This document discusses a framework for mountain product value chains in a globalized market. [1] It notes the challenges and opportunities that socioeconomic and environmental changes present for mountain communities. [2] Mountain products provide important linkages between highland and lowland, rural and urban areas. [3] The value chain approach can help generate economic opportunities for mountain livelihoods by leveraging the comparative advantages of mountains, such as resource diversity and traditional knowledge.

1. A Specific Value Chain
Framework for Mountain
Products in a Globalised
Market
Michael Kollmair and Brigitte Hoermann
International Centre for Integrated Mountain Development
Kathmandu, Nepal

2. Introduction
• Socioeconomic and environmental change as
challenge and opportunity for mountain people
• Mountain products an important highland-lowland
and rural-urban linkage
• VC approach as an international development tool
(wall-to-wall solution)
• Adaptation of a global concept to the mountain
specifities
• Generating economic opportunities for rural
livelihoods by using the comparative advantages of
mountains

3. Key Features of Mountain
Value Chains
• Long value chains (often transboundary)
• Many traders, middlemen
• High diversity, but small quantities of products
• Mainly raw material supply
• Inadequate infrastructure and policies

4. Value Chains

5. Mountains Specifities
Accessibility, Fragility, Marginality, Diversity
Mountain Specifities
Mountain Specifities
Generic Value Chain Approach
Unique niche products and services

6. Selection of Products and
Services
Uniqueness Niche Markets
Mountain Specific Challenges

7. High Value Products and
Services
Comparative Advantages:
• Highly diverse resource base in the mountains
• Traditional knowledge is available
• Less competition with plain areas
• High demand for products and services in emerging
markets

8. Strategies to Address
Mountain Specifities

9. ICIMOD’s Regional VC pilots
• Close to 20 pilots and partners
• Almost all HKH covered
• From agriculture, NTFP to service sector
• Focus cross-border VCs and comparison same product but from different RMC

10. Case Study: Bay Leaf
Cinnamomum tamala
Bay leaf – Indian Laurel – Tej Pat • An indigenous medium
size tree growing
between 500 and 2500m
• Dried leaves used widely
as a spice in South Asia
• Oil extract commonly
used in traditional
medicines
• Among the top 10
species traded between
Himalayas and lowland

11. 45 NRs/kg
17 NRs/kg
8 NRs/kg

12. Impact Pathways
Bay Leaf – Nepal
ICIMOD Output Outcome Impact
• Pro-poor mountain • Producer groups • Income from bay
specific value chain formed leaf increased by
methodology piloted • Contract between over 250%
• Leverage point producer groups • Improved
‘upstream and traders bargaining power of
contracts’ • Product quality of poor producers
identified product improved
• Producers and
traders informed
on value chain
(transparency)

13. Increasing Income of Poor
Producers of Bay Leaves

14. Impact Pathways
Bay Leaf – India
ICIMOD Output Outcome Impact
• Pro-poor mountain • Pilot model for • Improved
specific value chain NTFP policy marketing and
methodology piloted readjustment payment system
• Leverage point • Co-management benefit the poor
‘policy’ identified favoured by NFTP producers
policy makers • Increased and
• Collection permits secured income for
for Bay Leaves collectors
issued • Sustainable
• Rotational mandis harvesting from wild
(markets) • Government
established investment in up-
scaling to other
NTFPs

15. Mountain Specific Value Chain
Approach
The Mountain Specific Value Chain Approach could
be used as a central tool to identify strategies for
income generation and poverty reduction.
• Focussing on strengthening rural-urban and highland-
lowland linkages.
• Analysis leads to identification of suitable products
and leverage points for pro-poor interventions
• Interventions should always aim at improved and
sustainable income for producers, not on highest
market price
• Economies of scope (baskets of products using the
same chain) are preferable

16. Publication
ICIMOD, 2010
Books online

17. Thank you