Hazelnut growers in the country can look forward to increased support and better prices. In a major boost to the country’s sustainable agriculture sector, Mountain Hazelnuts Venture has secured a landmark USD 7.9 M in equity funding to expand its climate-resilient farming initiatives. The company, Bhutan’s first fully foreign direct investment (FDI) venture, is set to scale up its operations with this fresh capital injection.
The investment comes from Mountain Hazelnuts’ long-term partners: Mirova, a Paris-based sustainable investment bank, and Finnfund, Finland’s development financier and impact investor.
Mirova has contributed around USD 4 M. The fund will focus on sustainable investment and nature-based solutions such as soil and planting trees.
Finnfund has invested USD 3 M, marking its first investment in Bhutan.
Sean Watson (PhD), CEO of Mountain Hazelnuts Venture said “So this is a member of Team Europe, and it is their first investment into Bhutan, and they invest in pretty much every sector, and could be very good for Bhutan’s future FDI targets. It is also backed by a novel guarantee mechanism, the European Fund for Sustainable Development Plus Carbon Sink Guarantee, and Bhutan happily is the very first project to get this guarantee, so another first for Bhutan.”
The remaining USD 1 M is funded through early commitments from the company’s management, founders and a private investor.
Mountain Hazelnuts Venture’s Chief Executive Officer highlighted that this investment will make it easier for other European Development Finance Institutions to enter the market.
It is also expected to attract more foreign direct investment, especially in agriculture.
The investment will provide a solid foundation for Mountain Hazelnuts’ next phase of expansion.
The investment will scale up plantations by distributing saplings from nurseries.
It will also support climate adaptation grafting programmes for the hazelnut trees that did not yield the expected harvest over the next five years.
The CEO said “It allows us to make further investments in capex in the factory, adding a retail line, and further expansions in the infrastructure. Further investments also in marketing and branding, because we need to get a good price in the market, plus certifications. So I think Bhutan should now feel confident that Mountain Hazelnuts is going to move forward and complete the original mission, and in five years’ time we will have a profitable company that will bring further benefits to Bhutan and the growers.”
Currently, 19 districts across Bhutan cultivate hazelnut, with nearly 900,000 trees under plantation. Over the next five years, the company plans to increase this figure threefold.
While not yet profitable, the company is focused on long-term investments in marketing to ensure attractive pricing for growers.
With this groundbreaking investment, Mountain Hazelnuts is set to drive Bhutan’s hazelnut industry forward, unlocking economic and environmental benefits for the nation.
Devika Pradhan
Edited by Phub Gyem
