The Small Farmer Cooperative Ltd. of Shree Antu, Ilam has been working to strengthen farmers’ livelihoods through various programs and projects. Among these, the establishment of the Small Farmer Tea Industries stands out as a major initiative aimed at adding value to locally grown tea and ensuring sustainable economic growth for member farmers.
Ranju Parajuli, manager of the Small Farmer Cooperative Ltd., Shree Antu, Ilam, says, “Our cooperative has implemented several development programs, but the Small Farmer Tea Industries is one of our most important initiatives. Through coordination with various donor agencies, our programs have moved forward effectively.”
In 2023, the cooperative received funding support of USD 10,916 from the APFP-FO4A program for its business plan focused on Orthodox tea processing, addressing working capital needs for tea leaf procurement and processing, along with additional funds for personnel requirements.
The Asia-Pacific Farmers’ Program (APFP) – Farmers’ Organizations for Asia (FO4A) is implemented by the Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC), with funding from the European Union (EU) and the International Fund for Agricultural Development (IFAD). The program aims to strengthen the capacities of farmers’ organizations to provide economic services, advocate for enabling policies, and promote sustainable livelihoods for small-scale family farmers across Asia.
The financial support enabled the installation of essential heater and dryer machines for the cooperative’s tea factory as well as capacity-building trainings on Good Manufacturing Practices (GMP), HACCP, and marketing strategies for the cooperative’s staff.
“Producing tea was never a major problem for us. The real challenge began after harvest: selling and distributing it. We relied heavily on the Indian market, and often our tea did not sell on time, or we did not receive a fair price. This created many difficulties for farmers,” says farmer member Dilli Acharya.
Faced with these challenges, farmers began discussing the possibility of processing their own tea. With guidance from Small Farmer Cooperative Ltd., the idea of establishing a farmer-owned factory took shape.
“The cooperative supported us throughout the process of setting up the factory. Because of this support, we were able to establish and operate a small tea factory owned by small farmers themselves. Now, we process our own tea and sell it directly, all the way to Kolkata, India,” he adds.
“The factory was established just as we were starting our operations, but this coincided with the COVID-19 lockdown. For the first one to two years, we could not operate properly. During that time, selling our tea was extremely difficult, and the initial years were very challenging, ”says Hom Nath Acharya, accountant of the Small Farmer Cooperative Ltd.
As markets gradually recovered, the cooperative was able to improve its performance. And with the newly-installed heater and dryer machines, their processing has significantly improved.
“These machines allowed us to work more efficiently. In terms of quantity, we increased our annual production by around 5,000–10,000 kilograms. As a result, our profits increased slightly, but more importantly, it gave us the confidence to move forward and expand our operations,” Acharya added.
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