Moushami Shrestha is the Director of Shreenagar Agro Farms. After spending nearly two decades as a development professional, Shrestha ventured into commercial farming together with her husband in the early 2000s. In 2001, when the country was reeling under the Maoist conflict, the couple invested Rs 15 million to start the company. More than two decades later, their gamble has paid off handsomely, with the company now boasting an annual turnover of Rs 1.5 billion. In a conversation with Madan Lamsal, Editor-in-Chief of New Business Age, Shrestha shared her journey in the agriculture sector and discussed how Shreenagar Agro Farms has navigated through both challenges and successes over the years. Excerpts:
Please tell us how Shreenagar Agro Farms started its journey in the agriculture sector?
I studied Humanities in India before moving to Kathmandu, where I got married and continued my education. With a strong passion for the social development sector, inspired by my parents' dedication to social and economic development, I chose to pursue a career in this field, particularly as Nepal was transitioning into a developing nation. I started my journey in the development sector working with SNV Netherlands Development Organisation as an internal controller. After just a decade, I was working as the regional advisor for South Asia. During my tenure, I gained extensive experience in development practices, capacity building and delivering training programs. Following my time at SNV, I joined Practical Action Consulting (PAC), a UK-based NGO, where I served as the regional head. I concentrated on developing expertise in climate-smart approaches, participatory market development, renewable energy and related fields.
After 17 years in the professional sphere, the desire to embark on our own venture led my husband and me to establish Shreenagar Agro Farms. Our journey began with 2,000 layer birds and has since expanded into four key areas: farm, feed, food and facilitation. Within our farm division, we manage hatcheries and commercial farms with a weekly production of 80,000 to 100,000 chicks. Our focus is on maintaining quality. We raise antibiotic-free chickens and ensure that eggs are meticulously cleaned and labelled with expiry dates for consumer transparency.
Our feed division processes and manufactures feed for poultry, cattle and fish. Additionally, we are currently establishing a slaughtering house in Butwal. It is expected to come into operation within three-four months. In our food segment, we operate Yum Yum Cafe in Jhamsikhel.
Why are all companies affiliated with the Shreenagar Group named with 'Shreenagar'? Is there any particular reason?
My husband hails from Palpa and has a strong connection to the Shreenagar Hills. This personal link inspired us to incorporate ‘Shreenagar’ into our company name. Additionally, we confer the title ‘Shree Farmer’ to successful farmers which further solidifies our association with the name Shreenagar. Initially operating as Shreenagar Agrofarm, we later merged Shreenagar Agrofarm and Shreenagar Agritech to form Shreenagar Agritech Industries. Our company focuses on three core verticals: food, feed and farm.
Our mission is to introduce affordable, Nepal-friendly technologies to revolutionise agriculture and promote sustainable farming practices. Through efficient management and a skilled team, we aim to enhance farming methods and increase productivity. Our journey began with 2,000 layer birds and gradually scaled up our operations by establishing a hatchery and introducing feed mills.
One of the problems in Nepal is that farmers' produce often goes to waste. We have seen farmers throwing milk and tomatoes, among others, on the roads due to a lack of market. To address this, we are prioritising the development of a robust cold chain infrastructure. Our focus is on establishing systems that uphold the quality and freshness of agricultural products from the farm to the consumer's table. Our objective is to implement the ‘farm to food’ concept by connecting all stages of production, processing, storage and distribution. By enhancing this connectivity, we aim to minimise food wastage, ensure superior quality products reach the market and ultimately foster sustainability and profitability for farmers across the country.
Could you please tell us what Shree Kisan Innovation Hub is and what it does?
The Shree Kisan Innovation Hub was founded to provide practical, innovative knowledge and services to farmers, agri-innovators, agri-preneurs, and researchers in the agriculture sector. Initially supported by USAID, our initiative was born out of the recognition that many agricultural innovations and best practices were often out of reach for grassroots farmers. Typically, these benefits were accessible only to commercial farmers, as the necessary technology and investment were often too costly for smaller-scale operations.
We advocate for affordable and cost-effective innovative technologies that farmers can readily adopt. We tailor these technologies and streamline their transfer directly to farmers thereby ensuring seamless integration into their agricultural practices. Our overarching aim is to empower farmers with practical solutions that boost productivity, efficiency and sustainability throughout Nepal's agriculture sector.
It is crucial to stimulate domestic demand for agricultural products and reduce dependency on imports, thereby promoting and strengthening local production.
While in Thailand, I observed a farmer using a simple yet effective technology to feed fish. Traditionally, farmers scatter feed across ponds which often result in significant waste as more than 50% of the feed remains unused. This degrades quality of water as uneaten feed sinks and decomposes. I returned to Nepal and devised a solution using paint buckets. By drilling holes in these buckets and strategically placing them in the ponds, I ensured that fish approached them only when hungry. This approach proved highly effective as the buckets prevented feed from dispersing widely. This minimised wastage and improved feeding efficiency. We successfully transferred this low-cost innovation to local farmers, enabling them to enhance their fish farming operations in an affordable and sustainable manner.
Another simple yet effective technology that we implemented involved using exhaust fans to reduce the temperature during summer seasons inside our farm. To maximise its impact, we placed water-soaked sacks strategically within the farmshed. When the exhaust fans operated, the moistened sacks created a humid environment that effectively lowered the temperature by 3-4 degrees Celsius. This adjustment improved the comfort and health of our cattle while also enhancing their appetite and overall well-being.
During my travels abroad, I frequently visit rural areas to observe technologies employed by farmers. Inspired by what I learn, I adapt these technologies to suit local contexts and conditions in Nepal. Our goal is to introduce these innovations to local farmers, enabling them to enhance their agricultural practices sustainably and increase productivity.
Which of the companies under the Shreenagar brand do you prioritise the most?
Shreenagar Agritech has achieved a significant turnover of Rs 1.5 billion and continues to grow steadily. We are currently strategizing to take our company public to expand our reach and operations even further.
On the other hand, Shreenagar Kisan Innovation operates more like a small startup with a focus on knowledge sharing rather than profit generation. Our objective is to empower farmers by providing them access to knowledge and resources as well as financial support. Through Shreenagar Agritech, we are already engaged with over 10,000 farmers. With Shreenagar Kisan Innovation, our goal is to enhance the capabilities of these 10,000 farmers. We firmly believe that the success of our business is linked to the well-being of farmers. If farmers thrive, our business will flourish; if they face challenges, our business will be impacted. Hence, we are dedicated to supporting our clients and ensuring their long-term sustainability.
How have you been supporting small farmers?
Initially, we faced challenges operating as providers of chicks and feed on credit, primarily due to extended credit cycles. To tackle this issue, we have recently entered into a memorandum of understanding (MoU) with Sana Kisan Bank. Additionally, in Lumbini and Bagmati provinces, we have signed MoUs with 50 Sana Kisan cooperatives. These cooperatives have set up Sana Kisan Agriculture Centers, offering farmers essential inputs like fertiliser, chicks, feed, seeds and technical support. They also facilitate loans to help farmers establish and manage their farms effectively as working capital.
We purchase products from these farmers. Additionally, we have formed a partnership with the Central Dairy Cooperative Association to buy milk directly from farmers. Furthermore, we are preparing to launch Shree Sana Kisan Khaja Ghar which will offer nutritious food options. Our vision is to provide healthy meals similar to those offered in local liquor shops and packaged food establishments, but with an affordable menu that prioritises nutritional value.
To realise this vision, we will provide training to local women who will establish Khaja Ghars as franchises in their respective communities. We are committed to maintaining high standards of hygiene and nutritional quality, aiming to create a positive impact on local communities through these initiatives.
How did Shreenagar begin and what impact has it made on employment?
When we started, our team consisted of 30 individuals. We funded our venture with a Rs 10 million loan from Lumbini Bank, supplemented by our initial investment of Rs 5 million. Our journey has been marked by challenges including the impacts of the decade-long Maoist conflict. Despite these hurdles, we have persevered over nearly two decades, steadily expanding our operations and overcoming various ups and downs in the process.
We have successfully proved that farming can be a viable and rewarding career choice thereby dispelling misconceptions that previously existed in the Nepali society. Today, Shreenagar records a turnover of Rs 1.5 billion which reflects our dedication and belief in agriculture as a sustainable and profitable profession. We take pride in our accomplishments and remain committed to pursuing further growth and making a lasting impact in this sector.
Our journey has not been without moments of frustration. However, we firmly believe that maintaining motivation and the willingness to take risks have ultimately paid off. These qualities are crucial in agriculture. The sector demands patience to navigate through fluctuations and resilience to overcome diverse challenges. Farming inherently involves risks, such as diseases among cattle and birds, which can affect operations. Nevertheless, our commitment to overcoming these obstacles remains unwavering.
In rural areas, farmers face barriers to adopting technology, primarily due to affordability and adaptation challenges. Therefore, there is a pressing need for farmer-friendly or adapted technologies.
Realising the rising demand for maize in the feed industry, we have entered into collaborations with cooperatives in Kapilvastu, Dang, Bara and Bardiya districts to engage local farmers in maize production. Our approach involves providing training to farmers in modern farming techniques and practices. Additionally, we have signed buy-back agreements with these farmers. We will utilise maize sourced from them for animal feed production. This partnership not only enhances local agricultural practices but also ensures a consistent supply of high-quality feed for our operations.
Although a significant portion of Nepali population is into farming, Nepal faces different challenges in this sector. What do you think are the key challenges?
The illegal importation of eggs and chicken into Nepal poses a significant challenge. In our farming operations, a substantial part of our investment goes towards acquiring feed which includes imported items like soya, fish meal and supplements. The production of soyabean in Nepal faces several obstacles primarily because it is predominantly used for human consumption rather than animal feed.
Our feed requirements heavily rely on imports. When it comes to subsidies, obtaining financial support from banks can be challenging for large enterprises like ours. Small-scale farmers often encounter difficulties in securing loans from banks due to stringent eligibility criteria. Consequently, many turn to cooperatives where they face high interest rates which puts additional financial strain on their operations. Moreover, the regulatory environment and bureaucratic procedures further complicate the process of obtaining loans for farmers.
In rural Nepal, male migration for jobs abroad has led to women becoming the primary workforce in agriculture. Acknowledging this shift, we are dedicated to training and empowering women in the agricultural sector, providing them with essential skills to improve productivity and sustainability. Additionally, the shortage of labour is a significant challenge faced by many farmers.
How do farmers benefit from Shreenagar's partnership with Sana Kisan Bank?
We have established a partnership with Sana Kisan Bank to revitalise Nepal's agriculture sector and empower farmers. Through a tripartite agreement involving Shreenagar, Sana Kisan Bank and farmers, we facilitate the procurement of inputs and act as guarantors for loans. Farmers can access loans ranging from Rs 500,000 to Rs 5 million at a competitive interest rate of 8%. One challenge we encounter regularly is that some farmers find it difficult to present viable proposals to the bank which can affect the smooth processing of loans. Nevertheless, our partnership with Sana Kisan Bank plays a crucial role in providing farmers with essential services, including veterinary consultations, expert farming advice and risk-sharing mechanisms. This collaboration helps bridge the gap between farmers and financial institutions, ensuring that loans are utilised exclusively for agricultural purposes. It safeguards against the misuse of funds, such as for sending children abroad or other non-agricultural expenses. By promoting professionalism and fostering responsible borrowing practices among farmers, our aim is to enhance agricultural productivity and sustainability throughout Nepal.
What are your thoughts on the relatively low productivity in Nepal's agriculture sector?
The agriculture sector in Nepal faces significant challenges primarily due to high production costs. When costs rise, farmers become hesitant to take risks and many prefer trading over engaging in production activities. This situation is exacerbated by elevated raw material and labour costs which reduce profitability and deter investment in farming.
Proactive measures by the government are essential to effectively address these issues. This includes addressing tax issues, streamlining policies to create a more conducive environment for entrepreneurship and ensuring stability in market conditions. It is crucial to stimulate domestic demand for agricultural products and reduce dependency on imports, thereby promoting and strengthening local production. For instance, 60% of the fish consumed in Nepal is imported from India. This highlights the untapped potential for domestic fish farming. Similarly, the feed needed for livestock is frequently sourced from India due to lower costs. Prioritising the reduction of these import dependencies and promoting local production should be a governmental priority to bolster the agricultural sector and improve food security in Nepal.
What do you think are the main factors hindering the modernisation of the agricultural sector?
If Nepal aims to excel in commercial farming, substantial technological advancements are imperative. This includes setting up laboratories to ensure products meet rigorous quality standards, investing in state-of-the-art machinery and emphasising aspects such as taste, packaging and storage including advanced freezing techniques. With Nepal's recent improvements in power supply, establishing a cold chain infrastructure should be achievable. By addressing these areas, Nepal has the potential to export agricultural products to international markets. However, the lack of investment from large businesses or the private sector in Nepal's agriculture persists for several reasons. Firstly, agriculture involves substantial challenges at the grassroots level, including high financial risks and limited access to loans. Additionally, there is a shortage of skilled manpower, forcing farms to rely on skilled workforce from India.
Furthermore, foreign direct investment (FDI) in Nepal's agricultural sector remains low which discourages multinational companies from entering into Nepal. Increased multinational involvement could potentially enhance product quality. In rural areas, farmers face barriers to adopting technology, primarily due to affordability and adaptation challenges. Therefore, there is a pressing need for farmer-friendly or adapted technologies. The private sector's hesitancy to invest in the agriculture sector is compounded by these challenges and regulatory restrictions.
What factors contribute to the lack of investment from big businesses or the private sector in agriculture in Nepal?
The agriculture sector in Nepal encounters several challenges that deter private sector investment. Firstly, agriculture operations involve complexities at the grassroots level which heighten operational risks. Access to loans is also limited thereby hampering financial support for farmers and agricultural initiatives. Moreover, there is a notable shortage of skilled manpower in the sector.
With many men working abroad and an increasing number of women participating in agriculture in rural areas, what specific training programs would benefit them the most?
Women in rural areas encounter several challenges. Many are not suited for physically demanding tasks traditionally associated with farming, such as lifting heavy sacks. Introducing machinery designed to accommodate their needs could alleviate this strain and improve productivity. Technical skills are crucial. For example, knowing when to seek veterinary assistance for sick livestock requires training and personalised guidance, particularly because many women in rural areas have limited education.
There is a critical need for business acumen among women farmers. Despite their dedication and hard work, many lack the ability to accurately calculate profits, investments and losses. Strengthening their business skills through training and support is essential for fostering confidence and sustainability in their agricultural ventures. We have been organising collective training sessions and providing guaranteed buy-back agreements for their products when they work in groups. This pilot project aims to economically empower women and ensure the viability of their agricultural enterprises. If successful, scaling up such initiatives could markedly enhance the livelihoods of women in rural Nepal and contribute significantly to broader agricultural development goals.
Numerous development partners are focusing on scaling up agriculture in Nepal. How effective have these efforts been?
The efforts of development partners to scale up agriculture in Nepal have proven effective, particularly through knowledge and skill transfer initiatives from countries like Israel. Nepali farmers who have received training in Israel and returned home have successfully implemented advanced agricultural technologies in rural areas. This has significantly boosted productivity and enhanced livelihoods.
Additionally, organisations like the FCDO have played a crucial role in enhancing farmer skills through various programs. These initiatives have provided farmers with essential technical knowledge and capabilities, empowering them to effectively manage crops and livestock. Similarly, USAID's ‘Feed the Future’ program has been instrumental in supporting agricultural development in Nepal.
Why has Nepal not yet seen the emergence of a single company that connects markets, farmers, banks and all stakeholders effectively?
Establishing a participatory market system that unites all stakeholders in agriculture to address challenges remains a significant hurdle. This approach necessitates the involvement of government bodies, research institutions, donors, farmers, private sector entities, mills, retailers, consumers, insurance providers and training schools. By bringing together diverse stakeholders, our goal is to collectively identify and resolve the barriers hindering the growth and development of the agricultural sector.
