Professional Documents
Culture Documents
Chapter 1-3
Chapter 1-3
Chapter 1-3
Total 30
PRACTICALS
2077/78 (2020/21)
Province-wise Data
600000
500000
400000
300000
200000
100000
Milking Cows No. Milking Buffalo No. Cow Milk Buffaloes Milk Total MilkProduced
• Scope and Limitations/Problems/Constrains
Pattern of Flow of Raw milk
• The formal sector in Nepal comprises of the MPCS (Milk Producers
Cooperative Society), MCC (Milk Chilling Centers), Milk processing
plants and dairy cooperatives
• The flow of milk in the formal sector passes from the MPCS to the
MCC and finally to the milk processing plants
• Milk pricing system
✔Two axial pricing policy based on Fat and SNF
✔In some areas farmers are paid on fat basis.
✔Milk price is controlled by the government
• Dairy Related institutions in Nepal
Dairy Development Corporation (DDC)
• It is established in 2026 BS under corporation Act 2021 BS
• It is a fully state owned corporation, initiated for the economic
advancement of the farming communities
• It has flourished into a nationwide movement with an annual
collection over 60 million litres of milk from more than 200 thousand
milk producers through 1200 milk cooperatives spread out in 45
district
• The company has fully modern dairy plants, eleven cheese
manufacturing units, forty five milk chilling plants and highly qualified
dairy specialists
Objectives
• Provide a guaranteed market for milk to the rural farmers with fair
price.
• Supply pasteurized milk and milk products to urban consumers.
• Develop organized milk collection system to meet increasing demand
for pasteurized milk and milk products.
• Develop an organized marketing system for milk and milk products in
urban areas.
Milk supply scheme (M.S.S.)
• For effective and gradual development of dairy industry in Nepal
different “Milk supply scheme (M.S.S.)” were established from 2033
BS
• Objectives of M.S.S.
✔To manage the sales and distribution of milk and their products, collection,
processing, preservation and distribution to the consumer at national level.
✔To work with the principle of development in economic condition of
producers and improve the health condition of consumers.
✔To encourage the production and management of Chauri/Yak in Nepal.
Milk supply scheme (M.S.S.)
Milk Sales
S.No. Projects Franchise Sales Center Dealer Distributor
Booth
1. KMSS - 1422 - - 2
2. BMSS 10 235 2 - 8
3. HMSS 8 195 1 26 3
4 LMSS 1 138 1 11 4
5. PMSS 78 - 4 - 20
6. JMSS 100 78 2 5 5
7. NMSS 100 30 - - 2
8. DMSS 145 - - - 2
National Dairy Development Board (N.D.D.B.)
• To elevate the economic status of dairy farmers and support their families,
the Government of Nepal introduced the Dairy Development Board Act of
2048, establishing the National Dairy Development Board (N.D.D.B.) to
provide modern and scientifically grounded technologies to farmers.
• Objectives
• Assist the government in crafting policies for national-level dairy industry growth.
• Develop strategies for enhancing the dairy sector and implement them effectively.
• Address livestock issues and animal health concerns to bolster Nepal's dairy industry.
• Facilitate collaboration between private and government dairies to balance national
supply and demand.
• Create policies supporting advanced studies and research in milk industries.
• Manage pasturelands and feed industries to optimize animal productivity in the
dairy sector.
Milk Holiday
• The days during which farmers are asked not to bring milk to chilling
centers(Dairies do not purchase milk) are referred as milk holidays
• Farmers have been facing this problem in Nepal since 1991/92. Milk not
collected is estimated to be about 2% of the other
• Causes of milk holiday
• Temporal causes: Decreasing milk selling for short time
• Seasonal causes:
✔The problem of seasonal trend has to do mostly in the buffalo milk production due
to calving pattern of buffaloes
✔90% of the calving by buffaloes occurs between August to November. Milk
production in flush season Z(Oct- Sept) is about 60% and lean season ( April-Sept)
40%
• Spatial causes: Imbalance of production, processing and distribution of
collection centers
Other causes of milk holidays
• 1. Price intervention by government of Nepal.
• 2. Inadequate pricing policy for supply and demand between lean and
flush season.
• 3. Over politics in milk price setting.
• 4. Slow product diversification.
• 5. Import of powder milk
• 6. Flow of Indian milk during flush season
• 7. Inadequate effort in market promotion
• 8. Excessive reliance of farmers on DDC
Possible solutions for eliminating milk
holiday
• 1. Increase export arrangement
• 2. Encouragement to privet sectors
• 3. Price differential between flush and lean season.
• 4. Leave the price to the market.
• 5. Encourage private sector to utilize excess capacity.
• 6. Clear environment for new factories establish
• 7. Reduce cost of production through fodder based feed market
• 8. Increase consumer demand of milk
• 9. Increase product diversification
• 10. Manage the seasonality in milk production.
• 11. Improving collection and delivery demand.
• 12. Increase processing facility by reason
Dairy Cooperatives
• History of dairy cooperatives dates back to the First Five Year Plan (1956-61)
when the dairy cooperatives were formed in Tusal Village of Kavre district.
• However, the dairy cooperatives were became more effective only after
December 1981, when DDC initiated the milk producers oriented program by
encouraging the farmers to form their own Milk Producers’ Associations (MPAs)
along the lines of cooperative principles. The MPAs operated under the by-laws
prepared by DDC.
• The MPAs had no formal legal status and they operated as single purpose
primary cooperatives with milk trade and support to milk production as their
main activities.
• In order to enable the MPAs with the formal legal identity and to make them
more autonomous, DDC took initiation to convert these MPAs into Milk
Producers’ Cooperative Society (MPCS) in February 1989
Dairy Cooperatives
• For this, it encouraged and facilitated to register these MPAs in the
Cooperative Office of Government of Nepal (GoN)
• According to the available information, presently about 1,603 MPCSs
are registered in 53 districts of the country
• Like the MPAs, majority of MPCSs also operates as single purpose
primary cooperatives
Dairy Cooperatives
• The milk producer’s cooperative society is the organization
comprising of the dairy farmers and functions to collect the raw milk
at village and grassroot level.
• The milk collected from the MPCS is transported to the milk chilling
centers(MCC) where they are chilled and temporarily stored.
• From the MCC the milk is then transferred to the milk processing
plants in the large tankers which are facilitated with adequate
refrigeration requirements
Main Function of MPCSs
• To collect milk from the farmers (both the members as well as non-
members), test it for quality, transport it for selling to the nearest
milk chilling centers/milk processing plants of DDC and/or private
dairies; receive payment for the milk from them; and distribute the
payment to the individual milk supplier farmers
• Apart from milk collection business some of the MPCSs have also
started the operation of milk chilling vats; and milk processing for
producing various dairy product
Three - tier system of The dairy cooperatives
• MPCSs are the first-tier primary level cooperatives
• In the second tier, MPCSs in different districts have formed district level
District Milk Producers’ Cooperative Unions DMPCUs), which are
registered under Cooperative Act as district level bodies.
• Presently, there are 36 DMPCUs in different districts (mainly in Terai and
mid-hills) and their main objectives are to deliver programs designed to
support the increased production and processing of milk and milk products
and to contribute to the financial and social upliftment of the rural milk
producers.
• In the third tier, the MPCSs and DMPCUs have formed Central Dairy
Cooperative Association Limited Nepal (CDCAN)
• CDCAN is registered as their central-level cooperative organization
Three - tier system of The dairy cooperatives
• CDCAN is a national level tertiary organization of all the milk
producers' cooperatives at primary and secondary levels
• CDCAN aims to bring increased economic benefits to milk producers
and to contribute to make the country self-reliant in clean and high-
quality milk and related products. It also implements policy advocacy
activities at the central level to represent the interest of member
organizations. Currently, 36 DMPCUs and 1,329 MPCS are affiliated to
CDCAN.
Other Dairy Related Institutuins
• Department of Livestock Services (DLS)
• Promotion of livestock health, livestock sector diversification and
commercialization
• Department of Food Technology and Quality Control (DFTQC)
• Quality control of food
• Implements Food Act and regulations on food, animal feed and animal
products
• Department of Cooperatives (DoC)
• Regulatory body to regulate all the cooperatives from primary to federation
level operating in the country
• Private Sector
• Comparison of Nepalese Dairy with that of Developed Countries
Rank in 2017 Production (Million tons) Share in percentage
Country 1985 1995 2005 2015 2017 1985 1995 2005 2015 2017
1 India 44.02 65.37 95.62 155.69 176.27 8.58 12.10 14.75 19.43 21.32
2 USA 64.93 70.44 80.25 94.634 97.76 12.65 13.04 12.38 11.81 11.82
3 Pakistan 10.86 19.01 29.44 41.59 44.29 2.11 3.51 4.54 5.19 5.35
4 China 4.76 9.46 32.02 36.28 34.87 0.92 1.75 4.94 4.52 4.21
5 Brazil 12.57 17.13 25.53 34.86 33.74 2.45 3.17 3.94 4.35 4.08
6 Germany 33.63 28.63 28.48 32.71 32.69 6.55 5.30 4.39 4.08 3.95
Russian
7 0.00 39.31 31.15 30.79 31.18 _ 7.27 4.80 3.84 3.77
Federation
8 France 28.40 26.069 25.71 25.93 25.26 5.53 4.82 3.96 3.23 3.05
9 New Zealand 7.88 9.29 14.64 21.94 21.37 1.53 1.72 2.25 2.73 2.58
10 UK 16.02 14.84 14.47 15.32 15.26 3.12 2.74 2.23 1.91 1.84
(FAOSTAT,
2019)
Nepal’s share to global milk production
(FAOSTAT, 2019)
Some Facts
• Out of the total livestock population, only 13% of the cattle and 26% of the
buffaloes are of improved breeds (NARC, 2016).
• The annual milk production of Nepal as per the report published by FAOSTAT
(2019) is 2.05 MT. Nepal’s share in global milk production is 0.247% in the year
2017
• Province no.1 holds the maximum cattle population whereas the maximum
buffalo population is found in province no.5. Province no.2 doesn’t hold any yak
whereas the maximum yak and sheep population is hold by province no.6
• The buffalo population in Nepal bears a considerably shorter lactation period of
242days, whereas the cows of Nepal has an average lactation period of 286 days
• Lactation yield of local cattle and buffalo is 450 L and 900 L respectively
• Lactation yield of cross bred cattle and buffalo is 3000 L and 1500 L respectively.
Milk production per cow per lactation
Milk production
S.N. Countries
/Lactation (Kg)
1 E.U 5594
2 U.S 9284
3 India 1145
4 China 3988
5 Newzealand 3211
6 Argentina 4697
7 Austrelia 5491
8 Canada 8395
9 Japan 9269
10 Nepal 438
Milk production (kg)
S.N. Country
per cow per Year
1 World 2,090
2 Developed countries 3,740
3 Asia 9,21
4 Developing countries 6,60
Rank Country Dairy Cattle Population (Million)
1 India 56.6
2 Brazil 38.2
3 China 36.3
4 United States 29.2
5 Russia 27.5
6 European Union 24.2
7 Germany 22.9
8 France 21.1
9 Japan 19.8
10 Italy 19
11 Argentina 10.2
12 Pakistan 9.8
13 Mexico 8.2
14 Ethiopia 7.2
15 Colombia 6.2
16 Vietnam 5.1
17 Bangladesh 4.7
18 Turkey 4.6
19 Egypt 4.2
20 Indonesia 4.1
21 Nepal 2.3
Top 10 Countries with highest number of
buffaloes