Operating Model
Step by step, here's how Mountain Hazelnuts works with thousands of smallholder farmers to produce high-quality hazelnuts in the mountains of Bhutan.
STEP 1: PRODUCE HIGH QUALITY AND VIGOROUS HAZELNUT SEEDLINGS
Mountain Hazelnuts partners with a world-class laboratory to produce hazelnut plantlets from tissue culture micropropagation in a safe, controlled environment. This enables rapid production of several hazelnut varieties – 100% non-GMO - that have been selected as optimal for the environments where they will be planted. Tiny plantlets are transported to the Company’s central nursery in Lingmethang, Mongar District.
STEP 2: RAISE YOUNG PLANTS IN THE WORLD’S LARGEST HAZELNUT NURSERY
After arriving in the nursery, young plants spend 3 to 12 months under the careful supervision of horticultural experts. Each plant is traceable from the beginning, with the team monitoring its progress and development. After an initial growth period, plantlets are transferred into planting bags and placed in wireframe net houses in the Lingmethang facility. After the plants have developed sufficiently over a 6 to 9 month period, they are transported to upland nurseries for hardening prior to distribution to growers.
STEP 3: DISTRIBUTE YOUNG TREES TO THOUSANDS OF FARMERS
The Outreach & Advocacy team helps potential farmer partners to understand the opportunities and challenges of raising a hazelnut orchard. Next, the Field Extension team evaluates the property of each interested farmer, and if a farmer does not have suitable orchard land, the Company endeavors to secure appropriate planting sites through the lease of government land or arrangements with local landowners. The Distribution team transports trees to nearby locations, and farmers carry the trees to their orchards. The Field Extension team advises on orchard layout, provides training on planting and cultivation, and supports farmers during the planting process.
STEP 4: SUPPORT FARMERS IN GROWING A NEW CROP
The Field Extension team inspects every tree in each farmer’s field every 30 to 45 days during the early years of cultivation, providing insights on when to irrigate, how to control pests, and what signs of health to look for. They gather extensive horticultural and environmental data and build detailed electronic records that provide full traceability, while the Field Extension team provide technical assistance and agricultural expertise.
STEP 5: AID FARMERS IN HARVESTING AND DRYING NUTS, THEN BUY NUTS
Trees begin fruiting after 4 to 5 years of growth. Farmers harvest and field dry the nuts with guidance from Mountain Hazelnuts. The farmers then carry the nuts to convenient collections centers where Mountain Hazelnuts purchases them.
STEP 6: PROCESS HAZELNUTS IN-COUNTRY, ADDING VALUE AND CREATING JOBS
Hazelnuts must be cleaned, dried, size-separated, and lab-tested before sale. MH operates a modern processing center in Mongar District, Bhutan. The facility accommodates commercial volumes of hazelnuts that are prepared for export. Nuts are transported from MH’s nut collections centers located near clusters of orchards across Bhutan. MH’s customers include target markets in the Asian snack food market, and premium, socially, and environmentally focused markets in Europe.