Financial Appraisal Of Coffee Growers And Traders In Kaski, Gandaki Province, Nepal

Coffee was introduced in Nepal in 1938 A.D. After that, it has gained popularity day by day. Coffee is considered a High Value Crops from commercial point of view in Mid Hills of Nepal. The production and cultivation have increased in Nepal over the years but not up to the mark though it is profitable. The research was conducted to know about financial appraisal of coffee growers and traders in Kaski District. 40 farmers, 3 primary processors, 1 secondary processor were interviewed by using semi structured questionnaire. The result concluded that coffee business is sound and profitable in the studied area. It was indicated by Gross Margin which was found Rs 74536.25/ha., BCR was found 1.12, NPV Rs 256961.33/ha & FRR was found 29%. The number of productive plants was the main factor affecting coffee production in the study area. Furthermore, the Return to Scale value was found 0.43. As far as the marketing of the coffee majority of farmers used cooperative marketing Channel. There was value addition of Rs 78.88 from producer (Fresh cherry) to primary processor (Dry parchment), value addition of Rs 275 from primary processor (Dry parchment) to secondary processor (Green Bean), value addition of Rs 226.27 from Green Bean of secondary processor to Roasted Bean/Powder of secondary processor and finally value addition of Rs 84.03 from secondary processor (Roasted Bean/Powder) to consumer. Thus, secondary processor was most important actors of value addition condition among other coffee micro actors. The study also ranked “more income compared to cereal” as the main reason to adapt coffee farming by farmers and “infestation of insects and pests” as the major constraints of coffee farming in studied area. Study suggested that proper expansion of Coffee farming is needed in the district with the collaboration of NTCDB and Local / province government.