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A Study on Growth and Performance of Dairy Sector in Nepal

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International Journal of Environment, Agriculture and Biotechnology, 5(4)
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A Study on Growth and Performance of Dairy

Sector in Nepal
Shuvam Shingh1*, Chandan Sah Kalwar2, Sandesh Poudel2, Priya Tiwari2
and Sitesh Jha3

1Warner College of Dairy Technology, SHUATS, Prayagraj, 211007, UP, India

2Naini Agriculture Institute, SHUATS, Prayagraj, 211007, UP, India
3Institute of Agricultural Sciences, BHU, Varanasi, 221005, UP, India

*Corresponding Author: shuvam.shingh079@gmail.com

Abstract— Dairy sector has been a vector in providing dairy products to the urban population and pull
the urban capital into the rural areas. Dairy industries have been successful in creating a strong
network between the dairy farmers and the consumers and have been established as a bridge between
the urban and rural trade across the country. The entire dairy chain is dependent upon milk production.
At present, Nepal contributes approximately 0.247% of the world's total milk production. Nepal's milk
output is estimated to be 2.05 million metric tons. The per capita availability of milk in Nepal is around
158.9 grams per day, which is far below than the value recommended by World Health Organization
(WHO). The current milk production growth rate should be raised to 4 percent per annum so as to meet
the WHO recommended minimum value of 250 gm per day per-capita milk consumption by the year
2025.The dairy sector in Nepal is the most important sub sector in Nepalese livestock production.
Almost 28% of the national GDP comes from the agriculture and livestock sector. However, the share of
dairy sector in agricultural GDP of Nepal is 8% of the national GDP. Beside contributing to the GDP,
the agriculture sector also provides employment to the two-thirds of the country’s population. The
cooperative sector in Nepal has been in the emerging state and is playing an important role in
socioeconomic development of millions of rural families.
Keywords— Dairy; GDP; Per Capita availability; Milk production; Livestock; Sustainability.

I. INTRODUCTION to establish a strong network and linkages among the

The organized dairy development activities in Nepal rural population all over the country. The co-operative
began only after 1952. The establishment of a Yak sector in Nepal has been in the emerging state and is
cheese factory in Langtang of Rasuwa district under the playing an important role in socio-economic
assistance of Food and Agriculture Organization (FAO) development of the country. At present the dairy sector
in 1953 is considered to be the pioneer activities in the of our country is contributing 0.247% percent of the
dairy development of Nepal (FAO, 2010). world’s total milk production. Nepal’s milk output is
estimated to be 2.05 million metric tons (FAOSTAT,
A large share in agricultural Gross Domestic Product
2019). The per capita availability of milk has also
comes from the Nepalese dairy sector. The co-operatives
increased to a level of about 158.9 gram per day (RAN,
play an important role in agriculture and livestock sector,
2015). This sector has its importance in reducing poverty
whose share in agricultural GDP of country has been 28
through creating employment and income generating
percent (NRB, 2018; Tiwari and Shingh, 2020). Dairy
opportunities that is ensured through regular cash flow
co-operatives help in establishing strong network and
from urban to the rural areas (Neupane et al., 2018). The
linkages in millions of rural households scattered across
population growth rate of Nepal is found to be 1.35
the country. Dairy co-operatives have helped immensely
percent per annum. Under this assumption, the current

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milk production should be raised by 4 percent so as to (Deshmukh, 2014) for analyzing the growth and
meet the WHO recommended minimum value of 250 gm performance of dairy sector in India.
per day per-capita milk consumption by the year 2025. In
contrast, current milk production growth stands only at
IV. RESULT & DISCUSSION
3.09 percent per annum (Upadhyay, 2017).
Present paper focuses on growth and performance of 1.1. Status of Dairy Sector in the World
dairy sector in Nepal and provides recommendations to The dairy sector of Nepal is emerging, and its share to
meet future challenges. A major fraction of milk is found the global milk production is very low i.e0.247 percent of
to be handled by the unorganized sector in Nepal. Sweet the global milk share. India has been established as the
shops, hotels, restaurants and tea shops which largest milk producer in the world, producing 176.27 MT
manufactures short to medium shelf-life milk products of milk per year sharing 21.32% of global milk
and are not recognized by Nepalese Dairy Act comes production, followed by USA (97.76 MT/year,11.82% of
under the unorganized sector. There is no doubt global milk production) and Pakistan (44.29 MT,5.35%
regarding the dairy co-operatives playing a vital role in of global milk production). The annual milk production
alleviating rural poverty. The formal sector or organized of Nepal as per the report published by FAOSTAT
sector shares 20% of the total annual milk produced in (2019) is 2.05 MT. Nepal’s share in global milk
the country (NEPC, 2017). The result of the study production is 0.247% in the year 2017.
indicates that product development, milk quality, From table 1 it is clear that the global milk production is
infrastructure support, and global competition could be rising tremendously to meet the requirements of the
the future challenges of Nepalese dairy sector. growing population. The world milk production in the
year 1975 was only 424.73 MT, which is almost half of
the present global milk production (826.75MT). Table 1
II. OBJECTIVES OF THE STUDY
also reveals a slight drop in the annual milk production of
The objectives of this research are as followings: several countries like China, New Zealand, UK and
1. To analyze the progress of dairy sector in Nepal. France. The top ten countries of the world are
2. To find out the limitations and opportunities of dairy contributing around 62 % of the world milk output till
sector in Nepal. 2017.

3. To examine the role of cooperatives in development The setup of modern dairy processing units with the
of dairy sector and their challenges. application of scientifically advanced processing
techniques and with several investments, innovations in
4. To propose the sustainable remedial measures for
all possible scale would make Nepal a major player in the
improving the overall performance of Nepalese
world dairy market.
dairy sector.

III. MATERIAL AND METHOD

The present research paper is descriptive and is based on
secondary data. The secondary data has been obtained
from various sources such as, Ministry of Agriculture and
Livestock Development (MoALD, Nepal), Ministry of
Finance (MoF, Nepal) and various reports of Dairy
development Cooperation (DDC), Food and Agricultural
Organization (FAO), National Agricultural Research
council (NARC) and National Dairy Development Board
(NDDB). The basic statistical tools such as percentage,
growth rate, variation etc. is used for the economic
analysis. The similar methodology was adopted by

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Table 1: Largest Milk producing countries in the world (FAOSTAT, 2019)

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
7 Russian 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 7.88 9.29 14.64 21.94 21.37 1.53 1.72 2.25 2.73 2.58
Zealand
10 UK 16.02 14.84 14.47 15.32 15.26 3.12 2.74 2.23 1.91 1.84
Nepal’s share to global milk production
Nepal 0.81 1.01 1.35 1.86 2.05 0.15 0.18 0.20 0.23 0.24
World 512.98 540.07 648.22 801.13 826.75 100 100 100 100 100

1.2. Dairy Sector Scenario in Nepal they produced 1167154 milk. Out of the total livestock
As the dairying sector in Nepal is in the developing stage, population, only 13% of the cattle and 26% of the
its position in terms of per capita availability is one of the buffaloes are of improved breeds (NARC, 2016). Jersey,
lowest. The per capita availability of milk was about Holstein, Brown-Swiss, Ayrshire and Sahiwal and their
132.88 gm per day in 1985 which has declined to 129.30 cross-bred cows were the breeds of cows, whereas the
gm per day in 1995. However, the present level of per buffaloes included local, improved such as Murrah and
capita availability is 158.9 gm which is much lower than their crosses. Buffalo milk shares about 65% of the total
the recommended value of WHO (250gms) and even less milk production in Nepal (MoAD, 2016).
than 220 gm recommended by the Nutritional Advisory The decentralized system of governance in Nepal shifted
Committee of the Indian Council of Medical Research from the development region to the province system in
(ICMR). The current milk production of Nepal as per the the year 2015.The data tabulated below in the table
report of Food and Agricultural Organization in the year shows various milch animal population in different
2017 is 2.05 MT. provinces of Nepal. Province no.1 holds the maximum
As per the statistical information collected from Nepalese cattle population whereas the maximum buffalo
Agriculture- 2014/15, MoAD, total milk production in population is found in province no.5. Province no.2
Nepal was 1724823 MT out of which 1153838MT is doesn’t hold any yak whereas the maximum yak and
from buffalo and 468913 MT from cow. The total buffalo sheep population is hold by province no.6. Likewise,
population was estimated to be 5133139 and that of cattle province no.1 holds the first position on the goat and pig
population was 557669. Likewise, the total milking cattle population. The total cattle population as per the report of
were 1025947 and milking buffaloes were 135164 and livestock statistics of Nepal,2017 is 6430397.

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Table 2: Population of animals in various provinces of Nepal (Livestock statistics ofNepal,2017)

Province Cattle Buffalo Yak/Chauri Sheep Goat Pig
Province 1 1601707 455638 13007 48365 2277659 458723
Province 2 697881 424711 - 12118 1306800 27839
Province 3 832320 588984 11354 39836 2484855 84763
Province 4 476367 526689 10664 67954 1283467 81939
Province 5 1040251 675601 11 134320 1835436 134424
Province 6 717636 170314 13083 223272 994927 27471
Province 7 1064235 332452 746 87019 1041986 55038
Total 6430397 3174389 48865 612884 11225130 870197

Table 3: Animal Population Trend over different years in Nepal

(Livestock Statistics of Nepal, 2016)
Year Total Animal Total Milking Animal % of Milking Animal
2005/06 11207802 1988140 17.74
2006/07 11411092 2033166 17.82
2007/08 11587221 2073711 17.90
2008/09 11855684 2144371 18.09
2009/10 12036244 2207450 18.34
2010/11 12219700 2265766 18.54
2011/12 12378083 2330000 18.82
2012/13 11515895 2395387 19.14
2013/14 12422528 2370350 19.08
2014/15 12409480 2371111 19.11
2015/16 12471617 2381519 19.10
2016/17 12525485 2539041 20.27

80
60 Formal
HH 20%
40
20 retention
50% Informal
0 30%
Contribution to Consumption Dairy Sector
AGDP per capita contribution to
GDP

Fig 1: Nepal Dairy sector at a glance. HH Retention: Household Retention

Fig 2: Distribution of Milk (COMP-NDDB,2017)

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From the bar graph mentioned above it is clear that, Nepal, crop residues, straw of wheat and rice, stovers of
Nepal is an importer of milk and milk products to fulfill maize, leaves of trees and other green fodders cultivated
the present needs of its population. Milk, cream powder, by farmers are the prime sources of feed for animals.
butter, butteroil, cream liquid and cheese are the major Beside these, maize is used as concentrate followed by
products that are imported to Nepal. Dairy sector brans of rice and wheat, oilseed cakes of soybean,
contributed nearly 33 percent of the AGDP (Agricultural mustard, sunflower and other byproducts of legumes.
Gross Domestic Product) and 8 percent of total GDP. These concentrates used are not sufficiently produced in
The buffalo population in Nepal bears a considerably Nepal. Thus, they are imported from India and other
shorter lactation period of 242days, whereas the cows of countries. Grains of legumes are substantial source of
Nepal has an average lactation period of 286 days which protein. Osti et. al, (2013) found that milk production
is sound. was less (8 kg/d/head) prior to bypass protein (BP)
1.3. Ration and its effect on milk production in feeding, while higher during BP feeding (10.0
Nepal kg/animal/day) was provided. The feed supply of Nepal
is not sufficient to meet the demand of dairy animals.
Balanced Ration is the quantity of feed that provides the
There is shortfall of 38% in crude protein, 42% in
necessary nutrients required for proper growth,
metabolizable energy and 33% in dry matter (Osti,2020).
development, gestation and lactation of animals. In

Table 4: Crop residues and by-products available (%) in Nepal (MoAD,2013)

Crops Main Product Residues Oil Meals Oil Cakes Bran/Husk
Rice 14.99 9.27 - - -
Maize 66.56 82.30 - 97.71 76.28
Millet 1.018 1.68 - - -
Wheat 5.75 3.55 - - 6.57
Barley 0.113 0.07 - - 17.15
Buckwheat 0.033 0.021 - - -
Oilseeds 0.596 0.143 99.95 0.76 -
Sugarcane 9.75 1.01 - - -
Cotton 0.005 0.000069 0.05 0.000732 -
Pulses 1.19 1.96 - 1.53 -
Total 100 100 100 100 100

Percentage

50 39.6
40
30 21 17.8
20 12
7
10 2.6
0
Agriculture Agriculture Forest Grassland Water other
land land including including
cultivated uncultivated shrub land pasture

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Fig 3: Land Use Statistics in Nepal

DM(tonnes/ha/year)

14 12
12
10
8
6
4 1.8 1.8
2 0.4 0 0.4
0
Agriculture Agriculture Forest Grassland Water Other
land land including including
cultivated uncultivated Shrub land pasture

Fig.4: DM (Dry Matter) in tonnes/ha/year in different land use pattern

When we see prior to 100years then it is found that passes from the MPCS to the MCC and finally to the
people used to feed only roughages to their animals and milk processing plants. The milk producer’s cooperative
later use of concentrates increased the yield of milk and society is the organization comprising of the dairy
then the concept of total mixed ration (TMR) was farmers and functions to collect the raw milk at village
popular and it is found that animals supplemented with and grassroot level. The milk collected from the MPCS is
TMR were found to be free from nutritionally related off transported to the milk chilling centers where they are
feed, milk fat depression and indigestion problems chilled and temporarily stored. From the MCC the milk is
(Schingoethe, 2017) .Total mixed rations are commonly then transferred to the milk processing plants in the large
being fed to dairy animals in other countries but still tankers which are facilitated with adequate refrigeration
people in Nepal are compelled to feed roughages to their requirements. Similarly, a small volume of milk directly
animals due to poor quality, lesser availability and higher passes from MPCs to Cow milk cheese factories and
prices of the concentrates (De Vries and Kaylegian, from farmers to the Yak cheese factories (FAO, 2010).
2018). Tracking the milk passing through various channels
1.4. Pattern of Flow of Raw milk either formal or informal is not an easy task in Nepal due
The latest milk production of Nepal as per the data to the lack of advances in the traceability system. The
obtained in the year 2017 was 2.05 MMT (FAOSTAT, milk in Nepal is mainly supplied to the informal sectors
2019). Out of the total milk production, only 20% of the which accounts for approximately 80% of the total
total milk was utilized by the formal sector (NEPC, annual milk production. In the informal sector, the milk
2017). is mostly handled by the individual households, tea shops
and the sweet meat shops. The vector for the informal
The milk is produced by the dairy farmers and the
milk trading in Nepal is mostly individual farmers and
surplus milk is distributed either via formal and informal
the milk contractors. This pattern of flow of raw milk in
trading methods. The formal sector in Nepal comprises of
Nepal can be illustrated via a chart shown below.
the MPCS (Milk Producers Cooperative Society), MCC
(Milk Chilling Centers), Milk processing plants and dairy
cooperatives. The flow of milk in the formal sector

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Fig 5: Flow patterns of milk in Nepal (FAO,2010)

1.5. Milk Production and Per Capita Availability day. The per capita availability was found to be 203.49
Projection gm per day in the year 2017 which was far less than the
According to the data taken from FAOSTAT, (2019) and recommended value of WHO (250 gm). It has been
(Nepal Population, 2020), the annual milk production and estimated that the annual milk production growth rate of
the human population in the year 2017 were 2.05 MMT Nepal is 3.09% (Upadhyay, 2017) and the population
and 27632681 respectively. The per capita availability growth rate is 1.35% per annum (Nepal Population,
was calculated by dividing the total milk production with 2020).
the human population and was expressed in grams per

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3.5

2.5

1.5

0.5

0
2016 2018 2020 2022 2024 2026 2028 2030 2032

Milk production(MMT) Population(Crore)

Fig 6: Projection on Annual Growth Rate Required to meet Milk Consumption Recommended By FAO/WHO By 2030.

The projected value of milk production was calculated by crores and 3.044 MMT respectively. The value of the per
considering 3.09% annual growth rate i.e. current rate capita availability determined on the year 2030 is 253.89
and the total milk production for the year 2017-2030 gm per person per day which is just above the
were extrapolated. Likewise, the human population for recommended value provided by WHO (250gms). Thus,
the various years were estimated by considering 1.35% with the same growth rate in milk production (3.09% per
annual growth rate and the population for the year 2017- annum) and population (1.35% per annum), the
2030 were extrapolated. The population and the milk recommended value of milk availability would be
production for the year 2030 was estimated to be 3.28 achieved by 2030.

3.5

2.5

1.5

0.5

0
2017 2018 2019 2020 2021 2022 2023 2024 2025

Milk production(MMT) Population(Crore)

Fig.7: Projection on Annual Growth Rate Required to meet Milk Consumption Recommended By FAO/WHO By 2025

Figure 7 represents the projection on annual growth rate 1.35% per annum. The total milk production in the year
required to meet the milk consumption recommended by 2025 at 4% annual growth rate would be 2.80 MMT
FAO/WHO by 2025. In order to attain the recommended while the population at that period of time would be 3.07
value of per capita availability by 2025, the current milk crores.
production growth rate has to be increased to 4% per Hence, the value of per capita availability estimated by
annum assuming the static population growth rate i.e.
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dividing the total milk production by total population is al., 2015).

250.16 gm per person per day which is just above the All over the country, the cattle and buffalo population are
recommended value of WHO (250gms). evenly distributed. It creates opportunity for the farmers
1.6. Limitation and Opportunities of Dairy sector to generate benefits from longer duration of lactation in
in Nepal cattle and high fat content of buffalo milk, both the
According to the World Bank collection of development factors leading to sound income. Huge population density
indicators, the rural to urban population ratio of Nepal is in urban areas has created a significant demand for milk
approximately 8:2 i.e approximately 80% of the Nepalese and dairy products which is impacting the milk market to
reside in the rural sector. A major fraction of rural grow and flourish (FAO, 2010). The increasing number
population of Nepal seem to be engaged in agriculture of dairy plant schemes under DDC and strong channel of
and livestock rearing which makes the rural sector a dairy cooperatives from the grassroot level to the central
major milk producer in the nation. But because of the level has strengthened the dairy industry and provided a
lesser availability of the assured market, the producers do supportive environment to the dairy farmers. The
not have an incentive to invest in good breeding stock, influencing activities of NGOs like providing technical
feeds, or veterinary medicine and services. Lack of these support, veterinary care service and involvement of
inputs affect the productivity which eventually reduces private dairy sector has become sensational support and
profit (Sharma and Banskota, 2002). Moreover, the dense hope to the small-scale milk producer (Sharma and
population, lower milk production and availability causes Banskota, 2002).
the demand escalation of milk and milk products in the Despite the opportunities mentioned above, there are
urban region. Similarly, because of the low purchasing several other constraints relating to dairy sector
power of the consumers, the effective demand for milk at development in Nepal. The depletion of animal feeding
local levels is also low. Hence, it is necessary to transport base resulted due to the deterioration of the forest areas
milk to major urban areas for marketing. At the same for the various purposes like timber and fuel wood has
time the price the cooperatives pay to farmers does not affected the dairy sector adversely (Pande,1997). The
match growing feed prices (Shrestha, 2000). Nepal has unavailability of green fodder and quality feed adversely
tremendous potential for increasing dairy livestock affects animal productivity. Moreover, poverty and
production and productivity. Buffalos in Nepal are also illiteracy among the livestock raisers severely hits their
slaughtered for the production of meat and meat-based ability to respond to the new opportunities and cope with
food products. Buffalo meat accounts for 54% of the total the dynamic situation. Illiteracy complicates the
meat produced in the country (MoAD, 2016). Milk extension learning process as they require more face to
market in formal sector or organised sector contributes face communication. Above all, the uncommonness of
about 20% of the total annual milk produced in the the heifer rearing practice and lack of cost-effective
country (NEPC,2017).The bovine population of 9604786 heifer rearing technology has resulted in the critical
produces 2.05 million tonnes of milk annually (per capita shortage of the productive dairy animals (Sharma and
availability of milk is 158.9 gms per day), whose Banskota, 2002). Upadhyaya et.al, (2000) studied the
contribution is yet below the recommended value of scenario of the dairy cooperatives in Nepal and
WHO (i.e. 250gms per day). The production and concluded that the dairy cooperatives do not buy milk
productivity of cattle in Nepal is very low with 519.56 from their regular suppliers during the flush seasons.
litre per lactation as compared to world average 2038kg Those days of the week, when the private and public
per lactation, which requires a lot of improvement dairies do not buy milk from the dairy farmers are termed
(Thompkinson and Sabikhi, 2012). as “milk holidays.” The main reason behind the milk
Hence, there is need of great improvement in the dairying holidays could be the lesser demand of milk and milk
and animal husbandry systems in Nepal. There is huge products among the consumers and lack of milk storages
variation in productive and reproductive performance of capacities in the processing plants. With an aim to
cattle in Nepal. To make dairy sectors more commercial compensate a possible milk holiday, Nepal is going to
there is need and opportunities to increase productive and export 30000 litres of milk to India. Due to low domestic
reproductive performance of cattle which can be demand during the flush period exporting milk is an
achieved by cross breeding and hybridization (Paneru et effective measure to avoid the problem. Production cost

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of milk in Nepal in comparison to India is naturally The first tier is MPCSs primary level cooperatives,
higher as Nepal is dominated by non-commercial second level is District Milk Producers Cooperative
farmers. Milk production drops by almost 30% during Unions (DMPCUs) of different MPCSs as District
lean season (April-August) which becomes insufficient to bodies. Their main theme is to deliver programs designed
fulfill the market demand as milk consumption is going to support the increased production and processing of
high. The deficit in milk production can be well milk and milk products and also to contribute to the
combated by promoting powder milk as an alternative financial and social upliftment of the rural milk
source of milk production as well as good support from producers. The third tier is Central Dairy Cooperative
government in building farmers capacity and introducing Association Limited Nepal (CDCAN). CDCAN is
better dairying technologies. Also, low milk price is one registered as their central-level cooperative organization
of the major limitations in Nepal followed by lack of established in 1993, mainly focuses on increasing
proper government milk policy and inadequate milk economic benefits to the milk producers and making the
processing industries (Timsina and Regmi, 2009). country self-reliant in clean and high-quality milk and
1.7. Dairy Co-operatives and their challenges milk related products. Moreover, it also implements
policy advocacy activities at the central level to represent
The establishment of dairy cooperatives in Nepal was the
the interest of member organizations (Upadhyay et.al.,
result of the implementation of the first five-year plan in
2001).
the year 1956-61. The first dairy cooperative was formed
at Tusal village of Kavre district. Though the dairy The milk processing plants functions for the processing
cooperative activities got initiated in the early 60s’ their of raw milk and manufacturing the value-added products
effective activities were observed only after December from the milk. They are the key elements of the formal
1981, when DDC initiated the milk producers-oriented sector of milk distribution. They help in maintaining a
program by participating the farmers to form their own regular standard and balance of milk distribution
Milk Producer Association (MPAs). The MPAs thus throughout the region. They are the bridge via which the
formed were not provided with the legal status and they rural milk and resources and urban capital can be
functioned for milk trade and support to milk production. interlinked. The dairy sector in Nepal is characterized by
Later on, MPAs were transformed into Milk Producers scattered, small scale, unorganized milk animal holders;
cooperative society (MCPS) in February 1989 to make inadequate and inappropriate animal feeding and health
them function autonomously. The MPCS are governed care; low productivity; an inadequate basic infrastructure
by cooperative Act 1992. The functions of these MPCSs for provision of production in puts and services.
is to gather milk from the dairy farmers, test its quality, Moreover, lack of an assured year-round remunerative
transport it for selling to the nearest milk processing producer price for milk, inadequate basic infrastructure
plants, receive payment for the milk and distribute the for collection, transportation, processing and marketing
payment to the individual milk supplier farmer. The dairy of milk is another aspect of the Nepalese dairy sector.
cooperatives in Nepal functions in 3-tier system Low productivity of the milch animals is a serious
(FAO,2010). constraint to the dairy development in Nepal (GOEC
Nepal, 2012).

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Fig. 8: Challenges faced by the Dairy Co-operatives

1.8. Sustainable remedial measures and Further, transparent pricing system for respective cattle
suggestions and buffalo milk could be encouraged and adequate
To overcome the challenges faced by dairy cooperatives pricing should be offered based on the fat and SNF
and to strengthen the entire dairy sector, the principles of content. This might eventually reduce the mal
sustainable development is to be taken in account. For adulteration practices.
upgrading dairying to a larger scale, firstly the farmer’s Application of block chain technology should be
dairy capacity and needs should be improved. Farmers introduced and promoted for ensuring efficient
need to improve the quality standards of milk, which traceability and food security (Shingh et. al, 2020).
would require a strategy to motivate them that dairy is a Adequate trainings should be offered to the farmers
profitable business other than an optional business. regarding the advanced technologies and systematic
(KUBK-ISFP, 2015). cattle rearing for generating efficient and active man
The combination of proper provision of animal breed, powers in the dairy sector. The income and price
nutrition, health care, processing and marketing is key for elasticity of consumers should also be considered in the
bringing success in dairy sectors. Awareness program long run for a better pricing system (KUBK-ISFP, 2015)
should be initiated to provide knowledge about animal The total mixed ration can be used to feed the animals in
science and sanitation (Santra, 2018). Moreover, the order to get higher milk production. This is in line with
government should direct, coordinate and regulate the the findings of (Schingoethe, 2017). The proper provision
activities of institutions and organizations involved in of animal breeds, nutrition, health care, processing,
dairy sector to create and provide favorable environment marketing along with awareness program is key for
for small scale dairy farmers (Pant,2017). bringing success in dairy sectors. This suggestion is in
There is an utmost need for the disease control line with (Santra, 2018).
mechanisms to be developed as epidemics of FMD, black
quarter, HS and other adversely animal health, which V. CONCLUSION
eventually reduces milk production and effects the entire
The present study results revealed that the daily milk
dairy sector. Special and aseptic transportation utensils
production in Nepal had been found in small scale and
should be assessed by the producers for the safer
suffering from many obstacles. The per capita
handling and delivery for the products thereby
availability of milk in Nepal (158.9 grams per day) is far
minimizing the risks of food contamination and spoilage.
below than the value recommended by WHO (250 grams
In this way, consumers can get milk from their choice.
per day). The intermittent supply of milk via the formal
Incentives for better quality milk could be suggested
channels causes the dairy cooperatives to function
around the collection centres on competitive basis.
ISSN: 2456-1878
https://dx.doi.org/10.22161/ijeab.54.36 1164
International Journal of Environment, Agriculture and Biotechnology, 5(4)
Jul-Aug, 2020 | Available: https://ijeab.com/

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Jul-Aug, 2020 | Available: https://ijeab.com/

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