Catalyzing the transition to sustainable and inclusive agrifood systems in Bhutan

A four-pillar approach

A promising collaboration with the Kingdom of Bhutan is underway. Through their joint Sustainable Agrifood Systems Intelligence (SASI) Initiative, the European Union (EU), FAO and Agrinatura will support the Government of Bhutan in promoting economic, environmental, and social sustainability of its agrifood systems by strengthening high-value and export-oriented value chains, enhancing multi-stakeholder coordination, and supporting a conducive enabling environment for investments and finance.

As a pilot country in the framework of the SASI initiative, Bhutan has identified 4 main areas to operationalize its agrifood systems transformation. “Those four pillars were identified through fruitful consultations with the Government and other stakeholders and are aligned with the 13th Five Year Plan of the Ministry of Agriculture and Livestock (MoAL). It is crucial to support the Government’s strategy to maximize the success of the SASI programme”, said Ken Shimizu, FAO Country Representative for Bhutan and Nepal.

Addressing Bhutan’s main agricultural challenges

The EU-FAO-Agrinatura collaboration with the government focuses on existing challenges that can be addressed to increase smallholder’s incomes, create well-paying job opportunities, including for the youth, and guarantee food security.

One of those challenges is to increase the productivity and production of crops and livestock. The prevalence of small-scale farming, limited adoption of high-yielding inputs and technologies, and high losses of crops to human-wildlife conflict are some of the factors limiting productivity and thus making the country reliant on food imports. Agrifood value chains need to be developed and farmers must be better equipped to meet more stringent market standards, reduce transaction costs through economies of scale, and achieve access to better prices. Engaging the youth along agricultural value chains is also central, by ensuring their access to training and finance to unleash innovation and investments in agrifood activities.

"Inclusive and sustainable agrifood systems offer Bhutan the opportunity to create better jobs for our young people, open doors to new export markets and achieve better nutrition for our population,” explains Karma Tshering, Chief, Policy and Planning Division from the Ministry of Agriculture and Livestock, Bhutan.

Next steps

The next 24 months will be crucial for the implementation of the agreed actions. The FAO Investment Centre will mobilize experts to work with relevant Ministries, the private sector, development partners and research institutions on the four pillars.

In consultation with the government, the private sector and other stakeholders, the Investment Centre team will contribute to strengthening two selected high-value export-oriented value chains, through the improvement of product collection and aggregation capacity, increasing access to export markets, and enhancing multi-stakeholder coordination and institutional mechanisms.

The team will conduct studies to appraise the feasibility of the Paro Agrifood Eco Hub, an important priority for the Government of Bhutan. Training on access to finance and matchmaking between prospective investors, producers and processors in agrifood activities in Bhutan are also planned.

Jozimo Santos Rocha, Officer-in-Charge for Asia and the Pacific at FAO Investment Centre said:

"The Investment Centre will collaborate closely with existing initiatives in the country to synergize efforts. This includes a GEF-funded food systems project, a World Bank-led agriculture public expenditure review, and feasibility studies on eco-hubs in the Gelephu and Paro regions conducted by IFAD and WFP."