Dairy Sector in Nepal

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Dairy Sector in Nepal
Brief Overview

• Dairy sub-sector shares more than 60 of
  livestock sector contribution to GDP.
• Annual production of milk is 1.35 million metric
  ton. Buffaloes contribute more than 2/3 of the
  volume.
• 13 of total cattle population (0.9 million)
  26 buffaloes (1.19 million) are milking.
• Crossbreeding with Jersey and Holstein Friesian
  cattle Murrah buffaloes for breed improvement.
  
• Predominantly smallholder production system.
  About 150 thousand farm families affiliated to
  1500 primary Coops.

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Brief overview...

• Dairy Development started in early fifties with
  FAO support.
• Production system crop-livestock-forest
  integrated in hills.
• In high mountains, yak and chauries are reared in
  transhumance system.
• Seasonal fluctuation in milk production-collection
  (flush season August-September to
  January-February)
• Ratio of lean to flush season production is about
  13 in most of the country and 11.5 in areas
  where the feed supply is better.
• Seasonal breeding pattern of buffaloes and
  availability of green forages are main reasons.

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Status and structure of current dairy strategy

• Public-private partnership strategy promoted by
  the DLS in ADB supported projects has been useful
  for
• expansion of milk collection networks chilling
  facilities
• raising awareness in hygienic milk production and
  improving keeping quality of milk
• products diversification and
• strengthening management capabilities of dairy
  coops and private dairies (small and medium
  scale).
• Attracting private sector investments in dairy
  processing and marketing has resulted in
  increased demand for milk
• Provisions of the Agri-business Promotion Policy
  on promotion of dairy industry are not fully
  operational.

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Status and structure...

• Human resources development strategy in dairy
  sector did not receive due priority lack of
  qualified professionals in the public as well as
  in the private sector.
• Forage based milk production system has not been
  expanded widely limited in some production
  pockets.
• Adoption of code of practices in dairy industries
  and its monitoring/ regulation is weak there are
  wide variations in the quality of dairy products
  in the market.

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Policies affecting dairy sector

• Dairy Development Policy 2008 is the main policy
  document of the government
• Guided by the provisions and the spirit of the
  Agriculture Perspective Plan (1995-2015),
  National Agriculture Policy 2004, National Milk
  marketing and Strategy Study 2001, Agri-business
  Promotion Policy 2006.
• The Three Year Interim Plan (2007-2009) has
  targeted higher growth rate in milk production
  (4.6 percent per annum).
• Policies of the government on meeting food
  security arising from the global food grain
  crisis and the priorities accorded for them
  affects public sector investment in dairy sector.

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Major constraints

• Scientific milk pricing policy is lacking.
• Poor milk quality a persistent problem in the
  dairy industry. This is associated with a lack of
  farmer awareness in clean milk production.
  Unhygienic milk production starts with the farmer
  and causes loss of income along the milk chain.
• Predominance of small holder producers high cost
  in production as well as in collection.
• Lack of human resources and technology support in
  private sector.
• Access to animal health and breeding services is
  limited.
• Poor animal feed resources base.

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Challenges

• Breed improvement in small holders farming system
• Lack of elite herds of cattle and buffaloes in
  the country both in Government and Private sector
  
• Sustaining the productivity of improved animals
• Control and eradication of economically important
  diseases
• Lack of business plan/ entrepreneur skills
• Quality management in value chain

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Policy Vision

• To contribute to national economic development by
  commercially, qualitatively and competitively
  developing the dairy sector for employment
  generation and poverty reduction with the
  participation of government, cooperatives and
  private sector

Dairy Development Policy 2008
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Long term vision for the sector

• Substitute the import of milk and milk products
  in the country
• Encourage private sector investment in dairy
  sector.
• Emphasis on quality improvement (code of hygienic
  practices, GMP, HACCP in dairy industries).
• Enhance competitiveness of Nepalese dairy
  industry.
• Comprehensive study to guide appropriate dairy
  development strategies and program (perspective
  plan).
• NDDB role on policy formulation and
  implementation/ trade regulation needs
  strengthening.

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• Thank you very much
• for
• your kind attention