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Small Scale Dairy in Nepal-Results from the TCP. Bhuvaneshwar Sharma National Project Coordinator. Introduction of Dairy Farming. Traditional Farming System common Dairy animals widely distributed in Terai (Plain region) and mid-hills Yaks and their crosses in high mountains

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Small Scale Dairy in Nepal-Results from the TCP

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Small Scale Dairy in Nepal-Results from the TCP

Bhuvaneshwar Sharma

National Project Coordinator

Introduction of Dairy Farming

  • Traditional Farming System common

  • Dairy animals widely distributed in Terai

  • (Plain region) and mid-hills

  • Yaks and their crosses in high mountains

  • They are kept under migratory system

  • No. of dairy goats negligible

  • No consumption of goat milk

Introduction… …

  • Mixed Farming System

  • Milk Production:

  • Buffaloes: 70%

  • Cattle: 30%

  • Buffalo breeds: Murrah and crossbreds, local

  • breeds

  • Cattle breeds: Jersey, H.F., crossbreds and

  • local breeds


  • Milking Cows: 0.90 Million

  • Milking Buffaloes: 1.10 Million

  • Annual Milk Production: 1445419 MT

  • Dairy industry growing fast from last 10-15

  • years

  • Preference:

  • Rural Areas : Buffaloes’ Milk

  • Urban Areas : Cows’ Milk

Production and Consumption

  • % increase in 10 yrs time:

    • Cows’ Milk: 3%

  • Buffaloes’ milk: 4%

  • Milk culture everywhere

  • Per capita milk availability/annum : 51 ltrs

  • Home made/processed milk and milk products

  • extensively used

  • Women’s involvement

    • Contribution of women in dairy production-

    • approx. 70%

    • Entrepreneurship relatively low

    • Professional farming system not widespread

    • Excellent indigenous knowledge in farming

    Milk processing

    • 12- 13% of the total milk produced formally

    • processed

    • Processors:

    • - DDC

    • - Private dairies (About 415 in no.)

    • - Dairy Co-operatives

    History of Milk Marketing

    • Raw milk produced in village and sold to city

    • area

      • Directly from producers

      • Through vendors

    History of Dairy Co-operatives

    • Established in 1956

    • Numbers increased tremendously in 1980s

    • Dairy Co-operatives occupy 20% of all

    • co-operatives

    • Currently 1584 in number

    • 40 Dairy Co-operatives process milk


    • Collection and sale of milk in reasonable

    • price

    • Milk processing

    • Production and sale of diversified products

    Functions …

    • Insurance of dairy animals

    • Sale of various items in reasonable price

    • (e.g. animal feed, medicine, milk can and

    • other equipments)

    Functions …

    • Train the members about hygienic

    • production and quality management

    • Train about co-operative management /

    • co-operative education.

    Functions …

    • Encourage the farmers to keep

    • productive animals

    • Train economic production system and

    • management

    • Encourage forage-based production

    • system

    General contents of TCP Dairy



    Expected outputs


    Major achievements

    Challenges a head

    Suggested option for the operation of PMD


    General recommendations beyond the plan


    1. Introduction

    Project Title:Training Program for Small

    Scale Dairy Sector in support of the

    Community Livestock Dev. Project

    Project Number:TCP/NEP/3103/D

    Introduction contd…

    • Starting date: May 2007

    • Completion date: May 2009 originally

    • extended till 31 December 2009

    • Govt. responsibility for implementation:

    • Ministry for Agriculture and Cooperatives

      • Department of Livestock Services

      • National Dairy Development Board &

      • Dairy Development Corporation

    2. Objectives

    Deliver short-term, tailor made training

    courses for persons and organizations

    involved in milk production, collection,

    processing and marketing in the small-scale

    sector to improve efficiency and quality

    throughout the farm to consumer milk chain.

    3. Expected outputs

    Establishment of a dairy demonstration and training centre;

    Six short-term tailored training modules developed, tested and introduced for transferring improved dairy technologies to the small-scale dairy sector;

    Organization of trainers’ training

    Expected output contd.

    Mobile outreach training at field level;

    500 milk producers and 120 milk collectors, processors and vendors trained, of which one third will be women;

    Improved small-scale milk processing and packaging equipment fabricated locally;

    Expected output contd.

    • Media campaign and pilot school milk nutrition scheme developed and implemented;

    • Stakeholder workshop for presentation of project experiences in order to draw up an action/business plan.

    4. Budget

    Food and Agriculture Organization Contribution: USD 372,000

    Government Contribution in 2008/09-10 USD 37,000

    Community Livestock Development Project support: USD 30,000

    5. Major achievements

    Establishment of demonstration and training centre

    Six tailor made training course developed and tested

    Training of Trainers completed

    11 unit of mobile outreach trainings completed

    Major achievement contd..

    e) 683 participants (48% women)

    f) Fabrication of many types of dairy equipment locally- possibly except few equipment

    g) Cheese training in support of UNV from KRAFT Foods USA

    6. Challenges a head for sustainability

    Lack of highly skilled and trained manpower at PMD

    Involvement of National Dairy Development Board and Dairy Development Corporation not yet entertained

    7. Suggested option for the operation of PMD

    The PMD shall be operated under double track management system as incorporated for other enterprises at Livestock Development Farm.

    8. Conclusions

    Pokhara Model Dairy is completely new operation, but staffs are handling the plant confidently

    Volume of milk low, profitability questionable and it takes some months to be fully established.

    Conclusions contd. … …

    • Department of Livestock Service is committed to support the required budget through Livestock Production Directorate

    • Regular budget for a number of dairy trainings will be managed by Training Directorate and CLDP

    • Bigger dairies are eager to support as per requirement

    Conclusion contd. …

    The double track management system shall be considered only when the plant becomes fully operational, profitable and staffs will be experienced

    The purchase price of milk shall be considered to bring down to 28 Nrs./liter as per DDC payment system & sales prices to Nrs. 50/liter, which will give reasonable profit

    Operating the PMD on a semi commercial bases would only provide a limit income to support the unit and associated training activities. The unit will require budgetary support from the DLS. All dairy training activities shall be conducted under PMD management.

    Conclusion contd…

    9. General Recommendations

    The volume of milk at Livestock Development Farm to run PMD is not sufficient (at least 500 Liter/day)

    Either the number of buffaloes shall be increased or

    Milk collection from vicinity area (Quality and availability !)

    General recommendation contd...

    Farming Improved breeds of cows not recommended (loss of identity, management systems of buffaloes and cows are different)

    Receiving of milk continuously through out the year is problem with buffaloes (Heat Synchronization or increase no of buffaloes)

    10. Acknowledgements

    DG, DLS

    FAOR Nepal.

    FAO supporting Staffs (All)

    International Consultants

    Lead Technical Officer

    Acknowledgement contd..

    Former Livestock Dev. Farm Manager, Pokhara

    RLTC Pokhara

    Livestock Development Farm, Pokhara

    Former program officer

    PMD site before construction

    Thank you

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