Egg Production

Bhutan is embarking on a transformative investment to revolutionize climate-smart poultry egg production, aiming to generate an additional 10.5 million eggs annually to strengthen nutrition security and rural livelihoods under the national “One Child, One Egg” (OCOE) initiative. This program seeks to enhance self-sufficiency, modernize farm management, and ensure a consistent, safe, and affordable egg supply through inclusive value chain development and productivity gains among smallholders.  

With over 22,000 farmers currently engaged in poultry production, contributing 98 million eggs annually, the sector already stands as a cornerstone of rural income generation and a vital source of organic manure that enriches crop systems. The rising domestic demand—driven by the “One Child One Egg Initiative” school feeding programme, shifting consumer diets, and expanding market opportunities—presents an untapped potential of 18+ million additional eggs per year (approximately USD 2.45 million).  

An investment of USD 26.2 million will catalyze the establishment of 200 climate-smart poultry farms, each housing 200 birds, supported by modern sheds, 4,000 productive day-old chicks, and an annual supply of 1,840 MT of high-quality feed. Complementary public investments will focus on biosecurity, vaccination programs, farmer capacity building, and digital market integration to ensure resilience and traceability. This initiative will deliver a 32% Internal Rate of Return (IRR) and a Net Present Value (NPV) of USD 0.74 million, reflecting strong economic viability. 

Beyond financial returns, the investment will drive inclusive and sustainable growth—raising per capita incomes by USD 185 per year, directly and indirectly benefiting over 1,000 people, particularly women and youth. Environmentally, the shift to climate-smart technologies and efficient waste management will reduce greenhouse gas emissions while comparing to current system of production. The Bhutan Climate-Smart Poultry Initiative thus positions Bhutan as an example of sustainable, high-value poultry production, integrating nutrition goals, climate action, and rural empowerment into a single, impactful investment model. 

Coffee Production

The Government prioritizes organic coffee production to promote high-value, low-volume commodities and integrate climate-smart technologies. Investment is needed for open-field climate-smart production using organic inputs and primary processing facilities. Target markets include Europe, Singapore, and Japan, alongside substituting imports. 


The Southern Foothills, ideal for Arabica coffee, engage about 200 farmers. Coffee cultivation is low-input, less labour-intensive, and environmentally friendly, with scope to expand on fallow land and through agroforestry in seven priority districts. Domestic demand is significant, with annual imports of 46 metric tons valued at USD 0.20 million. Export potential is promising, especially in Japan, Singapore, and Europe. Leveraging “Brand Bhutan” through Geographical Indication (GI) and Geographical Indications Environmental and Sustainability (GIES) systems can strengthen market appeal. 

Current productivity is limited by inadequate irrigation, technical knowledge gaps, and insufficient processing. A USD 11.77 million investment over 20 years could increase production to 3,940 metric tons annually, yield an internal rate of return of 25.43% (production) and 38.11% (processing), and generate USD 12.1 million FNPV. It could boost annual per capita income by USD 90 per 0.25-acre household, create 70,446 person-days of employment annually, and reduce GHG emissions by 68,460 tCO₂eq. 

Buckwheat Production

Bhutan is seizing a high-value opportunity to expand climate-smart natural buckwheat production, targeting 1,725 metric tons annually to enhance nutrition, rural livelihoods, and export potential. As a traditional yet neglected crop, buckwheat is naturally gluten-free, protein-rich, and thrives in cold-temperate climates (2,500–3,500 masl) with low inputs and labour needs. Cultivated by over 4,000 households, producing 1,000 MT/year, it contributes to food security, biodiversity, and apiculture. Rising global demand for health foods and organic products has strong export potential in India, Japan, and Europe, with Bhutan buckwheat flour priced under USD 10/kg compared to USD 15–35/kg abroad. 

A USD 3.63 million investment will expand climate-smart production over 2,500 acres, supported by 100 tons of quality seeds, partial irrigation for 1,250 acres, mechanization, farmer training, and community fencing. The investment will establish high efficiency processing facilities, enabling value addition, and market access, generating an IRR of 23.89%–26.18%, produce USD 2.28 million in net benefits, and directly benefit 2,500 farmers and 10,000 people indirectly. It will create 64,600 person-days/year of employment, increase farmer incomes, improve biodiversity, stabilize land, and reduce GHG emissions by 8,316 tCO₂-eq — positioning buckwheat as a strategic high-value export and a model for sustainable agriculture in Bhutan.