Promoting Agribusiness Entrepreneurship in Nepal: NACCFL’s Vision for Inclusive Growth
There is a rapid growth in agribusiness and commercial agriculture. The productivity of the private sector is improving such as tea, flowers, vegetables, coffee, etc. and the poultry and dairy processing industry are moving very fast. The poultry production has acquired a highly commercial profile and scale, solely through private sector investment. By 2008, there were 1288 companies processing and manufacturing agricultural products, in 2011 there were about 5500 agricultural cooperatives (mostly dairy, tea, coffee, honey and citrus), and over 13000 registered community forestry groups. Production of fruits and vegetables, seeds, coffee, goats, and honey is inclining upwards. Investment in agriculture, agribusiness and rural development by government, development partners, and the private sector has increased since 2000, due to global and domestic factors including a more stable business environment.
The Nepal Agriculture Cooperative Central Federation Ltd. (NACCFL) is driving a significant transformation in Nepal's agricultural sector, fostering commercial agriculture and agribusiness entrepreneurship. With a robust network spanning all 77 districts and supported by over 1,300 member cooperatives reaching more than a million households, NACCFL is making an impact through various agro business entrepreneurship initiatives.
NACCFL primarily focuses on delivering non-financial services and strengthening agricultural value chains. They empower farmers by providing comprehensive training in value addition, branding, marketing, and modern agronomic practices. This is further bolstered by support for agro-processing enterprises and access to ethical market outlets. Through these initiatives, NACCFL is not only boosting agricultural productivity but also enabling rural communities to actively participate in a sustainable and profitable agricultural economy.
While NACCFL doesn't directly offer financial services, it plays a crucial role in facilitating access to finance. They assist cooperatives in securing aid from various national and international agencies and link them with relevant financial institutions for credit.
From Farmers to Agribusiness Entrepreneurs
NACCFL has adopted a holistic approach to transform farmers into business-minded entrepreneurs. The goal is to shift the agricultural landscape from basic crop production to value-added and market-oriented agribusiness. This transformation begins with capacity building. NACCFL provides structured training and mentorship programs focusing on critical skills such as branding, marketing, value addition, and product diversification.
These training modules help farmers understand consumer behavior, product positioning, and effective selling strategies, enabling them to package and market their products competitively. As a result, local producers are better equipped to meet the demands of market.
Beyond direct farmer support, NACCFL actively promotes the establishment of agro-processing units and small and medium scale enterprises by its member cooperatives. It achieves this by lobbying all levels of government (local, provincial, and central) to secure necessary budget allocations for these cooperative-led initiatives. This strategic support not only increases the value of agricultural products but also creates local employment and income opportunities, ultimately strengthening rural economies.
Supporting Branding and Marketing through Specialized Trainings
To build strong entrepreneurial capacity among farmers and cooperative members, NACCFL offers a series of specialized trainings, designed to improve visibility, value, and profitability of their products. Key training initiatives include:
● Digital Marketing for Cooperative-Run Enterprises
This 3-day training covers social media marketing, content creation, search engine optimization (SEO), online branding, and the basics of e-commerce. It is tailored for cooperative entrepreneurs and marketing staff to help them promote their products digitally and reach wider markets.
● IT Training (MS Office, Email & Internet, Basic Graphic Designing, Social Media Handling, Cybersecurity, and Digital Marketing Tips)
Offered to cooperative board members and employees, this course strengthens digital competency and helps in promoting cooperative brands through modern communication channels.
● Accounting & Financial Management Training
Designed for board members and accounting staff, this training ensures that cooperatives maintain transparency and financial health, which is crucial for any growing agribusiness.
By integrating these technical skills with practical business knowledge, NACCFL empowers its members to run their operations more efficiently and competitively.
Creating Market Linkages: The Role of Kisan Ko Poko Cooperative Shop
One of NACCFL’s most impactful initiatives is the Kisan Ko Poko Cooperative Shop, a dedicated retail outlet operated at its central office in Lalitpur. The shop serves as a vital marketplace for products produced by smallholder farmers from various regions. It offers them a direct platform to sell goods without intermediaries, ensuring fair pricing and better income.
At Kisan Ko Poko, the emphasis is on organic, hygienic, and sustainable farming practices. All products are sourced from cooperatives that adhere to chemical-free farming, supporting not only environmental health but also consumer well-being. By promoting such farming methods, NACCFL is creating awareness about the importance of sustainable agriculture and responsible consumption.
In addition to being a sales outlet, the shop is a model for fair trade, linking rural producers with urban consumers. It plays a key role in bridging the gap between demand and supply while also encouraging women empowerment by promoting products made or managed by women-led cooperatives.
Women Empowerment through Agribusiness
In recent agricultural projects of the Asian Development Bank, women farmers’ participation has increased from 40% to 50%
A core principle of NACCFL’s approach to agribusiness development is ensuring the active participation of women. In Nepal, women play a significant role in agriculture but often lack access to land ownership, finance, and decision-making platforms. NACCFL addresses these disparities by supporting women-led cooperatives and offering targeted training, credit facilities, and leadership development programs.
Through group lending models and tailored microfinance solutions, women are able to invest in small enterprises, purchase farming equipment, or participate in value-added processing. These opportunities not only raise household income but also boost women's confidence and leadership in their communities.
Many of the cooperatives associated with the Kisan Ko Poko shop are led or managed by women, showcasing their role as change agents in rural development. As women gain more control over financial decisions and business activities, they contribute directly to building resilient and equitable local economies.
Microfinance as a Catalyst for Agribusiness Growth
Financial access is a major hurdle for smallholder farmers looking to expand or diversify their operations. Traditional banks are often reluctant to lend to rural clients due to lack of collateral or credit history. To address this gap, NACCFL offers a wide range of microfinance services through its affiliated cooperatives.
These services include:
● Microloans for seeds, fertilizers, tools, and equipment
● Emergency credit for weather-related losses or health issues
● Insurance products to protect crops and livestock
The availability of microfinance enables farmers to take calculated risks, invest in productivity, and seize new business opportunities. Coupled with training and market access, it creates a supportive ecosystem for agribusiness entrepreneurship to thrive.
Driving Rural Innovation and Economic Growth
NACCFL’s integrated model of training, microfinance, cooperative development, and market linkage is not just empowering individuals- it is reshaping the rural economy. Farmers are no longer seen as subsistence growers but as innovators and entrepreneurs capable of adding value and contributing to national economic growth.
The focus on agribusiness has also triggered innovation in farming techniques, adoption of smart technologies, and development of cooperative-owned enterprises. These changes are aligned with Nepal’s broader goals of agricultural modernization, poverty reduction, and inclusive development.
Conclusion: A Sustainable Future Rooted in Agribusiness
The journey from traditional farming to agribusiness entrepreneurship is not without challenges, but with the right support system, it is entirely achievable. Through its visionary leadership, NACCFL is building that system, one that combines the strength of cooperatives, the inclusiveness of microfinance, and the empowerment of women and marginalized communities.
Initiatives like the Kisan Ko Poko Cooperative Shop provide real-world platforms where farmers can showcase their products, build their brands, and connect with consumers. Training on marketing, digital tools, and financial management further ensure that farmers are not just producers but capable entrepreneurs driving economic progress.
By promoting agribusiness at the grassroots, NACCFL is laying the foundation for a resilient, equitable, and sustainable agricultural future in Nepal- one where prosperity is shared, and no one is left behind.
Related FAQs
1. What is agribusiness entrepreneurship, and why is it important in Nepal?
Agribusiness entrepreneurship refers to transforming traditional farming into market-oriented, value-added business ventures. In Nepal, it is crucial for increasing rural incomes, creating employment, reducing poverty, and modernizing the agricultural sector.
2. How is NACCFL supporting agribusiness development among smallholder farmers?
NACCFL supports farmers by providing training in branding, marketing, and value addition; facilitating access to microfinance services; promoting agro-processing units; and offering platforms like the Kisan Ko Poko Cooperative Shop to connect producers with consumers.
3. What role do cooperatives play in promoting agribusiness in Nepal?
Cooperatives serve as grassroots institutions that provide financial access, technical training, and market linkages. They enable collective growth and help rural communities, especially women and marginalized groups, engage in sustainable agribusiness activities.
4. How does microfinance contribute to agribusiness entrepreneurship?
Microfinance offers small loans, savings options, and insurance services tailored to rural farmers, allowing them to invest in agribusiness activities, purchase equipment, manage risks, and grow their enterprises sustainably.
5. What is the purpose of the Kisan Ko Poko Cooperative Shop?
The Kisan Ko Poko Shop, operated by NACCFL, serves as a marketplace for organic and hygienic products from smallholder farmers. It provides fair market access, promotes sustainable farming, and strengthens the link between rural producers and urban consumers.
References:
https://www.adb.org/sites/default/files/evaluation-document/35593/files/in206-10_6.pdf