Status of Agribusiness Opportunities for Optimizing Vegetable Value Chain Development in Dhankuta, Nepal

Abstract

Agriculture is a vital sector in Nepal, making a significant contribution to employment and food security. Among various agricultural products, vegetable farming plays a vital role in the rural economy, particularly in the Dhankuta Municipality and Chhathar Jorpati Rural Municipality of Koshi Province. However, inefficiencies in the vegetable value chain hinder its full potential, limiting farmers' access to markets, profitability, and sustainability. Addressing these inefficiencies is crucial for enhancing agribusiness opportunities and improving rural livelihoods. Despite the importance of vegetable farming, there is a lack of comprehensive research on optimizing the vegetable value chain in the studied regions. Existing studies have not fully addressed the challenges faced by farmers, such as limited infrastructure, inadequate financial access, and market uncertainties. This study fills the research gap by analyzing key constraints and opportunities within the vegetable value chain and proposing targeted interventions to enhance agribusiness development. The study reveals that while vegetable farming in Dhankuta and Chhathar Jorpati has significant economic potential, value chain inefficiencies-including weak market linkages, poor post-harvest handling, and limited financing pose substantial barriers. Enhancing agribusiness opportunities requires strengthening infrastructure, facilitating credit access, and promoting market system integration. A mixed-methods approach was employed, incorporating primary surveys of Small and Medium Enterprises (SMEs), farmers, and value chain actors. The results highlight the role of SMEs in employment generation and income growth while also identifying critical constraints such as a lack of storage facilities, entrepreneurial skills, and export market competitiveness. Financial barriers, limited certification, and high transportation costs further restrict agribusiness expansion. Optimizing the vegetable value chain can significantly boost rural economies, improve farmers’ incomes, and enhance Nepal’s agricultural competitiveness. This study provides policy recommendations, including the establishment of digital market platforms, cooperative-led aggregation centers, and public-private partnerships to strengthen the value chain. The findings contribute to national agricultural policies and the Sustainable Development Goals (SDGs), particularly in promoting food security, economic growth, and sustainable production.