Value chain analysis of arabica coffee (Coffea arabica l.) in Arghakhanchi district of Nepal

Abstract A field survey was conducted during February–May 2022 in Chhatradev rural municipality and Sitganga municipality with the purpose of analyzing the existing value chain of arabica coffee in Arghakhanchi district of Nepal. A sample size of 110 arabica coffee growers, comprising 55 from each municipality, was selected by using three-stage sampling method for interviews that used a pretested questionnaire. To study the value addition and trading aspects, six collectors and pulper operators and two secondary processors were selected. Descriptive statistics was applied to analyze the data. Input suppliers, producers, collectors, pulper operators, secondary processors, traders, and consumers were identified as key players in the coffee value chain. NTCDB, NARC, CDC, AKC, Coffee Zone, Primary Coffee Cooperatives, Central Coffee Cooperative Union Limited, NCPA, financial institutions, and certification agencies were identified as the enabling environment providers in the value chain. The findings showed that the gross margin of one kg each of fresh cherry production, dry parchment production, green bean production, and coffee powder production was NRs. 26.06, NRs. 92.83, NRs. 107.7, and NRs. 215.06, respectively. Value addition from producers to primary processors was NRs. 109.8 per kg, and the value addition from primary to secondary processors was NRs. 445.6 per kg. Similarly, the value addition from secondary processors to consumers was NRs. 480.58 per kg. The research area’s value chain structure or network was determined to be brief and straightforward. Therefore, it is advised to adopt cutting-edge processing and packaging methods to improve the competitiveness of Nepali coffee in the market.