Value chain analysis of Taxus (Yew) species and its affecting factors in Makwanpur district, Nepal

Taxus, commonly known as Yew, is an ecologically vulnerable but economically valuable medicinal tree widely harvested in Nepal for the production of 10-deacetylbaccatin III (10-DAB III), a key precursor of the anti-cancer drug paclitaxel. Despite its growing commercial importance, systematic assessments of the Taxus value chain remain limited. This study analyzes the structure, factor dynamics, governance systems, and economic performance of the Taxus value chain in Makwanpur District of Nepal. Using a mixed-method approach, we mapped actor roles, examined costs and margins, and evaluated determinants of value-chain performance. Results showed a strongly hierarchical, buyer-driven chain in which collectors perform the most labor-intensive tasks yet capture less than 5% of final value. Local and district traders mediate quality control, aggregation, and pricing, while processing industries retain the highest value share through technologically intensive extraction of 10-DAB III. Harvesting practices, although largely selective, exhibit inconsistent adherence to sustainable pruning guidelines, posing ecological risks to a slow-growing species with poor natural regeneration. Regression analysis revealed that value chain performance is significantly influenced by timely raw-material availability, farmers’ socio-economic conditions, trader education, processing quality, and policy clarity, whereas pre-processing treatment at the household level showed no significant effect. Overall, the study highlights structural inequities, ecological vulnerabilities, and governance bottlenecks within the Taxus value chain. Strengthening Community Forest User Group (CFUG) oversight, improving post-harvest handling, enhancing market transparency, and streamlining regulatory procedures are critical for advancing sustainable management while improving livelihood benefits for forest-dependent communities.