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

Womens 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