Farmers’ cooperatives in three eastern districts are a step closer to exporting Bhutanese hazelnuts in international markets after receiving Rainforest Alliance certification to grow the crop. Certification for the final product is expected later this year, which will open access to premium buyers and high-value international markets.
As of now, Mountain Hazelnuts has received Rainforest Alliance certification only for farming, covering 17 cooperatives in Monggar, Lhuentse, and Trashi Yangtse.
To use the Rainforest Alliance green frog seal on its products, the company still needs supply chain certification. This is expected by September and will cover processing, packaging, and shipping.
This year’s harvest, due in October, is expected to be the first to carry the label.
Meanwhile, last year’s harvest of more than 8.6 metric tonnes will be sold without certification.
“We have been lucky that at the start of this year, our investors have put in the final troch of money that they have offered to us. That was basically on the condition of our obtaining this Rainforest Alliance certification. Our investors have put over USD 6 M into the last two years. We will use the final investment for the next two or three years, and then by the time the harvest will be improved significantly,” said Jeff Nicholls, Chief Operating Officer, Mountain Hazelnuts.
Since last year, Mountain Hazelnuts has started exporting raw hazelnut kernels instead of in-shell nuts.
The company now plans to further increase value by making the product ready to eat. This will include shelling, roasting, and packaging.
The required machinery has already been installed at its processing plant in Jangdung, Lingmithang, in Monggar.
“The international market for hazelnuts has been extremely strong last year, due to climatic events in Turkey, the main production country, reducing the supply last year. That has had a positive impact on price. With the certification and marketing, we are targeting more high-end markets, so we are taking time to develop those opportunities, but we are very confident that in the end we will have a product that is in demand, even when other supplies come back on stream and full volume,” said Jeff Nicholls, Chief Operating Officer, Mountain Hazelnuts.
Mountain hazelnuts began exporting hazelnuts to Australia in 2023, and has since expanded to Thailand, the United States, and Singapore. It is now exploring new markets in India, Hong Kong, and Japan.
At the same time, the company is working with farmers to revive abandoned orchards and establish new ones, while expanding local processing and value addition.
The certification initiative will be rolled out to other districts once it is established in the initial three districts.
Currently, more than 9,000 farmers across 18 districts, except Sarpang and Gasa, are growing hazelnuts. The company expects a strong harvest this season, with output projected at over 28 metric tonnes.
Namgay Wangchuk, Monggar
Edited by Phub Gyem
