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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

Small Scale Dairy in Nepal-Results from the TCP

Bhuvaneshwar Sharma

National Project Coordinator

introduction of dairy farming
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
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
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
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
History of Milk Marketing
  • Raw milk produced in village and sold to city
  • area
    • Directly from producers
    • Through vendors
history of dairy co operatives
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
functions achievements
  • 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
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
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
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
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
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
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 contd1
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
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
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
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
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

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


FAOR Nepal.

FAO supporting Staffs (All)

International Consultants

Lead Technical Officer

acknowledgement contd
Acknowledgement contd..

Former Livestock Dev. Farm Manager, Pokhara

RLTC Pokhara

Livestock Development Farm, Pokhara

Former program officer