Map of Bhutan

Country Initiatives Details

Technical Assistance: Environmentally Sustainable Hazelnut Value Chain

Canada’s Total Contribution: $1,300,000

Targeted Countries: Bhutan

Funding Period: 2012/2013

Project Funded through a Canadian Facility: Canadian Climate Fund for the Private Sector in Asia

Delivery Partner(s):


The Canadian Climate Fund for the Private Sector in Asia (CFPS) at the Asian Development Bank (ADB) provided support for this project which will develop an inclusive and environmentally sustainable hazelnut value chain, promoting private sector agribusiness development, and helping to reduce poverty. Technical assistance trains thousands of farmers, including women, to use farm practices that will help minimize crop losses from climate change. Bhutan is highly vulnerable to climate change including temperature spikes, water scarcity, and landslides from glacial lake bursts as ice melts. Technical assistance will provide training in climate-resilient farming techniques including harvest and post-harvest management, and pest management. The larger project is investing in climate-resilient hazelnut trees. The saplings are being planted on fallow or degraded land, aiding soil retention, watershed stability, and carbon sequestration.

Results/Expected Outcomes

The project is aiming at lifting incomes for up to 15 000 farmers by 2020, at least half of whom are women. As much as 15% of Bhutan’s total population is eventually expected to benefit from the project. It will help improve irrigation systems and water storage, introduce a smartphone application to allow the easy swapping of weather information and best farm practices, and provide research and development support into new crop varieties. Furthermore, the project will help boost Bhutan’s agriculture Gross Domestic Product and exports, it will promote private sector agribusiness development, and it will contribute to poverty reduction in Dzongkhags where poverty levels are above the national average.
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