Coffee’ given the high concentration of production by

Coffee’
is the name of a tree, its fruits, seeds (known botanically as the ‘genus
Coffee’) and the raw product produced from them, and is also the name of the
roasted product when the green Coffee beans are processed. “Coffee” is also the
name of the beverage in the cup for consumption.

Coffee
is one of the most popular beverages in the world prepared from the roasted
seeds of an evergreen plant of the genus Coffea. The two most important species
of coffee are Coffea arabica (Arabica coffee) – which accounts for over 60
percent of world production – and Coffea canephora (Robusta coffee). Coffee
plants are cultivated in more than 70 countries, mainly in equatorial Latin
America, Southeast Asia, and Africa. Brewed Coffee has stimulating effect on
humans because of its caffeine content. It not only gives us pleasure but also
has powerful antioxidant properties, neutralizing free radicals and thus
protecting the body’s cells from damage caused by stress. Coffee is one of the
highly traded commodities in the world. In Nepal, coffee was introduced in late
thirties in Aapchaur of Gulmi. The self-pollinating Coffee Arabica is a highly
acclaimed species of the coffee and entire coffee of Nepal belongs to this
species. The agroclimate of mid-hills is highly suitable for the farming of
this high-value plant thereby contributing for livelihood, income generation
and economic growth. It creates employment not only in the farms but also in
pulping centers, coffee industries and café houses

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Although
coffee was known to the Yemenis and Ethiopian Natives of the Eastern Africa
almost1,000 years ago, it began its world wide spread only in the 16 century
A.D. Today, there is hardly any place in the world where coffee is not
consumed. During the course, it has spawned a comprehensive agro-industrial
activity known as the coffee industry 
that includes cultivation of the coffee crop, curing and processing of
coffee beans, manufacture, marketing and exports of coffee verities as well as
research and development work in all its aspects.  

Coffee
is one of the most important traded commodities in the world. The sector’s
trade structure and performance have large development and poverty
implications, given the high concentration of production by smallholders in
poor developing countries. Coffee’s global value chains are quickly
transforming because of shifts in demands and an increasing emphasis on product
differentiation in importing countries (Ponte 2002; Daviron and Ponte 2005).
There is a growing willingness-to-pay for premium, high quality coffee by rich
consumers and the demand for specialty and certified coffee is on the rise.1
Moreover, international coffee markets have experienced significant price
variation over the last decade – prices were five times higher in 2011 than in
2002.

These
changes have important implications for a number of the poorest developing
countries, as most coffee production takes place in these countries, even
though most coffee consumption is in developed countries (Pendergrast, 2010;
Ponte, 2002). While there are a number of studies that have looked at price
formation for different types of coffee at the retail consumption level in
importing countries (e.g. Teuber and Herrmann, 2012), important questions
remain on who benefits from this increasing willingness-to-pay for coffee and
on how changes in global coffee markets are transmitted to producing countries.
Moreover, few researchers have looked at how domestic policy change is
affecting the performance of the coffee sector in these exporting countries

Coffee in Nepal

Coffee
plantation is still a new adventure in Nepal. In 1938 AD, a hermit Mr Hira Giri
had brought some seeds of Coffee from Sindu Province of Myanmar (the then
Burma) and had planted in Aapchaur of Gulmi District for the first time in
Nepal. The crop remained unnoticed as a curiosity crop until 1970s. Then it
spread from one farmer to another as a curiosity plant for about 4 decades.

 In
late seventies, expansion of Coffee as commercial crop to some extent took
place when Government of Nepal imported Coffee seed from India for
distribution. The major shift to commercial Coffee production took place in
mid-eighties. After the establishment of Nepal Coffee Company (NeCCo) in
Manigram, Rupandehi district, in 1983/84, the Coffee producers were able to
sell Coffee. NeCCo used to collect dry cherry from the Coffee producers and
processed the Coffee for domestic market. Until early 2000, Coffee producers
were not very sure of Coffee being a source of income or income generating crop
due to the market problem. However, after the year 2002, substantial increase
in the export and also increase in domestic market consumption to some extent
motivated Coffee producers to consider Coffee as a major income generating
crop.

Respecting
the interest of people on Coffee and favorable climatic conditions for its
cultivation. Ministry of Agriculture decided to launch Coffee Development
Programme in the country. The Government provided technical and financial
support to the farmers; its cultivation has gradually spread to about 40
districts of the middle hills of Nepal. Lalitpur, Gulmi, Palpa, Shyangja,
Kaski, Sidhupalchowk, Kavre, are some districts known for Coffee production.

Agriculture is the
backbone of the national economy. About 57 percent of the population is
involved in farming which contributes around 38 percent to the GDP. Nepal’s
agriculture has taken a step forward by going commercial recently.  Among the cash corps cultivated in Nepal,
coffee is a high value cash crop commercially grown in many parts of the
country with environmental importance