Economics of production and marketing of coffee in Bethanchowk Rural Municipality, Kavre, Nepal
DOI:
https://doi.org/10.26832/24566632.2025.100407Keywords:
B: C ratio, Cobb-Douglas production, Coffee, Gross margin, Marketing channelAbstract
This study was conducted to assess the profitability of coffee production and marketing, find its constraints, and identify major marketing channels of coffee in Bethanchowk rural municipality in Kavre district, Nepal. Random and snowball techniques were used for sampling. For data analysis, MS Excel and IBM SPSS 26 were used. A total of 72 coffee farmers, 2 collectors, 6 pulpers, and 2 processors were surveyed from the study area, along with conducting FGD and KII. Coffee was grown in 0.0514 hectares (1.01 ropani; 1 hectare = 19.66 ropani) of land on average, where the farmers’ overall landholding was 0.7214 hectares (14.18 ropani). The total variable cost per hectare was NPR 235783.8 (US$ 1661.22), and the total fixed cost per hectare was NPR 30038.37 (US$ 212.30). The gross margin per hectare was found to be NPR 332159.5 (US$ 2340.24). B:C ratio was calculated to be 2.14 at a 12% discount rate. The returns to scale of coffee production was 1.563, which showed increasing returns to scale in the study area. The most significant factors that affected coffee farming were the area under coffee cultivation, the number of productive plants, and labor. Farmers faced challenges due to frequent infestation from diseases and pests and having inadequate water supply access in the study area. But if the concerned authorities address those problems, coffee farming can be a great source of income, especially for rural farmers.
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