SWAT Analysis On Organic Farming in Nepal

Today Lets analyze the Nepalese organic sector using SWOT-analysis: Strengths, Weakness, Opportunities and Threats. It provides the sector’s strengths and successes, but also lists limiting factors.

Strengths

Organic production is feasible virtually throughout the country, without major adjustments to traditional production methods. Organic seed production, vegetable production, fruits production etc could be made easy under such a diverse topography, soil and climatic situations. Thanks to physical conditions that made this possibility easy. Direct market linkage with India could be other strength. Organic production has been started by the farmers themselves without government intervention. Commercial production under such private initiation could be not very difficult as these initiators have awareness and knowledge of organic farming. Market development, gradually increasing consumers’ awareness about health and quality along with preference towards quality food products could provide better return to the producers. Emphasis given to the organic farming and certification in National Agriculture Policy 2061 is good strength of this sector.

Weaknesses

There exist some weaknesses limiting farmers’ ability to take full benefit out of the above-mentioned strengths. Farmers’ ability to invest is far below and there is virtually no support from the government in this arena. There is also dearth of technology in organic sector and many producers complain about the limited availability of bio-pesticides. The Journal of Agriculture and Environment Vol:10, Jun.2009 Technical Paper 9 The organic sector is in embryonic stage while extension services are relatively hibernated resulting in lower than expected yields, especially during the initial years of production. Many producers start producing organically on a ‘trial and error’ basis, and adjust their farming methods every season until they reach an acceptable and stable level of output. Unfortunately no government support exists during the period of conversion, a practice that is common in, for example, many European countries in order to provide incentives to farmers to convert and keep them going ahead. Although number of organic consumers is increasing gradually these days, the number is still limited to justify commercial production with certification. When deciding on whether to go for organic production and conversion thereafter, one should have a close scrutiny of different production and management methods needed in order to succeed. The generally needed conversion period of three year makes long-term planning indispensable. For such planning, a careful cost-benefits analysis should be carried out. However, none of the farmers have been found doing this. Mostly farmers do have small area under cultivation and it is uneconomical for small farmers to practice commercialization of the production. Furthermore, organic certification, which has yet to be practiced in Nepal, is too costly for small farmers to pay for it.

Opportunities

There exists good opportunity for organic farming in the urban and peri-urban areas of the country as most of the affluent consumers have been agglomerated around cities and cities are the popular destinations for the tourists. Some specialized markets have started selling organic products and some are willing to start selling organic products. There is immense scope for the organic products to be delivered to India and other countries provided quality standards have been maintained. Growing awareness among the educated circle and increasing purchasing power could provide the ramification towards organic farming development. Organic farming requires more labour input than traditional and modern farming methods. Thus, Nepal which has a very large amount of labour unemployment and under employment will find organic farming an attraction. Moreover, the problem of periodical unemployment will also get mitigated because of the diversification of the crops with their different planting and harvesting schedules resulting in the requirement of a relatively high labour input. Ecotourism is increasingly becoming popular and organic farms could turn into favourite spots. Protection of the ecosystem, flora, fauna and increased biodiversity and the resulting benefits to all human and living things are great advantages of organic farming which are yet to be properly accounted for.

Threats

One obvious threat factor is competition from other countries with similar advantages especially India. As Indian government provides subsidy to the farmers and they could produce same quality product in less cost and it is likely that such products could intrude Nepalese market. Nepalese political situation is also one of the major threats in putting debar to the organic movement. Relentless government, lack of policies, weak governance system etc are exacerbating problem. No guarantee on the price of organic products is another threat to the organic growers. Until and unless farmers are assured with the handsome price of the organic products, farmers will not be motivated anymore and asking them to go through organic production remains another threat. The Journal of Agriculture and Environment Vol:10, Jun.2009 Technical Paper 10

CONCLUSION

The interest in organic agriculture in developing countries is growing because it places more reliance on the natural and human resources available. Possibly, the greatest impact of organic agriculture is on the mindset of people. It uses traditional and indigenous farming knowledge, while introducing selected modern technologies to manage and enhance diversity, to incorporate biological principles and resources into farming systems, and to ecologically intensify agricultural production. By adopting organic agriculture, farmers are challenged to take on new knowledge and perspectives, and to innovate. This leads to an increased engagement in farming which can trigger greater opportunities for rural employment and economic upliftment. Thus through greater emphasis on use of local resources and self-reliance, conversion to organic agriculture definitely contributes to the empowerment of farmers and local communities. Nepalese organic sector has been growing but in a sluggish manner. Private initiation and motivation by some of the NGOs are the key impetus in bringing organic sector in the mainstream agriculture development in Nepal. There is virtual lack of government support to the organic growers and marketers. It is found that before beginning cultivation of organic crops, their marketability and that too at a premium over the traditional and modern produce has to be assured. Inability to obtain a premium price, at least during the period required to achieve the productivity levels of the conventional crop will be a setback. High prices of these products remain a major deterrent for consumers. The constraints could be seen in three actors of organic production viz., at growers’ level, marketers’ level and government’s level. Lack of awareness, lack of skills in managing complex problem in the farm land, lack of sufficient organic technology to support production, no certification and labeling, poor investment capacity, small holding, less risk bearing capacity etc are the key constraints at the growers’ level. Lack of consumers’ awareness about the organic products, quality and availability, lack of trust about the authenticity of the products, higher price of the products, lack of market infrastructure, no market regulation etc are the constraints at marketers’ level. Failure to hammer out proper policy and poor implementation mechanism, political intervention, no subsidy to the farmers, no marketing research and technology generation to support organic sector etc are the constraints at the government’s level. Despite these constraints, Nepal has ample opportunities to promote organic sector owing to its physical and natural endowment, prevailing farming practice, increasing economic profile and human and environmental health awareness and tourist destination. Although this research could open avenue for policy makers to consider key aspects in hammering policy and also for researchers to initiate further studies, there is also need to conduct research in the marketing segment as well to capture diversified consumers and benefit growers and marketers wherefrom.