Small-scale Dairying - an Experience from Nepal

Dala Ram Pradhan
Department of Livestock Services
Nepal

Livestock Sector

Population

Growth (Last 10 yrs.)

• Cattle: 7 million

11.5%

• Buffalo: 3.8 million

25.0%

• Goat: 7 million

24.5%

• Sheep: 0.8 million

-10.0%

• Pig: 0.9 million

54.0%

• Poultry: 23 million

64.0%

Livestock Sector (cont.)

Production

Growth (Last 10 yrs.)

Milk (million MT): 1.2

30%

Meat (thousand MT): 203

32%

Egg (million): 557

47%

Wool (MT): 600

-4%

Major Features

• Subsistence oriented mixed farming system

• Production efficiency low (low input, poor genetic make up, etc.)

• Suitable technology for small farmers (needs to be generated)

• Marketing (volume, network, etc.)

• Service delivery (limited coverage/ intensity, inadequate

History of Dairy Development

• 1952 - Yak cheese production in Langtang

• 1954 - Milk processing unit in Tusal, Kavre

• 1956 - Central dairy 500 lt/hr in Kathmandu

• 1969 - Establishment of Dairy Development Corporation

• 1980 - Private sector dairies started

Status of Dairy Sector

• Livestock sector contributes -

15% in GDP

• Dairy sector contributes -

2/3 in Livestock sector GDP

• Growth of milk production -

30% in last 10 yr

• Annual milk production -

1.2 million mt. (3277 mt/day)

• Milk marketed to industries-

16% of the total production

Dairy Animals

High mountains

Yak/Chauris

Mid-hills/Terai

• Cattle: 30%

• Buffalo: 70%

Promotion of Dairy Sector

• Policy Formulation

  • Ten Year Dairy Development Plan (1991)

  • Establishment of National Dairy Development Board (1993)

  • Agricultural Perspective Plan (1993)

  • Tenth Five Year Plan

Promotion of Dairy Sector (cont.)

• Service Delivery System

• Institutional Development

  • Farmer Groups - 7,000 (90,000 Farmers)

  • Milk Cooperatives - 1,362 (166,000 Farmers)

Promotion of Dairy Sector (cont.)

• Technology Transfer

  • Field level training (1 day)

  • District level training (3 days)

  • Regional level training (1 week, 2 weeks)

Donor Assistance

• FAO

  • Technical Assistance

  • FAO/TCP/NEP-2253 (Dairy Training in the Eastern Region)

• DANIDA

• ADB

  • 3 Loan Projects (1980-2003)

  • CLDP (2004-2010)

Opportunities in Dairying

• Poverty alleviation

  • 38% people below poverty line

  • Employment generation

  • Rs. 8.5 million/day to rural economy

  • 183,000 farmer directly benefited

Opportunities in Dairying (cont.)

• Mixed Farming System

  • Crop and livestock highly interdependent

  • Promote livestock within the system

• Market

  • Internal market growing

  • Import substitution for -

    • SMP + Other products: Rs. 800 million

    • Fresh milk: Rs. 270 million

Environmental Conservation

• Stall feeding of good quality animals

• Forage cultivation (on farm, community land)

Small-scale Dairy Processing

Constraints

• Subsistence oriented farming system

  • Resource priority for crops

  • Livestock for manure and draft

• Low production efficiency

  • More than 85% of cattle and 65% of buffalo have poor genetic make up

  • Low input

Constraints (cont.)

• Inadequate service delivery

  • Government system inadequate

  • Difficult, time consuming, expensive

• Lack of skills/knowledge

  • Natural resource depleting

  • Processing/handling skills needed

Constraints (cont.)

• Marketing

  • Inadequate volume (April-July)

  • Collection difficult/expensive)

Constraints (cont.)

• Poor milk quality

  • Small farms/small quantity

  • Transportation difficult

• Seasonality in milk production

  • Very high seasonal variation (80%)

  • Peak production (Nov.-Feb.)

    • Milk holiday

  • Milk deficit (April - July)

Thanks