𝐀𝐠𝐠𝐫𝐞𝐠𝐚𝐭𝐨𝐫 𝐍𝐞𝐭𝐰𝐨𝐫𝐤𝐬 𝐄𝐱𝐩𝐚𝐧𝐝 𝐭𝐨 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧 𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭𝐢𝐧𝐠 𝐚𝐧𝐝 𝐄𝐦𝐩𝐨𝐰𝐞𝐫 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫𝐬

…𝒕𝒉𝒆 𝒅𝒆𝒑𝒂𝒓𝒕𝒎𝒆𝒏𝒕 𝒐𝒇 𝒂𝒈𝒓𝒊𝒄𝒖𝒍𝒕𝒖𝒓𝒂𝒍 𝒎𝒂𝒓𝒌𝒆𝒕𝒊𝒏𝒈 𝒂𝒏𝒅 𝒄𝒐𝒐𝒑𝒆𝒓𝒂𝒕𝒊𝒗𝒆𝒔 𝒍𝒂𝒖𝒏𝒄𝒉𝒆𝒔 𝒕𝒓𝒂𝒊𝒏𝒆𝒅 𝒗𝒊𝒍𝒍𝒂𝒈𝒆-𝒍𝒆𝒗𝒆𝒍 𝒂𝒈𝒈𝒓𝒆𝒈𝒂𝒕𝒐𝒓𝒔 𝒕𝒐 𝒍𝒊𝒏𝒌 𝒇𝒂𝒓𝒎𝒆𝒓𝒔 𝒘𝒊𝒕𝒉 𝒎𝒂𝒓𝒌𝒆𝒕𝒔, 𝒊𝒎𝒑𝒓𝒐𝒗𝒆 𝒆𝒇𝒇𝒊𝒄𝒊𝒆𝒏𝒄𝒚, 𝒂𝒏𝒅 𝒃𝒐𝒐𝒔𝒕 𝒓𝒖𝒓𝒂𝒍 𝒆𝒏𝒕𝒓𝒆𝒑𝒓𝒆𝒏𝒆𝒖𝒓𝒔𝒉𝒊𝒑 𝒂𝒄𝒓𝒐𝒔𝒔 𝒅𝒛𝒐𝒏𝒈𝒌𝒉𝒂𝒈𝒔

By Leki Chungdon

The Department of Agricultural Marketing and Cooperatives (DAMC) has introduced Aggregator Networks (AGNs) as a process innovation to transform agricultural marketing in the country. The initiative, already functioning in Chhukha, Samtse, and Pema Gatshel Dzongkhags, seeks to formalize the role of existing middlemen and transporters who ferry farm produce from villages to markets. Under the model, each gewog is expected to have at least one or two trained aggregators.

With support from the Department of Employment and Entrepreneurship, the selected aggregators will undergo a 15-day training program focused on entrepreneurship and agricultural supply chain management. As a preparatory step, existing entrepreneurship trainers were given specialized training in agricultural supply chain management. These trainers, drawn from diverse professional backgrounds and organizations, including freelancers, will be key in delivering the program across the country’s 17 remaining Dzongkhags.

DAMC officials say the approach aims not only to streamline marketing channels but also to empower local entrepreneurs, improve efficiency in the movement of agricultural goods, and ensure better returns for farmers. Tsirang Dzongkhag, recognized as a leading producer with 17 major agricultural and livestock commodities, has been identified as a priority for expanding the initiative. The Ministry of Agriculture and Livestock, the Department of Employment and Entrepreneurship, and the Tsirang Dzongkhag Administration are calling on all Dzongkhags and stakeholders to extend their support to make this process innovation a nationwide success.

Sangay Thinley, Chief Executive District Marketing Officer (EDMO) at DAMC, said that a new model of agricultural marketing known as the Aggregator Network is emerging as one of Bhutan’s key innovations in linking farmers directly with markets. First introduced in 2023 in Chhukha Dzongkhag under his leadership as the EDMO, the concept has since expanded under national coordination by DAMC.

Thinley added, “The network was created to address one of the most persistent challenges facing Bhutanese farmers: market access. Although production had improved, the absence of formal marketing mechanisms at the gewog and chiwog levels forced farmers to rely on informal brokers and middlemen. The AGN model introduces a structured system where trained village-level entrepreneurs, known as aggregators, collect and market produce on behalf of farmers. The first pilot, AGN Chhukha, was launched on 11 June 2023 and brought together progressive farmers, local entrepreneurs, and officials to create direct links between rural producers and urban markets. Weekly ‘Innovation Markets’ were introduced at GCBS and the Chhukha Colony, giving farmers regular access to buyers. The system formalized local trade, improved transparency, and reduced post-harvest losses. Following its success, the model was replicated in other Dzongkhags. AGN Samtse, established in April 2024, quickly demonstrated tangible results, supplying over Nu. 4.1 million worth of vegetables and fruits to the Gyalsung Academy in Jamtsholing during the last financial year. It has since registered as a cooperative and forged consistent linkages with both institutional and retail buyers. The Aggregator Network is now recognized as one of the flagship agricultural marketing process innovations under Bhutan’s 13th Five-Year Plan.”

Under the AGN model, each Dzongkhag identifies one or two suitable individuals from every village or cluster of villages to serve as aggregators. These individuals are typically educated farmers, progressive growers, or local entrepreneurs with both financial capacity and an understanding of market dynamics. They undergo 15 days of training in entrepreneurship, agricultural supply chain management, and market coordination. Once trained, they serve as the focal point for all marketing activities in their gewogs, collecting produce, coordinating logistics, and selling to wholesalers, retailers, and institutional buyers such as schools and hotels. Aggregators also collaborate closely with Dzongkhag EDMOs and RNR staff to ensure that market information, price updates, and communication between farmers and buyers remain consistent. Importantly, they are positioned not as profit-driven middlemen, but as community-based entrepreneurs tasked with improving efficiency, transparency, and inclusiveness in local market chains.

DAMC has developed a national roadmap to expand the Aggregator Network to all 20 Dzongkhags. The strategy includes specialized entrepreneurship and marketing training, networking sessions, and the signing of buyer–seller agreements with enterprises. Exposure visits are also being introduced to give aggregators first-hand knowledge of regional and international markets. These efforts are already yielding results, with coordinated linkages facilitating exports of oranges to Singapore and cardamom to the Middle East. Expansion is being carried out in close collaboration with Dzongkhag administrations and EDMOs, with early focus on GMC Dzongkhags such as Tsirang, Dagana, and Zhemgang, which will receive targeted entrepreneurship and supply chain training before the nationwide rollout.

The Aggregator Network aligns closely with the government’s broader agenda of market-led agricultural growth, entrepreneurship promotion, and rural income generation. It also supports the Ministry of Agriculture and Livestock’s priorities of advancing agricultural commercialization and reducing reliance on imports. By formalizing the role of local marketing agents, the AGN model is standardizing practices in produce collection, transportation, quality control, and record-keeping. Aggregators are also being trained to maintain marketing data, track crop information, and coordinate with outlets in Thimphu, Phuentsholing, and regional hubs. Over time, the system is expected to strengthen national food supply management, stabilize prices, and improve coordination between producers and consumers.

The AGN model is designed to raise farmer incomes, foster rural entrepreneurship, and create youth employment in agriculture-related services. Early assessments show that it has reduced marketing inefficiencies, boosted farmer confidence, and encouraged cooperative formation at the grassroots level. It has also improved collaboration between local governments and national agencies, ensuring that marketing support is better aligned with production planning and extension services. Farmers increasingly view aggregation not as a loss of independence but as a professional service that secures reliable markets and timely payments.

“The Aggregator Network is a transformative initiative within Bhutan’s agricultural marketing system,” said Thinley. “From its humble beginnings in Chhukha, the model has shown how local entrepreneurship can drive national food system reform. Going forward, the department will strengthen coordination between Dzongkhags, institutionalize training programs, and digitalize market operations. The AGN stands as proof that process innovation, when rooted in community participation and practical field experience, can bring lasting change to Bhutan’s agricultural marketing ecosystem.”

Nir Kumar Gurung, Chairman of the Samtse Aggregator Network, said, “The local government has supported us by constructing a road that has greatly improved connectivity, making it much easier to transport agricultural goods from farmers to markets. Compared to earlier, this has made a significant difference in the supply chain. From the agriculture sector, aggregators receive coordination support even though direct financial assistance is not available. This includes organizing meetings, assisting farmers in improving production, and facilitating links between farmers and markets.
He also said, “As farmers increase production, aggregators are better positioned to expand marketing opportunities.

So far, we have only been able to supply produce to Gyalsung, Tashicholing School, and Dorokha School due to limited stock. However, our pricing system is transparent, and having trained aggregators allows us to operate more efficiently as a group. Going forward, we hope to involve educated youth, as one of our main challenges is limited production and supply. By 2026, the Samtse Aggregator Network plans to supply organic, high-quality vegetables to all schools in Samtse Dzongkhag. For this, we have already submitted a proposal to the Phuentsholing Dzongkhag Administration.”

Phuntsho T. Namgay, Chairman of the Pemagatshel Aggregator Network, said, “Until now, we have largely depended on importing vegetables and fruits from India, but the prices of these imports are far lower than Bhutanese produce, making it difficult for local farmers to compete. From my experience as an aggregator, I believe the government should restrict such imports, because if we continue relying on them, this dependency will persist for generations. To address this, the government should provide aggregators with facilities such as storage space and preservation machines, along with subsidies, so that local produce can be sold more effectively within Bhutan. There is still much the government can do to build the capacity of aggregators. In Pemagatshel, we have not received any support from the gewog level, although the Dzongkhag Administration organizes monthly Zoom meetings with the Aggregator Networks.

“If gewog administrations supported us, we could create greater awareness in every chiwog about the importance of consuming local produce. In eastern dzongkhags like Pemagatshel, it is particularly difficult to encourage young entrepreneurs to take up the role of aggregators because of the small population. Fewer consumers mean limited production and supply. Looking ahead, we hope to supply produce to the Gelephu Mindfulness City, and we are working hard toward that goal. Aggregator Networks have the potential to transform agricultural marketing in the nation by identifying areas where produce remains unsold. With trained aggregators in place, challenges such as transportation and price negotiations can be reduced, as aggregators can support farmers in marketing their produce and help consumers with fair pricing. I also hope that aggregators will be given the opportunity to supply vegetables and fruits to boarding schools and hospitals. At present, farmers’ groups handle the supply, but I have observed little improvement or success from this arrangement. To truly enhance production and supply, agriculture must be directly linked with aggregators,” he added.

Tshering Dorji, Chairman of the Chhukha Aggregator Network, said, “If local governments could nominate the best aggregator from areas with strong vegetable supply, it would greatly benefit the gewogs. At present, many farmers do not understand the concept of Aggregator Networks, so I believe it is important to educate them through awareness meetings. Each year, we update market information such as demand and pricing, but since the concept of aggregation is new and has only recently begun, it remains very challenging for us as we still need to build our capacity. The Aggregator Network plays a crucial role in transforming agricultural marketing by linking production with market demand. With aggregators, farmers are better informed about demand and pricing trends. This makes it possible to introduce practices like contract farming. For example, farmers in Bhutan rely heavily on potatoes from India, but if they are educated about alternative crops such as cereals which often have higher demand production could diversify. Knowing demand in advance also helps with pre-ordering and fixing pre-prices, which stabilizes the market.”

“Trained aggregators are key to reducing marketing challenges, including transportation and price negotiations. Currently, only three dzongkhags have active Aggregator Networks, but Chhukha and Samtse already coordinate closely by sharing market values and information. This collaboration allows us to cover supply shortages in one dzongkhag by sourcing from another. If Aggregator Networks existed across all 20 dzongkhags, working under one system, we could collectively meet market demand nationwide,” he ended.