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completed · Livelihoods

Certified herb extracts from Nepal

With six climate zones, where a range of 7,000 different herbs grow, Nepal is a unique location for the processing of herbs. The basic rationale for this project stems from the increasing demand for herbs and herbal products in international markets (EU in particular).The applicant, Biosynergy A/S (Skaro, Denmark), has been involved in Nepal's herb sector since 2003. Together with Chaudhary Biosys Nepal Pvt. Ltd, they want to develop a new organic herbal supply chain in Nepal, involving 220 outgrowers and collectors of wild herbs. The project will obtain FairTrade certification and introduce FairWild certification in Nepal. In addition the company will become ISO 22000 certified.The joint venture will setup a processing facility in Kailali district (Far Western Region) and organise outgrowers en collectors in the surrounding districts. Processing fresh herbs into (semi)finished goods for export, will add value in Nepal, ensuring a better price for farmers/collectors in some of the poorest communities in Nepal.Corporate Social Responsibility (CSR)The joint venture will be certified under the ISO 22000 standard, all extracts will be certified organic and FairTrade/FairWild. In addition, the joint venture will extent the CSR activities of CBN in the local communities where they source the raw materials.Salaries will be at least 10% above minimum wage and 10% of the company's profit will be deposited for the benefit of the employees.Impact• Employment and working conditionsThe project will create 37 direct jobs (fourteen basic-level, 23 medium-/high-level), increased to 59 (21 basic, 38 medium/ high) after follow-up investments. Salaries will be at least 10% above minimum wage. Working conditions will be up ISO 22000 standards.• Innovation / Transfer of knowledgeThis project will transfer knowledge in these areas of expertise: herbal extraction, supply chain management, marketing in EU market. More importantly, 220 farmers and collectors will be trained in sustainable growing and harvesting of natural resources, while informing them on what is a fair price for their goods.• Chain effectsThis project can be a catalyst in involving other (private sector) players to become active in an important niche of Nepal: herbs. With the ISO 22000 certification and FairTrade/FairWild practices, this project can be an inspiring example.• EnvironmentThe impact on the environment will be positive, as the project promotes sustainable harvesting to prevent degradation of natural resources (organic and FairTrade/FairWild certifications).• Position of womenAt least 6 women will be employed in medium-/high-level positions. Cultivation and collection of herbs is traditionally being done by women. This project and the FairTrade/FairWild certification will be beneficial for their empowerment.

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USD 790K budget ·USD 642K disbursed ·Netherlands Enterprise Agency implementer ·Kailali, Sudurpashchim location ·Jul 1, 2011 – Mar 19, 2019 timeline

Overview

About this project

With six climate zones, where a range of 7,000 different herbs grow, Nepal is a unique location for the processing of herbs. The basic rationale for this project stems from the increasing demand for herbs and herbal products in international markets (EU in particular).The applicant, Biosynergy A/S (Skaro, Denmark), has been involved in Nepal's herb sector since 2003. Together with Chaudhary Biosys Nepal Pvt. Ltd, they want to develop a new organic herbal supply chain in Nepal, involving 220 outgrowers and collectors of wild herbs. The project will obtain FairTrade certification and introduce FairWild certification in Nepal. In addition the company will become ISO 22000 certified.The joint venture will setup a processing facility in Kailali district (Far Western Region) and organise outgrowers en collectors in the surrounding districts. Processing fresh herbs into (semi)finished goods for export, will add value in Nepal, ensuring a better price for farmers/collectors in some of the poorest communities in Nepal.Corporate Social Responsibility (CSR)The joint venture will be certified under the ISO 22000 standard, all extracts will be certified organic and FairTrade/FairWild. In addition, the joint venture will extent the CSR activities of CBN in the local communities where they source the raw materials.Salaries will be at least 10% above minimum wage and 10% of the company's profit will be deposited for the benefit of the employees.Impact• Employment and working conditionsThe project will create 37 direct jobs (fourteen basic-level, 23 medium-/high-level), increased to 59 (21 basic, 38 medium/ high) after follow-up investments. Salaries will be at least 10% above minimum wage. Working conditions will be up ISO 22000 standards.• Innovation / Transfer of knowledgeThis project will transfer knowledge in these areas of expertise: herbal extraction, supply chain management, marketing in EU market. More importantly, 220 farmers and collectors will be trained in sustainable growing and harvesting of natural resources, while informing them on what is a fair price for their goods.• Chain effectsThis project can be a catalyst in involving other (private sector) players to become active in an important niche of Nepal: herbs. With the ISO 22000 certification and FairTrade/FairWild practices, this project can be an inspiring example.• EnvironmentThe impact on the environment will be positive, as the project promotes sustainable harvesting to prevent degradation of natural resources (organic and FairTrade/FairWild certifications).• Position of womenAt least 6 women will be employed in medium-/high-level positions. Cultivation and collection of herbs is traditionally being done by women. This project and the FairTrade/FairWild certification will be beneficial for their empowerment.

Progress

81%
  • Plan
  • Implementation
  • Outcomes

Alignment

SDG focus

No SDGs tagged.