Value Chain Study on Maize Department of Agriculture and Marketing Cooperatives Ministry of Agriculture and Forests Thimphu: Bhutan October 2019 ABBREVIATIONS AEZ Agro Ecological Zone AMC Agriculture Machinery Centre ARDC Agriculture Research and Development Centre AWP Army Welfare Project BAFRA Bhutan Agriculture and Food Regulatory Authority BCD Bhutan Centennial Distillery BDBL Bhutan Development Bank Limited CIMMYT International Maize and Wheat Improvement Centre CoP Cost of Production DAMC Department of Agricultural Marketing & Cooperatives DCSI Department for Cottage and Small Industries DoA Department of Agriculture DRDP Decentralised Rural Development Project FAO Food and Agriculture Organisation FCBL Food Corporation of Bhutan Limited FMCL Farm Machinery Corporation Limited FYP Five-Year Plan MAGIP Market Access & Growth Intensification Project masl Meters above sea level MoAF Ministry of Agriculture and Forestry MoEA Ministry of Economic Affairs MT Metric ton (= 1000kg) NPHC National Post Harvest Centre NPPC National Plant Protection Centre NSC National Seed Centre Nu Bhutanese Ngultrum PPD Policy and Planning Division RGoB Royal Government of Bhutan RNR Renewable Natural Resource SAARC South Asian Association for Regional Cooperation SWOT Strength, Weakness, Opportunity and Threats IT Information Technology Maize Value chain Study 2/10 NMP National Maize Program PPP Public Private Partnership OGOP One Gewog One Product NKRA National Key Result Area CFM Centenary Farmer’s Market FYM Farm Yard Manure RNR RDC Renewable Natural Resource Research Development Centre CARLEP Commercial Agriculture and Resilient Livelihoods Enhancement Programme QPM Quality Protein Maize OGTP One Geog Three Products GLS Gray Leaf Spot TLB Turcicum Leaf Blight CBSP Community Based Seed Production Groups CA Commission Agents EOs Extension Officers VC Value Chain UNDP United Nations Development Programme CORRB Council for Renewable Natural Resource Research of Bhutan IFAD International Food and Agriculture Development RAMCO Regional Agriculture and Marketing Cooperatives OPV Open Pollinated Variety BNB Bhutan National Bank BoB Bank of Bhutan Maize Value chain Study 3/10 TABLE OF CONTENT 1. INTRODUCTION .............................................................................................................................. 6 1.1 Background ................................................................................................................................... 7 1.2 Objectives ..................................................................................................................................... 7 1.3 Analytical framework for value chain analysis ............................................................................. 7 1.4 Methodology ................................................................................................................................. 8 1.5 Study area...................................................................................................................................... 9 1.6 Gender representation..................................................................................................................10 2. OVERVIEW OF MAIZE IN BHUTAN ........................................................................................... 11 2.1 History of Maize ......................................................................................................................... 11 2.2 Cultural and socioeconomic importance of maize ...................................................................... 11 2.3 Maize production systems in Bhutan .......................................................................................... 12 3. MAIZE PRODUCTION IN ASIA AND SAARC REGION ............................................................ 14 3.1 Maize production in Asia ............................................................................................................ 14 3.2 Maize production in SAARC region ........................................................................................... 14 4. MAIZE PRODUCTION IN BHUTAN ............................................................................................ 15 4.1 Maize growing Dzongkhags ....................................................................................................... 15 4.2 Maize production trend ............................................................................................................... 15 4.3 Maize import ............................................................................................................................... 16 4.4 Maize productivity ...................................................................................................................... 18 4.5 Maize utilization ......................................................................................................................... 18 5. MAIZE PRODUCTION PROCESSES ............................................................................................ 18 5.1 Selection of Seeds ....................................................................................................................... 18 5.2 Land Preparation ......................................................................................................................... 19 5.3 Fertiliser application ................................................................................................................... 19 5.4 Crop protection ........................................................................................................................... 19 5.5 Harvesting ................................................................................................................................... 19 5.6 Postharvest Handling .................................................................................................................. 20 5.7 Constraints .................................................................................................................................. 20 6. MAIZE PROCESSING .................................................................................................................... 22 6.1 Artisanal Processing .................................................................................................................... 22 6.2 Industrial Processing ................................................................................................................... 24 7. MARKET ANALYSIS ..................................................................................................................... 24 7.1 Demand ....................................................................................................................................... 24 7.2 Supply sources ............................................................................................................................ 25 7.3 Demand and Supply Analysis ..................................................................................................... 26 8. ECONOMIC ANALYSIS ................................................................................................................ 26 Maize Value chain Study 4/10 8.1 Price dynamics ............................................................................................................................ 26 8. 2 Production costs ......................................................................................................................... 27 9. VALUE CHAIN ANALYSIS ........................................................................................................... 30 9.1 Introduction to value chain ......................................................................................................... 30 9.2 Value chain map ......................................................................................................................... 32 9.3 Value chain actors ....................................................................................................................... 33 9.4 Service providers ........................................................................................................................ 37 9.5 Business environment ................................................................................................................. 42 10. SWOT ANALYSIS ........................................................................................................................ 42 11. STRATEGIC PATHWAYS ........................................................................................................... 45 12. CONCLUSIONS AND RECOMMENDATIONS ......................................................................... 47 12.1 Conclusions ............................................................................................................................... 47 12.2 Recommendations ..................................................................................................................... 48 13. REFERENCES ............................................................................................................................... 50 14. ANNEXURE................................................................................................................................... 51 Annexure 1: List of stakeholders interviewed .................................................................................. 51 Annexure 2: List of Focus Group Discussions conducted