Status of Dairy Sector

Vishwa Ram Khadka

President Nepal Dairy Association
28 January 2005

History of Dairy Industries

1953: Establishment of Yak Cheese Factory in Langtang 1956: Established milk processing plant in Kathmandu & mini milk processing plant at Kharipati, Bhaktapur 1969: Formed Dairy Development Board 1970: Involved private Sector in milk Processing 1990: Implemented Ten Year Dairy Development Plan Vast involvement of Private Sector in Milk Processing . 1998: formed Nepal Dairy Association (NDA) emerging three private sector dairy associations.

Status of Dairy Industries

Source: NDA

Production of Milk In Nepal

Contribution of Dairy Sector in National GDP : 6%

Total Production 2003/2004 : 11 Lakh 96 Thousand MT

Targeted in 2004/05 : 12 Lakh 25 Thousand MT Buffalo and cow milk is collected in 43 districts and yak milk is collected in 6 districts Only 12% of the milk is utilized through form formal sector It is estimated that 59% used for ghee % consumption Buffalo Milk Yield : 810 Kg/yr Cow Milk Yield: 387 Kg/yr.

Status of Dairy Industries

Source: NDA

No of Industries Handling Capacity Actual Handling Capacity Utilization Employment Farmers Involved Cash Contribution

180 600,000 L 460,000 76% 11,000 650,000 Rs. 4,000 Million Per Year

Status of Dairy Sector

Source: NDA

Type of Plant DDC Private Sector Large

Running Capacity 175,000 425,000 160,000

Present Handling 210,000 250,000 65,000

Capacity Utilization % 120 58 40

Medium
Small Cottage type

120,000
95,000 50,000

70,000
72,000 43,000

58
75 86

Total

600,000

460,000

Average 76

Status
Dairy Plants Kathmandu Valley
Source: NDA

Size Large Medium Small Cottage

Daily Capacity above 30,000 10,000 30,000 1,000 10,000 Below 1,000 Total

Private 2 8 6 40 56

DDC 1

Status Market Share of Private Sectors & DDC

Source: NDA

Market Shares in Kathmandu Valley

Private Sectors: 150,000 LPD 55% DDC : 125,000 LPD 45%

Private Dairyies DDC

Potentiality in the Dairy Sector

Support for Poverty Alleviation Product Diversification SMP Production
Export Dairy Products i.e. Cheese, Condensed Milk, Ice-cream etc.

Policy for Future Plan

Implementing Long Term Dairy Development Policy Improvement/Amendment of Food Act. Investment for Higher Technology to get benefit from WTO Electricity Subsidy, Fuel Subsidy & Interest Subsidy Eliminating Vat & Income Tax in agro based industries. Commercialization of Co-operatives

Support for Dairy Industry

Support for Implementing Code of Practice Support for Strengthening NDA & Its Quality Testing Lab Support for establishment of Milk Chilling Center & Road Milk Tanker Establish Dairy Training Institute Provide Opportunity to study in Abroad Replace suitable breed to increase the productivity Provide awareness program and training in farmer level

Thank You !