Status of Nepalese dairy sector

1. Agriculture engages 65 percent of Nepalese population and contributes 33 percent to GDP Livestock 1/3 rd to AGDP
2. Dairy contribute 2/3 rd to livestock which is equivalent to 8% of GDP.
3. Total milk production 1445419 MT (2008/9)
4. Milk production growth rate 2.6%
5. Government budgeting insignificant in dairy sector development.
6. Cash flow from urban to rural households RS 5,290 million per year.
7. Milk consumption 250gm/day(FAo recommendation) however in Nepal it is only 144 gm/day
8. Pasteurization capacity of dairy industries 1.08 million liter/day.
9. Availability of pasteurized milk 0.55 million liter /day
10. Milk deficit to industries 0.37 million liter/day
11. Import SMP about Rs. 3000 millions.
12. Milk collection and processing is accomplished in 52 districts.
13. Chauries milk collection and processing in 5 districts.

Table: Total livestock population in Nepal

Sources: Ag statistical year book, 2008/2009.

Table: Milk production (MT)

Sources: Ag statistical year book, 2008/2009.

Milk pricing system

• Two axial pricing policy based on Fat and SNF
• In some areas farmers are paid on fat basis.
• Milk price is controlled by the government

Estimated import of milk products

• SMP 12,000MT
• Butter 1,800MT
• Cream 350MT
• Condensed milk    420MT
• Ice Cream sizable amount
• Cheese Sizeable amount

Estimate export of milk products

• Ghee 300 MT
• Cheese Sizeable amount

Available legislation, and standards

1. Dairy development policy 2007
2. Agriculture business promotion policy 2006
3. Code of practice for pasteurized milk 2004
4. GMP milk and milk products
5. Livestock master plan 1993
6. APP 1995
7. National agriculture policy 2004
8. Dairy mission 2066