Mountain Hazelnuts secures $7.9 million investment for sustainable agriculture in Bhutan
Bhutan-based Mountain Hazelnuts has secured a $7.9 million equity investment to expand its climate-resilient farming initiatives. The funding strengthens sustainable agriculture and benefits local communities.
Bhutanese agroforestry company Mountain Hazelnuts has secured $7.9 million in equity investment to expand its climate-resilient farming operations. The funding comes from long-term partner Mirova and Finnish development financier Finnfund.
Established in 2009, Mountain Hazelnuts aims to create a profitable business that supports vulnerable communities by planting hazelnut trees on degraded mountain slopes. The company collaborates with Bhutanese smallholders, providing additional income and restoring fallow land through its guaranteed purchase structure for harvested nuts. Site assessments consider ecological impact before orchard design and planting.
The investment is supported by the European Union through the European Fund for Sustainable Development Plus (EFSD+). Finnfund and Mirova are utilizing an EFSD+ guarantee under the Carbon Sinks program, which supports investments in forestry, agroforestry, and blue economy projects.
This funding ensures Mountain Hazelnuts is financed for the next five years, allowing for the completion of climate adaptation programs, factory expansions, and international certifications. The investment also strengthens the company's market position, enabling premium pricing for Bhutanese hazelnuts globally. The deal sets a precedent for future European Development Financial Institutions and foreign direct investments in Bhutan.