Bhutan’s Mountain Hazelnuts, its first FDI in agriculture, solidifies its position as a sustainability-focused hub, attracting increased global investment. MHVs, a Bhutanese hazelnut company, was granted 100% FDI status in 2009, focusing on production and marketing, thanks to government collaboration. Bhutan’s Agriculture Minister highlights climate-smart agriculture’s potential, attracting FDIs and developing robust investment frameworks. MHVs works with smallholder farmers to transform barren lands into thriving agroforestry landscapes. MHVs, a company founded in 2009, has overcome initial challenges like pollination and community acceptance issues, focusing on grafting techniques, improved farmer education, and market access. The initiative offers a guaranteed fixed-price purchase structure for nuts, ensuring stable income for growers, and supports climate adaptation grafting, factory upgrades, and international certifications.
According to Franck Viault, Minister Counselor at the EU Delegation to Bhutan and India, the EU’s initial support for mountain hazelnuts was motivated by the high value of hazelnuts, the government’s emphasis on agrifood security and export enhancement, and the EU’s commitment to involving Bhutanese farmers in the revival of fallow lands. The partnership would help European investment forums draw more foreign direct investments to Bhutan and expand Bhutan’s export markets among European countries. The number of hazelnut farmers in Bhutan has increased from 2,376 in 2022 to 2,471 in 2023, according to the country’s Integrated Agriculture and Livestock Census. 14.07 metric tons of hazelnuts were produced by 444,555 hazel nut trees in 2024; 3.62 metric tonnes were sold to Australia last year, bringing in Nu 0.77m.
