Dairy cooperatives has been the means to unite the farmers and working as means to market.

This
opinion could bring the farmers to produce more milk and retain the youth in the village. Strengthening
of these MPCs capacity to become service transfer and input supplier shall be breakthrough for the
development of this sector. Moreover, they are also in awkward position to bridge the farmers and
processors due to lack of resources and poor bargaining capacity due to sharp perishable commodity.
Until now, milk marketing is far from formal sector. Around 15-20% of the total milk produced comes
into the formal processing market, nearly 23% of the processed milk is converted to various dairy
products and 77% of the processed milk is consumed as fresh pasteurized milk. In such circumstances, it
is important to streamline the dairy farmers in formal sector and teaches them the possibility of cash
income. Cost of milk production based on this report is NRs. 48.8 against NRs. 40 in India. This level of
production cost never compete with international market as per WTO framework. Prolonging this
situation could invite the day when the whole dairy sector will be collapsed. It is however, rays of hope
still remain that the milk production cost is the commercial farms is comparatively lower which is around
NRs. 36 per liter and still there is space to reduce this cost to NRs. 16 per liter provided reducing in
feeding, live animal and interest cost. 5.2 Recommendations  Transformation of dairy occupation to
enterprise and farmers to entrepreneurs. This could be done anchoring the grass to glass approach,
commercial orientation with the development of technology or importing appropriate in compliance to
Nepalese soil in reducing cost of milk production. Technology to minimize the major expenditure items
viz. feeding, breeding, disease prevention and control shall be done articulating with training, coaching,
demonstration and exposure to similar context.  Lack of high productive animal is prominent
discouraging factor and the live animal cost is extremely high. Establishment of resource center for
production of breeding stock and make available to the farmers in cheaper rate could be government’s
golden gift to the farmers so that the current productivity nearly 8.87 liter per day could be increased up
to at least 15 liter per day. Resource center shall be establish either by go