TRIBHUVAN UNIVERSITY

INSTITUE OF AGRICULTURE AND ANIMAL SCIENCE

GAURADAHA AGRICULTURE CAMPUS

GAURADAHA JHAPA

AN ASSIGNMENT ON STATUS OF MILK COLLECTION, PROCESSING AND

DISTRIBUTION CHANNEL

SUBMITTED BY SUBMITTED TO

Shiv Shankar Loniya Astt.proff. Dr. Nirmal Katuwal

Roll no: 38 Department of animal science

8TH sem Gauradaha Agriculture campus

NTRODUCTION

Agriculture sector contribution to national GDP is 27.1% while the contribution of the livestock
sector to agricultural GDP (AGDP) is around 28%. The sector not only contributes to the
national GDP but also ensures the flow Livestock is an integral part of agricultural production
system in Nepal. The dairy sector not only provides household nutrition but also ensures the flow
of money from urban to rural Nepal. Dairy sub-sector has strong and established value chain
linkage from production to the consumption level in Nepal. Backward linkage for the farmers is
comprised of private, agro vet, feed industry and suppliers, dairy resource center, bank and
financial institutions, insurance company etc. helping milk production. Similarly, chilling center,
milk producer cooperatives, middle man, dairy industry, whole seller and retailer are the forward
linkage, where enormous people of various discipline have been getting employment
opportunity(Dairy & Board, n.d.). Collecting milk is essential to supply a market or dairy farm
with sufficient quantity and quality of milk. A milk collection system is a system that collects
raw milk produced by small dairy farmers, stores it in refrigerated tanks, and transports it
directly to raw milk processing facilities and markets. A milk collection center is a facility where
raw milk is stored. The link between the dairy and milk processing industries is called a milk
collection point. MCC's main goal is to collect enough milk to meet the demands of the
processing industry (FOASTAT). The link between milk farming and milk processing industries
is called Milk Collection Centre. The main target of MCCs is to collect adequate milk volumes
to meet the processing industry’s demand.

OBJECTIVE

To know the status of milk collection.

To know the milk distribution channel and milk processing process and different dairy products.

METHODOLOGY

Secondary method of data collection was used. Different research paper and articles were studied
to obtain the information.

RESULT AND DISCUSSION

NATIONAL AND PROVINCIAL MILK COLLECTION AND CHANNEL/
ORGANIZATION
In 2020, production of milk for Nepal was 2.46 million thousand tones. Production of milk of
Nepal increased from 642,000 thousand tons in 1971 to 2.46 million thousand tones in 2020
growing at an average annual rate of 2.79% (Vet, n.d.).

STATUS OF MILK COLLECTION

YEARS MILK COLLECTION

(LITRE)
2070/71 5,89,95,902
2071/72 6,63,44,939
2072/73 5,32,96,266
2073/74 5,31,86,487
2074/75 5,41,25,648
Source: Dairy Development Cooperation (DDC) Annual Report 2070/71 to 2074/75

There are number of chilling of center under various schemes some them are mentioned below.

SCHEMES CHILLING CENTRE

Biratnagar Milk Supply Schemes (BMSS) 10
Heatuda Milk Supply Schemes (HMSS) 9
Kathmandu Milk Supply Schemes (KMSS) 22
Janakpur Milk Supply Scheme (JMSS) 5
Lumbini Milk Supply Scheme (LMSS) 7
Milk Product Supply Schemes (MPPS) 7
Nepalgunj Milk Supply Scheme (NMSS) 4
Dhangadi Milk Supply Scheme (DMSS) 2
Source: Annual Report of Dairy Development Cooperation 2074/7

Milk distribution channel

PRODUCT MANUFACTURED BY DAIRY INDUSTRY

Fig: milk processing

 Fig: milk processing option

Dairy Products and their quantity

PRODUCTS 2072/73 2073/74 2074/75

Butter (kg) 693856 526589 774093
Ghee (kg) 479078 295594 253706
Yoghurt(kg) 3693000 3618524 3043916
Cheese(kg) 181676 231661 194720
Icream(liter) 73678 70507 56863
Paneer(kg) 193252 218082 163907
Skimmed milk(liter) 668900 412166 799113
DDC Fresh(kg) 75793 32000 47093
Lal Mohan(pack) 57072 53331 35865
Peda(pack) 24187 12986 13011
Rasberry(pack) 27598 20754 48341
Source: Annual Report of Dairy Development Cooperation 2074/75

CAPACITY AND UTILIZATION STATUS OF MILK CHANELING ORGANIZATION

List of some Milk Dairy with their capacity

1. Biratnagar Milk Supply Scheme:

Processing capacity: 5000l/hr.

Skim milk powder capacity: 6Mt /day

2. Janakpur Milk Supply Scheme:

Processing capacity: 2000l/hr

Milk collection per day:

a. Lin Season: 2200l

b. Flux Season: 5000l

3.Hetauda Milk Supply Scheme:

Processing capacity: 3000l/hr

Milk collection per day:

a. Lin Season: 12000 to 14000 l

b. Flux Season: 28000 to 30000 l

4. Kathmandu Milk Supply Scheme:

Processing capacity: 15,000l/hr

 Milk collection per day:

a. Lin Season: 45,000 l

b. Flux Season: 80,000 l

5. Lumbini Milk Supply Scheme:

Processing capacity: 3,000l/hr

Milk collection per day:

a. Lin Season: 15,000 l

b. Flux Season: 35,000 l

6. Nepalgunj Milk Supply Scheme:

Processing capacity: 1000l/hr

Milk collection per day:

a. Lin Season: 2000 l

b. Flux Season: 3000 l

7. Dhangadi Milk Supply Scheme:

Processing capacity: 1000l/hr

Milk collection per day:

a. Lin Season: 2000 to 3000 l

b. Flux Season: 6500 to 7000 l

8. Milk product Milk Supply Scheme:

Processing capacity: 3000l/hr

Milk collection per day:

a. Lin Season: 3000 l

b. Flux Season: 7000 l

SUMMARY AND CONCLUSION

Milk collection is the process of collecting the milk from different producer to certain point from
where it supplied to milk processing industry. National Dairy Development Board has
established the Code of Practice for Dairy Industry 2004 which directs six criteria for the
standardization of milk and milk products like Organoleptic test, Clot On Boiling (COB) test,
Alcohol Test, Fat test and Solids-Not-Fat (SNF)test, Adulteration test, phosphate test, and
microbial and coliform test. In the context of Nepal the milk collection is not satisfactory as in
rural area there is no large milk collection center which an give could god price to producer.
DDC is the leading organization for milk collection and distribution in Nepal.

Dairy sector is one of the leading agribusiness sector in Nepal. This sector nowadays, getting
flourished due to consumer’s awareness about the nutritious diet and health concerns. This sector
provides more consumer satisfaction due to diversified products.
 REFERENCES:

Dairy, N., & Board, D. (n.d.). Study on Data Base of Dairy Value Chain.
Vet, N. (n.d.). MILK MARKETING AND DAIRY VALUE CHAIN DEVELOPMENT IN NEPAL
IN RELATION. 144–151.
Dairy, N., & Board, D. (n.d.). Study on Data Base of Dairy Value Chain.
Vet, N. (n.d.). MILK MARKETING AND DAIRY VALUE CHAIN DEVELOPMENT IN NEPAL
IN RELATION. 144–151.

Dairy Development Cooperation (DDC) Annual Report 2070/71 to 2074/75

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