Coffee & Macadamia Nut Value Chain Strengthening Project

The Society Development Center (SODEC), a community-based non-governmental organization established in Sankhuwasabha in 2000, has been working to improve the livelihoods of disadvantaged and rural communities through sustainable development initiatives. Recognizing the potential of coffee and macadamia nuts to generate income, create employment, and diversify farming syhanging Lives Nepal (CLN), USA.

The program was designed to help farming households develop sustainable sources of income by introducing and promoting coffee and macadamia cultivation suited to the region's agricultural potential. Over the years, the initiative has evolved from small-scale demonstrations and farmer training into a broader effort to establish a locally rooted agricultural value chain.

During its initial phase, the program focused on Chainpur and Panchkhapan, working with approximately 100 farming households. SODEC supported the establishment of demonstration plots, distributed seeds and seedlings, provided irrigation materials, and organized training to introduce farmers to coffee and macadamia cultivation.

As farmers gained experience and confidence, the program expanded to additional municipalities in Sankhuwasabha. It promoted improved cultivation practices, encouraged farmers to establish orchards, and strengthened cooperation with local government agriculture sections. Local agricultural technicians also contributed to farmer training and technical support, helping build knowledge and skills within the local system.

The initiative has contributed to the expansion of coffee and macadamia cultivation across the district. Program records indicate the establishment of more than 300,000 coffee trees and 30,000 macadamia trees, involving around 1,000 farming households across multiple municipalities. These growing plantations represent an important foundation for future production, processing, and commercial opportunities.

SODEC's approach extends beyond distributing planting materials. By encouraging farmers to develop their own nursery capacity, exchange practical knowledge, and adopt sustainable cultivation practices, the program seeks to build a farming system that can continue to grow with less dependence on external support.

Sankhuwasabha offers promising conditions for developing coffee and macadamia as complementary agricultural enterprises. Coffee can be cultivated in suitable mid-hill environments, while macadamia provides an opportunity to diversify farm income through a perennial nut crop. Both crops can contribute to more diverse farming systems and create opportunities for employment in cultivation, harvesting, processing, packaging, and marketing.

However, planting trees is only the first step. Farmers need the technical knowledge, appropriate tools, processing facilities, quality standards, and reliable market connections required to turn agricultural production into sustainable income. As plantations mature and production increases, strengthening these links becomes increasingly important.

This understanding has shaped SODEC's transition from promoting cultivation to strengthening the entire value chain—from farm management and harvesting to processing, market access, and local institutional ownership.

Building on the foundation established through SADP, SODEC is implementing the Coffee and Macadamia Nut Value Chain Strengthening Project for 2027–2029, with support from Changing Lives Nepal. The three-year initiative represents an important transition from expanding production toward improving productivity, product quality, market opportunities, and long-term local ownership.

The project recognizes that farmers will benefit most when every stage of the value chain functions effectively. Its focus is therefore on strengthening farmers' technical capacity, improving post-harvest handling and processing, developing market-oriented skills, and building institutions that can support producers beyond the project period.

One of the project's major priorities is to help farmers improve the health and productivity of their coffee and macadamia plantations. Training and practical demonstrations will focus on identifying and managing pests and diseases, maintaining healthy trees, improving shade management, and applying appropriate cultivation practices.

The project will also promote the preparation and use of plant-based solid and liquid compost to improve soil health and support plant growth. Farmers will learn practical methods of preparing and applying these organic inputs using locally available materials. Through field demonstrations and farmer-to-farmer learning, the initiative aims to make sustainable soil management more accessible, affordable, and practical.

These activities will be complemented by opportunities for farmers to observe successful practices, exchange experiences, and apply new knowledge in their own fields. The emphasis is on practical solutions that farmers can continue using independently after the project concludes.