CASE STUDY: COFFEE PRODUCTION IN NEPAL

PRESENTED BY:AASAA MEMBERS: Alina Adhikari Anisha Adhikari Ashish Pokhrel Ashok Poudel Nancy Mahato Surendra Poudel

CASE SUMMARY
Coffee production in Nepal is meeting only 40%

of domestic demand. History of coffee production dates back to 1998 B.S., first coffee nursery established in Nepal on 2032/33 B.S. by Parahar Kharel. Presently , 21 districts grow coffee, mainly Palpa, Gulmi and Arghakhanchi. Major Nepali brands: Everest, NECCO,etc. Major Competitors: Ashi(Japan), Jacob (Germany),etc. Nepali coffee has scope of increasing its share in domestic and international market if value addition is maintained.

Q.1. Do you think there is potentiality of Nepalese coffee in the world market?
Yes, every product has potentiality to

cover world market today because of globalization. For that, quality of Nepalese coffee should be increased. Currently, Japan and Netherlands import coffee from Nepal which show positive symptoms for Nepali coffee being able to compete in world market.

Q.2 What made coffee market of Nepal more competitive?

Emergence of different local coffee

brands. Quality products offered by international brands. Qualitative and realistic appraisal of product standardization potentialities by coffee suppliers.

Q.3. Explain the state of coffee production and consumption in Nepal.

Nepali coffee is meeting 40% of requirements

of domestic customers. Presently, 21 districts of WDR grow coffee. In 2004, 218 mt. of coffee was produced. Coffee processors in Nepal mainly supply to hotels, restaurants, departmental stores, dealers, etc. Nepali coffee brands: Everest, NECCO,etc. Major Competitors: Ashi(Japan), Jacob (Germany),etc.

Q.4. In your view, what supportive activities can increase market share of Nepali coffee?
Aggressive effort on promotion in both

domestic and international market. Government support. Improvement of quality factors: aroma and flavor.