Mountain Hazelnuts harvested a record 10 metric tonnes of nuts last year, 14 years after the first harvest began. The company attributes the significant increase in yield to improved grafting techniques. However, it suspects that some growers may be selling their nuts to other buyers instead of supplying them to the company.
The Jangdung Hazelnut processing factory in Monggar is where all the hazelnuts collected are graded by size, colour, quality, and moisture.
Then, it undergoes packaging.
After that, the products are exported to Australia and sold locally.
In 2023, more than three metric tonnes of hazelnuts were exported to Australia. Last year, the export increased to more than five metric tonnes.
Hazelnut is grown in 19 districts.
The company is currently paying Nu 150 for a kilogramme of hazelnuts, a rise of fifty per cent from last year. Officials from the company said this is one of the initiatives to discourage growers from selling to other buyers.
Kinley Tshering, the outreach and advocacy coordinator of the Mountain Hazelnuts said, “Only up to 70 per cent of the total yield is brought to our collection centre. We have heard and seen growers selling to other buyers, as well as middlemen interfering in such business. This is illegal as per the contract that we have with the company and the growers. However, for now, we didn’t take any action.”
Sean Watson (PhD), the CEO of the Mountain Hazelnuts said, “Well, we are coordinating with the local districts, and they are monitoring the markets and providing feedback to the growers. So, they are a vital partner in trying to limit side selling. Fundamentally, the growers need to get a substantial price, otherwise, the side selling pressure will be high. So, 150 ngultrum per kilogramme, we believe, is actually an attractive price for the growers, and this is the primary driver for limiting side selling.”
The prices are expected to rise even further as the company works to obtain international certifications.
Officials said the more certifications the company secures, the higher the prices will be.
The CEO added that “We are developing a grower cooperative alongside Rainforest Alliance certification initially, with plans for other certifications later. These will bring higher pricing, better training, and extension support in areas such as pest and disease control, along with potential additional funding for fencing and other needs. There are many long-term benefits to working with the company, and growers need to think in the longer term rather than focusing on short-term gains.”
BBS has not been able to independently verify the company’s claim, as hazelnut growers, who BBS spoke to, denied selling their nuts to other buyers.
The company said that as it continues to strengthen its partnership and expand market opportunities through better pricing and certification, it plans to thrive and bring greater benefits to rural communities.
Namgay Wangchuk/Tashi Dekar
Edited by Tshering Zam
