International Centre for Integrated Mountain Development

Kathmandu, Nepal

A Specific Value Chain

Framework for Mountain

Products in a Globalised

Market

Michael Kollmair and Brigitte Hoermann

Introduction

• Socioeconomic and environmental change as

challenge and opportunity for mountain people

• Mountain products an important highland-lowland

and rural-urban linkage

• VC approach as an international development tool

(wall-to-wall solution)

• Adaptation of a global concept to the mountain

specifities

• Generating economic opportunities for rural

livelihoods by using the comparative advantages of

mountains

Key Features of Mountain

Value Chains

• Long value chains (often transboundary)

• Many traders, middlemen

• High diversity, but small quantities of products

• Mainly raw material supply

• Inadequate infrastructure and policies

Value Chains

Mountains Specifities M

ounta

in S

pecifitie

s M

ounta

in S

pecifitie

s

Generic Value Chain Approach

Accessibility, Fragility, Marginality, Diversity

Unique niche products and services

Selection of Products and

Services

Uniq

ueness N

ich

e M

ark

ets

Mountain Specific Challenges

High Value Products and

Services

Comparative Advantages:

• Highly diverse resource base in the mountains

• Traditional knowledge is available

• Less competition with plain areas

• High demand for products and services in emerging

markets

Strategies to Address

Mountain Specifities

ICIMOD’s Regional VC pilots

• Close to 20 pilots and partners

• Almost all HKH covered

• From agriculture, NTFP to service sector

• Focus cross-border VCs and comparison same product but from different RMC

Case Study: Bay Leaf

• An indigenous medium

size tree growing

between 500 and 2500m

• Dried leaves used widely

as a spice in South Asia

• Oil extract commonly

used in traditional

medicines

• Among the top 10

species traded between

Himalayas and lowland

Cinnamomum tamala

Bay leaf – Indian Laurel – Tej Pat

8 NRs/kg

17 NRs/kg

45 NRs/kg

Impact Pathways

Bay Leaf – Nepal

• Pro-poor mountain specific value chain methodology piloted

• Leverage point ‘upstream contracts’ identified

• Income from bay leaf increased by over 250%

• Improved bargaining power of poor producers

ICIMOD Output Outcome Impact

• Producer groups formed

• Contract between producer groups and traders

• Product quality of product improved

• Producers and traders informed on value chain (transparency)

Increasing Income of Poor

Producers of Bay Leaves

Impact Pathways

Bay Leaf – India

• Pro-poor mountain specific value chain methodology piloted

• Leverage point ‘policy’ identified

• Pilot model for NTFP policy readjustment

• Co-management favoured by NFTP policy makers

• Collection permits for Bay Leaves issued

• Rotational mandis (markets) established

• Improved marketing and payment system benefit the poor producers

• Increased and secured income for collectors

• Sustainable harvesting from wild

• Government investment in up-scaling to other NTFPs

ICIMOD Output Outcome Impact

Mountain Specific Value Chain

Approach

The Mountain Specific Value Chain Approach could

be used as a central tool to identify strategies for

income generation and poverty reduction.

• Focussing on strengthening rural-urban and highland-

lowland linkages.

• Analysis leads to identification of suitable products

and leverage points for pro-poor interventions

• Interventions should always aim at improved and

sustainable income for producers, not on highest

market price

• Economies of scope (baskets of products using the

same chain) are preferable

Publication

ICIMOD, 2010

Books online

Thank you