Mountain Hazelnuts Venture secures USD 7.9 M for climate-resilient farming initiatives

Hazelnut growers in the country can look forward to increased support and better prices. In a major boost to the country’s sustainable agriculture sector, Mountain Hazelnuts Venture has secured a landmark USD 7.9 M in equity funding to expand its climate-resilient farming initiatives. The company, Bhutan’s first fully foreign direct investment (FDI) venture, is set to scale up its operations with this fresh capital injection.

Hazelnut production doubles in 2024, growers rewarded

Hazelnut production in the country has doubled to over 10 metric tonnes last year compared to 2023. In recognition of the contributions to boosting production, Mountain Hazelnuts Venture honoured 16 top growers at the Grower Awards ceremony at Monggar yesterday. Tashi Lhamo from Lichen in Trashi Yangtse was recognised as the top grower, producing more than 500 kgs of the nut.

Hazelnut plantations expand to 19 districts

The number of hazelnut growers has been gradually increasing in the country. Until last year, hazelnuts were cultivated in 18 districts, but this year, Samtse had its first hazelnut orchards. This development is part of a broader trend, with more farmers embracing hazelnut cultivation and the grafting programme showing progress.

Ensuring High Yielding Hazelnuts

Mountain Hazelnuts Venture (MHV) is revolutionizing hazelnut production with an extensive range of pollinator varieties to ensure high yields. With over 30 varieties in its Ngatsang nursery in Monggar, the project focuses on four primary production varieties: Tongs di Giffoni (TdG), Yamhill, Anakaliuri, and Ennis.

Finnfund and Mirova lead $7.9m investment in Bhutan’s Mountain Hazelnuts

“During my MBA, I interned on a hazelnut farm in Bhutan. It taught me that workplace loyalty isn't only about money.”

"Bhutan is opening up to foreign investment. Its first 100% foreign-owned company is tapping into global demand for hazelnuts, and bringing new sources of income to mountain communities" 

"Asian Development Bank - CNBC Deal of the Year! The award for Best Corporate Finance Transaction went to Mountain Hazelnuts, a firm which is developing an inclusive and environmentally sustainable hazelnut value chain in Bhutan.” 

"The project allows participating farmers to significantly increase their income by selling hazelnuts. Mountain Hazelnuts will also provide farmers with access to global knowledge and best practices. Mountain Hazelnuts’ business model is simple but promises significant development impact." 

“Mountain Hazelnuts has integrated more than 5,000 women-led farming households in its value chain… [The Company] takes a holistic approach to address household income generation, community development, cultural preservation, local ecosystems, and global climate change.” 

"The farmers also use smart phones and ICT to communicate with Mountain Hazelnuts staff. More than half of the farmers have smart phones, although not all of them are literate. Thus, the company uses voice messaging and video-recording functions of a Social Network Service (SNS) to communicate with farmers. " 

"This unusual partnership between a small Bhutanese start up and a Buddhist nun is representative of a new trend in development financing known as ‘blended finance’— the mixing of public, philanthropic and private capital in emerging and frontier markets." 

"If Mountain Hazelnut hits its target of 15,000 farming households averaging 6 members each, it will directly affect about 15% of Bhutan's population. Achieving that goal would make a serious dent in Bhutan's rural poverty." 

“Mountain Hazelnuts is deeply committed to ensuring the success of our farmer partners, which include nunneries, monasteries, and schools. Mountain Hazelnuts is [expanding] on its social and environmental initiatives, raising the financial literacy of women farmers and studying ways of increasing climate resilience"

“Mountain Hazelnuts is using off-the-shelf technology such as Android phones, barcode scanners, and MySQL databases to build a tech-savvy sustainable, culturally cohesive nut-growing business in collaboration with villages in mountainous Bhutan."