What is it about?
We assessed an impact of bay leaf value chain intervention programme on household welfare in mountain agro-forestry context. We used primary survey data from project and comparison villages and propensity score matching for creating a valid counterfactual. Results indicate that households in the project villages planted 75% more bay leaf trees, produced 170% more bay leaves, and sold more quality products at higher prices than households in comparison villages; per capita household income increased by NPR 5,000–7,300, share of bay leaf income in total household income increased by 8–10%, and level of poverty declined by 6–8%. Households with female respondents benefited more. The increased income was used to purchase consumer goods, but had no impact on school enrollment.
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Why is it important?
Poverty alleviation impacts of bay leaf value chain was considerable. The knowledge and skills development and formation of the farmers’ cooperative were key to the success of the intervention. The poor farmers were able to enhance their communication skills and integrate their subsistence economic activities more actively with the market.
Perspectives
This study contributes to the global literature by bringing robust empirical evidence about the long-term impact of a value chain intervention. The findings have important policy implications for Nepal and other mountainous regions in developing countries where rural people live in isolated marginal areas with limited access to market.
Golam Rasul
International Centre for Integrated Mountain Development
Read the Original
This page is a summary of: Value chain development of bay leaf in Nepal: an impact assessment, Journal of Development Effectiveness, February 2018, Taylor & Francis,
DOI: 10.1080/19439342.2018.1438494.
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