Small Scale Dairy in NepalResults 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
•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
Dairying
•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
•% 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
•Contribution of women in dairy productionapprox. 70%
•Entrepreneurship relatively low
•Professional farming system not widespread
•Excellent indigenous knowledge in farming
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
•Raw milk produced in village and sold to city
area
 Directly from producers
 Through vendors
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
Introduction
Objectives
Expected outputs
Budget
Major achievements
Challenges a head
Suggested option for the operation of
PMD
8. Conclusions
9. General recommendations beyond the
plan
10. Acknowledgements
1.
2.
3.
4.
5.
6.
7.
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…
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
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
- 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.
-
-
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 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
1. Food and Agriculture Organization
Contribution: USD 372,000
2. Government Contribution in 2008/0910 USD 37,000
3. Community Livestock Development
Project support: USD 30,000
5. Major achievements
a) Establishment of demonstration
and training centre
b) Six tailor made training course
developed and tested
c) Training of Trainers completed
d) 11 unit of mobile outreach trainings
completed
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
a) Lack of highly skilled and trained
manpower at PMD
b) Involvement of National Dairy
Development Board and Dairy
Development Corporation not yet
entertained
7. Suggested option for the
operation of PMD
The PMD shall be operated under
double track management system as
incorporated for other enterprises at
Livestock Development Farm.
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. … …
 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. …
‾ 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
Conclusion contd…
- 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.
9. General Recommendations
1. 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...
- 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
-
DG, DLS
FAOR Nepal.
FAO supporting Staffs (All)
International Consultants
Lead Technical Officer
Acknowledgement contd..
- Former Livestock Dev. Farm
Manager, Pokhara
- RLTC Pokhara
- Livestock Development Farm,
Pokhara
- Former program officer
PMD site before construction
Thank you