More than hundreds types of herbs are exported from Nepal; 95 % of the herbs are collected from wild and 90 % are exported in raw form, mostly to India. Edward (1995) estimated 10-15 thousand tons of Non timber Forest Products (NTFP) trade from 150 species. Livelihoods of many poor people of the mountains depend upon the collection and trade of these herbs. Herbs sector itself a large segment and each of the herbs has its one value chain. Each herb business possesses different strength and weakness in its business.
Value chain is the sequence of productive processes from the provision of specific inputs for a particular product to primary production, transformation, and marketing and up to final consumption. The analysis of value chain helps to know the key players of the sub sector. It critically addressed the micro, meso and macro actor of the field. It also list out the organization, individual, entrepreneurs and other agencies involved in the sector. Analysis of value chain identifies the weakest link of the chain by which a specific intervention can be recommended for the improvement of the whole chain.
Many organizations including governmental and non governmental are working in the herbs sector. They are investing a huge amount to develop the herbs sector and enhance the economic status of the community involved in this sector. All the efforts are in isolation. There is a need to synergize the isolated efforts for a better result. On the other hand it is also required to intervene at the weakest link of the value chain of any commodity to make the business cycle profitable as well as sustainable. GTZ/PSP herbs sector seeks support in identifying the value chain of the selected five herbs namely Chiraito, Kurilo, Timur, Jatamashi and Yarshagumba. The purposed value chain workshop will not only identify the specific value chain of these herbs, but also recommend interventions required in short and long term for strengthening the whole value chain of these herbs. The finding of the workshop will also be enriched by consulting the organizations working in the same field e. g. ICIMOD, AEC-FNCCI, BDS MAPS, FECOFUN, NEHHPA, Department of Forest, Department of Plant Resource, ANSAB and HNCC. The final report consist key area of interventions for each herbs and also highlights the common interventions required for these herbs. It also recommends activities to be carried out in short as well as long term for the betterment of the value chain. The final report will be made available to the organizers – NEHHPA, GTZ/PSP, ICIMOD, AEC-FNCCI and HNCC.
OBJECTIVE OF THE WORKSHOP
The objective of the proposed value chain workshop for five selected Herbs is to synergize the isolated efforts of herbs entrepreneurs to make the herbs sub sector stronger and more profitable. Specifically the workshop has the following objectives:
- To analyze the value chain of the five selected herbs
- To analyze the backward and forward integration of herbs business
- To critically define the micro, meso and macro actors of the segment
- To identify the strength, weakness, opportunities and threats of the segment.
- To build the strategies to strengthen the segments
- To recommend feasible innervations for identified strategies
Following methodologies will be adopted to achieve the objectives.
A research will be conducted to find out the current status of the herbs sector its opportunities and constrains. A report will be submitted.
Value Chain workshop:
A three days workshop on value chain will be organized to map the value chain of the five selected herbs. Forty participants from different stakes will participate in the value chain workshop. They will be from grower, collector, road head collectors, middleman, processor, entrepreneurs. During the participants' selection representative of each selected herbs (i. e. Chiraito, Kurilo, Timur, Jatamashi and Yarshagumba) will be selected. The workshop will make them familiar with the value chain approach and value chain of each herb will be mapped. Strength, weakness, opportunities and threats of each herb will be analyzed. The workshop will also be able to find out the common and specific area of intervention for the betterment of the whole sector. The mode of lecture will be in Nepali language so that all the participants will understand the approach easily and able to give proper feedback. Following contents will be covered in the value chain workshop.
- Introduction to the VC Approach and its Relevance in Economic Promotion / Herbs segment Development
- Mapping and Analyzing value Chains
- Group Work: The participants will be divided in five groups on the basis of the herbs they are involved in map and analyze the value chain of Chiraito, Kurilo, Timur, Jatamashi and Yarshagumba followed by Presentation and Discussion
- Building a VC Promotion Strategy
- Group work: The group will be assigned a group work to design a VC promotion strategy
- Implementing VC Promotion
- Group work: The group will be assigned a group work to design a work plan to implement VC Promotion
Literature review and consultation with experts:
The finding of the workshop will be enriched by consulting experts of the herbs sector. Existing literature will be collected from organizations working in the same field (e. g. ICIMOD, AEC-FNCCI, BDS MAPS, FECOFUN, NEHHAPA, Department of Forest, Department of Plant Resource, ANSAB and HNCC). The final report consist key area of interventions for each herbs and also highlights the common interventions required for these herbs. It also recommends activities to be carried out in short as well as long term for the betterment of the value chain.
The workshop comes with the following expected outcomes:
- The value chain of the selected herbs analyzed critically
- The backward and forward linkage of the herbs segment defined
- All the micro, meso and macro player of the selected herbs identified
- The strength, weakness, opportunities and threats of the segment identified
- Strategies to strengthen the five selected herbs built
- Clear recommendation for shot-term and long-term intervention made for all the five herbs