Mountain Hazelnuts – Potential Risks and Suggestions to Mitigate Those Risks

Mountain Hazelnuts – Potential risks and Suggestions to mitigate those risks

Mountain Hazelnut Venture Ltd.’s vision of economic development and curbing urbanization in Bhutan, restoration of degraded terrains, financial gain for the investors provides a significant opportunity, which comes along with potential risks. Agricultural ventures in developing country with poorly skilled farmers can carry numerous threats and unforeseen misfortunes.

Mountain Hazelnuts, being the first foreign owned business in Bhutan, would require abundant training of farmers in terms of using new agriculture technologies for producing large quantity of finished products for the international market. It would also have to provide enough support to the Government and farmers to earn their trust and progress synergistically. The developed countries (Italy and Turkey) with high technology and more suitable growth conditions, neighboring countries with a keen eye on the growing demand, would be a tough competition for the developing Bhutan, as they would lower the hazelnut’s market price. Radical changes in the Bhutan’s governmental rules and regulations possess a risk for the company to accommodate them. Factors like natural calamities, plant diseases and unpredictable climate changes also impart potential risks. Funding for a venture in developing foreign countries is difficult to obtain.

Educating the farmers with the advanced agricultural techniques and their GPS technology would increase the human capital and their by increasing the revenue. For additional funding, Mountain Hazelnuts should look for angel investors, who share similar interests and social responsibility for upliftment of the farmers. Mountain hazelnuts could provide insights about the futuristic social, economic and scientific benefits to the people of Bhutan to mitigate the above listed risks.