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GREEN ENTERPRISES
In Dagala, a village near Thimphu, Bhutan, local community groups have linked up with a manufacturing company to cultivate and harvest dwarf rhododendron, which is used to produce nature-based products. By engaging in sustainable practices and using local knowledge on medicinal plants, communities have been earning a percentage of the manufacturing company’s profits. They have also been working on improving the supply chain through a focus on capacity building, technological improvements, and marketing.
People from Dagala, a village near Thimphu, Bhutan, have started abandoning their traditional practice of yak herding because of increasing difficulties in rearing yak and a decline in yak meat consumption in the country. Unlike other highland communities in the Tibetan Plateau, communities in Dagala are prohibited from harvesting yartsa gunbu, or caterpillar fungus (Ophiocordyceps sinensis), popularly known as Himalayan gold for its high value. They have therefore shifted their focus to non-timber forest products such as dwarf rhododendron (Rhododendron anthopogon), which they sell as raw material for incense stick production. The quantities they supply and the prices that they command, however, are very low.
We encouraged farmers to cultivate and sustainably harvest and market dwarf rhododendron. For this, we bridged the gap between Bio Bhutan (a private manufacturing company ) and a community group (Dzomdagam Ngomen Tshogpa) to create and market nature-based products with better economic returns.
An agreement between Bio Bhutan and Dzomdagam Ngomen Tshogpa has created an enabling environment to maintain a functional supply chain. Bio Bhutan buys 2,000 kg of fresh leaves of dwarf rhododendron annually at Nu. 160/kg at source (Dagala). Bio Bhutan then extracts essential oil from these leaves for use in the development of nature-based products. Under this collaboration, Bio Bhutan develops three products: Tshalung massage oil, Drizang perfume, and handmade herbal soap.
As part of the monetary benefits, Bio Bhutan pays 9% of its annual gross profit to Dzomdagam Ngomen Tshogpa. Of this payment, 2% goes to the Bhutan Access and Benefit Sharing Fund (upon mutual agreement between the two organisations) for the conservation of biodiversity. Bio Bhutan also provides other non-monetary benefits such as capacity-building programmes and tools required for sustainable harvesting.
To harness traditional knowledge in cultivation and harvesting, we are also working with Dzedokha Phacheng Detshen, a local community with deep traditional knowledge in a local ginger species (Zingiber cassumunar). This plant has been historically used by locals in treating joint and muscle pain. We scientifically validated the local knowledge on the production and use of this plant and formulated two products (Zhinor massage balm and Zhinor liniment oil). We are currently selling these products in the domestic market and are actively exploring the international market.
There are myriad positive impacts as a result of our work – from employment creation to income generation and capacity building in the communities. Our work has also led to the sustainable use and conservation of natural resources. However, we acknowledge that these benefits are anecdotal and need to be validated.
This solution directly benefits marginalised communities: 1) Dzomdagam Ngomen Tshogpa, a 70-member group, immensely benefits from the vibrant supply chain created by Bio Bhutan. 2) Dzedokha Phacheng Detshen has 50 members, half of whom are women and youth. We supported technology transfer and capacity building of the group members in producing and marketing nature-based products like Zhinor massage balm and Zhinor liniment oil. We have established a product development facility in the community, operated by two representatives from the group.
To capitalise on international demand for nature-based products, we need certification, modern production technologies and better packaging (more attractive and eco-friendly), and marketing outreach (including social media).
Jamyang Choden National Biodiversity Centre, Ministry of Agriculture and Forests Email: jamyangchoden@moaf.gov.bt
Each of the RMS solutions are linked to the 2030 Sustainable Development Goals outlined by the UN in 2015. The SDGs that this intervention contributes to are as follows:
