𝐒𝐦𝐚𝐥𝐥 𝐆𝐫𝐚𝐧𝐭 𝐒𝐩𝐮𝐫𝐬 𝐘𝐨𝐮𝐭𝐡-𝐋𝐞𝐝 𝐂𝐨𝐟𝐟𝐞𝐞 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞 𝐀𝐧𝐝 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐆𝐫𝐨𝐰𝐭𝐡

…𝑮𝑬𝑭 𝒔𝒖𝒑𝒑𝒐𝒓𝒕 𝒆𝒏𝒂𝒃𝒍𝒆𝒔 𝒄𝒐𝒐𝒑𝒆𝒓𝒂𝒕𝒊𝒗𝒆 𝒕𝒐 𝒔𝒖𝒑𝒑𝒍𝒚 𝒔𝒆𝒆𝒅𝒍𝒊𝒏𝒈𝒔 𝒄𝒓𝒆𝒂𝒕𝒆 𝒊𝒏𝒄𝒐𝒎𝒆 𝒂𝒏𝒅 𝒕𝒓𝒂𝒊𝒏 𝒍𝒐𝒄𝒂𝒍 𝒇𝒂𝒓𝒎𝒆𝒓𝒔

By Tashi Tshewang

A US$37,000 grant under the Global Environment Facility (GEF)–Small Grants Programme, implemented by the United Nations Development Programme (UNDP) in partnership with the Royal Government of Bhutan, has enabled the Panbang Youth Cooperative (PYC) to play a central role in expanding coffee cultivation in Zhemgang Dzongkhag. In less than two years, the grant has supported the production of over 180,000 coffee saplings, generated nearly US$92,000 in income, and supplied more than half of the district’s coffee seedling demand, highlighting the strong impact of targeted support to community-based enterprises.

The initiative has strengthened Zhemgang’s Coffee Intensification Programme, which aims to expand coffee farming to nearly 1,500 acres by 2030, by ensuring a reliable local supply of Arabica and Robusta seedlings. Through the collective efforts of its members, PYC has supported farmers across all six gewogs, enabling many to adopt coffee as a new and sustainable source of income.

Beyond production and revenue figures, the grant has contributed to job creation, youth engagement, and stronger rural livelihoods, demonstrating how small, well-directed grants can empower cooperatives like PYC to drive district-wide economic change, rather than relying on individual effort.

Leki Chedup, Chairperson of Panbang Youth Cooperative, said, “The GEF–Small Grants Programme support came at a very critical time for us. It allowed the cooperative to immediately invest in essential nursery infrastructure such as quality coffee seeds, potting materials, shade systems, and basic irrigation. More importantly, the grant helped us organize proper technical guidance from the Agriculture Sector and coordinate labour among our youth members, enabling us to move confidently into large-scale sapling production.”

“With clear planning, collective ownership, and disciplined implementation, the cooperative was able to significantly shorten its learning curve and transition quickly from initial setup to active production. The support also enhanced the cooperative’s credibility, strengthening coordination with local stakeholders and motivating youth members to work with greater commitment and accountability. As a result, the project has generated meaningful local employment, engaging young people in nursery management, seedling care, record keeping, and field operations. These activities have contributed to more stable and predictable household incomes. At the same time, members have developed practical skills in coffee nursery techniques, sustainable agricultural practices, teamwork, and basic enterprise management skills that are transferable to other cooperative and livelihood initiatives, reinforcing long-term resilience among youth in the community.”

He added, “Our long-term vision is to make coffee a self-sustaining flagship enterprise of the cooperative. Even after the grant period ends, we plan to reinvest income from sapling sales and coffee production to expand nursery capacity, improve quality standards, and gradually establish our own plantations. By strengthening linkages with farmers and buyers and exploring value addition in the future, we hope to build a youth-led coffee value chain that supports local livelihoods, environmental conservation, and Bhutan’s goal of inclusive and self-reliant development.”

Sangay Dorji, Tshogpa of Panbang, said, “The coffee sapling initiative supported by the Small Grants Programme has benefited almost 100 households in my chiwog. At first, when we supplied the coffee saplings, villagers were not aware of how to plant them, and I noticed very little interest from the public.”

Through coordinated efforts by the cooperative and local officials, awareness campaigns and guidance on coffee cultivation were conducted in the chiwog. These activities helped villagers understand the process, benefits, and economic potential of coffee farming. Over time, participation grew steadily, and today nearly 100 percent of households in the chiwog are actively engaged in planting coffee trees. This shows how awareness and advocacy, combined with hands-on support, can transform community engagement and drive successful adoption of new agricultural practices.

He added, “Our role in this initiative has been twofold: first, monitoring the progress of coffee cultivation, and second, providing awareness and advocacy to encourage villagers to actively participate. With these efforts, the community is now fully engaged in coffee plantation.”

Ugyen Wangmo, a coffee cultivator, said, “The availability of locally produced coffee saplings has raised our interest in cultivating coffee, as the saplings are easily accessible and we do not have to bring them from far-off markets and nurseries. At the same time, the coffee business in the market is progressing well, which has made it easier for us to take up coffee farming.”

Farmers in the area see coffee as a more promising alternative to traditional crops due to its growing market demand and better price. Easy access to locally produced saplings has reduced costs and logistical challenges, encouraging more households to shift towards coffee cultivation as a long-term income source.

“Compared to our previous crops, coffee is expected to bring us much better income opportunities because the price of coffee is higher than that of other local crops,” she said, adding that farmers would like continued support in identifying and developing reliable markets to sell their produce.

Sonam Dema, a villager of Zhemgang, said, “Before the cooperative started supplying coffee saplings, it was difficult for us to get quality seedlings on time. Now we can easily access good plants within the district, and coffee has become a reliable source of income for our household. This support has encouraged many farmers like us to take up coffee farming with confidence.”

The US$37,000 grant under the GEF–Small Grants Programme, implemented by UNDP in partnership with the Royal Government of Bhutan, has enabled the Panbang Youth Cooperative to play a pivotal role in expanding coffee cultivation across Zhemgang Dzongkhag. In under two years, the initiative has produced over 180,000 coffee saplings, generated nearly US$92,000 in income, and supplied more than half of the district’s coffee seedling demand. Beyond production and revenue, the project has strengthened youth engagement, created local jobs, and supported district-wide adoption of coffee farming, demonstrating how targeted community-based support can drive sustainable rural livelihoods and economic growth.

She added, “With the cooperative’s help, we are now able to plan our farms better and even think about expanding coffee cultivation in the coming years. It has not only improved our income but also given us hope for a more sustainable future for our families.”