Abstract
The study on value chain analysis of coffee was conducted in Palpa and Kaski districts, Nepal during June to August, 2016. The purposive and random sampling technique were used. Semi-structural interview with 160 households (HH) from Kaski and Palpa district (80 samples HH from each district) were conducted. In Palpa district, third party organic certification of coffee has been adopted from company initiation, whereas all coffee from Kaski district has gone through conventional market chain. The coffee cultivated land was 0.85 ropani which was higher among non-certified group (Kaski district) as compared to certified once (Palpa district). Average price of fresh cherry was NRs. 80 per kg which was lower for company initiative third party certification in Palpa (NRs.75/kg) than non-certified area in Kaski (NRs. 85/kg). Average productivity of coffee in study area was found 48 kg per ropani which was very less (13.05 kg/ropani) in certified area than non-certified area (82.96 kg/ropani). The low productivity of coffee and weak value chain structure of coffee was found in third party certified and conventional market chains. Education (49%) and access to credit (67%) were major contributing factors for organic certification of coffee. The land for coffee cultivation had positive and significant impact whereas private company based certification had negative impact on income from coffee subsector. Effective monitoring and premium assessment from certification scheme need to have judged from concerned stakeholders to increase the benefit from certification, to promote proper certification and in coffee market chain in Nepal.
 Int. J. Appl. Sci. Biotechnol. Vol 7(1): 69-74
Highlights
Being a prime high value commodity and a popular beverage throughout the world, coffee is one of the emerging cash generating commodities for hill farmers of Nepal (Khanal, 2003)
Palpa was taken as certified district in which produced coffee is certified by private company and Kaski was taken as non-certified district
One hundred and sixty respondents were than randomly selected from Deurali and Bhairavsthan VDCs of Palpa district and Dhikurpokhari and Pachvaiya VDCs of Kaski district
Summary
Being a prime high value commodity and a popular beverage throughout the world, coffee is one of the emerging cash generating commodities for hill farmers of Nepal (Khanal, 2003). Over 2.25 billion cups of coffee are consumed in the world every day and one of the interesting thing about coffee is that over 90 percent of its production takes place in the developing countries, while consumption takes place mainly in the developed/industrialized countries (PACT, 2012). Statistics shows that in Nepal there are about
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