Dairy Sector in Nepal

Brief Overview • Dairy sub-sector shares more than 60 % of livestock sector contribution to GDP. • Annual production of milk is 1.35 million metric ton. Buffaloes contribute more than 2/3 of the volume. • 13 % of total cattle population (0.9 million) & 26 % buffaloes (1.19 million) are milking. • Crossbreeding with Jersey and Holstein Friesian cattle & Murrah buffaloes for breed improvement. • Predominantly smallholder production system. About 150 thousand farm families affiliated to 1500 primary Coops.

.. yak and chauries are reared in transhumance system. • Dairy Development started in early fifties with FAO support. August-September to January-February) ▫ Ratio of lean to flush season production is about 1:3 in most of the country and 1:1. • Seasonal fluctuation in milk production-collection (flush season. ▫ Seasonal breeding pattern of buffaloes and availability of green forages are main reasons. • Production system crop-livestock-forest integrated in hills. • In high mountains.Brief overview. .5 in areas where the feed supply is better.

▫ expansion of milk collection networks. chilling facilities ▫ raising awareness in hygienic milk production and improving keeping quality of milk ▫ products diversification and ▫ strengthening management capabilities of dairy coops and private dairies (small and medium scale).Status and structure of current dairy strategy • Public-private partnership strategy promoted by the DLS in ADB supported projects has been useful for. • Attracting private sector investments in dairy processing and marketing has resulted in increased demand for milk • Provisions of the Agri-business Promotion Policy on promotion of dairy industry are not fully operational. .

• Adoption of code of practices in dairy industries and its monitoring/ regulation is weak.. .. limited in some production pockets.Status and structure. • Human resources development strategy in dairy sector did not receive due priority. • Forage based milk production system has not been expanded widely. there are wide variations in the quality of dairy products in the market. lack of qualified professionals in the public as well as in the private sector.

▫ Guided by the provisions and the spirit of the Agriculture Perspective Plan (1995-2015). • Policies of the government on meeting food security arising from the global food grain crisis and the priorities accorded for them affects public sector investment in dairy sector. • The Three Year Interim Plan (2007-2009) has targeted higher growth rate in milk production (4.Policies affecting dairy sector • Dairy Development Policy 2008 is the main policy document of the government. National Milk marketing and Strategy Study 2001. National Agriculture Policy 2004. .6 percent per annum). Agribusiness Promotion Policy 2006.

• Poor animal feed resources base. • Access to animal health and breeding services is limited. • Poor milk quality a persistent problem in the dairy industry. This is associated with a lack of farmer awareness in clean milk production.Major constraints • Scientific milk pricing policy is lacking. . • Lack of human resources and technology support in private sector. Unhygienic milk production starts with the farmer and causes loss of income along the milk chain. • Predominance of small holder producers. high cost in production as well as in collection.

Challenges • • • • • • Breed improvement in small holders farming system Lack of elite herds of cattle and buffaloes in the country both in Government and Private sector Sustaining the productivity of improved animals Control and eradication of economically important diseases Lack of business plan/ entrepreneur skills Quality management in value chain .

qualitatively and competitively developing the dairy sector for employment generation and poverty reduction with the participation of government. cooperatives and private sector Dairy Development Policy 2008 .Policy Vision To contribute to national economic development by commercially.

HACCP in dairy industries). GMP. .Long term vision for the sector • Substitute the import of milk and milk products in the country • Encourage private sector investment in dairy sector. • Enhance competitiveness of Nepalese dairy industry. • Comprehensive study to guide appropriate dairy development strategies and program (perspective plan). • Emphasis on quality improvement (code of hygienic practices. • NDDB role on policy formulation and implementation/ trade regulation needs strengthening.

Thank you very much for your kind attention .

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