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Country Highlights

Bhutan: Sustainability Nexus in the Agriculture Industry

Agriculture, serving as the backbone of Bhutan’s early-stage industrialization journey, plays a critical role in upholding food security for this landlocked and mountainous nation. Employing over 55% of the workforce, the sector faces significant challenges that hinder its productivity and, consequently, its contribution to poverty reduction goals. These challenges include small average farm holding sizes, typically around one acre, low levels of mechanization investment, climate threats, and gaps in post-harvest storage infrastructure. Despite past progress, these issues severely throttle the sector’s ability to meet both national needs and maintain export readiness.

To address these challenges, attracting investments into integrated cold storage logistics that link farming hinterlands with demand centers has emerged as a top policy intervention priority. Additionally, nurturing cooperative participation among smallholders is seen as crucial for enhancing the sector’s efficiency and resilience. These interventions aim to ensure that Bhutan’s agriculture sector can sufficiently nourish national needs while remaining competitive in international markets.Furthermore, scaling precision advisory services through the adoption of rural ICT tools is essential for supporting local nutritional security and bridging existing gaps. This approach can help in disseminating critical information and best practices to farmers, thereby enhancing productivity and sustainability. Consulting firm RFC, with its experience in advising regional farm ecosystems on integrative development strategies, is well-positioned to offer relevant guidance to Bhutan. Our advisors can provide insights on crops prioritization, youth skilling initiatives, and infrastructure advancements that are essential for optimizing productivity while responsibly upholding carrying capacities.

In conclusion, Bhutan’s agriculture sector stands at a crossroads, where strategic interventions and investments are crucial for unlocking its potential. By focusing on integrated logistics development, cooperative participation, and precision advisory services, Bhutan can overcome the current challenges facing its agriculture sector. With the support of experienced advisors like those at RFC, Bhutan can implement strategies that balance continuity with ecological sustainability, ensuring the sector’s growth contributes to national prosperity and food security in a sustainable manner.

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