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Status of Dairy Sector

Vishwa Ram KhadkaPresident

Nepal Dairy Association

28 January 2005

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History of Dairy Industries

1953: Establishment of Yak Cheese Factory inLangtang

1956: Established milk processing plant inKathmandu & mini milk processing plant atKharipati, Bhaktapur

1969: Formed Dairy Development Board

1970: Involved private Sector in milk Processing

1990: Implemented Ten Year Dairy DevelopmentPlan

Vast involvement of Private Sector in MilkProcessing .

1998: formed Nepal Dairy Association (NDA)emerging three private sector dairy associations.

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Status

of Dairy IndustriesSource: NDA

Production of Milk In Nepal Contribution of Dairy Sector in National GDP : 6%

TotalProduction 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 yakmilk 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.

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Statusof Dairy Industries

Source: NDA

No of Industries 180

Handling Capacity 600,000 L

Actual Handling 460,000

Capacity Utilization 76%

Employment 11,000

Farmers Involved 650,000 Cash Contribution Rs. 4,000 Million Per Year

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Status

of Dairy SectorSource: NDA

Type of Plant Running

Capacity

Present

Handling

Capacity

Utilization %

DDC 175,000 210,000 120

Private Sector 425,000 250,000 58

Large 160,000 65,000 40

Medium 120,000 70,000 58

Small 95,000 72,000 75

Cottage type 50,000 43,000 86

Total 600,000 460,000 Average 76

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StatusDairy Plants

Kathmandu ValleySource: NDA

Size Daily Capacity Private DDC

Large above 30,000 2 1

Medium 10,00030,000 8Small 1,00010,000 6

Cottage Below 1,000 40

Total 56 1

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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

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Potentiality in the Dairy Sector

Support for Poverty Alleviation

Product Diversification

SMP Production

Export Dairy Products i.e. Cheese, Condensed

Milk, Ice-cream etc.

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Policy for Future Plan

Implementing Long Term Dairy DevelopmentPolicy

Improvement/Amendment of Food Act.

Investment for Higher Technology to get benefitfrom WTO

Electricity Subsidy, Fuel Subsidy & Interest

Subsidy

Eliminating Vat & Income Tax in agro based

industries.

Commercialization of Co-operatives

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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

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Thank You !