1. 1

2. JOURNEY FROM SUBSISTENCE TO
COMMERCIAL DAIRY FARM IN NEPAL
Presenter
Riddhi Shrestha
Roll No.: 25
B.V.Sc. & A.H., 8th SEM, IAAS, Rampur, Chitwan
2

3. ABSTRACT
Dairy farming is the major livestock component in Nepal. The major components of
livestock GDP are milk and milk products from buffalo and cattle (32.7% and 24.7%
respectively). At present, the total annual milk production of Nepal is just over one
million tons (70% from buffalo and 30% from cattle). The average growth rate of milk
production from 1985 to 1995 was 2.4% and the population growth rate 2.9%. There
are about 7 million cattle and 3.5 million buffalo in the country. The total population of
cattle in the country increased from about 6.5 million in 1991/92 to about 7 million in
1998/99 with an average annual growth rate of just over 1%; and the buffalo population
from about 3.3 million in 1991/92 to about 3.5 million in 1998/99, with an average
annual growth rate of about 0.6%. Development of several dozen dairy co-operatives
and big dairy firms such as Dairy Development Corporation (DDC), Chitwan Milk
(Ltd), and Sujal Dairy in recent years is certainly appreciable. However, despite these
developments, due to population increase, daily per capita milk production in Nepal is
stagnant for the last 30 years, and is about 148 ml of fresh milk per capita per
day, which is equivalent to a half-a-cup of tea. It is a well-known fact that Nepal
frequently depends on India to fulfill its deficit on domestic fresh milk supply.
Key words: Subsistence dairy farm, Commercial dairy farm, Nepal
3

4. Brief history of development of dairy
farming in Nepal
Prime Minister Jung Bahadur Rana initiated
dairy development activity with the
importation of European cattle from the UK
in 1917.
The first Livestock Development Farm was
established in the Livestock Improvement
Section under the Department of
Agriculture in Singha Durbar, Kathmandu.
4

5. Main development stages in Dairy Farming
5

6. HMG established two dairy cattle farms,
one in Jiri-Khimti and
the second at Khumaltar
and three buffalo farms in
Tarahara,
Rampur and
Pokhara.
.
6

7. A number of improved
buffaloes, especially Murrah and
Murrah x local crosses, and cattle
mainly Jersey, Holstein-
Friesian, Brown Swiss and Ayrshire
crosses, have been imported
from India, New Zealand and other
countries
7

8. Though the Milch buffalo population is barely higher than that
of Milch cows, their volume of milk is more than double .
8

9. Artificial insemination services
for cows and buffalo have been
widened in 46 districts to cover
12.26 percent of breeding cows
and buffaloes
(ABD, 1996).
9

10. Yak and chauries are raised
exclusively on grazing in the
mountains, with herds moving up
and down according to the
season.
10

11. Status of Milch animals in Nepal according
to Ministry of Agriculture 1999
0
100
200
300
400
500
600
Cow Buffalo
No.ofanimalsin1000
Milch animals
Milch animals in 3 Geographical region of Nepal
Mountain
Hilly
Tarai
11

12. Milk production of Nepal according to
Ministry of Agriculture,1999
0
50
100
150
200
250
300
350
400
450
500
Cow Buffalo
Milkproductionin1000tons
Milch animals
Milk production in 3 Geographical region in Nepal
Mountain
Hilly
Terai
12

13. Subsistence dairy farming in Nepal
Introduction
Only few number of animal rearing only to
sustain life, mainly rear animals for
milk(household purpose), for dung as
fertilizer in organic field, for ploughing field
and for dung as source of energy.
13

14. Purpose of Subsistence dairy farm in
Nepal
Milk for household purpose Milk for selling purpose
14

15. Contd…
For ploughing As transportation
15

16. Contd…
Dung as organic fertilizer Dung used as source of fuel
16

17. Reasons for the subsistence dairy
farming in Nepal
•Low economic status
•Lack of awareness about the
commercialization of dairy firm
•Unavailability of the adequate nutritious feed
supply
•Lack of knowledge about the dairy cattle
management
•Low animal productivity
17

18. Commercialization of the dairy farm
•Concept of Commercialization of the dairy farm was
initiated after the initiation of the concept of modern
milk processing plant.
•Modern milk processing began in the early nineteen-
fifties with the introduction of Swiss alpine cheese
making technology to the high mountains
(Upadhyaya, 2001)
• This led to the establishment of a cheese factory in
Langtang, Rasuwa district, with financial assistance from
New Zealand and technical assistance from FAO.
18

19. Contd…
• Around the same time, a small milk processing
plant was established at Kharipati, Bhaktapur.
These plants started milk processing and
marketing from 1958. By 1960 pasteurized
milk in aluminium foil-capped bottles was on
sale in Kathmandu (Upadhyaya, 2001).
19

20. • A Dairy Development Corporation (DDC) was
established in 1969.
20

21. • To meet the increasing demand for processed
milk and dairy products the DDC established
more milk supply schemes: Biratnagar Milk
Supply Scheme (BMSS) in 1973 in the eastern
region, Hetauda Milk Supply Scheme (HMSS)
in 1974 in central region, Kathmandu Milk
Supply Scheme (KMSS) in 1978 in central
region, and Pokhara Milk Supply Scheme
(PMSS) in 1980 in the western region.
21

22. • In 1981 under the DDC, Milk Producers’
Associations (MPAs) were established to increase
the participation of farmers in dairy development
in an organized way. Later the MPAs were
transformed into Milk Producers’ Cooperatives
(MPCs).
• Presently there are about 1000 MPCs in Nepal
producing million liters of milk by rearing
thousands of high milk yielding cows and buffalos
22

23. Statistical data of cows and buffalos
from 1996/97 to 2009/10
0
200
400
600
800
1000
1200
1400
No.ofanimalsin10000
Chart Title
bufffalo
cattle
23

24. Pattern of milking and non-milking
animal in dairy farm
Milking
cow
14%
Non-
milking
cow
86%
no. of cows
Milking
26%
Non-
milking
74%
Buffalos
24

25. Potentials of dairy plant in Nepal
25

26. Major issues in dairy development
• Milk holidays
• Calving pattern of buffaloes: major buffaloes
calves during August to October during which
most of the holidays take place. The breeding of
the buffaloes should be changed to alter calving
time and the milk holiday could be solved to
some extent.
• High cost of production: due to dominant of non
commercial farmers
• Poor quality of raw milk production
• Shortage of trained personnel
26

27. Future strategies in dairy farming in
Nepal
• Supply of suitable improved dairy stock.
• Adequate supply of feed and fodder throughout the year with emphasis
given to nutritive balanced
• fodder-based feeding systems.
• From the point of total animal use buffaloes should be given priority.
• Business alliances between commercial producers and private processors
should be encouraged.
• Elimination of milk holidays
• Proper availabilities of the treatment facilities to diseased animals by
strengthening the animals health centers, DLSO and veterinarians
• Provision for proper training about the dairy cattle rearing and its
management to the farmers
• Introducing the new and high yielding animals to the country
27

28. Benefits of commercial dairy farm over
subsistence dairy farming
•Few in number
•Rearing with other livestock
•No provision for cleanliness
to the shed so animal are
more prone to diseases
•The income from the dairy
farm only sufficient for house
hold purpose, no profit
oriented
•Feeding only by green
pasture or fodder or forage
•Less concern about the
animal health
•No provision for the
increment of the productivity
of the animals
28

29. Contd…
•Large in number
•Systematic in rearing
•Provision to cleanliness so
animals are less prone to
diseases
•Mostly profit oriented so
the owners are much more
concern to the increment
of the productivity of the
animals
•Feeding on concentrate
and fodder and forage too
so animals are in nutritious
order
29

30. References
Animal Breeding Division (ABD). 1996. Annual Report. Nepal Agricultural Research Council, Animal
Breeding Division, Khumaltar, Lalitpur, Nepal.
Chapagain, D. P. 1995. Livestock in the Agriculture Perspective Plan. Proc. of the Second National Animal
Science Convention, Nepal Animal Science Association, Kathmandu.
International Centre for Integrated Mountain Development, Mountain Environment and Natural
Resources information Systems/Central Bureau of Statistics(ICIMOD/MENRIS/ CBS), 2003.Mapping
Nepal Census Indicators 2001 and Trends.
International Dairy Federation,2000. World Dairy Situation.
Ministry of Agriculture. 1999. Statistical Information on Nepalese Agriculture. HMG Nepal Ministry of
Agriculture, Singhdurbar, Kathmandu, Nepal.
National Milk Marketing and Strategy Study. 2001. National Dairy Development Board (NDDB), Danida
Support Project, Harihar Bhawan, Lalitpur.
Pradhan, D. R., H. R. Shrestha and R. G. Shrestha 2003. Dairy Technologies and Their Dissemination in
Nepal.Recent Spread and Impact of Agricultural Technologies in Nepal. Proc. of the Sixth National.
OutreachResearch Workshop. Nepal Agricultural Research Council, Outreach Research
Division, Kathmandu ,Nepal
Shrestha,H.R.2002. Small holder Dairy farming in Nepal: Characteristics,Constraints and Development
Opportunities. Smallholder Dairy Farming Systems of the Hindu-kush-Himalayas.
ICIMOD/ILRI,Kathmandu,Nepal,September 2002.
Upadhyaya, R. M. 2001. Livestock Raising and Dairy Processing in Nepal – Present Status and Future
Potential.
(Eds: Gyan L. Shrestha and Santosh P. Yadav). Green Energy Mission/ Nepal.
30

31. 31