Regions on the rise: Nepal

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Global Coffee Report spotlights Nepal and the unique geographies that give rise to the complex flavour profiles it produces.

Nepal may not be the first region that comes to mind when thinking of coffee origins. However, the country is home to not only the world’s highest peak but also some of the most distinctive coffee varieties in the market.

While Nepal may not be a major contender in the global coffee market, with an estimated annual output of 400 to 500 tonnes – dwarfed by Brazil’s 2.68 million tonnes – it stands out for the quality of its production, the unique geography in which its coffee is grown, and the processing methods that shape its beans’ distinct flavour profiles.

Of the 75 districts in the country, coffee is cultivated in around 43, with more than 35,000 farmers directly involved. Farms typically range from one acre to one hectare in size, usually located at elevations between 800 and 1600 meters above sea level, making the output primarily micro-lot coffee.

As a relatively small market, the Nepal Coffee Producers Association (NCPA) helps connect Nepalese coffee to the global specialty market by unifying producers, smallholder farmers, and cooperatives from the growing regions.

Nima Sherpa, Coffee Producer at Lekali Coffee Estate in Kathmandu, is a member of the NCPA and says the association teaches best cultivation practices, processing methods to ensure consistency, strategic marketing support to expand market reach, and promotes sustainable practices across the supply chain.

Safeguarding coffee in this region by developing new varieties is as important as ever as coffee gains popularity in both local and international markets.

“Coffee has experienced a boom in domestic consumption, and it’s slowly becoming an important part of the economy and adding income streams,” says Sherpa.

Although Nepal is traditionally a tea-drinking country with tea the primary crop for many farmers, the growing demographic of coffee drinkers is adding new revenue streams for farmers, who are now benefiting from growing the commodity.

“Coffee is adding a new income stream for farmers in addition to traditional agricultural crops. Compared to growing other crops, coffee offers two to three times better prices and revenue. This has significantly boosted income generation for these farmers,” says Sherpa.

While Nepal doesn’t have a long history with coffee, Sherpa says over the past five or six years there has been a noticeable increase in interest from farmers – whether they own private coffee farms, are part of cooperatives, or are smallholder farmers. He attributes this to the effects of globalisation.

“One reason for this is that many young people in Nepal are going abroad to get proper education and then returning home. When they come back, they bring new habits with them, including a love of fresh coffee. This has led to increased demand for Nepali coffee,” he says.

“Additionally, many migrant workers, especially those going to Gulf countries, own land back in Nepal. They’ve realised coffee is a globally sought-after product, so they are starting to grow it back home to generate a good income.”

As a result, the NCPA has been active in running advocacy programs to help these farmers benefit from coffee cultivation, and this is contributing to the growing coffee economy in Nepal, as well as to the community at large.

“The NCPA supports producers in growing coffee by helping them improve productivity and quality. We focus on improving processing standards as well. At the same time, the NCPA works to link the market with buyers for their coffee,” says Sherpa.

He says one of the key industry challenges is the migration of labour from Nepal due to unemployment.

“Coffee is one sustainable crop that can help reduce this labour migration. With the help of the NCPA, we’re running advocacy programs in rural areas of Nepal, encouraging people to grow coffee as a cash crop,” says Sherpa.

Although situated at the top of the world, regions in Nepal are not immune to the effects of climate change. It is a global issue, and Nepal is no exception.

To address this and safeguard the coffee growing regions, the NCPA is conducting various agricultural training programs focusing on soil health, proper pruning practices, and improved processing techniques. These efforts help farmers improve the quality of their coffee.

The effects of climate change, according to Sherpa, are particularly noticeable in the lowlands of Nepal.

“Traditionally, coffee in Nepal has been grown at elevations between 1000 to 1400 meters. However, with ongoing climate change, the coffee needs to be grown at higher altitudes,” he says.

At higher elevations – especially as farms creep above 1600 metres – frost poses a significant challenge. To mitigate this, the NCPA and industry stakeholders are working on introducing coffee varieties that are resistant to frost and diseases.

“We’re also exploring rare, exotic varieties, and any other options we can to improve the yield per plant. At the same time, we’re focusing on plants that have better resistance to the fluctuating temperatures happening globally,” says Sherpa.

Complex and nuanced

Nepal’s unique geography has an influence on its coffee-growing regions, with the country’s distinct microclimate differentiating it from other coffee-growing regions around the world.

Typically, the ideal growing temperature for Arabica coffee is between 18 and 22 degrees Celsius, but Nepal doesn’t quite fit within that zone because it is not in the equatorial belt and its altitude creates a very different climate.

According to Sherpa, this microclimate serves as an advantage for coffee growing. The temperature swings between daytime and nighttime are not extreme, which is beneficial for the plant. And since coffee harvest in Nepal starts later compared to other countries – usually from the beginning of December to the end of March or early April – this period allows the coffee cherries to develop unique flavour profiles.

Nepalese coffee flavour profiles can range from fruity and floral to complex and nuanced, with a distinct brightness that reflects the cooler, high-altitude growing conditions.

“It has a lot of sweetness, a body reminiscent of tea, and a citrusy acidity. The coffee tends to have chocolatey notes, with some flavour characteristics similar to Brazilian and Colombian coffees. It also has the clean processing profile found in Kenyan coffee,” says Sherpa.

In recent years, with the evolution of processing techniques – such as extended naturals, extended honeys, and anaerobic processing – the flavour profiles of Nepalese coffee have become even more developed.

“The same coffee can taste different depending on the processing method used, such as washed versus anaerobic or extended naturals. Farmers are experimenting with these processes, which is making the coffee even more diverse in terms of flavour,” says Sherpa.

Quality over quantity

Since Nepalese coffee is not produced in large volumes, its competitive advantage lies in its quality and is what sets it apart from major economies such as India and China.

“As long as we focus on maintaining and improving that quality, we want our buyers, roasters, and importers to not just purchase Nepali coffee but to also showcase our story. Coffee in Nepal is grown in very remote areas, where farmers face numerous challenges such as no roads, no electricity, and limited resources,” says Sherpa.

“Our aim is to highlight these farmers’ stories, as it’s not just about selling coffee: it’s about sharing the experience and the journey of the farmers. Through platforms like this, or through partnerships with roasters, we want to make sure the story of Nepali coffee is told, and that there is a genuine respect and appreciation for it. It’s not only about the coffee itself but also about the people behind it.”

One such roaster sharing this story is David Kennedy of Bun Coffee in Byron Bay, Australia. With more than 30 years of experience within the coffee industry, he says he rarely encounters a single origin that ticks as many boxes as Nepalese coffee.

Beyond a superior flavour profile, Kennedy says the coffee aligns with his own ethical and sustainable ethos – and it’s certified organic.

“Not only are they great people to deal with but it’s also a great coffee, and it fits in with our ethos of being sustainably grown. It helps the communities around where they grow it and it’s a beautiful coffee to drink as well,” he says.

The processing methods used on Bun Coffee’s Everest Supreme single origin are straightforward: it’s washed using water that comes from a river fed by the Himalayan snow melt.

“The processing methods fit into that classical coffee flavour,” says Kennedy.

The Everest Supreme single origin is sourced from an estate about 75 kilometres north of Kathmandu, and is grown at an elevation of 610 metres, alongside the Trishuli River in the Ganesh Himal mountain range.

Above all, Kennedy notes that sustainable practices are the main appeal of Nepalese coffee.

“They also work with the International Centre for Integrated Mountain Development, which works to fortify agriculture in the region – not just Nepal. They aim to help people with agriculture to grow sustainably, and to help the environment and the people that are growing the products,” he says.

“It’s really good for us to be able to work with someone like that.”

Demand boom

As the demand for Nepalese coffee grows, both globally and domestically, the industry is facing a bottleneck in supply.

“The supply of coffee has been inconsistent, which is one of the main challenges. To meet the growing demand, we need to increase the supply, and that starts with improving productivity,” says Sherpa.

To invest more in the farms and introduce more coffee varietals that are disease-resistant while still maintaining the specialty quality, growers like Sherpa are working with the NCPA and the Nepal Coffee Development Board to launch various productivity programs.

“These include workshops where we go to different rural areas and educate farmers on growing specialty coffee and the technical know-how required to improve their farms,” he says.

Additionally, Sherpa says private companies are showing interest in investing in coffee farms, which will help improve the overall supply chain and increase coffee yields.

“With more investment and education, I believe the coffee industry in Nepal will continue to grow and thrive in the coming years,” he says.

To meet this growing demand, increasing productivity is a key focus for the next few years. Nepal is seeing a rise in interest for its coffee, but the challenge lies in scaling up the production.

“If we can improve productivity over the next five years, I truly see Nepal becoming one of the rising players in the specialty coffee sector, known for producing high-quality, unique coffees,” says Sherpa.

“Nepalese coffee is a product of dedication, innovation, and a strong desire to improve both the quality and livelihood of the farmers. The coffee industry in Nepal may still be in its early stages compared to some other countries, but the potential for growth is immense. The combination of a unique flavour profile, a dedicated community of farmers, and a focus on sustainability makes Nepali coffee a rising star in the global coffee market.”

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