Transforming Agriculture Marketing in Eastern Bhutan: The Role and Impact of the Eastern Agricultural Marketing Cooperatives (EAMC)
Background
Agriculture is the main source of income for many countries, providing food, raw materials, and livelihoods to billions of people. In Bhutan, agriculture holds a central and unique place in the country’s socio-economic and cultural landscape. However, the traditional farm-to-table supply chain has faced numerous challenges, including inefficiency, information gaps, and unfair pricing mechanisms. In response, the concept of aggregators in agriculture marketing has emerged as a transformation force, reshaping how agriculture products are produced, distributed, and consumed. Aggregators are intermediaries that bridge the gap between farmers and the marketplace. They function as essential connectors, consolidating produce from multiple sources and serving as a link in the value chain. The aggregators play crucial roles in promoting marketing and solving marketing issues enhancing the profitability of every stakeholder involved.
The Eastern Agricultural Marketing Cooperatives (EAMC) is an aggregator cooperative in the Eastern region of Bhutan collectively comprising twenty members from six-eastern dzongkhags namely Mongar, Lhuentse, Trashigang, Trashi Yangtse, Pemagatshel and Samdrup Jongkhar. The cooperative was established in the year 2021 with the initiative of the Regional Agricultural Marketing and Cooperatives Office (RAMCO), Mongar under the support of the Commercial Agriculture and Resilient Livelihood Enhancement Program (CARLEP) by engaging representatives and officials of the six Eastern Dzongkhags. Since their establishment, the cooperatives have been functioning smoothly without hindrances demonstrating immense capacity and potentiality.
Organogram of the Cooperatives. The cooperatives have the Thrizin (chairperson) as the head, Dungchen (secretary), and Tsizin (treasurer) as the office bearers. The cooperatives also have a committee of eight members responsible for making crucial decisions.
Working Proficiency of the Cooperative
The EAMC is mainly involved in the domestic marketing of locally produced agricultural products. Their main mandate is to intervene in the marketing of agricultural produce, solving marketing issues and creating marketing opportunities for the local producers. The main objective of the cooperative is to enhance the export of agricultural products overseas and reduce imports. Consequently, EAMC members are restricted in importing agricultural products from overseas. The EAMC has large network for availability and marketability, linking withs and other projects for marketing agricultural commodities. EAMC members are connected with the local producers for the supply and purchase of agricultural products and can market any agricultural products without restriction. They provide sales data regularly to RAMCO- Mongar and possess a cooperative certificate award by DAMC in collaboration with RAMCO.
CARLEP Intervention
The RAMCO officially established the EAMC under the budget support of the CARLEP. CARLEP has played a crucial role by providing budget support for the EAMC’s establishment and development. CARLEP provided value-addition equipment (VAE) like display coolers for the storage of fresh products, weighing balance, packaging materials, and other marketing facilities to EAMC. additionally, several EAMC members received market-shed facility for selling agricultural produce. Through, B2B Linkage Meetings, the EAMC is linked with many local producers under the Gewogs of the Eastern Region, include Dametse, Balam, and Narang Gewogs under Mongar Dzongkhag, and Kanglung, Lumang, Shongphu, and Bidung Gewogs under Trashigang Dzongkhag.
Beneficiaries Target.
The EAMC aims to benefit:
1. Entrepreneurs and producers in the Eastern Region by providing a platform for domestic marketing of agriculture products.
2. To producers in the Eastern region as a whole by enhancing marketing strategies and opportunities maximizing revenue generations of all stakeholders.
General Key Achievements and Strengths
Key achievements and strengths of EAMC include:
1. Solving the issue of producers being unable to sell off-seasonal potatoes in FY 2023-2024.
2. Extensive marketing network coverage across all eastern dzongkhags.
3. Strong business linkage with local producers, earning their trust and loyalty.
4. Members are experienced and knowledgeable in marketing agricultural products, and many own vehicles for easier transportation.
5. Established supply links with schools, colleges, and monastic bodies for fruits and vegetables.
6. High sales record of agricultural products, solving marketing issues and promoting agricultural product marketing.
Future Intervention and Plans
The EAMC has great potential for growth and development. Plans include:
- Establishing contract farming with local producers to enhance marketing
- Mandating the establishment of five contract farms in FY 2024-2025
- Organizing a yearly general assembly where members agree to deposit 1% TDS to the cooperative’s savings for development.
- Offering low-interest loans to members after generating adequate
- Carrying out B2B linkage programs with local producers for the supply of agricultural products.
- Establishing export linkages with neighboring countries to boost marketing
- Implementing plans to support producers with technical, input, and financing support through a business alliance agreement.
In conclusion, the EAMC has evolved as a promising venture in promoting and enhancing the marketing of agricultural products in the Eastern region. They have played a critical role in minimizing the import of agricultural products and in maximizing domestic marketing of agricultural products in the Eastern Region. The EAMC has deep insight into the scope for development and growth in the upcoming times. The EAMC has popped up as a promising venture in solving marketing issues of agricultural products in the Eastern Region of the Country.
Tshering Penjore
RAMCO, Mongar