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Allo Value Chain in Darchula, Nepal Process Documentation ICIMOD Working Paper 2018/9 Nepal Allo Value Chain in Darchula, Nepal Process Documentation 1 About ICIMOD The International Centre for Integrated Mountain Development (ICIMOD), is a regional knowledge development and learning centre serving the eight regional member countries of the Hindu Kush Himalaya – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan – and based in Kathmandu, Nepal. Globalisation and climate change have an increasing influence on the stability of fragile mountain ecosystems and the livelihoods of mountain people. ICIMOD aims to assist mountain people to understand these changes, adapt to them, and make the most of new opportunities, while addressing upstream-downstream issues. We support regional transboundary programmes through partnership with regional partner institutions, facilitate the exchange of experience, and serve as a regional knowledge hub. We strengthen networking among regional and global centres of excellence. Overall, we are working to develop an economically and environmentally sound mountain ecosystem to improve the living standards of mountain populations and to sustain vital ecosystem services for the billions of people living downstream – now, and for the future. Corresponding author: Anu Joshi Shrestha, [email protected] Cover photo: A member of Bhumiraj Allo Processing and Collection Center weaving allo fabric at the center ICIMOD gratefully acknowledges the support of its core donors: the Governments of Afghanistan, Australia, Austria, Bangladesh, Bhutan, China, India, Myanmar, Nepal, Norway, Pakistan, Sweden, and Switzerland. 2 ICIMOD Working Paper 2018/9 Allo Value Chain in Darchula, Nepal Process Documentation Authors Anu Joshi Shrestha1, Lipy Adhikari1, Robin Amatya2, Bijay Subedee3, Tashi Dorji1 1 International Centre for Integrated Mountain Development (ICIMOD) 2 SAARC Business Association of Home Based Workers (SABAH) Nepal 3 Research Centre for Applied Science and Technology (RECAST) International Centre for Integrated Mountain Development (ICIMOD), Kathmandu, November 2018 i Copyright © 2018 International Centre for Integrated Mountain Development (ICIMOD) This work is licensed under a Creative Commons Attribution Non-Commercial, No Derivatives 4.0 International License (https://creativecommons.org/licenses/by-nc-nd/4.0/). Published by International Centre for Integrated Mountain Development (ICIMOD) GPO Box 3226, Kathmandu, Nepal ISBN 978 92 9115 635 1 (online) Production team Samuel Thomas (Senior Editor) Rachana Chettri (Editor) Dharma R Maharjan (Layout and Design) Photos: Kalash Shakya - cover, pp 14, 15, 16, 25; Lipy Adhikari - pp 2, 10; Rajendra Shakya - pp viii, 4, 19, 20, 22, 26 Reproduction This publication may be produced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. ICIMOD would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purposes whatsoever without express written consent from ICIMOD. The views and interpretations in this publication are those of the author(s). They are not attributable to ICIMOD and do not imply the expression of any opinion concerning the legal status of any country, territory, city or area of its authorities, or concerning the delimitation of its frontiers or boundaries, or the endorsement of any product. This publication is available in electronic form at www.icimod.org/himaldoc Citation: Shrestha, A.J., Adhikari, L., Amatya, R., Subedee, B. & Dorji, T. (2018). Allo value chain in Darchula, Nepal: Process documentation. ICIMOD Working Paper 2018/9. Kathmandu: ICIMOD. ii Contents Acknowledgements v Acronyms and Abbreviations vi Executive Summary vii Background 1 Livelihoods, Innovation and Adaptation to Change 1 Bringing Partners Together 3 Value Chains as an Approach to Livelihood Diversification 4 Selection of Value Chain 5 Value Addition Potential at Local Level 6 Why Allo? 6 Major Interventions 10 Strengthening Local Institutions 10 Private Sector Links and Enterprise Development 11 Adding Value 12 Gender and Social Inclusion 13 Greening the Allo Value Chain 15 Ensuring Sustainability 17 Fostering Transboundary Relations 18 Getting Brand Endorsement 22 A Summary of Major Interventions and Results 22 Challenges 22 Conclusion and Way Forward 26 References 28 iii List of Tables Table 1: Selection criteria for potential value chains 5 Table 2: Resource distribution and seasonal calendar 6 Table 3: Status of allo in Naugad Rural Municipality 8 Table 4: SWOT analysis of allo value chain development in Naugad Rural Municipality 9 Table 5: Upgrading strategies for allo value chain promotion 9 Table 6: Energy efficiency through technology improvement 16 Table 7: SWOT analysis and major interventions considering environmental, social, and economic aspects 17 Table 8: Links with buyers 18 Table 9: Attributes and major benefits for common branding and collective marketing 22 Table 10: Major interventions timeline 23 List of Map and Figures Map 1: Naugad Rural Municipality (Gaunpalika) 2 Figure 1: Livelihood co-benefits from sustainable ecosystems management 3 Figure 2: Allo value chain map 7 Figure 3: Governance structure Bhumiraj Allo Processing and Collection Center 11 Figure 4: Enterprise development at various nodes of the allo value chain 12 Figure 5: Enterprise development model of KSLCDI Nepal 13 Figure 6: Training and skills deveolpment of participants 14 Figure 7: Kailash business model 21 iv Acknowledgements This study has been undertaken by the International Center for Integrated Mountain Development (ICIMOD) under the Kailash Sacred Landscape Conservation and Development Initiative (KSLCDI) implemented jointly with the Ministry of Forests and Environment (MoFE) Nepal and Research Center for Applied Science and Technology (RECAST) under Tribhuvan University, Nepal. KSLCDI is a joint effort to promote transboundary cooperation on landscape conservation among China, India and Nepal through the respective governments and partners which is supported by the Ministry for Economic Cooperation and Development (BMZ), Germany, the DFID/UKAid, and core funds of ICIMOD contributed by the governments of Afghanistan, Australia, Austria, Bangladesh, Bhutan, China, India, Myanmar, Nepal, Norway, Pakistan, Switzerland, and the United Kingdom. The views and interpretations expressed in this publication, however, are those of the authors. v Acronyms and Abbreviations ANCA Api Nampa Conservation Area BHPCC Bhumiraj Allo Processing and Collection Center CHEA Central Himalayan Environment Association DFID Department for International Development DFO Divisional Forest Office DOF Department of Forest DNPWC Department of National Parks and Wildlife Conservation ICIMOD International Centre for Integrated Mountain Development KSL Kailash Sacred Landscape KSLCDI Kailash Sacred Landscape Conservation and Development Initiative MoFE Ministry of Forests and Environment RECAST Research Center for Applied Science and Technology SABAH SAARC Business Association of Home Based Workers vi Executive Summary Naugad Rural Municipality (Naugad Gaun Palika), Darchula District in the far west region of Nepal is a pilot site for the Kailash Sacred Landscape Conservation and Development Initiative (KSLCDI). In 2014, the livelihoods component of KSLCDI started developing a value chain for Himalayan Nettle or ‘allo’ in Naugad Rural Municipality with the aim of providing an alternative income for people in the local community. For KSL-Nepal, Ministry of Forests and Environment (MoFE) was the nodal agency with RECAST as the implementing agency, while ICIMOD providing technical and financial support. Introducing a private sector agency, SABAH Nepal, as an implementing body in 2015 played an important role in completing the value chain through creating market links for allo products developed as part of the value chain. To support KSLCDI, the Bhumiraj Allo Processing and Collection Center was established in Godhani in Naugad Rural Municipality as a common facility center (CFC). At present, 84 people work as active members of the CFC, of which over 75% are women. In just two years, KSLCDI has succeeded in building the capacity of CFC members through providing over twelve training programmes on various aspects of skill and leadership development. The CFC in Godhani produces a variety of allo products with improved quality and quantity and community members have been able to find markets for their products. Developing the value chain also introduced the concept of common branding for KSLCDI. The allo products of Naugad Rural Municipality are sold under the ‘Kailash – Truly Sacred’ brand in SABAH Nepal outlets in Kathmandu. The branding is not limited to allo products. Kidney beans, chiuri, honey, rittha and nigalo from other pilot sites in Nepal and India are sold under the same brand name. Through common branding, KSLCDI has taken a step towards fostering transboundary networking in the region. The work initiated by KSLCDI required considerable time to generate the desired outputs and therefore, time was always a constraint on the project. Nonetheless, a striking change has been observed in Naugad Rural Municipality in the course of two years (2014-2016). The initiative has brought a noticeable transformation in terms of providing improved livelihood options for the community, especially for women and marginalized
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