The majority of the plant “mitsumata,” the raw material for Japanese currency bills, is grown in the mountainous regions of faraway Nepal. This is because Kanpoh Co., Ltd. of Osaka has been teaching the Nepalese people how to cultivate and process mitsumata for many years. On the occasion of the 70th anniversary of the establishment of diplomatic relations between Japan and Nepal, we will report on Kanpoh’s challenge and JICA’s cooperation.
Nepalese people carrying Mitsumata trees (courtesy of Kanpo)
A sense of crisis over the shortage of raw materials led us to Nepal.
Mitsu or mitsuba is a deciduous shrub, so named because of its three-branched branch tips. Its fiber is extremely strong and has long been valued as a raw material for paper money and Japanese paper.
Mitsumata flowers and the Himalayas (courtesy of Kanpo)
Honey from Nepal is the best quality in the world.
So says Tadashi Matsubara, president of Kanpo. Nepalese honeycomb is an indispensable raw material for the production of new Japanese banknotes. While its high quality is highly regarded, the road to stable production has not been an easy one.
Kanpoh, which is involved in the sale of official gazettes and government publications, began its involvement in honeycomb production in Nepal in 1990.
The Official Gazette is a government gazette published to inform the public of laws, cabinet orders, and important national announcements. Kanpo had established close ties with the Printing Bureau of the Ministry of Finance (now the National Printing Bureau) through its business of selling the Official Gazette.
One day, a person in charge at the Printing Bureau of the Ministry of Finance told me, “The number of people producing honeycomb (used to make banknotes) has been decreasing, and it has become difficult to secure honeycomb in Japan. I was told by a person in charge at the Printing Bureau of the Ministry of Finance that “the number of people producing honeycomb (used to make banknotes) has been decreasing, and it has become difficult to secure honeycomb in Japan.
At the time, the number of honeycomb cultivators in Japan was decreasing and production was falling sharply. With the shortage of raw materials becoming an issue, the previous president, with a strong sense of crisis, decided to start cultivation in Nepal. After several years of field research, he found an area where honeydew grows wild all over the mountains in the Jiri district.
Kanpo President Tadashi Matsubara (courtesy of Kanpo)
Creating jobs in which everyone can participate
Nepal was one of the most poverty-stricken countries in Asia. In rural areas, there are few means of earning cash income, and many people go abroad in search of work. It is not easy to stay in one’s hometown and live on a stable income.
Most of the adults Mr. Matsubara met were unable to attend school due to economic circumstances, and few of them could read. Therefore, when communicating the cultivation and processing techniques of mitsumata, we tried to use video rather than text-based materials. The most important thing was to convey the information in a form that anyone could understand.
The honeycomb is harvested from the mountain slopes, steamed to soften it, and the outer skin is carefully peeled off, washed, and dried. The process itself required no special knowledge, and even women, who are less strong than men, were able to participate.
Women living in mountain villages are now able to work in between housework and child rearing. By earning cash income, these women, who had been in a socially vulnerable position, gradually regained their confidence.
In addition, income from honeycomb production and processing was used to pay school fees and other expenses for children to attend school, creating educational opportunities.
While Mitsumata cultivation in Nepal was a meaningful effort to help people escape poverty, it was also a tough business for Kanpo, which had been losing money for many years. The travel and transportation costs to send employees to the region were a heavy burden, and there were times when the shareholders’ meeting voiced their disapproval of the continuation of the business.
Give me three years. If I can’t make a decision in that time, I will withdraw gracefully.
When Mr. Matsubara took over the business in 2013, he explained this to shareholders, but his mind was filled with anxiety. However, he saw people working hard in Nepal and children who were able to attend school and were thriving, and he felt strongly that “if we withdraw, they will return to poverty again. He felt strongly that he could not betray the people of Nepal.
A relationship that sacrifices only one of the parties will not last. Even international contributions cannot continue unless they are made as a business. Something must be done.”
This thought led to the next step.
A turning point in collaboration with JICA
The turning point came in 2016, when we were selected for JICA’s SME Overseas Development Support Program. I approached the Japanese Embassy in Nepal for advice and was introduced to the JICA program.
With the advice of JICA Nepal Office, training was conducted for forest office staff in the targeted areas. The training was targeted at assistant forest officers in charge of villages where honeycomb cultivation is practiced, as well as forest rangers and forest officers (forester) who often enter forests on a daily basis.
We have tried to teach not only techniques related to Mitsumata cultivation and processing, but also how to manage the producers. This is because in order for the local people to continue production on their own and build a stable livelihood, it is important to create a system that allows them to “run on their own” without the cooperation of Japan International Cooperation Agency (JICA) or Kanpo.
As a result of the accumulated training, a system was established to “train locally those who can teach,” and technical guidance was gradually passed on to the local side, leading to a sustainable production system.
Teaching Mitsumata processing (courtesy of Kanpo).
JICA’s cooperation has also facilitated coordination and procedures with Nepal’s central government ministries and agencies. Although Mitsuwa orchids are cultivated on state-owned land with permission from the Nepalese government, we were often asked to reapply for permission each time there was a change of government, which was a major burden for the continuation of the project.
The licensing procedures were expedited, backed by the network and trust that JICA has cultivated over many years in Nepal. The scope of activities was not limited to the suburbs of Kathmandu, but quickly expanded to remote rural areas. As a result, the production area has expanded greatly and production has increased from approximately 30 tons to 100 tons per year. A system that can stably support Japan’s demand for banknotes has been established.
Mr. Muneyuki Kohzu, who was involved in the Mitsumata project at the JICA Nepal office, says, “Japanese technology and the power of the local people were successfully combined. I feel that this is a very good example in that the lives of the local people have definitely improved,” he recalls.
Aya Iwatsuji, who also works at the JICA Nepal office, said, “In Nepal, there is a lack of stable local jobs. Growing crops that are in demand and keeping jobs in the community will lead to more options for young people to stay in rural areas. Being able to approach them with the help of companies (so that they do not have to go abroad to work) is of great value to rural Nepal. When the crops are in demand in Japan, as in this case, it will lead to great benefits for Japan as well,” he said, describing the significance of the project in collaboration with the company.
Mr. Matsubara commented on the collaboration with JICA, “For small and medium-sized enterprises (SMEs), the financial hurdle for doing business in developing countries is extremely high. JICA had a wealth of experience and a network that supported us in coordinating with the local authorities and creating a framework. Just having the name ‘JICA’ in the name of the project made all the difference in the sense of trust in the local community.
Mitsumata, a life-changing
Training scene of Mitsumata cultivation (courtesy of Kanpo)
The honeycomb tree cultivation business has changed the lives of Nepalese people. In one village, a woman was able to receive an education and study abroad with the income from honeycomb seeds. Another built an elementary school with the proceeds from honeycomb mata cultivation.
Cultivation of Mitsumata is changing the lives of people in Nepal. However, Mr. Matsubara asserts, “That’s not all.
I think we should not forget that the Nepalese people are making Mitsumata for Japan (and not just for themselves). When (Nepalese) children who have the awareness that ‘I want to be useful for Japan’ and ‘I can go to school only because of Japan’s cooperation’ become adults, they may become the ones who help Japan. I am sure that they will become a bridge between Japan and Nepal.
© Source JICA