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Role of Buffalo for Diversified Enterprise Development in Nepal Buffalo and

Smallholders

Conference Paper · January 2017

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Raj K Adhikari
Himalayan College of Agricultural Sciences & Technology, Nepal
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Buffalo and Smallholders

Livestock is an integral component of Nepalese
farming system, stallholder dominated.
Buffalo:: BLACK GOLD
Role of Buffalo for more efficient in utilizing coarse fiber of feeds, thrive
Diversified Enterprise well in grazing, crop residues and agricultural by
Development in Nepal products - helpful for resource poor,
ranks top on milk and meat contribution in Nepal,
Raj K Adhikari
Shubh N. Mahato contributes 53% to the total LGDP and 35.09% of total
Neena Joshi livestock income at household level,
Nearly 50% of the households keep buffaloes for milk
and meat, manure and power.
Relatively, buffalo is more resilient to climatic stress,

BUFFALO: MAJOR ENTERPRISES Key Statistics

MILK Production: Major Source, High in Parameter Total Buffalo Cattle

Fat, Higher Price Population 12 M 5.16M 7.2M
Milk Based: Product Diversification AAGR 1.1% 2.4% 0.3%
Meat: Fresh, Frozen and Dried Milking 2.38M 1.35M 1.02M
Power: Cart, Ploughing (19.10%) (26.22%) (14.02%)
Enterprises based on by-products AAGR 2.0% 2.5% 1.3
Hide Milk Production 1854K Mt 1210K Mt 643K Mt
Bones (Mt) (65.3%) (34.7%)
Horn AAGR 3.4% 3.0% 4.4%
Data from 2001-2015
Source: MOAD 2017

Nepal Dairy Value Chain

Dairy Value Chain Study
Indian
Consumption Consumers Sweet/Tea Shops Export
‘Dairy Value Chain Study’ Hotels
Boarder
Market
MOAD, TEPC Quarantine

National perspective in
2014/15
Retailer
18 districts, 335 households Marketing
Survey, 34 FGDs Milk
NDDB

AEC/FNCCI, Dairy Association

[29districts]
NGOs/INGOs/NARDF/PACT/HIMALI/PAF/Projects

Booth Wholesaler/
Bank and Financial Intuitions

Distributor
MOAD/MOLD/DLS, NARC, DFTQC

Established and
promising/potential Processing
Large Dairy

S&M Dairy
CDCAN, CFDA, DOC

Collection
Cooperatives, Collectors
Chilling Center

Production
Milk Producers Indian Indian
Smallholder farmers / Firms Dairy Farmers

74.39% HH raising Buffalo Agro-vets GOs Resource Farms/Farmers Cooperatives MFIs

Input Farms and
Centers
Supply Vet Clinics NGOs Cooperatives
DLSO/LSC CFUG

Functions Actors Enablers

Adhikari R.K, S.N Mahato and N Joshi. 2017. Role of Buffalo for Diversified Enterprise Development in Nepal. Proceeding of
International Buffalo Symposium. November 15-18, Chitwan, Nepal.
http://afu.edu.np/vet/sites/default/files/5.%20Role%20of%20Buffalo%20for%20Diversified%20Enterprise%20Development%20in%
20Nepal-Raj%20Adhikari.pdf 1
 11/17/2017

No of Milking Buffalo/HH

Category by # of animals No of HH % of HH
0 33 13.2
1 to 2 165 66.3
3 to 5 49 19.7
6 and above 2 0.8
Total 249 100
Av. Buffalo heads/HH = 3.47
Av. Milking buffalo/HH = 1.2

Point of Sale by Buffalo Farmers

Tea and Sweet Household
Shops 7% Collector
12% 4%

Private Dairies Cooperative

27% 50%

Cost of Production (Rs/Lit)

Cost Head Cattle Buffalo Pooled

Dep on Fixed assets 2.43 2.47 2.45
Green forage and straw 3.63 3.21 3.42
Feed and feed additives 3.83 4.43 4.13
Vet Service (fee,
medicine, NI, AI) 0.62 0.85 0.74
Interst on loan 1.18 2.48 1.84
Labor cost 14.89 19.63 17.27
Other (including AMC) 2.03 1.79 1.91
Total cost 28.60 34.27 31.49
Source: Heifer, 2015
Farm Gate Price = 40-50/lit
Buffalo milk = 50-60/lit

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Enterprises on Buffalo Meat Import/Export: Bovine Meat

Buffalo Fattening enterprises Year Particular Volume (Kg) Value (Rs.)

Fresh and Dried Meat (Domestic) 2015 Import 558,484 137,034,465
Frozen/Chilled and Dried Meat (Export) Export 4,225,411 433,519,043
Meat Processing Industries Balance 3,666,927 296,484,578
Slaughter slab operators / Retailers 2016 Import 270,213 119,472,041
Export 3,787,099 377,994,991
Balance 3,516,886 258,522,950

http://www.efourcore.com.np/tepcdatabank

Buffalo Calf Fattening Trading

Cattle (Cow) are not allowed for slaughter in
Nepal
Buffalo is major source of Meat in domestic
market
Raising buffalo calf for meat purpose is
traditional practice but recently recognized as
an enterprise
Quality of meat is better from such fattened
calf, so demand is high,
Profitable too.
Buffalo Trading is good yielding enterprise
with limited growth potential,
These traders collect buffalos (any type) from
different villages and sell to others,
Collect/purchase,
Appropriate Feeding and Intensive care
Treat them (if needed),
Sell.
Smuggling (from India) sometimes

Leather based Enterprises Leather industry

There is specialized community with special
skill-set, engaged in leather industry,
Leather and leather products was on top rank
among Nepal’s manufacturing exports in the
past, now declined.
11 Leather Factories, 5 billion investment; 500
people working in the sector unemployed.
The leather industry is labor intensive – creating
employment opportunities.
The Nepalese leather industry comprises of
tanning/processing of leather and footwear,
bags, wallets, belt, jacket factories.
A majority of Nepal’s leather exports is limited to
semi-processed wet blue leather while finished
leather and leather footwear are largely
consumed domestically.
70% export in the form of wet-blue leather,
20% export in the form of crust leather and
10% export as finished leather.
In contrast, More than 70% of the finished goods
made in Nepal are made from leather bought
from India.

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Other: Eco-Tourism Key Challenges/Issues

Share of Tourism in GDP is significant
Handicraft is good enterprise
Products from bones, horns and skins are popular
among tourist but not explicitly from buffalo
Buffalo are obviously major source of those raw
materials
The number of SMEs based on those enterprises are
still not concrete.
Buffalo Village and Eco-Tourism
Somehow popular in Thailand, Cambodia etc,
Buffalo Riding, Buffalo Race - popular in some parts
of Nepal, can be developed for tourism purpose too.
Comparatively, buffalo hasn’t been prioritized in N/GO
programs and projects, Most of the R&D efforts are on
cattle,
Limited Research: Separate unit for Buffalo Research
Program/NARC was just established,
Limited program and priority towards buffalo causing
decline in buffalo population in major production
pockets, especially dry animals,
MEDEP (and other similar) projects helped to establish
leather based MSMEs that increased demand for leather
but no effort on supply side,
Meat Inspection and Slaughter House Act is not in effect
– causing poor quality standard of meat as well as skin
for enterprises,
Low Productivity: Largely local/indigenous animals with
limited production potential,

HEIFER @ BUFFALO
• 2nd Project in Nepal (1993/95) was on Buffalo
• Working with women farmers/entrepreneurs,
• Promoting Buffalo Farming for Milk Enterprise
• Training and Extension
Raj K Adhikari
• Input and vet support including AI Program Manager,
• Linking with BDS including Markets Heifer International Nepal
raj.adhikari@heifer.org
• Buffalo Fattening Enterprises (few cases)
twitter: @rajkadhikari
• Supporting Meat Entrepreneurs
•
•
Linking Entrepreneurs with BFIs
Enhancing Access to Insurance TOGETHER,
WE HAVE POWER OVER
HUNGER and POVERTY

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