partners such as CFUGs, Cooperatives and Tea Cooperatives in the form of either cash or materials or production inputs. In many instances, groups are also encouraged to save regularly in the cooperative that they belong to which enables them to access loan on low interest (Vegetable Groups, Tee Farmers, Turmeric Farmers)

Material inputs were also directly provided to the members of the enterprises by Hariyo Ban through its implementation partners such as the spinning wheels for wool weaving enterprise members, chaff cutters for dairy, rakes, spades and sprayers for the vegetable growers, tea or coffee saplings. Hariyo Ban has also facilitated linkage and mobilized support from international agencies such as the Intrepid which provided beds, mattresses, solar pumps and water heaters amongst other to the Ayodhyapuri Homestay.

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3. KEY FINDINGS: LEARNINGS FROM THE LIVELIHOOD INTERVENTIONS

3.1 Introduction

The livelihoods interventions support the following two key objectives of the second phase of the Hariyo Ban program.

(a) Improve conservation and management of TAL and CHAL landscapes; and (b) Reducing climate change vulnerability in the landscapes.

This section presents key learnings from the livelihood interventions which include implementation of small, medium and large enterprises, operation of small grant and training or capacity development related activities. The key findings presented in the report are focused on documentation of knowledge and learnings which envisage to respond to the questions raised in the following seven areas of inquiry as briefly mentioned in the last chapter. a) Appropriateness of interventions b) Inclusiveness & Equity c) The effectiveness of Market-based intervention vis a vis equity-based model d) Market linkages including the involvement of the private sector e) Collaboration, linkages and partnership f) Outcomes/Effect of intervention g) Sustainability of intervention

This chapter presents data and information collated from the field study and interactions carried out with the related Hariyo Ban partners (WWF, NTNC, CARE Nepal and FECOFUN) working at the grassroots levels, implementing partners, beneficiaries and other key stakeholders of the fifteen enterprises (2 large, 4 medium enterprises, 9 small enterprises), one training program focused on wool weaving and two small grant project reveal that in general, livelihoods interventions are appropriate from the perspective of the two objectives of phase II of the Hariyo Ban. Annex 3 briefly describes these enterprises and the projects implemented through the small grant.

3.2 Learnings by Areas of Inquiry

3.2.1 Appropriateness of interventions

Contribution to the bio-diversity conservation. Recent years have seen increased reduction in the use of the forest resources. Not only because of rise in average household income but also due to increased availability of the Liquefied Petroleum Gas (LPG) and improvements in rural transport system, poor peoples’ affordability to use LPG gas has increased. Most of the poor people currently use either LPG or combine with bio-gas and firewood. Likewise, peoples’ necessity to collect fodder, grasses and leafy dried twigs (Syaula) from the forest has also decreased. Many have reduced the number of livestock due to the shortage of labor and other factors. The tendency of the farmers to plant or protect fodder trees on the terraces of the private land is on increase as well. While some have increased plantations of fodder trees in their own private farm land, others have begun to rent private land for growing grasses when practiced livestock farming. The latter is specifically applies in case of commercial livestock farming. Stock feeding is on rise. Therefore, unlike the past years, peoples’ dependency on the forest resources has decreased in the recent years. Nevertheless, members of the Furketari Community Forest Users Groups involved in commercial vegetable growing in Hemja, Kaski district reported that the frequency of visits to the community forest (CF) for collecting forest products has almost been nil these days 9

because they are so occupied with their vegetable cultivation that they have virtually no time to collect firewood and green leaves from the forest even when they could combine with the LPG and reduce the cost of the LPG use. They added that some would have collected fire woods and leaf twigs from the CF if they had time to collect forest products. This, in turn, according to the Furketari CF members, has resulted in the improvements of the bio-diversities in their CF. Members of the Furketari CFUG were not alone to provide this kind of logic in support of the biodiversity conservation and linkages of their enterprise with the biodiversity conservation but to almost all enterprises which, among others, include Gurung Community Homestay, Bhaudare Majhtole, Harpan Bari Tea Cooperative, Bhadaure, Machhapuchre Uttam Coffee Producers’ Cooperative, and Shrijanshil Kanthamala Women Group, Dordotar, Tanahu as well had similar statements.

However, controversies were also reported with respect to the selection of enterprises. Some participants receiving an interest free loan Rs 25,000 to 60,000 from the revolving fund provided by the Programme to the users of Kalika Forest Users Group, Devghat Dham Rural Municipality, Ward 5, Tanahu say that many of them opted other enterprises although their group was for “Goat Keeping”. They are currently operating other enterprises such as poultry, vegetables, dress making and piggery while they were supposed to use the fund for the goat keeping enterprise. They say, “We do not have adequate fodder trees and forages in our farm land for practicing stall feeding. Many times we may be required to take goats in the CF for grazing.” While the contribution of quick income for small and marginal farmers by goat keeping enterprise can’t be challenged, issue of whether it is appropriate to promote enterprises like goat keeping through biodiversity conservation oriented projects like Hariyo Ban remains. This might especially be true when common belief still exists that free grazed or goats grazed in the forest produce better meat than those that are penned which motivates goat keepers to continue taking their goats to the forest. Thus, for reducing biodiversity threats and people’s climate change vulnerability, goat enterprise may not be the most appropriate.

Likewise, question on growing annual crop like turmeric cultivation in the community forests located in buffer zone areas of Chitwan National Park was also raised by a some participants in the FGD (members of the Krishnasar and Namuna BZCF) crop required ploughing, intercultural and mulching every year. Distribution of land to different groups will also lead to land fragmentation as well. While they support leasing a part of CF land for income generating activities targeting poor and vulnerable groups but would suggest to go for perennial tree crops rather than annual crops like turmeric. They argued, “Since perennial crops would not give quick return like annual crops, it might be necessary to devise some methods or means to support the poor and marginal leaseholders in CF in the meantime but not to promote annual crops like turmeric”.

Considerations on Local Feasibilities and Priority to Local Needs. Available evidence show that the prospect of sustainability of enterprises will be high when target groups are involved in the selection of enterprises. Likewise, importance of selecting enterprises based on local feasibilities and demands of the local people have been established already by several studies and projects. This applies to the Hariyo Ban as well. When explored about the extent to which target groups were consulted and local feasibilities were carefully assessed prior to the selection of the selected enterprises, some interesting learning were noted as follows:

Providing Income Generating Opportunity to Poor Women, A case of Wool Weaving Enterprise. The members of these enterprise are poor women relocated from the Chitwan National Park and are mostly from Chepang and Tamang ethnic minority groups. Many of the members participating in the Wool Weaving enterprise were around and above 60 years of age. These women who are not able to engage in hard labor works due to age and can’t allocate full time for wage earning because of high involvement in household chores and child care but bound to earn something to sustain their livelihoods were happy to be involved in 10

such enterprises which they can manage in their home and their own time. Earning something is important for these women than nothing. This was the learning of a wool weaving enterprise implemented by Hariyo Ban Partner NTNC in Padampur among the users of Thangkhola CF in Chitwan district.

Nearly 20 years ago, many poor women, specifically belonging to Chepang and Magar ethnic group, used to collect firewood from Thangkhola CF and sell in the local markets. But this practice could no longer continue because of both increased use of LPGs and local restrictions in collecting firewood from the forests. Needless to say, the demand for firewood is almost nil in the local market, apart from legal hurdles. But the poor women required an alternative income generating sources for their livelihood. In 2057/58, many years before the initiation of Hariyo Ban, NTNC had introduced wool weaving enterprise targeting aforementioned target group under which a few women groups were formed and trained to weave wool. Members of these groups wove wool using a local wooden handloom (locally called Hate Charkha). After about 8 years in operation, this enterprise ended after the marriage of one of the members of the group who controlled marketing by collecting woven wool from members and send to traders in Kathmandu. In fact, she was working as an agent of a trader who provided raw wool to her for weaving. After her departure, there was no one able to link traders and the women who could weave wool but lacked capacity to bring raw wool and send to the traders for carpet making. This activity was again revived in 2070 after the initiation of the Hariyo Ban (first phase). Twenty two women groups comprising of 185 women are involved in wool weaving. Members of the Thangkhola CFUG were provided training with handloom to weave wool. Ms. Buddhi Maya Ghale has opened a Hastakala Training Centre in Padampur to provide training to women who are interested to learn wool weaving. Group members collect raw wool from the center and return to the center after weaving. Currently, a wage of Rs. 150 is provided for weaving a kilo of wool. According to the participants of a group meeting organized as part of the field survey, on an average, each day one weaves around 1 to 2 kg wool. This means that average income per day per member would range between Rs. 200 to Rs 300 (Less than US$ 3.00 per day). On first site, this amount may appear very small, but for a 66 years old lady Ms. Bin Maya Gurung, who has been continually engaged in this wool weaving since last 15 to 16 years except a few years when the enterprise was interrupted as discussed above says, “This income is better than passing time going to others’ houses for fruitless gossips”.

Above group has established and operated a Saving and Credit Cooperative in the village in order that they could mobilize saving and credit scheme for the members. Five of the members have now changed their wooden charkha into an electric charkha so that they could increase their output. Some members have now even initiated carpet making in the village itself. Despite of low income from the enterprise, the future of this enterprise seemed promising. Many women state that this center has been providing opportunity for them to earn during that time when they are free from household chores and also for those who can’t do hard works and work for others as laborers. Key learning from this enterprise, according to the members of the wool weaving group, is that if income is guaranteed and there is no involvement of seed capital initially to initiate the vocation, poor would voluntarily participate in it, provided that they

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have the skills. Therefore, providing skills oriented training with market guarantee to sell services is important.

Attracting rural youths in bio-diversity conservation, A Case of Home Stay Promotion Ayodhya Puri, Chitwan. Ayodhya Puri is a small settlement located in Madi valley of Chitwan district mostly inhabited by indigenous Magar1 ethnic group. As this village is a buffer zone of Chitwan National Park (CNP), this area is one of high impact areas of wild lives. Earlier, people would often trap and kill wild boars and other animals to save their crops and protect themselves. Growing crops in this village was very difficult. While adults struggled with wild animals almost daily, most of youths would leave village to gulf countries and India in search of jobs. People were struggling almost daily with the wild lives and CNP for compensation and legal matters. They understood the importance of biodiversity conservation but they say, “Stomach comes first”. They were not benefitting from rich bio-diversities found in the CNP including their settlement areas, local opportunities and rich cultural heritage of Magar Community. Hariyo Ban’s support to the Ayodhyapuri Buffer Zone Users Committee to operate home stay scheme (large enterprise) was the enterprise which the locals had dreamed since many years. Eleven households are currently engaged in the home stay enterprise. Initially, each HH interested to participate in the scheme invest nearly NPR 8 to 10 lakh to construct a cottage comprised of two rooms with attached wash room/toilet. In the next stage, the management committee would support the member to provide facilities such as bed and furniture. Three youths who have recently returned to the village from Malaysia decided to remain in the village and have participated in the homestay programme. They stated that they realized that wild animals are also an opportunity and not only a challenge. “If we maintain and conserve bio-diversity in our forest and settlements, we can earn our livelihoods right in our home village.” They stated that illegal hunting and poaching of wild animals does not exist anymore. The condition of the forest has improved since and that is clearly discernible. Management committee has constructed community hall and dining hall with a common kitchen to show cultural program and feed the visitors when number of visitors at a time is more than five. The management committee allocates room to the guests turn by turn so that everyone has equal opportunities. Rates are fixed by the committee. Mohan B. Pun Magar, Chairman of the Home Stay Management Committee says, “The enterprise has provided opportunities to interact and learn about the importance and different practices of bio-diversity conservation with several experts visiting our settlement apart from being a source of additional income.” AusAid too supported this scheme through an agency named Intrepid Group, a travel agency based in Australia. Local people are encouraged to further expand and sustain the business. If people learn how they could transform challenges into opportunities, sustainability prospect of the enterprise is also high. Likewise, seasonal migration of rural youths to other countries for small low paid unskilled labor could be discouraged through enterprises such as homestay.

Despite of aforementioned few controversies which could be an issue for further debates with respect to the selection of enterprises in the future, in general, a large majority of the respondents in all the enterprises selected as part of the study credit livelihoods improvement activities of the Hariyo Ban for the improvements in bio-diversity conservation and decrease in the dependencies on the forest products., Hariyo Ban, has substantially contributed to the further reduction of the poor peoples’ dependencies on the forest resources through enterprises and small grant such as Honey Bee Promotion, apart from providing opportunities

1 One of disadvantaged ethnic groups in Nepal. 12

for additional income and employment generation for the households. Increasing awareness of rural people on bio-diversity conservation and sustainable use of forest resources is necessary but may not lead to a desired result unless livelihoods related activities targeted to the poor and vulnerable households are implemented simultaneously.

3.2.2 Inclusiveness and equity

Implementation of the program through local implementation partners such as CFUGs, Buffer Zone User Committees, Ghoral Conservation Committee have offered opportunities to target poor, deprived and climate vulnerable HHs. These groups have been undertaking participatory well-being ranking (PWBR) to identify poor households and individuals to ensure that poverty reduction support could be provided through community forestry initiative. According to the Furketari CFUG, they have selected 30 HHs to undertake organic commercial vegetable production based on the results of the PWBR and have given first priority to HHs identified as the poorest. Members reported that they have ranked the households based on the following criteria:

(a) Size of the land holdings and properties such as the houses (b) Availability of food grains (c) Size of the family (d) Household businesses and employment (e) Education level of the household members and

Furketari CF members claimed that PWBR is an effective instrument to identify poor HHs needing support and for ensuring equitable sharing of benefits. According to them, WBR distribution of 30 HHs participating in commercial vegetable production in Furketari CFUG was as follows:

D Category (Poorest) - 10 HHs C Category (Poor)-11 HHs B Category (Average)-9 HHs A Category (Better off)-0

While aforementioned distribution of HHs suggests that 70% HHs participating in vegetable production are very poor. They say that it is very difficult to distinguish HHs between D and C categories. They further added that, in principle, the CF user committee would not move from D to C or C to B category unless other members falling in the respective category are not willing to participate in the selected enterprise. Apart from the above, they said that they have provided additional financial support to landless HHs in D category to rent landform the CFUG fund. Likewise, PWBR ranking was used by Kalika CFUG, Devghat Dham, Nawalparasi when selecting beneficiary HHs for the goat farming for availing a part of revolving fund (RF) support provided by the Hariyo Ban. At present, 15 farmers are participating in the program. In the first phase, all 8 HHs receiving RF were the poorest HHs (D category). Additional 7 members included currently belong to ‘C’ category. Likewise, members of Buffer Zone User Groups in Jaya Laxmi Women Community Forestry User Group of the Shukla Phanta National Park organized into two groups, Bihani Agriculture Group and Bikas Agriculture Group reported that most of the members (more than 90%) of these two groups are women and 100% are the ex- kamaiyas from the minority Tharu Ethnic community. They indicated that there would be no need to undertake WBR as all target group is homogenous and belongs to ex-kamaiyas.

In some enterprise there was no need to carry out a PWBR for ensuring inclusion and equityas revealed by enterprise such as wool weaving in case of Thangkhola Community Forestry, Padampur, Kalika Municipality, Chitwan. 100% of the women participating in the enterprise were from very poor HHs who wanted to earn something rather than nothing and by using free time available after completing HH chores. 13

HHs with labor shortage but having a bigger piece of land are likely to participate in enterprise such as tea and coffee. When a member of a tea production group in Bhadaure Kaski was asked why he planted tea and had he earned any income so far from this crop, he replied, “I recently planted tea because I can’t keep my land fallow. Rather than paying penalty (fine) to the government for keeping land fallow, I planted tea in my private land. After about 5 years I will be able to harvest tea and hopefully, I would be able to earn some income in the near future”.

When asked about how was WBR applied in the case of dairy (Milk Production) enterprise, members of milk production committee of the Thangkhola CFUG, Padampur Chitwan stated that it is difficult for the “D” category HHs to get involved in milk production although each members were provided interest free Rs. 50,000.00 loan from the revolving fund provided by the program. Therefore, the CFUG availed the fund to those who are financially capable, can top up with their funds through their other income sources, and has labor. Affordability, size of land holding, willingness, experience and commitment were the five key criteria applied while selecting the beneficiaries in the milk production enterprise, rather than the WBR ranking. One of the key lessons learned from this enterprise was that the prospect of success of milk production is high when fund for purchasing cow is provided to those HHs who have already 2 to 3 cows. According to them, this HH can lease the land to produce fodder and year round milk and sustain the enterprise. They indicated their commitment to protect their forest and preferred to practice stall feeding rather than collecting grasses from the forest. Therefore, renting land for forage production is important for increasing milk production. Most of the participants reported that it is very difficult to find a HH falling in “D” category who has both capacity and willingness. Fund is necessary to initiate an enterprise but the willingness and capacity are two crucial elements which need to be carefully assessed prior to availing fund or grant to initiate an enterprise for any HHs. If willingness and capacity are missing, likelihood of misuse of the fund is high. As demonstrated by Turmeric Production and Processing Project implemented by Organic Valley Private Limited in Kawasoti, Nawalparasi, Bael Juice Processing Centre, Tanahu and Kalika CFUG, Devghat Dham, Tanahu social mobilization prior to the initiation of the enterprise is high.

Provision of revolving fund in cash provides opportunities to the poor HHs to undertake need based enterprises commensurating to their capacity and willingness.

Hariyo Ban provided NPR five lakh as revolving fund (RF) to the Kalika CFUG, Devghat Dham, Ward 5, Tanahu, to implement a goat keeping enterprise targeting poorest households identified through the PWBR. The committee distributed Rs. 50,000 each to the ten poorest HHs who are required to return amount in full with no interest after the completion of six month so that the returned amount could be circulated to other members to initiate the enterprise. The CFUG allowed the RF recipients to select the enterprises by themselves. According to the CFUG, of 10 fund recipients, only 3 members undertook goat keeping enterprises and others initiated piggery, local poultry keeping, milk production, dress making, grocery shop and so forth. A few members have returned part of the fund they have received and others are in the process of doing so. Flexibility accorded by the CFUG enabled to use the fund and aided the members to select enterprises based on their capacity and willingness. Had the CFUG would have insisted on goat keeping only, many would not have participated in the program and the likelihood of dependency on forest resources would have increased. Currently, the CFUG has been preparing the list of other members who could access the revolving fund in the next lot. A large majority of the members of Kalika CFUGs are very poor, Janjati (Magar ethnic group) and Bote (Majhi). The flexibility in enterprise selection contributed not only to enhance financial access of poor people but also contributed to the sustainability of the enterprise. A CFUG member remarked, if there was no flexibility accorded to the members, it was likely to create internal competitions among goat farmers, could have replaced other entrepreneurs'/goat farmers from the goat enterprise, and reduce the price of the products due 14

to oversupply in the local markets. Therefore, opportunities such as revolving fund should provide flexibility to select the enterprise but may not be used as an instrument to promote a particular enterprise without careful assessment of local market demands and absorption capacity of the candidate entrepreneurs.

As discussed above, WBR is an useful tool for targeting poor and vulnerable HHs in those enterprises and opportunities in which likelihood of elite capture is high, as for example commercial vegetable production, commercial tea production, grant and interest free loan through mechanisms such as the revolving fund. Undertaking WBR may not be necessary in all situations. The project may ensure inclusivity and target the right types of beneficiaries through the selection of the enterprises as well.

A case of organic turmeric production under buy-back arrangement in Krishnasar CF of the CNP, Nawalparasi provides evidence that the likelihood of poor people’s participation in an enterprise is high if they get an opportunity to work in a group, provided training and other production inputs and services in packages. This suggests that training is necessary but not sufficient for the results. Complimentary services and material support such as turmeric seeds and buy-back arrangement may be necessary but based on case to case basis.

3.2.3 Effectiveness of market-based intervention vis a vis equity-based model

Different types and models of marketing arrangements were identified from 16 enterprises, two small grants and one training oriented (skills based) enterprises selected for the study. All models have strengths and weaknesses. However, the scale of effectiveness varied by the type of enterprises, management systems, local context, types of commodities and delivered services. The following marketing models were found operating in the program area with varied level of successes.

(a) Use of an intermediary like a commission agent to link producers/beneficiaries and the traders, as in the case of wool weaving enterprise in Chitwan. Only investment made by the beneficiaries on their part was labor. (b) No intermediaries used to sell the products or services. Responsibilities for marketing products or services were undertaken by the respective enterprises e.g. Ayodhyapuri Homestay, Chitwan, Gurung Community Homestay, Fish Farming Group, Babukuwa BZCFUG, Banke district. (c) Enterprise producing partially processed products and selling the products for further value addition and marketing to a private trader/firm. E.g. Machhapuchre Uttam Coffee Cooperative, Annapurna Rural Municipality, Kaski; Parchment coffee sold to traders with the support of Hamro Coffee Project, Tea Production and Processing Cooperative, Raniban CFUG, Annapurna RM, Kaski (d) Members of the enterprises selling their products individually in the market e.g. commercial vegetable production, Furketari CF, Chitwan, Batabaran BZCFUG, Kanchanpur; Goat Production Committees in Kalika CF, Tanahu; Milk Production Committee, Thangkhola CF, Chitwan; Kanthamala Srijanshil Women Group, Dodortar; (e) Buy back arrangement between the producers and trader/service provider, Turmeric Production and Processing in Krishnasar, BZCFUG, Kawasoti, Nawalparasi (f) Recruitment of private trader to undertake processing and marketing, Bael juice Processing in Mountain Tanahu Community Bael and Fruit Processing Centre, by a group of community forests in Myagde 2, Jamune, Tanahu, and Lumbini Multipurpose Cooperative Limited.

Of the aforementioned six marketing models, the last one where members of six CFUGs come together to procure Bael Fruits from the users of the CFUGs, process and produce Bael juice suggests that it is difficult to operate a business by a joint venture of several natural based groups with different needs and priorities. Recruiting a private party to do the business could 15

be one of the best option subject to the frequent monitoring and quality control by the responsible group.

a) Poseli CF, Myagde - 1 b) Barchyang CF, Myagdi - 1 c) Jyantang Pandherakhola CF., Myagdi - 2 d) Bhirpani CF, Myagde - 2 e) Umachowk CF, Myagde – 2 f) Sidhabatasan CF., Myagde – 3

Market based interventions such as buy-back guarantee as reported in wool weaving enterprise (small), between the producers and the firm with local implementing partner such as BZCFUG as intermediary organization in turmeric production and processing, and use of private traders by a cooperative in coffee enterprise for value addition and marketing e.g. Machhapuchre Uttam Coffee Cooperative were found relatively effective in terms of addressing the marketing challenges and needs of the beneficiaries and to avoid the needs for market promotion activities directly by the beneficiaries and enterprises. But the likelihood of underpayment by the traders or second party remains. When beneficiaries were supposed to undertake marketing of their products and services by themselves, importance of marketing skills, market information and intelligence arise.

3.2.4 Market linkages including the involvement of the private sector

Apart from working with natural resources based organizations such as CFUGs and BZUCs, Hariyo Ban has utilized the expertise and business skills of the private sector (PS) in such a way that both the participating PS or Industry and the beneficiaries targeted by it would benefit simultaneously. There is a need to understand that the private sector needs to earn and sustain itself from the business. In the two Small Grant projects studied, it appears that Hariyo Ban has also used this grant mechanism to involve the private sector to support the beneficiaries in the program areas.

As a result of aforementioned scheme, Hariyo Ban has been successful to link small and marginal HHs living in the CNP Buffer Zone areas to global markets in organic ginger production through Organic Valley Private Ltd. Kathmandu. Likewise, poor and subsistence farmers producing small amount of honey at the domestic level as an additional income source have started to receive technical advice and support of a well-established and successful agency- Sagar Bee Keeping Industry, Gaidakot, Nawalparasi The following sections depicts how these two lead private firms have supported Hariyo Ban beneficiaries and created a win- win situation for both beneficiaries and themselves. The PS support mechanism conceived by the program also responds to the general critic often heard and reported in newspapers, independent studies and reports that the specific grant fund established by the government either by it or through the assistance of the development partners have not effectively reached the actual beneficiaries and misappropriated in part or full by specific service providers prior to reaching the beneficiaries. The following two cases depict how Hariyo Ban successfully involved two private firms to deliver the services in holistic packages to Hariyo Ban beneficiaries. Prior to this it needs to be mentioned that both the firms, one located near the sites of the beneficiaries and other located in Lalitpur district, were selected competitively by the Hariyo Ban based on the merits of the proposals submitted by them in their respective areas of expertise.

Organic Valley Private Limited, Lalitpur. With the objective of increasing the income of farmers along with capacity development through Turmeric Farming in Buffer Zone, the Organic Valley Pvt. Ltd along with WWF – Hariyo Ban II Program had initiated the project, Organic Turmeric Cultivation and Processing in Buffer Zone Area, Chitwan National Park. This company was established in 2003 with the objective to sell agro based products in the

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domestic and international market2.. The firm has been providing not only the buy-back guarantee to the small and marginal HHs producing turmeric in the areas leased to them by their respective CFs but also providing technologies, training and other associated complementary services including organic certification in order that producers have assured markets and technologies. The grant was channelized through a private firm but it has reached directly to actual beneficiaries. Tracing of beneficiaries receiving Hariyo Ban grant has now been easy and simple as the cultivation of organic turmeric was undertaken in lands leased by the CFUGs by identified groups of farmers with more than 80% women in the selected buffer zone CFs. Of the total grant amount received by it, more than 80% go to the beneficiaries in terms of seeds, materials and training costs. The mechanism has linked beneficiaries with an expert private agency via which they are now limited to international market.

Sagar Honey Bee Keeping Industry, Gaidakot. Established in 1996 in Gaidakot of Nawalparasi (east) district, Sagar Beekeeping Industry (SBKI)3 is currently recognized as one of the leading bee keeping industry in Nepal. SBKI is a Bee Keeping Resource Center recognized by the Government of Nepal, Ministry of Agriculture and Livestock Development, Department of Agriculture and the Agriculture Knowledge Centers (AKC) of Chitwan and Nawalparasi district. It is registered in cottage & small industry office, Nawalparasi and affiliated with Nepal Bee Keepers Association. The firm has partnered with the Hariyo Ban to provide training, modern bee hives, transfer local cerena bees to the modern hives distributed by it and provide follow-up services to farmers receiving services through it. This ensures reliable, timely and quality support and services including basic and intensive training to the small and marginal farmers involved in honey production (cerena species). As in the case of Organic Valley, grant and support services to the targeted beneficiaries have been channelized through the SBKI in 3 selected clusters of Nawalparasi district (each) which include Hupsekot Rural Municipality.

The SBKI has already provided five orientation trainings in project areas and provided basic training to 100 bee keepers. After the training, they were provided modern bee hives and important modern bee keeping equipment at 80% subsidized rate. The company will also support the establishment of bee keeping cooperative in Cluster 2, Devchuli Rural Municipality. However, many beneficiaries in Hupsekot reported that they have not been able to transfer their bees to the modern hives received by them for several reasons which, among other include, strange smell of fresh paint in the hives which bees may not have liked4, tendency of the bees to return to their old hives when modern and old traditional hives are kept together, difficulties to divide and transfer bee colonies in the modern hives etc. The BKPI envisages to establish a market-based mechanism by ensuring the buyback guarantee of the honey and other bee products, as described above in case of Organic Valley Pvt Ltd. But Lumbini Multipurpose Cooperative which has acquired Honey Processing Machine which is not yet operational due to design fault of the machine, lack of technical, financial and institutional capacity to operate the machine and working directly with the direct beneficiaries reported that the buy-back guarantee mechanism is yet to be established. Unless the market based mechanism with buy back guarantee operates satisfactorily, the purpose of taking the service of a leading bee keeping industry to deliver services to the poor and marginal people to increase income would remain elusive.

Key lessons learned from above two cases are that the partnership with lead private firms would be win-win situation for all the parties and stakeholders which include the direct beneficiaries, grassroots organizations such as CFUGs, BFUCs, commodity specific cooperatives, participating private firms, and the responsible agency implementing the

2 https://theorganicvalley.com 3 http://sagarbee.com 4 The smell will slowly vanish with the time. This may not be a problem after some time. 17

program like Hariyo Ban if subject specific expertise of the private firms is utilized based on the willingness, commitment and capacity. However, operation of buy-back guarantee scheme should be made mandatory and ensured that it works as per the contract conditions between the two parties.

3.2.5 Collaboration, linkages and partnerships

Hariyo Ban has put in a lot of efforts in ensuring or initiating a process of institutionalization of enterprises. There are examples of several CFUGs, cooperatives and groups that have collaborated and strengthened linkages and coordination not only among their members but with other relevant agencies and stakeholders towards institutionalization. Some examples of such collaboration among users/farmers and their institutionalization are: Thangkhola CFUG in Kalika 2, Chitwan District implemented by NTNC. The Srijanashil Production Cooperative was established by CARE in Dodortar, Tanahu District to bring together the necklace producing group consisting of “dalit” women. The Furketari Commercial Vegetable Farming Group in Hemja, Kaski District was organized with the support of FECOFUN under the Furketari CFUG.

An advantage of institutionalization is that it brings in accountability and transparency in the operation and management of the group and this opens up possibilities to establish collaborative linkages and partnerships with other entities that can bring in resources or inputs in the form of funds/finances, material inputs and technical services. Collaborative relationship also helps improve awareness, knowledge, skills and strengthen capacities of the individual members and their groups to develop and strengthen their businesses.

Two cases summarized below highlights the how collaborative linkages and partnership building was applied to develop their enterprises towards commercially successful businesses.

Collaboration for commercialization of coffee, a case of Shree Machhapuchre Uttam Coffee Production Cooperative Ltd. This cooperative is based in Annapurna Rural Municipality, Ward 1 in Kaski district and was established to help market coffee produced by farmers of this area initially through the support of the District Coffee Producers Association (DCPA).

Hariyo Ban program which started to support this budding organization first in 2071 BS by distributing 4000 coffee seedlings at free of cost. Encouraged with the success of the coffee cooperative Hariyo Ban continued supporting with free coffee seedlings, fertilizers, equipment and for construction of the pulping center as coffee cherry production increased. Gradually the Cooperative realized that in order for them to expand their business further and benefit members more, they needed to start establishing collaborative partnerships with various other stakeholders in the sector to access additional funds, technical assistance and inputs.

The spectrum of collaborations the Cooperative has established currently consists of government sectorial agencies at the federal, provincial and local levels including local Municipality and private sector organizations. This cooperative has been successful to receive partial funding support also from Members of Parliament Local Area Development Scheme (MPLADS)/Constituency Development Fund as well. Apart from this, it has been able to

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leverage resource from Hamro Coffee Project which was initiated in September 2014 through the joint collaboration of International Coffee Organization (ICCO), Center for Environmental and Agricultural Policy Research, Extension and Development (CEAPRED), a national non- government organization and Nepal Coffee Producers Association (NCPA) in six coffee growing districts including Kaski district. NCPA through DCPA helped it collaborate with the Hamro Coffee Project. Likewise, the cooperative collaborated with National Tea and Coffee Development Board to produce high quality coffee seedlings and distribute to the farmers at subsidized rate to the farmers in the area. The cooperative has also received the assistance of Annapurna Rural Municipality in making available land for construction of the washing, pulping and drying Centre as well as office and meeting/training spaces. The Rural Municipality (RM) has recognized the potential of coffee to improve the living conditions of farmers and is also providing supporting coffee farmers to HDP pipes in order to improve irrigation facilities in their coffee orchards. Annapurna RM is committed to support this cooperative to increase production and marketing of coffee.

By developing necessary collaborative partnerships, the Machhapuchre Utttam Coffee Cooperative appears to be making significant contribution towards improvement of the livelihood of local farmer members as well as the forest and natural condition of the locality. The Cooperative is well on its way towards improving and increasing its business and all indications are that it will continue to move in this trajectory when Hariyo Ban concludes its support. It may not have been possible for the coffee cooperative to have developed its business without collaborating with other partners and supplementing with their own resources (knowledge, staff, funds).

Collaborative approach to convert challenges from wilderness and wildlife depredation to an opportunity for livelihood improvement, a case of Ayodhyapuri Buffer Zone Community Homestay. Households inhabiting the Ayodhyapuri area in Madi and those who are members of this homestay are living right at the edge of Chitwan National Park. At one hand, access to the park area for firewood, grass and timber is completely restricted and on the other hand wildlife occasionally straying out of the park kill their animals and damage their crops. Extracting a good livelihood in this area for these poor and forest dependent households was not easy and therefore many young men and some women opted to look for employment opportunities outside of the country.

Collaboration with Hariyo Ban helped them to realize that this challenge can indeed be changed into an opportunity. Nature, wilderness and wildlife of which the Park and the Buffer Zone is so rich can be a game changer in improving their livelihoods and a beginning of the end to their difficulties! Under the supervision of the Buffer Zone FUG, the Ayodhyapuri Buffer Zone Community Homestay was born.

Once the Homestay was set up after various types of support that was provided by Hariyo Ban it also started seeking for collaborative opportunities to sustain and expand their business. In some enterprises, the Hariyo Ban helped facilitate the linkage for example with Intrepid, an Australian socially responsible travel agency which was instrumental in bringing international visitors to the Homestay as well as improving their service delivery as child labor and animal cruelty issues were understood by the members and avoided completely. Ayodhyapuri Homestay has also established collaborative partnership in their own initiative such as with the Madi Municipality which is currently funded to rehabilitate and upgrade a small lake which was about to dry. In the near future within six months or so, it will be a source of local attraction and recreation to the visitors and the ultimate beneficiaries will be the members of the community home stay. It collaborated with Taragaun Bikas Samiti which has trained the homestay members on recycling waste into handicraft items, home stay management, cooking etc. NTNC also has provided Natural Guide training to three members so they could provide learning experience to visitors encompassing all aspects of wildlife and nature in CNP. The Taragaun Bikas Samiti provided its members with first aid, hospitality and cooking training. It 19

has currently submitted a proposal to the State Government to finance the development of a “green area” with two swimming pools for the homestay guests as well to other general visiting public.

With diligence in providing quality service to visitors, in equitable benefit sharing among its members and its innovative ideas on converting challenges to opportunities, it has been able to improve the livelihood of its members and at the same time has managed to wean them off from dependency on adjoining forest. It has capitalized on available local resources and mobilized resources availed by its collaborators to move towards commercialization and growth of its business operation. An example of its success is that some of the members operating homestay now are young men who temporarily came back from abroad to their homes for holidays but have now decided to stay and invest in the homestay business as they saw that that they can make enough earning from this activity while staying home and with family.

Collaboration for commercial fish production and diversification into ecotourism. Babu Kuwa Fishery Group provides another shining example of collaboration and linkages of how Babu Kuwa CFUG managed collaborations and linkages with a number of agencies including the local government. Initially, the pond was dug to harvest rainwater to be used as watering spots for wildlife during dry periods. To ensure that the ponds were maintained and to provide an alternative livelihood source for the poor members of the CFUG, it facilitated the formation of a Fishery Group and supported them to farm and sell fish in the near-by market. The Group has been farming fish since last 3 years and making substantial income. Marketing of fish is not a problem for this group since it is near to Nepalgunj city which remains insatiable. With this enterprise as a starting point and the experience it gained in collaborating with the WWF (Hariyo Ban), the CFUG started seeking other partners to engage in the development of this location and thereby multiplying and diversifying the business opportunities for its members. The CFUG has initiated collaboration with the Rural Municipality to promote ecotourism in this area and is financing a bore well to help in maintaining water year the round in the existing and the new ponds that the CFUG is digging to expand its fishery business. Like the Machhapuchre Uttam Coffee Cooperative, Kaski, this group has also been successful to access Parliament Member Development Fund for the construction of a shed for visitors. Part of the funds from the Rural Municipality and from Lions Club supplemented by its own savings are being used to construct picnic spots, sheds and garden. With collaborative partnership the CFUG has not only achieved growth of its fish production to become more commercial but also to diversify into multiple but related ventures that is hoped to expand the income opportunities for the members, sustain the business and at the same time contribute to reduce the dependence of the community towards the community forest and adjoining national park forest.

Aforementioned three cases provide just a few promising examples revealing how enterprises supported by Hariyo Ban have been able to leverage resources from the multiple agencies which include development partners of the government of Nepal (AusAid, EU etc.), projects and agencies including fund from Constituency Development Fund through their own initiatives and support of respective Hariyo Ban partners e.g. WWF, NTNC, CARE Nepal and FECOFUN. As seen from the above examples, likelihood of resources leverage and collaborations is high when the enterprises are operated by community based organizations like CFUGs and BZCFUGs including cooperatives and deliver services to a large number of households comprising a majority of poor and vulnerable HHs. But there were also evidences of some enterprises which have not been able to collaborate with concerned agencies despite the area was announced as a vegetable pocket area by the GoN and a high tech off-season vegetable farm was established through the project like Prime Minister Agriculture Modernization Project (PMAMP), e,g. commercial vegetable production, Hemja, Kaski. Therefore, external trigger and assistance is necessary but it does not always work.

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Commitment and capacity of the enterprise and the leadership of the respective management committee are crucial for effective collaboration and linkages.

3.2.6 Outcomes & effect of interventions

Most of the 16 enterprises and two small grant projects included in this study were operating in a small scale. Amount of income earned reported by the participants in all enterprises was small. Income earned from the enterprise would not even be equivalent to the amount which they would have earned by working as daily laborers elsewhere. However, most of the people currently engaged in Hariyo Ban enterprises said that they would be happy and feel dignified to work in own enterprises as owners than in others’ farms as laborers.

(a) Income: At present contribution of enterprises supported by Hariyo Ban to HH income of the participating entrepreneurs is small. It appears that most of the HHs are virtually in loss if the use of the household labor is factored in. However, most of the beneficiaries of Hariyo Ban would rather earn little than work as daily paid laborers for others. A case from Srijanshil Women Group, Dodortar, Tanahu involved in the Kanthamala (a type of gold painted clay necklace) making illustrates this. According to the Dodortar women group, at the most, a person can make two Kanthamala per day which is sold at local market at the rate of approximately Rs 200 per piece. This means that the total gross and net income per day would range around Rs. 400 and Rs 230 respectively. Material cost per one Kanthamala is around Rs. 80 to 85.00 whereas a woman could earn Rs. 400 per day if worked in others’ farms. But these women preferred to work in this enterprise for they were owner of their own enterprises. This cooperative has initiated saving and credit scheme as well. All 26 members of this cooperative are women. Husbands of most of these women (21 out of 26) are abroad and they are the ones to look after their household chores. They produced Kanthamala individually but sold through the cooperative. This avoided the possibility of internal competitions among themselves.

While some members of Kalika CFUG, Devghat reported to have been receiving income through enterprises such as groceries, dress making and milk production, members involved in goat keeping and piggery indicated they are yet to make some income. The scale of income reported by them was small, Rs 1,000 to 1,500 depending on the type enterprises. But, none of them reported to have accounted for their family labor cost.

When asked about the making of business plan, none of the studied enterprises except the Machhapuchhre Uttam Coffee reported to have business plans. Few members of most enterprises reported to have received training on how to make a business plan but no one reported to have actually adapted them for their own enterprise and used them. All participants of the training said that the training they received as start-up training for enterprise initiation was useful and relevant. They understand that it will be easy for them to estimate cost of production and profit-loss if they have business plan which could then be adjusted as per requirement. Thus, despite understanding the importance of business plan, they could convince others to make the business plan. Many small holders said that the business plan could be useful for big businesses but not to the micro and family based enterprises like theirs. Therefore, they suggested to provide more training on marketing skills, market intelligence and improving the quality of the products and services rather than spending days to teach business plan making. A key lesson learned from this is that business plan is necessary for large enterprises employing many people but not for the small enterprises supported by Hariyo Ban whose target groups would not even cost their own family members working in the enterprise and use part-time labor as in the case of wool weaving enterprise (Thangkhola CF)

(b) Employment creation. Of the three types of the enterprises supported by the Hariyo Ban, medium and large enterprises have some prospects of employment creation for others. Ayodhyapuri Home Stay Chitwan has currently employed a manager to register and welcome 21

the guests, undertake record keeping activities, allocate guests to the members of Home Stay Committee and do other related accounting works including organization of cultural show for the guests. With the increase in number of guests and completion of other on-going development works such as construction of lake for boating, opportunities for the local employment creation will increase gradually in the near future. NTNC has given training to locals on nature guide so that they could guide tourists/visitors professionally, show the nature and their localities to them properly making them to learn, feel, and enjoy the local culture and heritage. Home stay owners have already begun to improve facilities so that number of visitors will increase. Same could apply to the Gurung Community Homestay, Kaski but they have not expanded the business. Number of visitors is so small that the members of the home stay committee have taken the profession just as one of complementary income generating opportunities for the household members. However, number of visitors to this home stay could increase substantially if they undertake market promotion activities and establish linkages with the private tour and travel agencies located in Pokhara city. This suggests that market promotion is important for enterprises related to the tourism.

Medium enterprises like milk production, coffee production and processing, and green tea production have good prospects for creating local employment opportunities but they need to be appropriately linked with the value chain development and market promotion and support related activities which were found particularly missing in case of tea production. One of the members of Milk Production Committee of Thangkhola CF, Chitwan has expanded business and started to produce milk in commercial scale because there is no lack of market for the milk. Three dairy cooperatives operate in his neighborhood where he can sell milk and get feed, vet medicines and advice including support for cattle shed improvements. Likewise, Machapuchre Coffee Cooperatives have created limited local employment opportunities for pulping, washing and drying coffee beans.

Most of the small enterprises have created part time employment for the beneficiary HHs. Likewise, group based enterprises such as community fish farming in Banke district has also created limited employment opportunities for the members of the Babu Kuwa CFUG. This has been possible for it succeeded to receive support from multiple sources which included funding from the Rural Municipality and Fund from the Member of the Parliament apart from Hariyo Ban support. Key learning from this is that employment creation depends on the type of the enterprise and that the employment generation is a time taking activity. Unless the enterprise is linked with the market, prospect of employment creation is low. Therefore, sufficient attention should be provided to the enterprises to establish strong linkages with the markets.

(c) Non-monetary benefits. Visits to enterprises and discussions with the beneficiaries and key stakeholders of several enterprises reveal that many enterprises have been established and continuing because of non-monetary benefits as well. This specifically applies to enterprises such as tea processing enterprise established in Bhadaure, Kaski district. The enterprise was established because the people did not want to keep the land fallow and attract visitors in community homestay so that they could get opportunities to meet and interact with the visitors, share knowledge and experience. Due to the shortage of labor, most of the beneficiaries have not been able to properly manage the farm, do weeding timely and harvest good quality tea. The committee planted tea in private land because the plants were received at subsidized cost but no facilities for processing.

3.2.7. Sustainability of interventions

A key aim for Hariyo Ban to support forest dependent households in its program area through its livelihood interventions is to ensure increase in biodiversity and reduction in climatic vulnerability. Forest and biodiversity conservation as well as reduction in climatic vulnerability requires persistent efforts to be put in over a long duration. To ensure that this process does indeed take place, Hariyo Ban assisted in institutionalizing individual roles and efforts of the 22

individuals into groups, cooperatives. NRM based agencies such as CFUGs and BZCFUGs helped build their capacity to manage and monitor as well as establish collaborative linkages with agencies other than Hariyo Ban for funds leverage, inputs and technical services. This would help the enterprises to grow and sustain their business, uplift the economic situation of its members and thereby keep on contributing to the objectives of conservation and climate threat mitigation.

In this context sustainability is not defined as just existing over a long period of time but existing as a successful business over time where its members and beneficiaries continue meaningful participation and continue improving their livelihoods even after the termination of the Hariyo Ban.

Value chain development. Adding value in the commodity value chain increases the sustainability prospects of the enterprise. The Mountain Tanahu Bael and Fruit Processing Industry in Jamune, Tanahu District is processing Bael juice that is sold in nearby markets. The industry is planning to diversify into making jams and candies from the Bael fruit which will add value and perhaps help sustain the business. B.M. Handicraft Training Centre in Padampur, Kalika Municipality, Chitwan District has started carpet weaving from the yarn their member beneficiaries spin out of raw wool. This diversifies their product, helps add value and improves the chances for their business enterprise to be sustainable. Khayarkandra Commercial Vegetable Farming Group in Jonapur, Suklaphanta Municipality, Kanchanpur district have made plans to start a Tharu Community Homestay in their village. The plan will add a step in the value chain where in addition to selling the vegetable produced in the nearby market, the homestay also offers an alternative market for their organically grown vegetables increasing profitability and thereby sustainability of their business.

Market access. The Pashupatinath CFUG at Bamdi, Duduwa Rural Municipality in Banke District is promoting commercial goat keeping to improve the livelihood of its poor, forest dependent members. The area has been historically known for goat keeping and is located close to Nepalgunj city where huge demand for goat meat exists. Buyers come to the village to buy goats directly at their door steps. Whether sustained efforts to conserve biodiversity will be continued is a question, it is clear that the goat keeping enterprise will definitely continue even without the support of the Hariyo Ban. When the Furketari Commercial Vegetable Farming enterprise is studied, the market for its produce is not an issue at all as the farms are right next to a peri-urban area of Pokhara sub-metropolitan city. The area is a pocket area for vegetable production. The area risks conversion of agricultural land into settlement area due to increased urbanization in Pokhara municipality. However, members of the vegetable production group do not see this risk in the near future because the local government has classified their production area as the agricultural land and halted land plotting. Establishment of the “high tech” tunnel to produce quality vegetable seedlings to be sold to farmers at reasonable costs and to grow off season vegetables indicate government priority and support to commercialization of vegetable growing in this area. But questions remain: How long this land use policy continues? Elements such as conversion of agricultural land into settlement could be a factor that could affect the sustainability of the project.

Women growing turmeric in the buffer zone of the Chitwan National Park at Kawasoti ward 1 and 7 are facing various difficulties during cultivation such as lack of irrigation, damage from wildlife to their crop and difficulty in preparing the land for cultivation in the plots near the park facing dangers from carnivores. They have kept on farming after the first year of harvest assured by the fact that they have two years buy back guarantee from Organic Valley who provided technical assistance, inputs, facilitated organic certification and bought all the harvest due to the SGP . The question sustainability of this enterprise may arise after the completion of buy-back guarantee of organic valley. In addition to this, this enterprise is dependent on the lease-hold land agreement with the BZCFUG. If the BZCFUG decides to use the land for other purposes, no wonder if this enterprise will come to an end. 23

Non-monetary benefits. When two similar enterprises compete with each other for the same resources and markets, the general thumb rule suggests low sustainability prospect for both the enterprises. However, this may not be always true. Sometimes, non-monetary benefits outweigh the monetary benefits. Gurung Community Homestay, Bhadaure illustrates this. Despite of rich bio-diversities in Panchase Protected Forest, rich Gurung cultural heritage, high eco-tourism opportunities, Gurung Community Homestay, Bhadaure, has not been receiving a good number of tourists and visitors to attract the members of homestay committee to contribute to their household income. Mr Rupesh Gurung, Chairman of the homestay committee reported that number of visitors to his homestay is quite small- about 5 visitors per year. Sometimes visitors are students coming for research and studies who even expect discount despite service fee fixed by the committee is quite low, does not even commensurate to the actual cost including his labor. On the other, his committee (enterprise) has to competes with other Gurung Community homestay which is located very near from Bhadaure homestay, in the same RM, at less than one kilometer distance. But likelihood of ceasing to operate this homestay is low because non-monetary value outweighs monetary value. The members of the committee are happy with whatever they have been currently earning from past investments which they have already incurred.

Market Competition. Beekeepers of the Lumbini Multipurpose Cooperative live and farm in villages up in the hills and at a considerable distance from the cooperative. The cooperative office is located in the plains where their beekeeping members do not live. The cooperative, with the funding of Hariyo Ban procured a honey processing unit and established the Lumbini Honey as a subsidiary business to collect honey, process and market it. Its successful operation would add value to the honey value chain and by processing honey, the cooperative as well as the bee keepers could increase their profit margin. For operation and management of this enterprise the cooperative leased it to Mr. Chet Bahadur Magar. Setting aside technical issues in the operation of the machine, it was also difficult for Chet Bahadur Gurung to collect sizeable amount of honey from the bee keepers and to sell them in the market. According to an informal study carried out by Chet Bahadur Magar, production of honey in the hills still remains small and people from surrounding area who want honey produced by native bees (Apis cerana) and honey produced from wild flower willing to pay a premium price directly visit the bee keepers and buy it from the source. This will be difficult for him to compete with honey produced from Apis cerena. In the plains, cheaper honey produced from Apis mellifera are readily available and almost at the half of the price of honey produced from mellifera type of honey. In this sustainability of honey processing centre established far from the production site becomes an issue and could be one of the reasons why the centre is not in operation till to date.

Against above background and information, the following table examines the sustainability prospects of the different market based livelihoods models identified from 16 enterprises and 2 SPGs.

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Table 3.1: Sustainability Prospect of the Six Market Based Livelihoods Interventions

SN Market Models Sustainability Reasons/factors prospect 1 Using an intermediary Medium  No investment by the beneficiaries agent to link  Critical factor is the agent and the producers/beneficiaries commission and the traders specifically selling labor 2 Direct marketing products Medium  Non-monetary benefits may overweigh or services by the the monetary benefits enterprises/group  Responsibilities shared by the group marketing- no  Prospects of resource leverage from intermediary other stakeholders and agencies high

3 Enterprise producing High  Prospects of value addition high partially processed  Value chain partnerships enhanced products and selling the  Producers likely to receive reasonable products for further value price for their produce. addition and marketing to a private trader 4 Members of the Low  No intermediary, likely to receive the enterprises selling their prices determined by market products individually in  Market competition with alternative the market products and quantities and quality of the products (supply)  Market information and intelligence might be lacking 5 Buy back arrangement Medium  Depend on the buy-back guarantee between the producers (contract conditions and duration) and trader  Likely win-win situation for both parties  Market access assured  Quality of the products assured 6 Recruitment of private High  Capitalization of marketing expertise trader to undertake and skills of the private trader processing and marketing  Investment required for product by the CF development and diversification by the trader  Legal issues including quality control responsibility shifted to the private trader

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4. Summary and Conclusions

This chapter summarises key findings, presents conclusions, further highlights key learnings and provides a few important recommendations.

4.1 Conclusions 4.1.1 Reduced threats to target species

All the enterprises that were studied were supported under market based livelihood and are implemented through CFUGs or BZCFUGs using local partners which cooperatives, private firms and farmer groups or committees. Consequently the enterprises and their beneficiaries are located near or within the biodiversity hot spots like National Parks and wildlife corridors of the CHAL and TAL landscapes where rare and vulnerable species of animals and plants reside and are in need of protection and conservation. These are also the areas where human settlement and animal habitat converge inviting regular encounters threatening the wild animals as well as occassionaly threatening the life of domestic animal and humans. Most of the inhabitants were also forest dependent and poor who relied on forest produce for their livelihood and over exploitation of vegetation may have resulted resulting in forest degradation (grass and fodder harvesting, firewood and timer collection and forest fire started for regenerating grass) if not for their engagement in the livelihood initiatives.

Location of the livelihood intervention by Hariyo Ban and its spread in the two landscapes emphasises the fact that market based livelihood interventions are not the end in itself but are the means to achieve biodiversity conservation and reduction of risks from climate changes in these landscapes.

When these forest dependent HHs were organised and supported to establish agro-based or craft based enterprises and homestays, it opened up opportunities for the participating members to engage in businesses and generate extra income. In most of the enterprises studied, the participating members were from the poorsest categories based on the WBR, and where WBR was not used they were most dominantly women including from ex Kamaiyas, dalits and from ethnic minority groups. Income generated from the enterprises enabled these members and their HHs to not only secure dietary intake and diversity, they were also able to use alternerate souces of energy like LPG thereby reducing the need for collecting firewood. They have started growing fodder trees and grasses around and in their farms so that the need to take their animal in the forest to graze was drastically reduced. For examples, the Krishnashar Commercial Vegetable Farming Group formed under the Sundevi BZCFUG and the Bikash and Bihani Agriculture Group formed under the Jaya Laxmi Wome’s CFUG in Shuklaphanta Municipality, Kanchanpur district stated that they have completely stopped going into the buffer zone forest for forest products and for grazing excpet when the BZCFUG officially opens the forest for collecting grass and firewood for a few days in a year. This has contributed to the regenaration of forest and reduced the chance of wildlife and domestic animal encounters.

Likewise, Ayodhyapuri Community Homestay members and adjoining community alike who are living in the buffer zone of the CNP recount past instances when wildlfe straying out of the park and preying on their domestic animals were trapped and killed. At present such wild animals are either driven back to the safety of the park or wildlife officials are informed to arrange its safe movement. This was made possible by various factors, besides increased awareness, opportunities found to turn the nature and wildlife as an asset to promote their ecotourism based business and income derived out of it also prompted them to grow fodder trees and grasses on their own land and keeping their domestic animal stalled.

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These examples from some of the studied enterprises revealed that by providing alternative livelihood opportunities to forest dependent HHs living in and around biodiversity hot spots and strengthening their capacities to engage and manage the enterprises successfully, threats to target species of plants and animals have reduced. However, quantification of the reduction has not been undertaken because of limited time and scope of the study.

4.1.2 Market based livelihood alternatives developed and promoted

One of the key emphasis Hariyo Ban placed on its livelihood interventions was on the development of market based enterprises as against the equity based system it promoted during the phase I program.

First of all, success of market based enterprise depends on the fact that the enterprise selected produces products and services that have secure market. The skills and capacities for managing a commercial enterprise rather than a subsistence system must be developed and strengthened. Collaborative approaches promoted to link with government and private sector agencies to mobilise investments, improve quality and quantity of the product and acquire ensured access to the market.

The importance of market availability is illustrated by the Goat Enterprise set up under the Pashupati Nath CFUG at Duduwa Rural Municipality, Banke District. The farmers here have been rearing goats from long time and the area is well known for its goats. As the location is very close to Nepalgunj and is linked by a motorable road, there exists a huge market for goat. Establishing market link in this enterprise has never been a problem. However, producing enough goats for meeting the market demand and struggling to manage unfair competetion over price among the group members has become a challenge for them.

The traditional bee keepers of the Lumbini Multipurpose Cooperative located at Hopsekot Nawalparasi were provided with training to build their skills to improve their beekeeping in order to increase their bee population and honey production. Through the instrument of Small Grants a private company with longstanding reputation in bee keeping, honey production and marketing as well as an established resource centre in this sector (SBKI) was linked with the Lumbini Cooperative to train the bee keepers in technical skills of improved bee keeping and processing honey. The involvement of the private sector was beneficial for the enterprise as it helped strengthen their capacity by bringing in new knowledge, skills for better and increased honey production and processing; it also brought in improved hives and equipments. Most important, once the production of honey increases it has assured the bee keepers and the cooperative to provide a buy back guarantee. Similarly, Organic Valley Pvt. Ltd not only provided the women turmeric growers of Krishnashar and Namuna BZCFUG in Nawalparasi training for growing turmeric, biomanure preparation and Integrated Pest Management, it gave them a buy back gurarantee under which it bought turmeric produced at a premium price for processing and export. An additional advantage for the women group in this collaboration was the access of their product into the international market.

Importance of collaborative approach whereby resources are mobilised and market is accessed by developing relationships with various organisations ranging from, government, non government and the private sector to expand and become a successful business enterprise is illustrated by the Machhapuchhre Uttam Coffee Cooperative, Kaski; Ayodhyapuri Community Homestay, Chitwan and the Fish Farming group of Babu Kuwa in Banke.

Lessons learnt were also that commercialisation and market based approach, especially when very poor forest dependent HHs are involved, may depend on the nature of the enterprise. However, market based approach targeted to the poor based on PWBR might not always reach them if the enterprise is beyond the capacity of the target group for example the Dairy Farmers Group under the Thangkhola CFUG at Padampur, Chitwan. 27

This study has identified the following six types market based livelihoods strategies from 16 enterprises and two SGPs.

(a) Using an intermediary agent to link producers/beneficiaries and the traders (b) Direct marketing of products or services by the enterprises/group marketing- no intermediary (c) Enterprise producing partially processed products and selling the products for further value addition and marketing to a private trader. (d) Members of the enterprises selling their products individually in the market (e) Buy back arrangement between the producers and trader (f) Recruitment of private trader to undertake processing and marketing by the CF

4.1.3 Community readiness to adapt and benefit from climate change increased

Examples of the beneficiaries of the enterprises studied and the community to adapt to the effect of climate change as a result of engaging in the enterprise are found. Plantation of tea by the members of the Harpan Bari Tea Cooperative and plantation of coffee by the members of the Machhapuchhre Uttam Coffee Cooperative in Kaski was reported to have reduced the incidences of landslide, improved vegetative cover including population of birds and butterflies and protected water sources. These benefits are being marketed by the Gurung Community Homestay as well as other homestays in the area to attract more visitors. Consesrvation and protection of the water source with assistance from Hariyo Ban by the Furketari CFUG in the community forest enabled them to supply members including this Group with water for drinking and irrigating the vegetables. Without the availabiity of water for irrigation the commercial vegetable farming enterprise could have collapsed.

The Babu Kuwa Fishery Group organised under the Babu Kuwa CFUG presents an example where implementation of the enterprise directly resulted in mitigating some effects of the climate change induced problems such as lowering water table. The group has not only rehabilitated and protected the ponds constructed by Hariyo Ban for rain water harvesting and used them for fish rearing, it has dug more and larger ponds in the area using the income from fish and their own resources where they now rear more fish. Due to recharging from these ponds, the water table which has moved deeped requiring costly deep boring for extraction has since moved up. Shallow tube wells are now able to draw water easily.

These examples indicated that a well planned and managed enterprise also directly or indirectly reduces the climate change related risks for the forest dependent HHs.

4.2 Recommendations

Potential threat to biodiversity conservation vs conservation friendly enterprises. From the perspective of the conservation and biodiversity threats reduction, enterprises could be generally characterized into two broad categories: having a potential to threaten biodiversity and biodiversity friendly depending on factors such as likelihood of threats to biodiversity, conflicts with wild animal, risks due to climate change, sensitiveness to landslides and so forth. Therefore, bio-diversity conservation projects like Hariyo Ban should develop a participatory biodiversity assessment tool for screening livelihoods enterprises from the perspective of potential threat to biodiversity conservation including risks to climate change, shocks and stresses in order that beneficiaries internalize reasons to qualify the support received from the program from the beginning.

Revolving Fund vs Interest Free Micro-finance. Distribution of the seed money to initiate an enterprise through the provision of revolving fund enhances access of the poor and 28

vulnerable HHs living in the project areas. This makes them feel that a development project has come to improve their standard of living by increasing their income and employment opportunities. However, the amount available through the RF is small, and less likely to contribute substantially to increase income and employment. This has remained within a welfare approach. Against this background, this study recommends the program to link livelihoods interventions to the microfinance mechanism and guarantee beneficiaries to subsidize the payment of interest together with the loan installment payment from the income earned from the respective enterprise. In the process, prospective beneficiaries should be allowed to select the enterprise themselves within the overall goal and objectives of the Hariyo Ban.

Business Plan Preparation vs Support to Market Products and Services. Business plan is necessary to successfully operate and sustain an enterprise. There is no controversy against the necessity of a BP. But in relation to the Hariyo Ban supported enterprises which are new startups and are small undertakings some questions arise: who should prepare a business plan? Is it necessary for all types of enterprises? Like other similar studies, this study also reveals that the business plan prepared by other than the involved beneficiaries do not work and that all types of enterprises may not require a BP. Therefore, rather than providing training to prepare BP to a few members of a group, expecting them to teach others usually resulting such BPs to gather dust shelves , the need of the day is to train the enterprise/ groups to add value to their produces through value addition, provide marketing skills and enhance their capacities. Projects like Hariyo Ban which includes livelihoods improvements as a cross-cutting theme should give priority to the marketing skills development and value addition than investing its energy and resources in training and preparing a BP.

Contract farming with buy back guarantee and market linkage provide opportunities to support landless and marginal HHs. Many initiatives such as the provision of revolving fund to initiate the enterprise, lease hold forestry, support to non-farm activities and leasing private land are often found in practice. These are good initiatives but this study recommends to promote contract farming integrated with buy-back guarantee in community owned land such as CF or BZCF land through relevant business companies. However, considering the conservation objective of Hariyo Ban and landscape restoration, this study recommends promotion of perennial rather than annual crop, and if needed, some innovative financing mechanism could be introduced till the perennial crops give income to the participating HHs. Likewise, the project may further support members of the HHs through contracting arrangements such as labour service similar to what is practiced in the wool weaving enterprise.

Primary Processing vs Value Addition and Market Linkages. Generally, it appears that Hariyo Ban’s support is focused on primary production such as goat keeping, off-season vegetable production, tea production and so forth. Support are also provided in value chain development and marketing skills development. However, these two activities need to be further expanded and services are needed particularly for tea and coffee processing, milk production, home stay development, honey processing etc.

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Lists of Documents Consulted n3' Joj;fosf] of]hgf, km's]{6f/L ;fd'bflos jg x]dhf dfp06]g tgxF" ;fd'bflos a]n tyf kmnkm"n k|zf]wg s]Gb| DofUb] @, hd'g], tgx"F –Ps lrgf/L

8An' 8An' Pkm @)&# xl/of] jg sfo{qmd – ;'Gb/ ;kmntf ;d'bfo / h}ljs ljljwtfsf xl/t kl/jt{gsf syfx?M efu @

WWF Nepal, 2016. Changing Lives. WWF Nepal, Hariyo Ban Program, Kathmandu, Nepal

WWF Nepal. Internal Governance Tool 2, Participatory Well-Being Tanking (PWBR). Hariyo Ban Program, Kathmandu, Nepal.

WWF Nepal. 2016. Preparing for Change: Climate vulnerability assessment of the Chitwan- Annapurna Landscape. WWF Nepal, Hariyo Ban Program, Kathmandu, Nepal.

WWF Nepal. 2017. Biodiversity, People and Climate Change: Final Technical Report of the Hariyo Ban Program, First Phase. WWF Nepal, Hariyo Ban Program, Kathmandu, Nepal

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ANNEXES

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Annex 1: Areas of Inquiry and Indicators

SN Areas Indicators 1 Appropriateness 1.1 Objective/rational of the livelihood interventions of interventions 1.2 Processes/approaches followed in selecting enterprises, (including (Relevance to identification of capacity building needs) the Hariyo Ban 1.3 Linkages between conservation and livelihoods interventions goal) 1.4 Nature of support provided, including capacity building, market linkages and financing arrangements 1.5 Usefulness of business plan 2 Inclusiveness & 2.1 Methods of selection of entrepreneurs, especially target groups and Equity location (poor, vulnerable and socially excluded and forest-dependent people) 2.2 Livelihoods interventions distributed across the landscape 2.3 People benefitting from the livelihood interventions particularly poor, vulnerable and socially excluded and forest-dependent people 2.4 Use of existing knowledge and skills of target groups in enterprise selection 2.5 Efforts to address structural barriers of target groups (capacity, investment) 2.6 Approaches followed on ensuring procedural equity (representation of target groups) in decision-making processes and enterprise operation and its effectiveness 2.7 Approaches followed on ensuring distributional equity (benefits sharing) from enterprises 3 The effectiveness 3.1 Preconditions for market-based livelihoods vis' equity-based of Market-based livelihoods intervention vis a 3.2 Support provided for promoting market-based livelihoods and equity- vis equity-based based livelihoods model 3.3 Trade-offs and conflicts 3.4 Strength of promoting market-based livelihoods interventions 3.5 Problems and challenges for promoting market-based livelihoods 4 Market linkages 4.1 Support provided to engage in markets including the 4.2 Marketing of products, including business linkages with the private involvement of the sector private sector 4.3 Capacity enhancement of the target groups to engage in the market (including risks)Marketing problems, challenges 4.4 Problem and challenges, including market risk monitoring and mitigation 5 Collaboration, 5.1 Collaboration and coordination with the other actors in enterprise linkages and development partnership 5.2 Technical back-stopping support from government line agencies 5.3 Access to business services (input, finance) from private sector 5.4 Collaboration and partnership with local government, including resource leverage 6 Outcomes/Effect 5.1 Income/revenue of intervention 5.2 Employment generation (seasonal, permanent) by gender 5.3 Non-monitory benefits 5.4 Changes in forest resource dependency 5.5 Attitudes towards conservation 5.6 Roles in mitigating climatic vulnerability, and human-wildlife conflict and biodiversity threats 7 Sustainability of 5.1 Efforts towards ensuring sustainability intervention 5.2 Likelihoods of sustainability and measures required 5.3 Emerging issues and challenges

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Annex 2: List of Enterprises and Grants studied

Enterprise District Local Partner SN Name of Enterprise Enterprise Size Partner Landscape Corridor Type Enterprises: Kanchanpur Jaya Laxmin Women’s CARE Shuklaphanta 1 Poultry Farming Individual Small CFUG Nepal TAL Brahmadev Complex Khairkanra Commercial 2 Vegetable Farming Vegetable Farming Shuklaphanta (Khairkandra) Individual Kanchanpur Small Group NTNC TAL Brahmadev Complex Krishnasar Vegetable Shuklaphanta 3 Vegetable Farming Individual Kanchanpur Small Farming Group NTNC TAL Brahmadev Complex Pashupatinath CFUG 4 Goat Farming Individual Banke Small FECOFUN TAL Kamdi Western block Babu Kuwas CFUG WWF 5 Fish Farming Group Banke Small Nepal TAL Banke- Kamdi Ayodhyapuri Community WWF Chitwan-Barandhabhar 6 Ayodhyapuri Homestay Group Chitwan Large Buffer Zone Homestaqy Nepal CHAL Complex Thangkhola CFUG Chitwan-Barandhabhar 7 Dairy Individual Chitwan Medium NTNC CHAL Complex B.M. Handicraft Training Chitwan-Barandhabhar 8 Wool Weaving Individual Chitwan Medium Centre NTNC CHAL Complex Kalika CFUG 9 Goat farming Individual Tanahu Small FECOFUN CHAL Seti sub-river basin Sirjanshil Kanthmala Srijanashil Utpadak WWF 10 Mahila Samuha Group Tanahu Small Cooperative Nepal CHAL Seti sub-river basin Mountain Tanahu Community Bael and 11 Bael Juice Production Fruits Processing and Processing Individual Tanahu Medium Industry CARE CHAL Seti sub-river basin Furketari CFUG 12 Vegetable farming Individual Kaski Small FECOFUN CHAL Seti sub-river basin Gurung Community Gurung Community WWF 13 Homestay Group Kaski Large Homestay Nepal CHAL Seti sub-river basin Coffee Cultivation and Machhapuchhre Uttam WWF 14 Processing Group Kaski Medium Coffee Production Coop. Nepal CHAL Seti sub-river basin Tea cultivation & Harpan Bari Tea Coop. WWF 15 processing Individual Kaski Medium Nepal CHAL Seti sub-river basin Lumbini Multipurpose WWF Chitwan-Barandhabhar 16 Honey Production Group Nawalparasi Small Coop. Ltd. Nepal CHAL Complex

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Enterprise District Local Partner SN Name of Enterprise Enterprise Size Partner Landscape Corridor Type Small Grants: Sagar Bee Keeping WWF Chitwan-Barandhabhar 1 Industry Nawalparasi Nepal CHAL Complex WWF Chitwan-Barandhabhar 2 Organic Valley Company Nawalparasi Nepal CHAL Complex

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Annex 3: Study Enterprises

Enterprise 1: Commercial Vegetable Farming, Hemja, Kaski District

Background Vegetable farming is one among several enterprises supported by the Enterprise Commercial Vegetable Farming Furketari CFUG to its clientele. Location Hemja, LeknathMC, Kaski District Among the 59 member households River basin Seti sub river basin of the CFUG, 31 households are Implementing Furketari Community Forest Users engaged in vegetable farming. partner Group Lead partner FECOFUN These are the households that Type of enterprise Small depend mostly on agriculture for their livelihood. 30 households were supported with Hariyo Ban funds while one household (very poor) was supported with the CFUG’s own resources. Farmers in this location have been traditionally producing potato as their major vegetable crop. According to the farmers participating in discussion, potato required relatively higher investment, turn over time was longer and frequently succumbed to pest, diseases and climate fluctuations. The farmers engaged in the vegetable enterprise chose off season vegetable farming for the reason of faster turnover, higher profit and in case of those that are grown under “tunnels” or green houses, much easier to manage fertilization and pest and disease control. The enterprise has just finished its first season and therefore still new. All indications are that all participating households did make significant income and will continue engaging in this enterprise for the coming season and years to come. This positive result has motivated 30 other member households to show interest in participating in this enterprise. However, supporting them to engage will only be possible for the CFUG if they acquire the promised funding of around Rs. 1,20,000 from Hariyo Ban program on top of which they plan to add Rs. 30,000 from their own sources. This amount of Rs. 1,50,000 will be set up as a revolving fund to support interested households whereby the fund is planned to be equally divided (interest free) among the participating households. The fund will have to be returned in a year.

Objective The objective of this enterprise is to contribute towards the conservation of the Furketari Community Forest through improvement in the household income through market oriented vegetable production and sales.

Beneficiaries 31 households from the CFUG are the current beneficiaries amongst which most are female headed households (males out of country). 10 households are considered poorest as per the CFUG household income categories and 5 are landless. The landless have been provided Rs. 2,000 per month as a contribution towards leasing land for one year. The amount has to be returned after a year of planting vegetables.

Operation and Management Vegetable growing is on individual farm plots and managed by participating members. The choice of vegetables to be grown in the “tunnels” or outside of the “tunnel” is the decision of the participating households. CFUG is the implementing body for the Hariyo Ban program which is responsible for implementation and management as well as monitoring the vegetable producing group. For increased effectiveness, the CFUG has recently constituted an 11- member Vegetable Subcommittee for monitoring purposes.

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Current Status of Operation The vegetable farming under support of Hariyo Ban started this year and has completed only one growing season. Each of the 31 households constructed one tunnel each. Hariyo Ban supplied the plastic necessary for the tunnel while the households contributed local materials (bamboo), land and labor. Each tunnel measures 24*52 feet. Hariyo Ban also provided all the 31 members training on vegetable growing before start of the enterprise. The farmers also received training from the local agriculture office on the preparation and application of organic manure/fertilizer as well as IPM. Hariyo Ban also provided a 3-day business plan training to 3 CFUG members who prepared a common business plan for the group as a whole. This business plan was judged the best among the 6 CFUGs participating in the training. Individual business plans for the participating farmers was however not prepared.

Linkage and Coordination In 2048 BS, former District Forest Office (DFO) helped to establish the CFUG and handed over the Furketari forest as a community forest. Initially the CFUG has 18 member households which has now expanded to 59. DFO also helped the CFUG to plant 28 ha with Champ (Michelia champaka) trees. This is the second year of support from Hariyo Ban program phase two while Hariyo Ban also supported the CFUG during its first phase such as: water source protection and supply of drinking water to 51 households, improvement of road access to the forest for better management. Hariyo Ban started supporting the commercial vegetable program from this year. FECOFUN is the main organization providing technical assistance and channeling funds and capacity building support from Hariyo Ban. The area is also declared as vegetable pocket area by the government and as such the farmers also qualify to receive support in the form of training and seeds and technical assistance from the local agriculture office and government bodies. However, farmers state that the JTAs do not visit their area but can be contacted for advice when needed.

Significant Changes All the vegetable growing households are also members of the Furketari Community Forest and have been engaged in protection of this forest from over use by regulating the extraction of limited amount of firewood, timber and grass during designated periods and complete ban on grazing domestic animals. The forest is also being protected from unauthorized extraction and grazing of cattle by people outside of the member households by engaging a Forest Watcher. This has resulted in good growth in the forest and ample amount of grass, firewood and timber are available for them to use sustainably.

The households have been traditionally engaged in some vegetable growing in the area. Besides, given their interest in conserving their forest and natural resources they opted for vegetable growing instead of goat keeping (requiring them to graze in the forest and potentially damaging the forest), which could have been also a good source of alternative income generation especially for poorer households. CFUGs decision to provide the land less household’s subsidy to pay for rented farm land for vegetable growing clearly indicates a commitment towards forest and nature conservation by finding alternative ways of minimizing

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the need of the poor, forest dependent household on resource extraction from the community forest under their stewardship.

Households engaged in the vegetable enterprise have recorded an income of Rs. 36,000 or more through sales of one season of tomatoes alone. This is on top of their own consumption. Participants in the FGD stated that the income has enabled them (especially the women) to have access and control over income which they can use not only for households needs, schooling of children but also carry out saving in the group. Increased income also allowed most households to own biogas plants or purchase LPG cylinders as substitutes for firewood for cooking and heating thereby significantly reducing pressure on their community forest.

Household members are now engaged in their farm fields for vegetable growing, tending and marketing thereby have no time to go to the forest. “Forest has come to their farm” as one lady member explained as they have planted various multipurpose tree species and improved fodder grass right in their farm. This has had a positive impact on forest and natural resources conservation.

The area has been declared by the government as a vegetable pocket area where government will provide various assistance to vegetable farmers such as training and inputs. This also attracts funds from the Prime Minister’s Agriculture Programme. Under this program, a “high tech” green house has been established under the Devisthan Agriculture Cooperative. Many of the CFUG member households and therefore the vegetable growing household are members of this cooperative. This entitles them to buy improved vegetable seedlings produced in this green house, right in their neighborhood.

Water source protection by the CFUG and the construction of water taps almost in every member households through Hariyo Ban first phase support have also enabled better production of vegetable as excess water is used for irrigating vegetables.

Challenges/Constraints Availability of required seeds and seedlings at the right time is still an issue. Some initial seeds as inputs and some farming equipment (water can, कुटो, कोदाली, rakes, spray were provided by Hariyo Ban) but access to seeds and technical advice still tends to be difficult. The “high tech tunnel” established under the Prime Minister’s Agriculture Programme was hoped to solve this issue. However, the functioning of the tunnel and its management is still not optimum and is having many teething problems. Technical assistance from the JTAs is limited to when farmers visit them at the Agriculture Office to ask questions. JTAs rarely make field visits to the farmers.

So far only 31 households are under the commercial vegetable growing while 30 other members interested in vegetable growing are still waiting to join. The CFUG is planning to establish a revolving fund which they intend to divide equally among the 30 households to support initiating vegetable farming. Equal division of the small fund available will mean that each household will not receive an amount sufficient enough for them as a kick off. Moreover, the amount of financial assistance required might also differ based on the choice of the household on what crops/vegetables to grow.

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The CFUG assisted the whole group to develop a Business Plan based on the training provided by Hariyo Ban to 3 members of the CFUG. The vegetable farmer themselves were not trained and are not able to prepare a business plan for their own individual enterprises. The farmers have an estimate of income and expenditures in their head. Although they have recorded the amount generated by sales of the vegetables in their book, they are not able to calculate their costs and therefore real income is not exactly known.

Sustainability The CFUG is taking most of the responsibility for the implementation, management and monitoring of the vegetable farmers. It has established structures to ensure this process continues in the future. It is also channeling resources it is generating from the community forest to sustaining and expanding the vegetable enterprises. CFUG also has actively found ways to support landless and poor farmers to participate in this enterprise.

Participating farmers have encountered problems but in general have managed to make significant income from their enterprise. This has motivated them to continue, many farmers have invested in additional tunnels to grow more vegetables with their own funds which is an indication of long term continuity.

The area is a government declared “vegetable pocket area” where the “high tech tunnel” has also been established. Despite of the initial hiccups this facility, once smoothly running will provide essential technical assistance and seeds/seedlings to the farmers assisting in sustaining the vegetable enterprise. Interest among many other farmers to join and start vegetable farming also is a strong indication that the enterprise will continue.

Key Learnings  Hariyo Ban supported an initiative chosen by the farmers themselves and the support was a result of long engagement with the CFUG and farmers during the Hariyo Ban first phase resulting in success from the beginning and with indications that it will be a sustainable enterprise.  Choice of vegetable growing was a wise one as against for example goat farming. Vegetable growing by farmers already understanding the need for conserving their forest and actively engaged in doing so also meant that pressure on forest for resources further diminished. Choice of vegetable farming and not goat keeping was an informed choice on part of the farmers.  While the vegetable farming is still at a small scale, lack of a business plan and precise record keeping may not be a problem. As the business grows and becomes a true commercial enterprise, these tools become essential.  Establishment of own revolving fund by the CFUG will ensure future sustainability when Hariyo Ban winds up its support. The realization that rather than providing equal amount of support to each of the farmers which may not be sufficient to kick start the enterprise, it has to depend on the type of vegetable to be farmed and the extent of the land allocated for this to make the support effective. This might mean starting with small number of farmers in the first round.

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Enterprise 2: Vegetable Farming

Background This community borders the Suklaphanta National Park as well as an area where the Black Buck or Krishnashar, one of the rare and endangered species of antelopes have been translocated. The Krishnashar Enterprise Vegetable Farming Commercial Vegetable Farming Location Simalpjhanta, Suklaphanta Group was established in BS 2073 Municipality Ward 7, Kanchanpur with 11 women and 4 men farmers District as members. This group was River basin Suklaphanta Bramhadev Complex established under the Sundevi Implementing Krishnashar Commercial Vegetable Buffer zone Users Group. Both partner Farming Group these groups were established with Lead partner NTNC the support from NTNC. Type of enterprise Small

The members here were engaged in growing vegetables before the program set in. The production was mostly for domestic use. They also keep chicken, goats, pigs and few cows which they took to the forest for grazing. The animals were sometimes killed by carnivores straying out of the National Park. The villagers also killed animals like deer that straying into the village.

Objective The objective of establishment of this group and the enterprise is to reduce the dependency on the forest from the increased income from vegetable farming.

Beneficiaries

The target group of this enterprise are the households that used to depend on the adjoining buffer zone forest of two highly significant biodiversity hot spots. 11 out of the 15 members are women and are from the indigenous Tharu community. The beneficiaries are the 15 households directly and through production and sales of the vegetables the community in the village as well as those in the nearby market town of Jalari.

Current Status of Operation The members of the group are now engaged in growing vegetables like tomato, cauliflower, okra, cucumber, bitter gourd and different types of pumpkins and gourds in around 3-5 kattha of land. These are grown under an organic regime where they do not use chemical fertilizers and pesticides. Some of the produce is sold in the village while some are taken individually on head loads or bicycles to the nearest market town of Jalari.

From the support provided by Hariyo Ban via NTNC, 3 members have constructed a 20 ft * 6 ft plastic tunnel each using bamboo frames to grow vegetables. A grant of Rs 100,000 was provided for the three (mainly of the plastic). One member has constructed her tunnel using iron frames with an additional cost of Rs. 100,000 from her own. 3 other members are preparing to construct their own tunnels as they have now seen the benefits of these structures in increasing productivity. They all plant vegetables out in the field as well.

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The members own only 2-3 cattle which are stall fed as they have planted fodder grasses in their own land which is occasionally supplemented by dry straw they buy. Members of the group are also members of the hunting prevention committee set up by the Buffer-zone Users Group.

Through NTNC Hariyo Ban has also provided small farming equipment such as spray, tanks for collecting cow urine for fertilizer and bio-pesticide preparation, spades and rakes as well as seeds to all the members. A three-day training was participated by 15 members in the village as well as in Jalari on preparation and application of bio-pesticides from locally available materials.

12 members also own a biogas digester and use it for cooking and for the supply of manure.

Linkage and Coordination The local farmers contact the Agriculture Knowledge Centre for technical advice but they have not had any technicians visiting them on site. So far the local Ward Office has not supported the group. They have heard that the Municipality has a policy to support vegetable growing but are yet to contact them.

Significant Changes A significant result out of this enterprise of vegetable farming is the learning for the member farmers that indeed different vegetables can be grown successfully in an organic way and produce enough for them to sell it in the market to generate income. Use of organic manure and pesticides from local sources and the installation of biogas prompted them to limit taking their cattle to the forest (saving and collecting dung) thereby reducing pressure on the forest and conflict with wild animals.

Increased awareness and participation in the hunting prevention group engaged them in not only stopping hunting wild animals and motivating neighboring villages to also follow suit, they have started to drive stray animals back to safety or report it to the National Park. The Warden of the Suklapahanta National Park indeed corroborated this fact.

Challenges/Constraints The weather, especially the gusting windstorms are proving to be hazardous to the plastic tunnels. The tunnels constructed on local materials are much prone to damage than the metal supported tunnels.

Irrigation is a challenge in improving and increasing productivity in the area.

Although they themselves have stopped open grazing their cattle and using chemicals, neighboring villagers are still continuing to do so. Cattle from neighboring villages are occasionally destroying their crops.

The members are yet unable to keep records of their income and expenditure and require capacity building in this area.

Each member is currently transporting and marketing their produce individually and therefore in small quantities. They are able to sell their produce but are deprived of the collective bargaining power if they were to collect and sell as a group.

Sustainability Sustainability of the vegetable enterprise depends on not only their technical knowledge and skills to manage the tunnels, irrigation and sourcing of seeds; it will also depend on the price

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they get for their produce. So far they are selling small amounts individually which could be a beginning of a more commercially oriented enterprise where the members collect and sell their produce collectively to increase the amount and the bargaining power with the buyer(s). The members do not yet keep records of their inputs and outputs which will be essential if the business grows into a commercial scale.

Irrigation could be an important aspect to be considered and solved if the enterprise is really to increase scale and sustain commercialization.

Key Learnings  Farming can be conducted at individual farm level but marketing must be done collectively in order to commercialize and compete in the market.  Activities by neighbors also impact upon the performance of the participating farmers. It is therefore important to also train members on how to interact and convince these farmers also to take up environment friendly techniques. This also applies to the Buffer- zone FUG who should use its wider membership to motivate other farmers to also follow conservation practices otherwise the impact on both livelihood improvement and biodiversity conservation may have a significant impact and not sustain for long.

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Enterprise 3: Commercial Vegetable Growing

Background The group was established in BS 2073 by NTNC with 11 household representatives as its member. Out of the 11 members 9 are women and 2 men and all of them are Chaudhary Tharus. In fact, 80% of the Enterprise Vegetable Growing population in the village are Tharus. Location Jonapur, Ward 3, Suklaphanta The village of Jonapur borders the Municipality, Kanchanpur District Suklaphanta National Park. The River basin Suklaphanta Brhamadev Complex area is a pocket area for potato Implementing Khayr Kanara Commercial production. Farmers are engaged in partner Vegetable Farming Group seed potato production and have Lead partner NTNC been traditionally growing Type of enterprise Small vegetables for household consumption.

The National Park does not allow households to enter the park area for firewood and grass while controlled access is allowed in the buffer zone forest by the user groups. The people are therefore forced to keep their livestock stalled and manage their fodder needs from the market or from their own farmland. An alternative income source like commercial vegetable farming would help the members of the group additional income for household needs as well as for improving their living conditions.

Objective The objective of vegetable growing in Khyar Kanara is to provide an alternative opportunity of income to the forest dependent (National Park Dependent) households so as to contribute to the improvement of the forest condition and biodiversity of the area.

The group also aims to provide pesticide free organic vegetable to the homestay program planned to start in the area with initial 7 Tharu households.

Beneficiaries 11 members of the group among which 9 are women and 2 men are the target group for this enterprise. All the 11 are from the Tharu Ethnic group and dependent on the national park for their livelihood.

Current Status of Operation The group members were trained by NTNC with support from Hariyo Ban together with the members of the Krishnashar Vegetable Group. The training was provided two times for three days each. They are growing potato (traditionally grown), cucumber, bitter gourd, cauliflower and chili peppers. The vegetables are sold locally or taken to the Jalari market nearby in the highway.

With the support of Hariyo Ban, two members are installing plastic tunnels for production of vegetable seedlings. Seedlings will be sold to the Members in reduced rate but also to outsiders in market rates. They have also been trained on production of bio-fertilizer and pesticides from locally available materials like cow urine and herbs. With the application of improved techniques inspired by the training, the production of vegetables is increasing. Members take head loads of vegetables individually to the market at Jalari for sale. The members record income from vegetable sales but do not keep records of their expenses.

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Linkage and Coordination Besides the Hariyo Ban and NTNC, the group has linkages with the Buffer-zone Users Group which is also regularly organizing various training related to farming techniques and practices for them. All the Members of Khayar Kanara are also Members of the Surya Jyoti Agriculture Cooperative where they save Rs 100 every month (increased from Rs 50 last year). The District Agriculture Knowledge center also trained them on vegetable and paddy cultivation.

Significant Changes Due to the training provided by NTNC under Hariyo Ban as well as by the Buffer-zone User’s Group and the district agriculture offices vegetable production has increased. Recent provision of the two plastic tunnels to grow improved seedlings locally is also expected to boost vegetable production. This means more income from the sales of the vegetables. Prohibition from the National Park on cattle grazing in the Parks area has forced the members to keep their animals stalled. They have started planting fodder grasses in their own land for their animals. As they are getting increasingly engaged in their farms, they can no longer afford time to go into the forest. The increased awareness through training and frequent interactions have also meant that the members are not hunting wild animals but rather returning them back to the forest even those that stray into their villages.

Challenges/Constraints Although they themselves keep their animals stalled animals from adjoining villages are letting them graze freely in the forest. This means that their restraint alone will not stop forest degradation if all around the park do not participate in practicing similar levels of restraints. Occasionally these animals even stray into and damage their farms. Marketing vegetables is difficult as there is no mechanism for collecting their produce at one location and manage sales in bulk. Each individual member is carrying a few kilos of vegetable in head loads and walk more than 7 km to the Jalari market. Buyers do not come to the village as the volume produced by individual members are small and therefore they have to sell the vegetables at a lower price.

Sustainability Sustainability depends on two aspects: increase in the quantity of vegetables produced to attract bulk buyers and, development of organization and management capacity within the group to organize collection, storage, transportation and marketing of their produce. For this to happen the technical and management capacity of the members as well as the group needs to be further enhanced and the membership has to be widened among more households. Limiting the enterprise to the present membership size also means that their contribution towards forest and biodiversity conservation remains small as majority of households are still not practicing organic farming or stall feeding their cattle and not actively engaged in conservation activities.

Key Learnings  Commercialization can take place even when production is individually managed while sales and marketing is collectively managed. Collectivity brings in the dimension of quantity attractive enough for bulk buyers and marketers. Small quantity of vegetable produced and marketed individually means the activity will remain at sustenance level, generate lower income and does not graduate towards commercial undertaking.  Involvement of a small group of households in conservation initiative of such a large scale and such as the National Park tends to remain insignificant. The engagement must be widened to cover and involve a larger group of population to make the contribution significant and effective.

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Enterprises 4: Community Homestay

Background The home stay started in 2068 BS with 8 households participating. It all started after Tara Gau Development Committee organized a cooking and management in Pokhara and housekeeping training on site for the Enterprise Gurung Community Homestay member households. In 2072 the Location Bhadaure, Annapurna Rural membership was expanded to Municipality, Kaski District include 10 households. The village River basin Seti sub river basin consists of 82 households and Implementing Panchase Community Forestry several other households are also partner User’s Group interested to be part of the home Lead partner WWF stay group but the membership has Type of enterprise Large not been expanded beyond the 10 households due to perceived difficulty in managing large groups.

The 82 households in the village is almost in a close cluster located adjacent to the Panchase hill which is a protected forest well known for its dense forest which is rich in flora (including many medicinal plants such as the Sunakhari) and fauna (leopards, pheasants, bears, wild bees). The traditional Gurung settlements, the omnipresent view of the Annapurna range, waterfalls, its crop covered terraces and the Panchase forest has been attracting mostly internal tourist and researchers in the area.

Objective The objective of the Gurung Community Homestay is to create alternative and environmental friendly livelihood opportunity for the Gurung households who have traditionally inhabited this area by providing traditional Gurung hospitality to the guests.

This also involves promotion of local food and culture through traditional recipes and cultural programs among the guests as well as among the inhabitants of the settlement.

Beneficiaries The 10 participating households are the main beneficiaries of this enterprise. They are all from the Gurung community while the key persons from the households who are active in this endeavor are the women who manage the homestay, provide for food and seemingly keep the income, of course ultimately to be spend on household expenses like school fees, stationary for children.

The poorest households in the settlement are not among the participating households as they are not able to set aside and manage rooms and amenities for the guests. Such households may benefit who are not member of the homestay benefit by supplying vegetables, local grains and drinks to the participating households when needed.

Operation and Management All 10 participating households are the members of the Management Committee led by its Chairman Mr. Rupesh Bahadur Gurung. Majority being women who regularly participate. So far only 8 members have been able to set aside rooms for the homestay while the 2 households are still making arrangements to have them available.

When guest arrive, the committee allocates the households who will host on a turn by turn basis. Selected households provide clean room, access to toilet and food (snack, dinner, breakfast) as a package at Rs. 750 per person per night. Guests can order tea, local alcoholic

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drink and a cultural program as optional. Rs. 40 per guest is deposited in the Committee saving fund.

Current Status of Operation The Chairman seems to be the most active person in the group/committee who leads the group and liaises with external agencies when necessary such as with NGOs, trekking agencies in Pokhara and the Municipality. Most of the other members are housewives who go on with their regular households’ chores most of the time. The number of guests arriving in the area for staying is still small, around 5 a year in total which is not bringing significant business to the group to make any economic difference. Those who have so far used their facilities have mostly been college and university students on field visits for research work and are not big spenders.

The group has not yet been able to promote the business well enough in the market to attract larger number of visitors.

Member households mostly crop millet, maize and vegetables organically whereby chemical fertilizer and pesticides are not used. After own consumption some vegetables are sold in the local market.

Linkages and Coordination Through the CFUGs they are linked with the District Forest Office. DFO regularly provides them with tree fodder seedlings for planting in their farm land. Local government has not been much help to the homestay as most of their attention at the moment is on local road construction.

Most of the member households are also the members of the Panchase Dham Cooperative and are engaged in monthly savings program (Rs. 200/month). The Chairman is connecting with the State Government in Pokhara who have called for proposal from community homestays for a project amounting to Rs. 10,00,000 for the improvement of infrastructure for the homestay (community hall). Promotion and marketing of their product with travel agents and agencies are yet to be done.

Significant Changes The community is surrounded by the Panchase Protected Forest (national forest) and community forests (Naule Chhar Chhare, Rani Ban and Pathre Pakha) rich in biodiversity and are not new to protection and conservation of forest and natural resources. There has been instances when community members detained poachers and handed them over to the DFO. The potential of tourism in the area and the homestay has meant that they not only protect but also promote the protected landscape to the visitors.

Several members of the homestay are also members of the Harpan Bari Tea Cooperative (see case 3) and are engaged in planting tea in their land near the forest and so far left fallow. Planting of tea also made the households to protect and plant shade trees enhancing forest cover and improving diversity.

Livestock keeping is limited and are mostly stalled. Households are using biogas and LPG for cooking while the firewood used is mainly from their own farm land. 45

Challenge/Constraints The main challenge for the enterprise is the low number of visitors. Most of those who visit are students from colleges and schools and therefore with a very limited budget. International visitors are rare. So far the enterprise remains sort of subsistence in a sense that they are going about their lives and if any visitor shows up they are glad to help. Not much effort have been made to promote and market the product in the nearby Pokhara which is one of the top tourist destination in Nepal.

It was also noted that there was another homestay group quite nearby competing for the few visitors that come. This homestay was located at the road head and had an advantage over the Gurung Community home stay which also lacked any signage to direct tourist and visitors towards itself. Moreover, in the nearby local market a local lodge was also found promoting itself as a home stay indicating the need for collaboration and standard setting.

Sustainability The enterprise so far remains less than commercial and is just a pass time for women of the member households when the visitors are there. No active effort has been made to market their product and services and proactively attract clients. The rates charged to visitors are also not based on calculation of real costs but has been decided ad hoc. Since its establishment 5 years ago, the group has so far managed to accumulate Rs. 10,000 in their fund which is not enough for any significant project to be undertaken.

Key Learnings  The area with an outstanding landscape rich in biodiversity, fertile terraces and an ethnic Gurung settlement rich in tradition and culture has great potential for being a tourism destination. This potential is still to be fully utilized and market including by the Gurung Community Homestay.  The enterprise is still in idling mode where it passively waits for the guest to come. It is yet to be an active enterprise that also spends significant amount of its resources and energy on marketing their good product.  It is at the moment a small distraction for the housewives occasionally where they can make a little income without much efforts! The nature and scale of the enterprise still is at such level that it is not making any considerable difference in the economic situation or the living standards of the households.  The group is led by its Chairman who seems to be the only person active but with several other responsibilities. There is a need to see how other members can take up active role in marketing, networking and improving the product in order to make it a real commercial enterprise.

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Enterprises 5: Ayodhyapuri Bufferzone Community Homestay

Background Eleven households from the Kharkatta village in Madi municipality are the members of this Homestay program. 2 more households are making preparation to join the group soon. They will formally join once infrastructure Enterprise Ayodhyapuri Bufferzone required (rooms with bathroom, Community Homestay solar systems) are completed. Location Madi, Chitwan District River basin Chitwan Barandhabhar This community are also members Implementing Ayodhyapuri Buffer zone of the Chitwan National Park Buffer partner Community Homestay Zone User’s Committee and their Lead partner WWF settlement is besides the Rapati Type of enterprise Large River that is also the border of the National Park. In this respect the community come in close contact or encounter with wildlife that stray out of the National Park. In the past these encounters often ended in the killing of the animal. Now a day it is more likely that the animals are either pushed back or captured and returned to National Park authorities. The still suffer loss from marauding animals especially in their vegetable and crop fields. On the other hand, they have been able to market sightings of wild animals to attract more visitors to their home stay. Several households in fact stopped farming and are solely dedicated to the tourism business (homestay), fish farming and wildlife tourism.

The community learnt about the homestay activity when they were taken on a study visit of the Amaltari Homestay in Nawal Parasi district by WWF. The Ayodhyapuri Community Homestay was then established in 2072 BS.

Objective The objective of the Homestay is to contribute to the economic development of the participating member households through nature based ecotourism and provision of safe and clean hospitality facilities to the visiting tourists.

Beneficiaries The 11 participating households (2 to be added soon) are the direct beneficiaries. Among them 10 are from the Magar ethnic group and 1 is a Newar. One is a female headed household. All of the members as well as other households in the community were resettled here by the Government in from Myagdi and Parwat districts in 2018 BS. Households other than the members also benefit by supplying vegetables and grain to the members when required. The visitors who come benefit from the safe, clean and comfortable accommodation; organically grown local food, local culture and encounter with nature in a more responsible manner. The National Park directly benefits from reduction in wildlife loss and the compensation claimed by locals when wildlife harms their corps and domestic animals. On an average 15 visitors are hosted by each household every month. The Homestay employs an Office Assistant and an Office Helper full time with a monthly salary of Rs 8,000 and 4,500 respectively.

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Current Status of Operation All 11 member households have a cottage with two well-appointed rooms with attached bathroom and running hold and cold water. Water is heated with solar heaters and electricity supply is both through mains and solar backups. Each household practice strictly organic farming and supply the same food to the guests. Upon demand by groups, Magar culture program is also presented for a fee.

The homestay boasts of a community center with well-equipped office, large meeting hall and dining hall also suitable for workshops and conferences (hall is rented for Rs 2,000/day). The building was constructed at the cost of R. 8,00,000 of which 6,00,000 was from own contribution and 2,00,000 from the Tarai Arc Landscape (TAL) program via the Buffer zone UG. Hariyo Ban contributed the furniture and solar water pumps while TAL also provided solar lighting and generators.

When visitors arrive they are allocated to households in turn. When visiting group is large hosted and fed jointly by a group of 5 households, also in turn. The income from the large group is shared equally by the 5. 10% of the room charge and 10% of the cost of vegetarian food goes to the fund of the Homestay community. Current rates for rooms are Rs 600/night for 3 persons, 500 for two and 400 for single occupancy. Non vegetarian meal is charged Rs 250 and vegetarian meal is 150 per person.

Linkage and Coordination The Community Homestay has strong links with the Buffer Zone UG, the National Park, TAL project and the Hariyo Ban program (WWF) with whom they work very closely. WWF brought them in contact with Intrepid Australia a company that organizes and promotes responsible tourism. After an agreement with Intrepid that the Homestay will refrain from using child labor and not engage in animal abuse such as riding bullocks and elephants as well as not abusing cats and dogs, this organization provided beds and mattresses, solar water heater, fire extinguisher, furnished bathrooms, painted the guest rooms, boats, fishing rods and bicycles. Intrepid provided these materials via WWF, TAL and Buffer Zone UG.

The Madi Municipality has also provided Rs 8,00,000 for upgrading the pond. A Detailed Project Report is being prepared to construct two swimming pools and an extensive green area around the pools and will be submitted to the State government for funding.

Hariyo Ban also supported training to all the 11 households on cooking, hospitality by Taragaun and an 18 week on site organic vegetable growing/IPM training covering a full cycle of vegetable growth. In addition, NTNC provided handicraft training in Sauraha and a 15 days Tour Guide to 2 men and 1 woman from the community.

Significant Changes Livelihood of the participating members have definitely improved from participating in the homestay and other related activities. Proximity of the National Park, a populous city of Narayanghat/Bharatpur and improving road access has resulted in an increasing trend of visitors to the homestay. Members claim that each household can now easily make Rs 30,000 a month on an average. This has motivated 3 men working in Malaysia to return and participate in the homestay program. Other households are also interested to join the membership and

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wish to remain in the locality. Related activity like poultry, fish rearing and pig and goat keeping has diversified their sources of income. Participating in homestay activity and engaging in cultural programs have helped the community increasingly appreciate and revive their own culture.

Majority of visitors arriving appreciate nature and wildlife thereby motivating the community in protecting and conserving nature such as wildlife and forest vegetation. They have even embarked in planting trees to increase greenery and provide refuse to birds and animal close to the settlement. They no longer hunt and whenever animals stray out of the park they either drive them back or notify the Park authorities. They also engage in preventing surrounding communities to destroy nature and wildlife. They have learnt that nature conservation can be a means to sustainable income generation.

Challenges/Constraints The community here has learnt to make opportunities out of challenges! As the settlement is bordering the national park, wildlife damage to their farm is common. The National Park may provide some compensation in severe cases but the community has started adapting to this threat by changing from cropping to fish ponds, chicken keeping and keeping small animals like goats and pigs in pens. Another challenge is from the flooding of the Rapti River, which frequently happens during the monsoon season. Plantations and embankment protection are being implemented to combat this situation.

Sustainability The homestay is getting enough number of visitors for them to make significant income – both for the involved household and the homestay fund. Interest shown by other households to join the homestay, decision by men employed abroad to stay back and engage instead in homestay is a good sign of sustainability of the enterprise.

The homestay members have received enough financial and technical support from organizations like WWF/TAL/ Hariyo Ban, NTNC and Intrepid that they have built their capacity to continue on their own. Their link to the Buffer Zone UG and its Management, the National Park, the Municipality and the State Government is also a sign of their capacity to network and acquire necessary support.

Change in their farming system, active afforestation and greening activities, stopping use of harmful chemical pesticides and fertilizers and protection of nature and wildlife as certainly contributed to the conservation of biodiversity in the area.

Key Learnings  Nature and biodiversity conservation and livelihood improvement can go hand in hand. It is a win-win situation where community conserves nature, uses it for ecologically and socially responsible tourism thereby generating income to improve livelihood.  Nature tourism can also help revive local traditions and culture and bring in pride of being part of that rich heritage.  A concerted and coordinated effort over a number of years by a group of partner organization involved in the support and capacity building of a local group intensively rather than spreading the resources towards many organizations has resulted in a motivated and capable organization that can take the business forward successfully. 49

Enterprises 6: Tea Cultivation and Processing

Background Households of this area came together in 2058 BS to cultivate tea after they visited Lumle Agriculture Farm and the tea cultivation in Lwang village, both in Kaski district. This group was an offshoot of the Silsile Power Enterprise Tea Cultivation and Processing Group organized by JICA for Location Bhaduare, Annapurna Rural ensuring local participation in JICA Municipality, Kaski District funded soil erosion project to River basin Seti sub river basin protect the Fewa watershed. In Implementing Harpan Bari Tea Cooperative 2072 BS Hariyo Ban program partner helped register the tea cooperative. Lead partner WWF Type of Medium The cooperative consists of 42 enterprise members. After the area was organized into two municipalities 22 members are located in the Annapurna Rural Municipality while 20 are now in Pokhara Maha Nagar Palika. This has brought in some administrative difficulties forcing the cooperative to plan for a split once each side acquires a minimum of 25 members each.

The cooperative first planted tea collectively which did not succeed much due to lack of maintenance and care of the crop. They have now moved on towards planting tea in private land which resulted in better success as the individual owning the land and tea crop tended to take better care than the plantation managed collectively.

Objective The Harpan Bari Tea Cooperative seeks to raise the income of the participating households through tea growing, processing and marketing. By doing so it also seeks to impact on slope stabilization, conservation of vegetation and biodiversity of the area.

Tea plantation also helps turn fallow land into a more productive landscape.

Beneficiaries Most of the members are those who have land and land to spare for tea planting and are therefore not poor. The cooperative hires poor members from the community for occasional labor required. They are however under discussion with the Rural Municipality to lease public land to expand tea cultivation. If this materializes landless households will also be included in this scheme.

Current Status of Operation The cooperative has so far planted 12 – 15 ha with tea. The individual plots are small and scattered but once the land lease for 15 years materializes the coverage will be significant enough to make economic sense. So far not much has been harvested to sell and the cooperative has not managed to share dividend with its shareholders. Each share is valued at Rs 5000 at the moment but reduction is being considered to increase shareholders as many cannot afford Rs 5000.

Hariyo Ban has so far provided Rs. 2,65,000 for establishment and management of a tea nursery in the first year. Hariyo Ban also paid the salary of the Nursery Naike for two years (5000/month). While the nursery was being prepared, Hariyo Ban provided the tea seedlings free of cost and paid Rs.11 on top for planting. This has motivated members who so far had left their land fallow to plant tea as the seedlings are free and they get Rs. 11 per seedling planted as planting cost! This is a better option that leaving the land fallow!

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Linkage and Coordination The cooperative has been supported by the Hariyo Ban program. The JICA project was long since finalized and no links exist with them at the moment. It is in communication with the Annapurna Rural Municipality as well as the Pokhara Metropolitan in connection with registering two separate cooperatives.

The cooperative arranged a training for 22 of its members on tea growing and processing which was organized by the Tea and Coffee Board. The cost involved (Rs. 12,000) for one trainer was too expensive for the cooperative to provide follow up trainings. As the tee planted are still young and the amount of harvest is low, they have not yet initiated marketing arrangement with any prospective buyers. What little is produced is locally dried and consumed.

Significant Changes Around 15 hectares of fallow land have been covered with tea seedlings contributing to slope stabilization, biodiversity conservation (birds and bees) and improved aesthetics. The spaces between tea seedlings are covered by grasses that are harvested for goats and cows kept by some of the members (for some years). This has also led to decreased pressure in the community forest speeding up its regeneration.

Although tea growing is for farmers with spare land and therefore not for poor, the cooperative has thought up a plan whereby they are processing leasing public land which can be allocated to such farmers to plant tea ensuring an inclusive enterprise.

Not only because of tea, but also because of biogas and LPG use, reduction in cattle and goat keeping as family size is shrinking due to migration of youth out of the country, the pressure in adjoining forest and natural resources are already decreasing.

Challenge/Constraints The need to split the cooperative into two is proving a challenge. In order to register as a cooperative, at least 29 shareholding members are required. Due to recent demarcation in the area into two municipalities, conducting official and legal functions become complicated.

Tea is a long term crop and not an easy one to tend, harvest and process. Harvesting and processing require good timing, skill and appropriate equipment in order to maintain quality and therefore get a good price. The cooperative lacks these skills, equipment and funds for investing in them.

Production of organic tea requires the use of IPM and application of organic manure including green manure. The cooperative lacks the skill and resources to produce/source and apply such inputs.

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Sustainability The willingness and motivation is evident with its Chairman Mr. Chitra Bahadur Gurung, but it cannot be driven solely by the dedication of a single person. So far, Hariyo Ban has provided training and funding support but the cooperative has not been able to build collaborative linkages with any other agencies to support and sustain the enterprise in the future.

The saving within the members of the cooperative is irregular and considerable saving funds are not accumulated yet to finance the activities of the enterprise even in a revolving basis. So far farmers received tea seedlings for free and on top of that they were also paid Rs. 11 for planting each tree. This could create dependability and existing as well as new members may want to wait for similar support before they embark on planting tea. According to Mr. Hira Lal Gurung, he decided to plant tea in his fallow slope because he received both free seedlings and the planting cost. Producing tea and making income out of it was secondary to him.

Once the tea plantation is ready to be harvested, processed and marketed; external assistance will be required both in terms of technical assistance and funds for equipment, infrastructure, marketing and promotion as well as quality control. This process must be already initiated if the enterprise wants to be truly commercial and sustainable.

Key Learnings  The cooperative has to find a way of becoming more manageable and efficient in decision making by reorganizing into two as per the political boundaries. The irregularity of meetings and saving among the shareholders/members must end in order for it to be commercially successful.  The cooperative has learnt a lesson that planting, protecting and managing tea plantation collectively is not successful. Their experiment to allow members to individually plant in their private plots has resulted good results. However, it has to be careful how it balances the needs and interest of the collective with that of the private farm households.  Members themselves shared their thoughts that free seedling and planting cost are not a sustainable way to ensure the success of the tea enterprise as several of them planted tea just for that reason. They also confided that this also helps them avoid government fines that may be slapped (recently passed law) for leaving agriculture land fallow!  Planting tea is only half of the story. The real challenge begins when tea reached the age of harvesting. Harvesting, processing and marketing are specialized areas of engagement requiring training, skills and resources. The Cooperative has to start preparing for this phase if they want to be a sustainable and successful enterprise bringing in economic benefit for its members.

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Enterprises 7: Coffee Production

Background In 2040 some farmers in the area started growing coffee with seedlings provided by the Lumle Agriculture Centre. A trader from Bhalam area bought the coffee beans at 100 Rs/pathi (about 3kg = 1 Pathi) and started regularly Enterprise Coffee Production coming back. This encouraged the Location Adhikari Danda, Annapurna Rural more farmers to try planting coffee. Municipality Ward 1, Kaski District Progressively the farmers started to River basin Seti sub river basin get organized into a coffee planting Implementing Shri Machhapuchhre Uttam Coffee group which evolved and got partner Production Coop Ltd. registered as a cooperative in 2063 Lead partner WWF BS with 25 members. Registration Type of enterprise Medium qualified them to received seedlings at 50 % subsidy from the government agencies.

In 2071 BS Hariyo Ban came into the picture and provided the coop. with 4,000 free seedlings and plastic tunnels for vegetable growing in the area. Hariyo Ban continued supporting the coop in the second year with 5,000 free coffee seedlings and fertilizer worth Rs. 7,00,000. 20,000 seedlings and fertilizer was provided on the third year. Additionally, Hariyo Ban financed the construction of the pulping center and set up of some machineries including a computer worth Rs. 21,00,000. Hariyo Ban support continued for the 4th year with 30,000 seedlings and fertilizer costs worth Rs. 24,00.000. The continued support from the Hariyo Ban program has been key to the success of the cooperative. Coffee certification (organic) is also being supported by Hariyo Ban.

2 nurseries producing more than 30,000 seedlings have been started by coffee farmers with support of the cooperative amounting to Rs 50,000 with a condition that they sell coffee seedlings at the District Coffee Coop. Association (DCCA) set price of Rs 20 per seedling. The coop initially started with its own nursery which did not perform well while the new ones owned and managed by private farmers are performing very well. Nursery in the area ensured quality seedlings as monitoring was easier and mortality loss due to transportation was minimized.

The cooperative and pulping facility has been constructed in public land leased from the Rural Municipality with a possibility of registering the ownership to the cooperative when land survey is carried out in near future.

Objective The objective of the cooperative is to uplift the income and the living condition of its members and coffee farmers through production, processing and marketing of quality coffee. It also aims to contribute to improved environmental and forest conservation in the area through good agricultural practices including totally organic ways of production.

Beneficiaries The target group or beneficiaries of the coop are the 59 share holder members and more than 130 who sell their coffee to the cooperative. Naturally, the target group are land holders that plant at least 100 coffee seedling and sell at least 30 kg of cherry per year and therefore are not poor and landless. The coop directly employs 13 people from poor households in the enterprise. Moreover, two months ago a decision has been made to locate fallow land to plant coffee for the landless in the area. The coop will provide free seedlings and necessary manure and pay the land rent for 2 years with the condition that the participating farmer grows coffee and sells it to the cooperative.

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Coffee farmers also employ poor households for picking up coffee cherries and pays Rs 20 per kg of cherries picked. One person can pick at least 30 kg of cherries a day.

Current Status of Operation The 59 coop members and 130 coffee farmers are regularly selling coffee cherries to the coop. Farmers buy coffee seedlings at Rs 20 per seedling from the two nurseries currently in operation. The coop members are also saving Rs 200/month and the current share price has reached Rs 10,000.

The cooperative buys cherries and pays the non-member coffee farmers immediately while the share members are paid once sales of the parchment are made. The coffee coop processes the cherries into parchment which are then sold almost solely to the DCCA which operates a market outlet at Lake Side, Pokhara. Rs 520 is set for each kg of parchment which it sales out in turn to customers for Rs 570/kg.

The coop has also established the Sima Simle Nepal Multipurpose Agriculture Firm with 2,000 share members (each paying Rs 50,000 per share and 1,000 as membership fee) generating a fund of Rs. 1,20,00,000. The firm is registered in the Annapurna Rural Municipality. The firm has leased 200 ropani land at Rs 1,500 per ropani per year and planted coffee. The firm also keeps 45 buffaloes mainly for its manure and sells the manure for Rs 30 per “doko” (local bamboo basket) which is a much cheaper rate.

Linkage and Coordination In addition to Hariyo Ban program, the cooperative has established links with other agencies for technical, financial and market support. The area is a declared coffee pocket area which qualifies for support from the Prime Minister’s Agriculture Project support through which it received around Rs 17,00,000 for construction of the pulping center. Hamro Coffee, a NGO with an office at Lake Side, Pokhara also provided technical support and financial support worth Rs 1,80,000 for improvement of the pulping center. National Tea and Coffee Board assisted the cooperative for the establishment of nurseries and supplied 10,000 seedlings.

The Rural Municipality has provided material support to the coffee farmers directly in the form of 300 meters of HDP pipes for facilitating irrigation. More significantly it has made available the land necessary for the construction of the coop office and the pulping center.

Importantly, the parchment produced by the coop is bought and sold forward by the District Coffee Cooperative Association through its outlet in Lake Side, Pokhara.

Significant Changes The cooperative is well set up and in a growth trajectory. Its members increased from 25 to 59 while it has at least 130 farmers planting coffee and selling cherries. Although it may take some more years to realistically assess whether significant improvement in income by coffee farming households have been achieved or not, it is true that they have started selling cherries and making some income. More over some poor household members have direct employment at the pulping center while many are now engaged in planting, tending coffee and picking cherries for coffee farmers and making much needed income.

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The coop is dedicated to making good dividends to its shareholders and other coffee farmers through organic and environmentally and socially responsive coffee farming. To achieve these objectives, the cooperative is planning to locate some fallow land to be leased to landless with a provision of rent subsidy for two years and free seedling in order to improve the living conditions of these group. Establishment of the Sima Simle Multipurpose Cooperative as its subsidiary is a step towards expanding coffee plantation and ensuring organic manure necessary.

Planting coffee has resulted in increased cover in otherwise fallow land. Coffee requires shade and therefore surrounding trees are protected and even planted. This has resulted in soil erosion control, land slide minimization and availability of fodder and firewood. As with other communities, popularity of LPG has already minimized firewood use and collection from the forest.

Challenges/Constraints The main challenge is to generate enough resources to operate the pulping center more efficiently to produce quality parchment. There is also a need to increase coffee production through increasing the area of coffee plantation while in the mean time being environmentally and socially responsive. Although the coop has decided to support landless persons interested and committed to planting and selling coffee to the coop to find fallow land that can be rented; it is still a challenge to find such land and at a reasonable rent that can be paid by the tenants once they start selling cherries.

Another key challenge is to maintain and grow in organic coffee production where they will need technical support in IPM in coffee, production and application of bio-fertilizer and in acquiring organic certification. The certification will add value and help them acquire good price in the niche market of organic coffee.

Sustainability Significant amount of funds, capacity building efforts and hardware has been invested in the cooperative by both the members and the partners of cooperatives. This has driven the cooperative in a path towards profit and success in near future. The acceptance of the cooperative and coffee growing is indicated by the rise in the number of its members as well as farmers who have and want to plant coffee and sell it to the coop.

Establishment of the pulping center on land provided by the local government, establishment of nurseries to produce quality coffee and the new multipurpose cooperative facilitate expansion of coffee planting and production of organic manure indicates that the coop has a sound business plan and vision in which it is visibly embarking on.

By providing employment opportunity to the poor and by planning to include landless in coffee farming, the coop has strongly indicated its willingness to be inclusive and therefor creating a sound basis for growth and sustainability.

Furthermore, the cooperative has so far build strong links with government, NGO and private agencies and is showing a capability to network and negotiate technical and financial assistance.

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Key Learnings  Hariyo Ban and other agencies came in to support an endogenously evolved initiative rather than parachuting external ideas. This has led to good acceptance by the cooperative and the community at large which increased the chances of long term sustainability even after for example Hariyo Ban program is finished.  Most of the coffee planted are in private land and farmers now are buying seedlings from the nurseries and no longer get it for free. More farmers are planting and interested in planting coffee which is an indication that they are confident that their investment will be rewarded.  Similar to coffee planted on private land, nurseries are also owned by private individual farmers and are established as a business. Rather than promoting such nurseries and plantation owned and managed collectively it promoted privately owned and managed plantation and nurseries. This helped increase the entrepreneurship among the coffee farmers.  The enterprise started small and gradually expanded as it started to learn and gain experience. In each step performance and need assessment was an integral part.

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Enterprises 8: Bael (Aegle marmelos) Juice Processing

Background Several CFUG in the area came up with the idea to set up a Bael juice processing center as the community forests in the area are rich in Bael trees where most of the Bael fruits were being wasted. The industry was Enterprise Bael Juice Processing started in a rented building in 2071 Location Jamune, Satthi Mure-Myagde Rural BS. The raw materials were brought MinicipalityDistrict, Tanahu District in during season by 202 household River basin Seti sub river basin members of several CFUGs in the Implementing Mountain Tanahu Community Bael area. However, most were brought partner and fruits processing Industry by the members of the Posheli Lead partner CARE CFUG which collected the fruits Type of Medium collectively and the income from its enterprise sales goes to the CFUG kitty.

In the initial years the industry did not perform well due to lack of proper equipment, facilities, power supply fluctuations and most of all by a weak collective management. Learning from this the Management Committee and the CFUGs decided to hand over the management responsibility to the Manager Mr. Bishnu Kumar Shrestha recently. Bishnu has been awarded a 5-year lease on the land, structure and equipment for Rs. 5,000 per year and Rs 30 for each pack of Bael juice (12 bottles) sold to the company. Currently around 400 packs are sold a year with prospects of increase.

The land for the processing industry was provided by the Ward Office while 6 adjoining CFUGs and Hariyo Ban invested on the cost of the building. The building was finished by Asadh (June/July) 2075 BS. Drier equipment worth Rs 95,000 was supported by the Cottage Industry Office and bottling and labelling machine worth Rs 5,00,000 was supported by the DFO.

Objective The objective of setting up the industry by the CFUGs is to provide income to forest dependent members of the community forest by utilizing the Bael fruit otherwise left unused despite of its health benefits when consumed. It was also expected that once Bael collection brings in income, the households involved will protect the Bael trees and not rampantly use them for firewood thereby contributing to the improvement of the forest area.

Beneficiaries 202 forest dependent households from the 6 CFUGS (but mainly from the Posheli CFUG) and several individual collectors (around 100) and sellers of Bael fruit are the direct beneficiaries of the industry. At the moment the industry is providing full time employment to 8 workers during the season.

Several members of the industry and the CFUGs have been trained by Hariyo Ban. The Manager was provided training on food processing. Several CFUG members were taken to a trip to Ramechhap by FECOFUN to observe and study Bael processing. Hariyo Ban also supported the training of 11 women and 5 men members from two CFUGs in Bael processing at a Bael processing factory located in Bardia. Training on collection technique was also given a year ago by Hariyo Ban to the CFUG members.

Current Status of Operation Currently the industry has registered its “Amrit” trademark and the quality of processed juice has also been approved.

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The industry buys Bael fruits at Rs 15 per kg at road head and at 20 per kg when delivered at the factory. After processing, the factory sold 400 packs (12 bottles/pack) this season. Calculations by the factory in its Business Plan indicate that at least 5,000 kg of fruits need to be processed to break even.

Each bottle is sold for Rs 175 whole sale an Rs 200 in retail. Market for Amrit Bael juice is not a problem as demand is high. Currently they sell it in the local market in Damauli and Dumre and in Agena Restaurant and Dearwalk Company in Kathmandu.

Linkage and Coordination The enterprise has established linkages with Cottage Industry, the local Ward Office and the DFO for various technical, financial and material support. It certainly does have support from the 6 CFUGs who helped found the enterprise.

It is a registered company with the Cottage Industry and has already established market outlets in Dumre and Damauli as well as 2 points in Kathmandu. The demand is promising and now that the infrastructure is in place it hopes to increase processing and production thereby going into profit.

Significant Changes As a result of establishment of the industry 7-8 persons, mostly female are employed during the fruiting and therefore procession season (starting January) and 100s of CFUG members, mainly women are involved in harvesting and delivering the Bael fruits to the company thereby directly benefiting. The proceeds of the sales for the members of the Posheli CFUG (major supplier) goes to the CFUG and is then invested in the welfare of its members thereby spreading the benefits much wider to the more than 200 household members of the CFUG. Realizing the income generation potential of the Bael fruit, the CFUG members are now actively protecting the Bael trees. They are now considered a high value component of the community forest in the area and are protected well. They are no longer harvested for firewood. This has also resulted in improvement in regeneration of other vegetation, increase in birds and butterflies.

Challenges/Constraints Once the fruits are collected, they can be stored for up to two to three weeks after which molds start to appear. Once the fruit is opened and pulp extracted, it needs to be processed within around half an hour or it starts to deteriorate. This asks for strictly following processing schedule and guideline to ensure quality of the Bael juice.

This is a newly established enterprise which still requires to be able to process enough Bael into juice and market them to be profitable. For production increase it has to depend on supply from the surrounding CFUG community members. Estimates indicate (also corroborated by the District Forest Office) enough Bael trees exist which when protected and harvested properly will be able to supply enough Bael fruits to the company sustainably. The need is to train CFUG members and other households living near the forests on conservation and harvesting techniques.

The company so far sells its products in local market and two outlets in Kathmandu. Small amount of production and sales has restricted it from carrying out a much wider promotion and marketing activity. There is also a need to inform the wider public of the multiple health benefits of consuming Bael juice and help in increasing demand. 58

Sustainability When the enterprise under the collective management of a sub Committee under the CFUGs, it did not start well. Once it was leased to the current Manager and therefore entrusted to individual management, it has started to show signs of promise. Quality has been assured, market demand is increasing. Once the supply chain is strengthened and ensured, the sustainability of the company will highly improve.

Indications are that the sales price of the juice much below what the market may be willing to pay indicating a strong need for carrying out a better demand analysis as well as proper determination of price. The Manager and some members of the Committee overseeing the Industry must be supported in properly developing and updating its business plan.

Sustainability of the industry, over time will also be further ensured if it can diversify into other related products in addition to juice, for example – jam and candies.

Promotion of the product (including its health benefits) and identification and long term linkages with additional market outlets must also be ensured for its sustainability.

Key Learnings  When sustainable harvesting and processing of a non-timber forest product (NTFP) generates an alternative but attractive income source, the forest depended households naturally embark on protection and conservation of their income source. This further lead to conservation of the wider forest and biodiversity in the area.  A natural resource which was being wasted due to lack of knowledge on its importance and skills to utilize the resource. Hariyo Ban understood the potential and made the community aware as well as gave those resources, skills and knowledge on how to protect and utilize the resource for a win-win situation where income for community and conservation of nature goes hand in hand.  While starting up the initiative an important learning was also the understanding on the perils of collective management, especially when the members are new to initiating, managing and promoting a new product in the market. A timely decision to entrust the management to an able individual was a turning point in the life of this new industry.

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Enterprises 9: Honey Processing Center

Background Lumbini Multipurpose Cooperative was established in BS 2057. The Cooperative has 425 members where 85% are from the Magar community and 15% are dalits. 5 years ago Hariyo Ban came into contact with the Enterprise Honey Processing Center Cooperative through the Location Jukepani, Hupsekot Rural Mahabharat Ghoral Conservation Municipality, Nawal Parasi District Project, also implemented by WWF River basin Chitwan Barandhabhar Complex through the Biodiversity Concern Implementing Lumbini Multipurpose Cooperative Society. The members of the partner Ltd. cooperative live in and near the Lead partner WWF area in the Mahabharat range Type of enterprise Small which is the habitat range of the endangered Ghoral (deer). Hariyo Ban helped establish a revolving fund with Rs 300,000 which is lent to its members for goat keeping, broom grass cultivation and for setting up homestay facilities. The loan was for period of 3 years at an interest of 12% per year.

Most of the members of the cooperative are residing in the adjoining hills that is also the Ghoral habitat. 85% of them also keep bees traditionally in the log hives. Bee keeping and honey extraction is not their mainstay but is a supplementary activity.

Objective The main objective of promoting the honey enterprise among the traditional bee keeping households from poor Magar community is to help them increase their honey production through improved techniques of rearing and processing. Increase in honey production and its sales would lead to improved livelihood conditions and decreased dependency on the forest so that illegal hunting and incidences of forest fires are reduced.

The training is used to impart skills and improve technical capacity. It is also used as forum for discussion of conservation issues and raise awareness for the need to conserve biodiversity and natural resources.

Beneficiaries The 100 participating farmer/bee keepers and therefore 100 households are the direct beneficiaries of the honey enterprise. However, indirectly all the households residing in the hills and keeping bees will benefit through gradual horizontal transfer of knowledge and skills. Market opportunities once opened by the cooperative for the honey enterprise members will also benefit the general members of the cooperative.

Most of all through the provision of an alternative and sound source of income, it is hoped that pressure on the forest for firewood and timber, hunting and forest fire will reduce thereby contributing to the proliferation of the Ghoral and improvement in the forest quality.

Current Status of Operation Four to five months ago 100 of its members were provided with improved bee keeping training. Participants were from the hill area who keep bees. Members of the cooperative from the plains who do not keep bees were not involved. Each of the participants were also provided an improved bee hive each at 20% of the cost (Rs 400) to multiply their bee colonies and increase honey harvest. Hive stands and hoods were also provided. This training was provided on site by Sagar Honey, a private company involved in all aspects of honey such as collection, processing and marketing of honey; production and sales of improved hives and equipment

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for honey production and processing. This was possible from the Small Grants support to Sagar Honey from Hariyo Ban directly.

Hariyo Ban also provided Rs 400,000 to the cooperative to acquire a honey processing machine. The cooperative did not have the skills and expertise to operate the acquired machine. The management and operation of this machine was then entrusted to a young individual from the village Mr. Chet Bahadur who had returned from one of Dubai with an agreement that 1.5% of the profit will be directed to the cooperative. He was on a look out for starting a business in his village instead of returning abroad again. Chet Bahadur duly registered a company at the cottage industry, collected 1000 kg of honey from villagers. At the time of processing he found out that the machine was not working properly and was of a much larger (3000 kg) capacity. At the initial stage purchase of 3000 kg was out of the question for Chet Bahadur. Sagar Honey did inspect the machine and agreed that it required major repair. The machine remains idle since and Chet Bahadur is looking for an opportunity to sell his honey unprocessed and start commercial goat keeping.

Chet Bahadur also found that market price for honey from Millifera was much cheaper at around 250-500 Rs a kilo while the organic Cerana honey from these hills is sold for 1000- 1200 a kg. People who know the value of the organic honey will be willing to buy honey sourced from this area but it will be difficult to compete with the cheaper, sugar fed millifera honey.

Linkage and Coordination: The cooperative has links with WWF and the Biodiversity Concern Society. Through the small grant program to Sagar Honey it also came into contact with them. In relation to marketing honey, it is limited to interested buyer visiting the village upslope and directly buying form the households. The cooperative or Chet Bahadur who was to process and market the honey produce have any business plan so far.

Significant Changes 50 out of the 100 trained have multiplied their bee colonies by splitting and transferring to the new improved hive provided by Hariyo Ban through Sagar Honey. This has been a tricky business as transferred bees tended to return to the original hive perhaps because the new hive was still smelling of paint or it was set up too near the original hives. The process of multiplication is also slow as the existing colonies were not growing big enough for new queen bee to emerge without which splitting and transferring the colony cannot happen.

Interest has definitely grown among the trainees on improving their beekeeping practices and many are eagerly waiting for the training planned by Sagar Honey to a second batch of 50 bee keeping members. However, it will still take time before a commercial honey production and processing can be achieved.

Awareness has certainly been raised during the training, group meeting where one of the agenda is always issues on conservation of forest and its biodiversity. Hunting of Ghoral and other wildlife such as pheasants, illegal harvesting of firewood and timber as well as forest fire is in decline.

Challenges/Constraints: The challenge after the series of training and supply of hives and some protective gears is the multiplication bee colonies and use of improved hives for improved and increased production of honey. A much bigger challenge is to process, package and market the product to add value instead of selling raw. For this you either collaborate with private but socially and

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environmentally responsive company like Sagar Honey where Sagar Honey buys, processes, brands and sells the product while the members of the cooperative concentrate on quality production. If the cooperative wants to process honey locally to keep as much as the benefits of value added on site, it must develop entrepreneurs who are well trained in honey processing and also skilled in branding and marketing honey.

Sustainability The members of the cooperative have always been engaged in keeping bees and producing some honey. This production will continue no doubt. In order for the beekeeping and processing of honey to become commercial much needs to be done. The honey processing machine acquired must be repaired and made operational. Whether the cooperative wishes to run operate it or wishes to lease it to an enterprising individual, it must make sure that the person or the management is trained on all aspects of honey processing, production and marketing.

Sustainability is also possible if the new relationship developed with Sagar Honey is continued with a win-win collaboration where Sagar Honey will continue its technical assistance, assures purchase of honey and market it with a brand that identifies the source as Jukepani honey for example.

Key Learnings  In order for the members of the cooperative to gain significant income from beekeeping, it is important that they embrace an improved technique to increase their honey production. This means a gradual move from the traditional ways of bee keeping which is more passive to modern ways involving better hives and better techniques of increasing the colonies.  Without increasing the colonies/hives production of honey will not increase.  Processing of honey produced by its members will definitely add value. However, lessons should be learnt from the processing effort recently carried out and the responsible person of group of persons must first be well trained in processing and marketing.  It could also collaborate with organizations that specialize in this sector and agree on a benefit sharing arrangement.

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Enterprises 10: Kanthamala (Clay Necklace) Production and Marketing

Background A year ago this cooperative started as a group of women and is currently in the process of being registered as a cooperative. It consists of 26 women members all of whom are from the “dalit” group of Sunar and others. Enterprise Kanthamala (Clay Necklace) The run a saving program whereby Production and Marketing saving Rs 900/mo per person. The Location Dodor Tar, Tanahu District savings are loaned to its members River basin Seti sub river basin at 6%. As soon as it gets registered Implementing Shirjansheel Production Cooperative as a cooperative, the interest rate partner will be 9%. Lead partner CARE Type of Small Around 30 women are currently enterprise involved in making the “kanthamala”. “Kali mati” or black soil is used to prepare and craft beads which are painted and woven into “kanthahmala” and “naugedi” – both traditional local necklaces worn by women during cultural and religious festivities. The soil is extracted from an adjoining public area for free, it is then pounded, mixed with water and fashioned into beads. The beads are then dried and burnt on coal. Coal is bought as well as prepared by the women from firewood extracted from the community forest. The CFUG opens the forest for collection of fallen branches and twigs two times a year for 3 days each. Bimala Sunar who was resident of Damauli married into this village 12 years ago. She had learnt the making of the beads/necklace from her father. She trained 10-12 women in the village on this craft.

An office from CARE visiting the area observed the bead making and brought it to the attention of Hariyo Ban program. Hariyo Ban provided leadership training of 5 days and cooperative training of 3 days in the village for all 26 members. Hariyo Ban also organized a market management training for them in the village.

Construction of the cooperative building cost Rs 18,00,000 of which the cooperative generated Rs 2,00,000 form its own resources Rs 50,000 from the local municipality while the rest was funded by Hariyo Ban. Rs 5,000 for a toilet in the compound was also provided by the municipality. The building serves the purpose of group meetings, collection center and training venue when needed. The group bought the land for Rs. 50,000 with its own savings.

Objective The objective of this “dalit” group of women is to utilize and promote locally available raw materials and their own skills to prepare local craft products to generate extra income and uplift the living conditions of their membership.

Beneficiaries Direct beneficiaries are the 30 “dalit” women members who have organized to produce and market the beads to generate income. Women in the village who are not yet members but are trained to make the beads and bring it to the cooperative are also direct beneficiaries. Magar and Gurung women now have access to quality and affordable beads in their local market that are so important during their religious and cultural festivals. The beads are also used by performers while performing cultural programs.

Current Status of Operation The membership increased from 26 to 30 and all of them are engaged in producing the kanthamala. They can make 2 kanthamala a day per member and 50 is the maximum they

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can finish in a month. Each finished product is sold at Rs 200 at Dumre, Damauli and Pokhara markets. The traders in turn sell them for Rs 400 to 500 each.

Since the raw material alone costs them Rs 85 per necklace, the price they get is not deemed enough although a detailed business analysis has not been done. However, the lack of alternative opportunities in the village and that the necklaces can be made at home during free time has kept the member women encouraged. The enterprise has also provided a forum for these poor women to come together collectively.

Once they are officially registered and can sell significant numbers of necklaces, they also plan to open up their own outlet at Dumre to start with and get a good price for their wares. They are also hoping to further increase their membership as well as train women outside of their cooperative to increase supply.

Linkage and Coordination Besides CARE and the Hariyo Ban program, the group (coop) has links with the local municipality. They have also merchants who buy the beads and sell it to consumers. The lady who in the first place trained the members – Mrs. Bimala Sunar is the main conduit who buys from them unfinished at Rs 100, finishes them with paints and colorful fabric additions and sells them in turn for Rs. 200.

Significant Changes The group has expanded from 26 to 30 and is in process of registering as a cooperative. Once a cooperative it may open up further opportunity of collaboration and support from other external agencies and develop essential networks.

In a short period of a year 26 women have been trained in various skills and have managed to start a savings program. The group/coop has also managed to generated resources from the municipality to add assets such as land and building.

Most of the ladies are members of households that are landless. All but 5 households have their husbands out of the country and are effectively a female headed household. The enterprise has given them an alternative opportunity to generate much needed income besides being involved in farming small plots of leased land for sustenance. It has broadened their horizon from their households much

Challenges/Constraints The whole process of making the beads is manual and tediously slow. It is a fine craft and cannot be mass produced manually. As the marketing is through a single member, who is also responsible to finish the product, the price received is low while the marketing person keeps the larger share to herself. Unless the group is soon able to have several such persons and/or own outlets or points of sales in major market, the income generated will tend to remain low. Availability of the special soil, firewood/coal from the community forest may be a challenge if the volume needed start to increase as their business expand. To ensure sustainable supply, a way to conserve and improve the status of the raw materials as well as a way to ensure their continued supply must be found.

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Sustainability In order for this enterprise to be sustainable it has to be able to grow. Currently the volume of beads made and sold and its current price is not significant enough to propel the enterprise to longer term benefits. This is a very new initiative and therefore must invest time and resource to expand both production and marketing of its products. This may mean expanding their membership and training the new members on the craft.

The members obtain required soil and firewood for free so far. As the production expands these resources may require conservation and protection to ensure continued supply and a plan to prevent over extraction must be prepared.

Sustainability also depends on promoting and marketing the product much wider that the few shops in Dumre, Damauli and Pokhara either through own outlets or a network of shops and shopping centers under contract with the cooperative.

Key Learnings  This is another example of supporting and re-enforcing locally existing craft and skills by a development program. This not only brings in new life to a traditional craft making and helps promote local culture (among Magar and Gurung women) but helps institutionalize the tradition for long term benefits.  Poor and underprivileged women from a village have been helped to organize around a common item they all are familiar with and are given skills and outlook to take this as a starting point for economic and social empowerment.  Most commonly, many rural development projects refrain from investing in the capacity building of unmarried women because once they get married out of the village, the investment made are wasted! This enterprise presents an opposite case where Bimala Sunar married into this community and brought with her an important skill and shared it among the women of the locality.

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Enterprises 11: Wool Weaving

Background Padampur is a relatively new settlement where households from the original Padampur village which was located within the Chitwan National Park were resettled. A wool weaving group was established and supported by Enterprise Wool weaving NTNC in the year 2057/58 BS to Location Padampur, Kalika Municipality, support the poor women from Chitwan District indigenous ethnic minority groups River basin Chitwan Barandhabhar of Tamangs and Chepangs. 21 Implementing B.M. Handicraft Training Centre women were then organized into partner the Buddha Jyoti Women’s Group. Lead partner NTNC Most of these women and their Type of Medium household were highly dependent enterprise on the adjoining forest and were involved in collection and sales of firewood for income. They were also engaged to some extent in wool weaving traditionally and therefore chose to upgrade their knowledge and skills by getting involved in this enterprise. Around BS 2065/66 this group stopped functioning due to misunderstandings and poor management of the group. In BS 2070/71 the group was revived again but with 120 women members as part of the Hariyo Ban livelihood improvement activities through the Tam Khola Community Forestry User’s Group. They were members of this CFUG. These women were trained on the operation of the “charkha” (चर्ाा) and a first batch of 50 wooden charkha were distributed free of cost.

The group is now affiliated to the B.M. Handicraft Training Centre which is under the Management of Ms. Buddhi Maya Ghale, the Director who used to be and is still member of the women’s group. From 2070 when the management was handed over from the Group to Ms. Ghale, she organized procurement of wool from Kathmandu at her own cost, its transportation to Padampur and oversees its distribution to the members. The members collect raw wool, spin in into threaded wool and bring it back to the center for Rs 50 per kg spun. In fact, this is an enterprise now run by Ms. Buddhi Maya Ghale where the women members who were trained and provided equipment by NTNC/Hariyo Ban benefit from the supply of wool provided to spin into woolen yarn for which they are paid a fee for their labor.

Objective The objective of the enterprise is to upgrade a traditional skill present among the poor, forest dependent women for the benefit of both the enterprise and the poor women in improving their economic situation. Rising income is expected to wean the women away for their dependency on forest resources thereby contributing to forest and biodiversity improvements.

Beneficiaries All the 150 current members of the group and 80 other women participating in the weaving activity for the enterprise are from the poor ethnic minority communities resettled in this area. At one hand these women benefitted from the training provided by NTNC under the Hariyo Ban program and were able to spin wool more efficiently and make income by doing so. On the other hand, the enterprise is assured of a steady supply of well spun wool from the raw wool they supply the women.

Current Status of Operation The membership has now increased to 150 and 80 other women are also weaving for the enterprise. Hariyo Ban provided them with money to buy iron charkha which is manually operated and costing Rs 5000 and more recently electric ones that cost Rs 10,000 and is

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much more efficient in weaving (not suitable for older members due to the speed and dexterity required to operate this machine).

In April of this year NTNC provided carpet weaving training locally using a local technician to 20 women members. These women use the wool woven to make carpet on looms that is provided by the enterprise. Depending on quality, a completed carpet will earn the weaver Rs. 7-8,000 with raw materials and the loom supplied by the enterprise.

Linkages and Coordination The enterprise has support from only NTNC and Hariyo Ban program and no other links exist for now. Buddhi Maya Ghale maintains strong link with the raw wool supplier, the buyer of spun wool and the buyer of carpets in Kathmandu. Although an 11-member committee to streamline procurement and supply of wool and carpets has been formed. It is still very new and they totally depend on Ms. Buddhi Maya.

Significant Changes Since the management was entrusted to a single person and monitored by a Committee, the supply chain for wool and marketing of the spun wool has been streamlined. 230 participating women therefore are able to collect, spin and return the spun wool and are immediately paid the fixed amount per kg. spun. For these poor women who are able to make one to two kg of spun wool (around Rs 3000/month), this has become a source of regular income. This is an activity that is carried out at home which means that the women can also complete necessary tasks in their homesteads. The women members are now able to save Rs 500-1000 per month from this work.

Initiation of carpet weaving by 20 women members who were trained by NTNC is adding value in the value chain. Once the carpet weaving becomes well established a reliable point of demand for the spun wool already exists within the enterprise or group.

These women members who were regularly involved in collecting firewood from the community forest and selling it in the market have completely stopped the practice. They are also able to afford LPG for cooking thereby reducing their dependency on the forest.

The enterprise has also given an effective platform for these poor women to come together, discuss issues, organize savings resulting in improved living condition as well as socio- economic empowerment.

Challenges/Constraints Sourcing of the raw material and marketing the product effectively depends on one single person which has sometimes created problems when this person is unable to do so. Recently (2 months) an 11-member Committee to monitor this process has been established. These members still require to be trained to assist the Manager and when required take on her tasks. There have been incidences when a cooperative in the locality and some individuals offered to pay Rs 300 per kg of the spun wool. When members were diverted by this offer, the enterprise almost stopped functioning for around 2 months. When the cooperative did not pay the promised rate, the members realized that the offer was unrealistic and then the B.M. Enterprise started functioning smoothly.

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The Committee Members will require capacity building in management and administration of the enterprise including in sourcing and marketing if this enterprise is to function smoothly over the long term.

Sustainability Except on an occasion when the enterprise stopped functioning for two months, it has been operating now for 18 years which, indicated that the enterprise will continue operating over the near future. For over 230 poor women it has become a key source of income (only source for some of them) and these members are motivated enough to keep on improving.

Steps are being taken to increase the possibilities of success and sustainability by adding steps/value adding in the value chain by starting carpet weaving from the wool spun by the members. Strengthening the management and administration including sourcing and marketing of wool and carpet by formation of a Monitoring Committee to strengthen the capacity of the Manager.

When at least 230 women are weaned from their dependency on forest for firewood and grasses, it is also contributing to the conservation of the adjoining community forests.

Key Learnings  Wool weaving offers a simple technology and means by which poor and resettled women can process raw material and bring in a reasonable and steady income while still engaged in regular tasks at home and around it.  Over the years the women were helped to increase their efficiency by providing access to improved technology. The wooden spinning wheel is gradually being replaced by more efficient metal and now electric motor powered spinning wheels. Hariyo Ban has provided the funds necessary to NTNC for these but soon a system needs to be developed by which all members can afford to graduate to the motor powered wheels. These are efficient but expensive and the group needs to find a collective way of financing it on easier terms for its members.  The enterprise moved from collective management to entrusting it to an active member. Finally the group has learned from the strength and weakness of both of the management models and are now devising a model combining leadership by the individual actively supported by a Committee of selected eleven.

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Enterprises 12: Goat keeping

Background The Kalika CFUG has 123 households as members who are forest dependent and are the watchmen (Ban Heralu) of 84 hectares if forest. Among the 123 households, 18 are from poor underprivileged groups (classified by Enterprise Goat Keeping the CFUG as “ga” and “gha” group in Location Devghat - 5, Tanahu District their economic ranking of members). River basin Seti sub river basin A group of 25 member households, Implementing Kalika Community Forest User’s including the above 18 has been partner Group organized for goat keeping since Lead partner FECOFUN one year. Among the 18 only 12 Type of enterprise Small have so far been supported. Hariyo Ban program provided a fund of Rs 5,00,000 through FECOFUN for supporting goat keeping by the group. In fact, after discussion in the group it became clear that participating members wanted to embark on enterprises other than goat keeping alone. A decision was taken then taken to support pig rearing, poultry, vegetable, sewing and opening up local shop in addition to goat keeping. One of the recipient who received support for goat started keeping cows when one of her goat died. Once she started milking the cow it provided a daily source of income while income from rearing and selling goats take time. The fund is managed as a revolving fund whereby the members receiving support has to return 20% within 6 months and the reminder in two years. The members participating in the FGD indicated that they will be able to return the money in the stipulated time frame.

Objective The objective of initiating this so called goat keeping group was to provide the poorest members of the CFUG who are also dependent on forest an alternative option of economic gains. By doing so the CFUG and the Hariyo Ban program hoped that pressure on the forest and forest products will be diminished help the community forest to increase in density and biodiversity.

Beneficiaries The 12 poorest members of the CFUG are the immediate beneficiaries of the enterprise. Improved economic status of this group resulting in increased saving by this group in the CFUG will also benefit the 123 member households. As a result of the enterprise and as and when it starts expanding among many other members of the CFUG, it will also benefit the whole community by improving the condition of the adjoining community forest.

Current Status of Operation At the moment out of the 12 persons (households) supported 3 are raising pigs, 3 chicken, 1 vegetable, 1 sewing, 1 keeping a shop and 3 rearing goats. Among the 3 keeping goats, two has switched to keeping a cow while only one of them are now keeping around 5 goats. The one keeping goats is from the “bote” community who depend on fishing for their livelihood. The goats are kept in traditional pens and are fed with grass collected from the community forest and around the homestead. He does not have enough land to grow his own grass for the animals. Hariyo Ban invited 3 members from the FUG to Pokhara to develop a business plan for goat keeping. However, none of the 11 members of the group were among these 3 and a BP has not been yet made.

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Linkages and Coordination The group and the CFUG has only been supported by the Hariyo Ban program and FECOFUN. The CFUG is linked to the DFO but in terms of the goat keeping no linkage exist. The CFUG generates a small income from member households who pay Rs. 90 to collect dried wood and grass 3 days a month during the months of November to May.

Significant Changes The group and the enterprise is only a year old to result any significant change. Although members of the group are engaged in various other activities that goat keeping they seem to be happy for the small amount provided to kick start their activities. Members interviewed are very hopeful that they will not only succeed in paying back the loan to the CFUG but also generate a small income to keep on engaging in the enterprise of their choice.

Challenges/Constraints The area is close to the bustling city of Narayanghat/Bharatpur where the residents of this area including the members of this group easily get occasional labor jobs. These jobs pay much more distracting the poor to abandon farming and keeping animals. Goat keeping by poor landless farmers is challenge when it is difficult to collect grass from the adjoining forest. The forest under the CFUG is mainly dense “sal” forest and is not rich in grass understory. They cannot afford to buy feed for their goats. This is among the reason why many opted for chicken, pigs, sewing etc. and not goat keeping.

Sustainability The group is not solely engaged in goat keeping. They have opted for other areas which seem to be more appropriate given the location of the village where alternate work opportunities abound and the forest does not have ample supply of grass to encourage animal keeping in large numbers. The choice that was allowed the members to make by the CFUG may have improved the chances of sustainability of whatever enterprise they chose to take up as they were of their own choice and not forced upon them.

Key Learnings  The support provided by Hariyo Ban was for promoting goat keeping while the CFUG has supported members on other areas such as cow and pigs. Perhaps the actual needs and interest of the target group did not come out clearly during the needs assessment and consultations.  However, flexibility that the members were able to choose an enterprise of their own choice and were not forced to just take up goat keeping also indicates an adaptive mechanism that adjust based on real needs.  The amount of financial support was small but as they were allowed to choose and move to other animals and not only goats, this became motivating to the poor members to embark on their enterprise.  The small amount of grants involved translated into a small step and a long way to go before any degree of commercialization and marketing could take place. For example, the person who kept goats now has 5 goats including some kids. According to the members, in order for him to be commercially viable he will need at least 25 goats.

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Enterprises 13: Goat keeping

Background The Pashupatinath CFUG manages 88 ha of community forest which is a sal dominated forest in the low lands. 120 households are the beneficiary members of the CFUG who are all forest dependent. The area was settled in Enterprise Goat Keeping BS 2024 and from that time have Location Padampur, Bamdi, Duduwa Rural been keeping goats and were Municipality, Banke District dependent on the forest. The River basin Kamdi Western block settlers grazed their goats and cattle Implementing Pashupatinath Community Forest freely in the forest at that time and partner Users Group the meeting participants recall that Lead partner FECOFUN during the time of their fathers Type of enterprise Small around BS 2052/53 the forest had completely degraded. The situation has changed now and the forest has come back. Although the trees have regenerated after the CFUG protecting the forest preventing illegal harvest and smuggling to a large extent. The understory is however not very diverse.

This area is known for goat keeping and it has been practiced since long. Moreover, most of the farmers are poor and illiterate which makes it suitable for them to keep small animals in smaller numbers. The CFUG has been helping farmers to keep goats already since BS 2062. Collaboration with Hariyo Ban started in 2069 when it organized a meeting through FECOFUN to identify local issues and discuss ways to address them. Hariyo Ban, FECOFUN and CARE then supported setting up of a revolving fund through the Padampur Women’s Multipurpose Cooperative. A loan program was then set up to support the interested members to get goats. In this program 3 goats of 6 to 7 months old was given to the participating members one after another with an agreement that same number of goats of about the same age will be returned to the CFUG after 3 years. When well taken care of, a female goat can deliver kids two times a year.

Objective The objective is to support the poorest members of the CFUG generate income and improve their livelihood through goat keeping and thereby reduce their dependency on the community forest.

Beneficiaries The main target group of the goat raising program are the CFUG members that are classified in the “gha” or C category (poorest). Currently 23 such members are participating in goat keeping among which 3 are land less. Majority of those involved are women as most men are out of the country for work. Indirectly the whole membership benefit from the reduced pressure in the forest as members also started to grow improved grass in their private land and the the community forest land leased to them. Income from the goats which has an insatiable market in the nearby Mahendra Nagar city helps improve the conservation awareness through education and ability to buy LPG to replace firewood and thereby contribute to the reduction in forest dependency and increase forest and biodiversity.

Current Status of Operation The 23 households participating in goat keeping state that market for their goats is not a problem and they are now able to bear the cost of educating their children and meeting household costs much easier. Each household now has goats ranging from 5 to 25, a few have more. Those who have more than 25 goats have invested in improving the goat pens from small traditional wooden structures to more appropriate and spacious structures requiring

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less wood. The CFUG makes available the necessary timber for the goat pens. These members are on their way to becoming commercial goat farmers.

Ms. Bhawani Bohara is one of the members whose her husband returned from Malaysia and is engaged in goat keeping. They have constructed a larger and improved goat pen and have registered their goat keeping as a commercial firm. Her husband will not return to Malaysia anymore planning to get involved full time.

The rural Municipality also promotes goat keeping by providing medication for the goats free of cost.

The canals of Sicta Irrigation Scheme run along the village of Bamdi and the CFUG is planning to negotiate with concerned authorities to allow land less members who wish to raise goats to plant fodders trees and grasses in specific sections of the canal edges. One year ago a 3-day business plan training was organized for 3 persons, one man and two ladies by Hariyo Ban in Pokhara. Here they understood that 25 is the minimum numbers of goat to be commercially viable. After the training the trainees attempted to encourage other members to prepare a business plan but have not succeeded yet.

Linkage and Coordination The main institutional linkages of the enterprise are through the CFUG. Hariyo Ban and FECOFUN also support the enterprise through the CFUG. The Duduwa Rural Municipality is also aware and supportive of this enterprise. According to the members, an organization by the name of “Family Private Forest” visited the CFUG and the enterprise members and willing to offer poplar seedlings which, was not found to be useful by the group. The group instead requested fodder grass and fruit seedlings/seeds which could not be provided by the organization. No further contacts took place afterwards.

Significant Changes This area has been known for goat keeping since it was settled in the past. This was because the goats could free range in the adjoining forest and grow well. Hariyo Ban took up supporting goat keeping, which was not new to the community as an entry point for forest and biodiversity conservation. Member of the enterprise are now aware of the need for sustainable utilization of forest resources. Although goats are still allowed in the forest, members have started reducing grazing frequency by growing required fodder in their own land and supplementing with feed. Realization of the need to keep larger herds (at least 25 or more) for commercial benefit meant that grazing in the forest was not practical. Appropriate pens have been constructed to house them in a hygienic condition thereby reducing the need to take them to the forest. The amount of timber used in the improved pens are much lower than the traditional pens which were totally a wooden structure. The required timber was also provided by the CFUG to the members under their direct supervision. These activities have thus supplemented the forest protection activities of the CFUG itself.

The members of the enterprise have also formed subgroups of 6-7 and meet regularly among themselves and in the larger group to agree on a reasonable selling price for the goats and not attempt to undercut each other. This will help keep the price reasonable and stable and will help in the sustainability of this enterprise. These smaller groups have also started saving small amounts after the sales in this group and use the collected fund to invest interest free in the groups.

Engagement in this enterprise and the support provided by Hariyo Ban and FECOFUN have also broadened the horizon for the CFUG which helped them come up with new ideas to conserve their forest resource upon which the whole community of 120 households depend. Goat keeping for small farmers especially women was one. The CFUG realized that landless

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but forest dependent households who cannot keep goats and grow their own fodder. They are initiating discussion with the Sicta Irrigation Programme to utilize the canal banks, to plant fodder grasses to help these 3 landless households to also keep goats and have a shot at improving their income. The planting of grass in the canal bank will additionally help to stabilize the canal bank.

Challenges/Constraints A key challenge is the prevailing concept among the goat keepers as well as buyers that free ranging goats produce better quality meat than those kept in a limited space. A balance must be found in keeping the goats penned and letting them in the forest for limited grazing. Households involved in beekeeping do not have enough land to have a large pen to keep more than 25 goats and an enclosure for them to move around.

The CFUG claims that the condition of the forest has improved and in the meantime free grazing for goats and cows are still allowed. Smuggling of timber has significantly reduced but understory diversity was stated to be poorer.

Sustainability Market for goat and goat meat is ever increasing and buyers are visiting individual households. At one hand this indicates that market is not problem while on the other hand this also does not encourage the goat keepers to sell collectively and deal with the buyer in a more favorable situation. The members are however becoming increasingly organized, started group saving and investing within the group. CFUG and the rural municipality are also favorable towards them and will continue to help and strengthen this enterprise when the Hariyo Ban program ends. Several members have started to move from keeping small numbers to keeping larger herds and installing better infrastructure for the goats paving a way for commercialization.

Key Learnings  Goats are not inherently conservation friendly animals. If due to prevailing circumstances goat keeping is the choice, various measures must be taken to ensure that this does not degrade the forest diversity further. Improved pens and enclosures, planting fodder in farms, provision of supplementary feeds, encouraging support structures like group, saving and allocating land to grow fodder to the landless are some of the ways of avoiding forest degradation.  Goat keeping in this area was a traditional practice and the area is known for its goats. Households here only needed to learn some new tricks to improve their existing system and move up to commercial scale for better income and livelihood improvement.  Most members in the goat keeping enterprise are illiterate and poor women and it will take them long before they have enough goats to start becoming commercially viable. Only two of the members who are relatively better off have invested in infrastructure and increased goats to move towards commercializing meaning that their contribution towards forest and biodiversity conservation will not be significant enough. The poor households who tend to be most forest dependent are also the one who cannot commercialize and move away from this dependency.

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Enterprises 14: Dairy Background The Thangkhola CFUG was set up by NTNC to protect the Thangkhola Community Forest as part of their Tiger and Rhino Conservation Programme. Hariyo Ban via NTNC supports this CFUG in various activities besides Enterprise Dairy the Hariyo Ban supported dairy Location Kalika Municipality 2, Chitwan activity. District A revolving fund of Rs 38,00,000 River basin Chitwan Barandhabhar has been set up for dairy and is Implementing Thang Khola Community Forest managed by a subcommittee of the partner Users Group CFUG set up for dairy. Individual Lead partner NTNC member farmers of the CFUG are Type of Medium provided a loan of Rs 50,000. As a enterprise cow may cost ranging from 60- 80,000, the farmer has put up the remaining amount. The Ward office of the Kalika Municipality helps in identification of suitable farmer based on essential criteria like: interested, having cow shed and owning 2-3 kathha of land where they will be able to grow fodder grass. These are forest dependent households who were already keeping cows. In its first year 27 cows were distributed to the same number of households including 8 very poor farmers. These 8 have since stopped being unable to take care of the cows. In the second year 23 cows were distributed based on the selection criteria established. This year is the third year of the program and a total of 120 cows have been distributed to as many households. Addition of cows from the support of NYNC/ Hariyo Ban is enabling these farmers to more towards commercialization.

Objective The objective of the dairy enterprise is to help the forest dependent households of the Thangkhola Community Forest mover from sustenance to commercial milk production. This is aimed to contribute to the improvement of the living condition of the participating members and conservation and protection of the forest and its diversity.

Beneficiaries The 120 households who have received loan for the cow and are keeping them are the direct beneficiaries. Due to the nature of the enterprise, poorest among the community that do not have previous experience keeping cows and lack own land to plant fodder grasses have been provided some land by the CFUG to grow grasses for their goats. This has also resulted in these poorest households benefiting and they no more need to go to the forest for getting fodder grass for their goats.

The dairy at Padampur and their customer consumers benefit from the supply of quality fresh milk and milk products. Pressure on the forest has decreased helping it to regenerate better, improve biodiversity and conserve soil in the watershed.

Current Status of Operation So far in its three years of operation 120 cows have been distributed to as many households. Currently each cow keeping households are selling 10-20 liters of milk daily. Milk is individually taken and sold to several dairies at Padampur where the farmers are also members.

Cattle feed is bought from the market and many of these farmers have planted improved fodder grass on own fields while 10-15 farmers have rented land at Rs. 2000/kathha/year to grow grass. None of these dairy farmers collect grass or fodder from the forest any more. It is mandatory to insure all the cows.

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One lady member of the CFUG is a trained animal health worker and she is able to prescribe medications, treat the animals that are sick. However, lack of proper instruments and equipment means that she can only provide basic services.

In BS 2058 with support of funds from UNDP/GEF, NTNC established a user managed Community Veterinary Centre at Padampur which also provides services the farmers of this dairy enterprise. Discussion is undergoing with the Kalika Municipality to tie this center with the veterinary center operated by the Municipality.

NTNC has also provided training to these participating farmers on shed management and improvement, feed production and prevention and control of parasites. All participating farmers are however yet to be covered. It also distributed 15 chaff cutters last year and 14 this year to the farmers. It will distribute more on coming days to those who have not received the chaff cutter yet.

Linkage and Coordination The CFUG and the dairy subcommittee have functioning links with the Municipality and its Ward Office. Members of the dairy enterprise are also members of several dairy collection and selling centers at Padampur town and do not have any problems of marketing their products. Support from NTNC has been long standing, before Hariyo Ban and can be assumed to continue for some future time.

Significant Changes Farmers involved in keeping cows have even multiplied their number of cows except for the 8 farmers who never owned a cow before and did not have enough land for making proper sheds and for planting fodder. One male member of the member households who returned from Malaysia has invested in a shed able to house around 24 cows and keeps around 12 at present. He has made a plan to go for more commercially oriented dairy enterprise by himself and has decided not to return to Malaysia.

All participating households have improved their cow sheds and started growing improved fodder grasses in their land. They have also planted tree fodders providing both fodder for cows as well as firewood for the households. This has resulted in significantly reduced pressure to the community forest.

Poor farmers who did not have enough land of their own to grow fodder trees or grasses have been encouraged to keep goats and allocated plots in the community forest to do so. This helped them to keep smaller animals for their livelihood improvement but also reduced their dependency on forest for the fodder and grasses.

Challenges/Constraints As farmers become more successful in keeping more cows and improve their productivity they need trainings more advanced that basic level on dairy management and animal health management. As the milk productivity grows the dairy enterprise will require a collection center of their own and a reliable transport mechanism to ensure supply to the market at Padampur on time. It has to start planning for that eventuality.

It is difficult to get the Veterinarian or Animal Health Worker from the Government Animal Health Office to visit the village when animals require treatment. 75

Sustainability After 3 years of operation the group of cow farmers have already enjoyed benefits and have started increasing their herd with their own resources. This is an indication of an undertaking moving towards success and most probably sustainability. Sustainability can also be expected as market demand exists in the nearby town.

The CFUG has also attempted to include poor members in its endeavor towards improving the livelihood of its members with activities that suits their condition for example by promoting goat keeping instead of cows and providing them with land where they can grow fodder grasses so as not to affect forest diversity.

Key Learnings  Dairy or cow keeping cannot be successful with very poor households who did not know how to keep cows and do not have enough land set aside for proper cow sheds and to grow fodder. They would require a different strategy to improve their livelihood such as through small animals.  As the dairy enterprise grows it will become essential that the group trains and equips some its own member to deal with animal health issues.

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Enterprise 15: Fishery

Background In 2052 BS this degraded forest was handed over to four FUGS by the District Forest Office. The area handed over to the Baby Kuwa CFUG is 200 has of sal forest and has 458 member household as users. The CFUG Enterprise Fishery employed one Forest Watcher and Location Babu Kuwa, Banke District started to protect the forest. The River basin Kamdi Western Block forest started to come back and Implementing Babu Kuwa Community Forest wildlife also increased. In 2012 partner Users Group (2069 BS) Hariyo Ban came into the Lead partner WWF picture and dug 3-4 ponds in the Type of enterprise Small area to harvest rainwater for wildlife. The ponds dried out in winter as the water table was low. Currently only this CFUG has ponds but still faces problem of filling the ponds with water.

During the months when the ponds are full of water members of the CFUG decided to grow fish and make additional income. The Babu Kuwa Fish Farming Farmer’s Group consisting of 23 interested households were formed 3 years ago. They started with support from Hariyo Ban which provided fingerlings and feed for the first year. The group clean and repair the ponds and also have added two new ponds.

Objective The initial objective of the Hariyo Ban in this area which also happens to be an important wildlife corridor into adjacent National Park in India was to collect rain water and use it as watering holes for wild life. This has now evolved into utilizing the ponds to grow fish the income from which will be used to improve the livelihoods of the poor community members inhabiting the corridor thereby reducing their dependency on forest and contributing to forest and wildlife conservation. Hariyo Ban so far trained 24 members (14 in one year) in fish farming.

Beneficiaries The 23 member households of the Fish Farming Group are the direct beneficiaries of this enterprise. Among the 23 members 20 are women and 12 are from the deprived (bipanna) group classified by the CFUG. 2 staff locally employed and a Watcher/guard is hired full time and are also among the direct beneficiaries.

Many more however benefit from this enterprise from the supply of fresh fish and from the several add on projects that are being planned which this activity has helped attract.

Current Status of Operation Presently the group is generating Rs 2-300,000 in a year from fish sales. The group also invested Rs 3-400,000 in digging additional two ponds. In the first year 300 kg of fish was sold while this year 1200 kg was sold. Fish sales at Rs 370 (the price is lower for users themselves). The group re-invests some of the income in up keep of the ponds and in acquiring fingerlings. A portion of the income is also used in forest protection activities by the CFUG. At the moment Hariyo Ban is still providing the group with fingerlings (24,000 this year) as well as 6 months’ salary for the watcher. There exist no problem in marketing the fish which collected by buyers from site.

The initial support from Hariyo Ban and the success of the group in growing fish and further expanding the ponds also attracted additional funds and programs from other agencies. With the objective of encouraging ecotourism and agriculture in this area the Rural Municipality has

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set aside Rs 800,000 to construct a deep boring to ensure yearlong supply of water to the pond and for other uses. Hariyo Ban has planned to contribute Rs 10,00,000 for installation of a solar water pump. A Member of Parliament from the area also constructed a shed for visitors and picnickers’ use. The CFUG has also mobilized its own resources to construct picnic spots, sheds and garden areas.

CARE has helped establish a revolving fund of Rs 200,000 for goat keeping. Majority of the fish farming households are also keeping goats.

The road from Nepalganj is being tarmacked soon which will encourage internal visitors to visit this area. The CFUG is discussing plans to start a community homestay in this area from among the CFUG members.

Linkage and Coordination Through the CFUG the enterprise has managed to link up with the rural Municipality, CARE in addition to Hariyo Ban.

Significant Changes Most significant result that is shaping up is that the small intervention in fish farming is growing into an array of several enterprises - from goats to ecotourism and homestays that might ensure the sustainability of changes that have started to roll. Households will diversify their activities and source of income improving their chances of succeeding in improving their livelihood and contributing to conservation.

As a result of the activities implemented, water table has been raised from 150 ft to 60 ft. Where deep boring used to be the only option (but out of reach due to high cost) shallow tube wells are now operating. This was possible due to the fish ponds that are helping recharge the water table. The tube wells also enable irrigation of farms. The fish pond also helps in supplementing irrigation water during dry months contributing to increased farm production.

Challenges/Constraints Investing in ponds and fish farming in an area that is devoid of a reliable water supply whole year round was a big challenge. Commercialization of fish farming in such a situation would then be a challenge in itself.

A challenge or rather upcoming challenge will be to manage the variety of activities that are being planned. The group is still new to commercial operations and are not yet equipped with the capacity (currently they are only setting sales price for fish and keeping records of sales) and skills to plan the business let alone a complex one. This gap must be addressed soon to ensure success and sustainability of this and its subsidiary enterprises that are coming up.

Sustainability The CFUG is committed to assist the group in implementing their enterprise and is playing a key role in networking, establishing linkages for resource mobilization. With the infrastructure set up and being planned and the linkages established it is confident that the Fish Farming enterprise will continue to grow. Planned activities like picnicking, homestays will also increase the demand for fresh fish that is produced locally. Fishing can be another activity that could be promoted and help generate revenue.

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The degraded forest was protected by the CFUG and is well underway in improving. Alternate livelihood opportunities generated by fish farming, picnic, fishing, ecotourism including home stays will contribute significantly to the improved livelihood as well as increase the effort put up by the community in protecting their livelihood source – the forest and its diversity. The whole land scape including the wildlife will benefit from this.

Key Learnings  An intervention that is strategically located and with a clear potential will be able to attract additional resources to upscale.  Locating ponds where there was no source of water all year round even for wild animals let alone for farming fish was a problem.  Success lies also in having a highly supportive organization such as the Babu Kuwa CFUG who is willing to mobilize not only its own limited resources but also link with other agencies for additional resources.  A single activity in itself such as the fish farming may not be significantly contributing to either improving the living conditions or conservation and forest and its diversity. But a group of related activities that both helps and benefits from this specific activity will contribute to multiply the impact.

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Enterprise 16: Poultry Keeping

Background Jaya Laxmi Women Community Forest Users Group, the organization initiating and supporting this enterprise consist of 282 forest dependent households as its members. Bikash Krishi Group was established in BS 2067 Enterprise Poultry Keeping and registered in BS 2074 with 30 Location Krishnapur Municipality, members. In the same year another Kanchanpur District group the Bihani Agriculture Group River basin Suklaphanta Brhamadev Complex was also established with another Implementing Jaya Laxmi Womens Community 30 members along the same lines partner Forest Users Group as the Bikash Group. The general Lead partner CARE area from where the members of the Type of enterprise Small groups and the CFUG come from is a resettlement area where freed bonded Tharu laborers or Kamayia were settled. Hariyo Ban has been supporting both groups since 7 years from its first phase.

Objective The objective of setting up the groups by the CFUG was to support and encourage the poor Kamaiya farmers of whom most are women to engage in commercial agricultural activities like vegetable farming, animal keeping such as poultry goats and cows to improve their livelihood condition thereby reducing their dependency on the community forest as well as the adjoining Suklaphanta National Park.

Beneficiaries The 60 members of the two groups are the target group of this enterprise while the 60 households they represent are the direct beneficiaries. Most of these members are women and 100% are the ex-kamaiyas from the minority Tharu Ethnic community.

Indirectly the 286 member households of the CFUG will also benefit from the activities carried out by the enterprise.

Current Status of Operation Although the enterprise is listed as poultry enterprise, it turned out that vegetable farming was their main activity practiced by all the members of the two groups.

Currently the two groups are both receiving technical and funding support from Hariyo Ban through CARE. CARE collaborates with a local NGO: NEEDS which has assigned a social mobiliser to monitor and support the performance of the group members in the two enterprises. Both are also operating homestay program of their own.

Hariyo ban has provided Bikash Group with technical and financial support amounting to Rs 150,000 for pig keeping and Rs 180,000 for homestay in phase one. In phase two it provided Rs 300,000 for poultry and Rs 125,000 for vegetable growing. The Bihani Group was supported in vegetable farming and poultry keeping only. In this respect the two groups or enterprises are not only involved in poultry but other activities like vegetable growing which appears to be more widespread. The group members have constructed 25 plastic tunnel for producing seedlings and growing vegetables. The groups use/sell their produce either to the homestay or in the market.

Most of the vegetables are individually sold by carrying head loads or on bicycles to the market (15-20 kg). Occasionally buyers also visit the village. A member has earned Rs 400,000 out

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of 4 kathhas of land she worked on. Most common vegetable grown are cucumber and bitter gourd.

Most in the village including the members also keep buffalo and bulls for ploughing and goats. For firewood they are still dependent on the community forest from where they collect when opened. Grasses and fodder required are now collected from their own land.

The members are saving monthly in their poverty alleviation fund.

Linkage and Coordination Other than CARE, NEEDS and the CFUG the groups do not seem to have linkages with any other agencies directly as far as the poultry and vegetable enterprise is concerned.

Significant Changes The two groups are now producing significant income from vegetables amounting to Rs 400,000 per year for those who farm in around 4 kathhas of land. The produce is sufficient for domestic consumption as well as sales to the homestays the groups are operating in the area and in the market. In this way they are benefiting from vegetables as well as from the income of the homestays. The members are still dependent on the forest for their firewood need while they are growing enough fodder and grasses in their own land.

The Hariyo Ban has been supporting these groups since several years (from 1st phase). These are very poor households that required continued support to arrive at this level where they are now able to operate homestays, grow vegetable and earn considerable amount of income. They have since reduced their dependency on forest as they keep their animals stalled and fodder is grown and available from their own land.

Challenges/Constraints Members are growing and marketing vegetables individually while they are trained in groups. Another collective activity is the savings program. Marketing their vegetables and other produce like poultry individually means lower negotiating power. This is a disadvantage considering the fact that the members are not yet equipped to operate as a group.

60 members of the two groups and their households are practicing commercial vegetable growing and contributing to protect and conserve forest and its diversity at their level while rest of the inhabitants in the village and neighboring settlements do not.

Sustainability For improved sustainability of the enterprise it is being felt that marketing of their produce needs to be better organized. It has to evolve from individual effort to collective activity. Produce is grown individually but needs to be collected at a point for bulking and storage. This eases transportation issue as well as improves possibility for a longer term and more advantageous contract with buyers. Bulking may also attract larger buyers to visit the collection center eliminating the need for transportation.

Key Learnings  Due to the homestay run by the groups and the proximity of the market, vegetable farming became attractive to the poor farmers of this area who own only small parcels of land.

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 One activity implemented by the enterprise (vegetable farming) is supporting another activity (homestay) thereby establishing a value chain that complements and increases the sustainability of both activities.  For a significant contribution to forest and bio-diversity conservation to occur, concentrating on a small but dedicated group is not enough. A model needs to be followed where the learning from this small group must be actively shared with the larger community and encourage them to act likewise.

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Small grant 1: Bee for Business and Biodiversity (B4BB)

Background Sagar Bee Keeping Industry (Sagar Honey) is a private company based in Gaidakot, Nawal Parasi District. Since its establishment in BS 2053 it has been involved in producing, processing and marketing Grant Honey Bee Promotion and Marketing honey. It is also involved in Location Cluster 1: Dhaubadi, Deurali and Hupsekot production and marketing of in Hupsekot Rural Municipality; Naram and improved bee hives and Ruchang from Bungdikali Rural Mujicipality equipment throughout the Cluster 2: Kritipur from Devchuli Municipality country. It also acts as Cluster 3:Gaidakot Municipality –Everest resource centre and Bee Development Cooperative engages in training bee River basin Narayani keepers and entrepreneurs Implementing Sagar Bee Keeping Industry (Sagar Honey), when necessary. Sagar partner Gaidakot 8, Nawal Parasi Honey buys honey from Lead partner WWF other producers and farmers and sells it with their own branding. In November 2018 it received a small grant from Hariyo Ban to be implemented in two years and with a grant amounting to Rs 49,93,470 based on a proposal it submitted on an open call from Hariyo Ban.

Objective The goal of the B4BB is to promote bee keeping for improving the livelihoods of forest dependent and marginalised communities and biodiversity conservation. Specific objectives are:  Train small holder bee farmers in modern bee keeping techniques and processes;  Support bee farmers in acquiring modern bee keeping equipment and accessories;  Establish a market based mechanism by ensuring the buy back guarantee of honey and other bee products;  Improve the livelihoods of the forest dependent and marginalised community through bee farming. Beneficiaries Beneficiaries of this program are the 426 members of the Lumbini Multipurpose Cooperative; 25 Members of the Devchuli Laguuddham Mauri Palan Samuha (bee keeping group) and 37 Members of the Everest Bee Development Cooperative.

Operation and Management Sagar Honey is the grantee and therefore main responsible to implement the B4BB. It implements its activities in collaboration with the Lumbini Multipurpose Cooperative, Devchuli Laguudhham Mauri Palan Samuha and Everest Bee Development Cooperative.

Current Status of Operation So far during the implementation of the project, a baseline survey was carried out in cluster 1 where around 140 households were found engaged in traditional bee keeping. They kept Cerana bees in hives made of hollow wooden logs. 100 be keepers from cluster one who were the members of Lumbini Multipurpose Cooperative Ltd who have been trained on improved techniques of bee keeping and honey production. A basic beekeeping training was delivered on site to these 100 bee keepers and beekeeping equipment (hives, hive stand, bee veil, Queen gate and hive tool) was distributed to all trainees.

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In Kirtipur (cluster 2) a bee keeping cooperative was established and its 25 Members were provided an advanced bee keeping training. At the end of the training the trainees were also provided with bee keeping materials (hive, feeder, brush, smoker, veil, gloves, knife, honey extractor, hive stand, Queen gate, wax foundation, Queen cage and hive tool).

The equipment was provided at 80% subsidy. 25 % of the cost had to be paid by the bee keepers. So far it was reported the only around 50% of the new hives distributed have been populated with bee colonies. Reasons mentioned for this was that the hives were fresh and smelt of paint which discouraged bees and they moved back to their original hives, the colonies were often too small to develop another Queen and therefore could not be separated, and the farmers still lacked expertise on dividing colonies. These activities relate to objectives 1 and 2 while activities to achieve objectives 3 and 4 are ongoing or are planned. The project comes to an end September 2019.

Linkage and Coordination Thanks to this program the Lumbini Multipurpose Cooperative, its subsidiary, newly established Lumbini Honey (processing enterprise) and Sagar Honey have come in contact. If this link is continued the cooperative, its members and Lumbini Honey will benefit from the expertise of Sagar Honey. Sagar Honey may benefit from opening up of a new market for their technical assistance, equipment as well as a new source of quality honey.

The government Agriculture Knowledge Centre and the State Government is also encouraging bee keeping and honey production. Their support can be solicited for the development of the honey sector.

Significant Changes The project is still ongoing and several activities still need to be implemented before any results can be perceived. Bee keepers from cluster have been recently provided basic training and cluster two advanced training. Plans are also underway to help the Lumbini Honey to repair and adapt the Hariyo Ban provided processing machines and bring it into operation. Plantation of Chiuri and citrus (bee forage) is planned for the coming rainy season.

Challenges/Constraints Access to the training site was difficult. The training had to be conducted on site in their villages which was remote and poor roads requiring four-wheel drive vehicles. Distribution of improved hives to the trainees even at 80% subsidy was difficult as many were not able to pay the 20% of the cost of the hive.

Farmers occasionally demanded training allowances which Sagar Honey did not have provision of.

Sustainability It is yet difficult at this point to analyse if the commercialisation of honey production can be sustainable. Sagar Honey as a service provider has supplemented the capacity building efforts of Hariyo Ban.

It is well known that market for honey exists. Shortage of domestic honey is being covered by imports from India. Honey from the Cerana bees from the hills attract speciality consumers and commands a higher price. If it works, a new market for the provision of service, supply of equipment as well as new source of quality honey will open up for Sagar Bee.

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Key Learnings  Local company from the same district which also has a stake in the same commodity has been instrumental in delivering benefits directly to the beneficiaries targeted.  For the expected results of increasing bee colonies and population and thereby honey production to take place, an outcome based arrangement (hives populated) would have been better than the output based (hives distributed) arrangement minimising the occurrence of issues like freshly painted bee hives to be distributed.  A buy back guarantee by Sagar Honey will also discourage emphasis on sales of hives and equipment rather than on improving and increasing the supply of honey.

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Small grant 2: Organic Turmeric Cultivation & processing in Buffer Zone Area, Chitwan National Park

Background The Organic Valley is a private company specialising in processing and selling high value spices in local and international Grant Organic Turmeric Cultivation & speciality market. It received a Marketing small grant for organic turmeric Location Kawasoti 7 and 10, Nawal Parasi District cultivation and processing in River basin Narayani the buffer zone area of Chitwan Implementing The Organic Valley Pvt. Ltd., Bakhundol, National Park to create an partner Lalitpur opportunity of self-reliance fo1 Lead partner WWF members, mostly women. 2 Type of enterprise Small groups were also formed within the Namuna Buffer Zone Users Grou r the forest dependent and poor community.

After consultation with two Buffer Zone Management Committees and an inventory, 7 groups of poor farmers consisting mainly of Tharu women were formed. 5 groups were formed in Krishnashar Buffer Zone Users Group (BZUG) consisting of a total of 20 p. The study team interacted only with the members of the Asta Laxmi group from the Krishnashar BZUG.

Objective The objective of the small grant support was to provide an alternate livelihood opportunity to the poor and forest dependent households of Kawasoti 7 and 10 through the cultivation and processing of organically grown turmeric.

Beneficiaries Turmeric farmers totalling 201 from 7 groups of poor farmers mainly consisting of ethnic Tharu women.

Operation and Management The activities under this small grant is implemented and monitored by the grantee Organic Valley. Organic Valley implements the grant activities in collaboration with the Buffer Zone Management Committee as well as the Krishnasar and Namuna Buffer Zone User’s group as the participating farmers are the members of these organisations.

Current Status of Operation With the approval of the National Park 12 kattha land (several plots) in the buffer zone bordering the national park was planted with turmeric collectively by the groups from Krishnashar BZUG. The Asta Laxmi Group consisting of 38 women members planted 450 kgs of turmeric seed tubers. Most of the seed tubers were provided by the Organic Valley while some were locally sourced. The group contributed 25% (in the form of turmeric seed tubers to be returned in the second year) of the cost of the seeds, labour and manure.

The group farm collectively procuring seed tubers, contributing labour, manure and other inputs required. They also share the harvest and the income they make out of its sales. They have harvested the first batch of turmeric planted and have just finished planting a second crop. From the first harvest the Asta Laxmi Group sent 3200 kgs of fresh turmeric to the Organic Valley. The land is organic certified with the assistance from Organic Valley and therefore no chemicals and pesticides are used. The farmers receive Rs 19 per kg of fresh turmeric and Rs 2 premium per kg for organic certification from Organic Valley. The purchased turmeric is transported to their processing facility in Surkhet. The quantity of turmeric produced by the groups is not large enough to support a local processing centre profitably. 86

The groups have an exclusive contract for two years to sell the turmeric produced to the Organic Valley.

The turmeric farmers have been trained on turmeric farming and manure making two times in the village by the Organic Valley. They were also provided with gum boots, buckets, mugs and urine collection drums to those who kept cows or buffaloes for manure making.

A local youth was hired for one year to monitor the groups. His contract has recently expired.

Linkage and Coordination The groups have not yet established linkages with any other organization than the Organic Valley and their respective Buffer Zone Users Groups.

Significant Changes The first harvest was recently sold and a second harvest has recently been planted. First planting was late and the required amount of mulching and manuring could not be managed. This resulted in lower production than expected. This year better production is expected. It is still to be seen whether this years’ output will be profitable and keep on attracting the interest of its members to continue participating. The group reported that several of its members stopped joining turmeric farming this year as they did not feel that the benefit was satisfactory.

Challenges/Constraints The plots for turmeric cultivation are scattered creating problems for protecting the crop from wild animals. Wild boars dig up the soil for earth worms ending up damaging the crop. Irrigation is another major challenge as they have to depend on rain for moisture.

Sustainability It is still to be seen if the group members continue farming turmeric once the project support ends. It appears that if the cost of labour is not built in, which is required only during the preparation and planting period and utilizes the spare time the group members have, it is still a profitable business. Once the proper combination of right time for planting, mulching and protection from wild boars are managed, production can be expected to rise to generate more income. This might be expected to keep the women engaged in turmeric farming.

Once the groups start generating profit, the BZUG will also expect some return in the form of rent on land farmed. It also needs to keep on supporting the groups and renewing the permission to farm from the National Park.

The group gains from the expertise of the company in cultivation, processing and marketing as well as from expert technical assistance. This could be a win-win relationship for both the parties.The National Park also gains from this relationship as the farmer members become increasingly engaged in their enterprise and they will not need to depend on the forest resources for their livelihood thereby contributing to biodiversity conservation.

Key Learnings  Organic Valley has expertise in growing, processing and marketing organic turmeric. They also have a stake in the commodity. Their engagement in the enterprise ensured

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that the technical assistance and other services directly reached the intended beneficiaries.  The buy back guarantee provided by Organic Valley to the turmeric farmers and the payment of premium price for their organic produce motivates participating farmers to continue engaging which probably will ensure sustainability of the enterprise.  Organic valley has linked up the Hariyo Ban beneficiaries to a global value chain as it is exporting the processed product outside of the country.  Community forest land is converted to annual mono cropping system requiring regular tillage manuring and weeding - its impact on biodiversity conservation objectives of Hariyo Ban needs to be explored.

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