Small Scale Dairy in Nepal-Small Scale Dairy in Nepal-Results from the TCP Results from the TCP

Bhuvaneshwar SharmaBhuvaneshwar Sharma

National Project CoordinatorNational 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’ MilkUrban 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

Women’s involvement

•Contribution of women in dairy production- approx. 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 DairyGeneral contents of TCP Dairy

1. Introduction 2. Objectives 3. Expected outputs4. Budget 5. Major achievements6. Challenges a head 7. Suggested option for the operation of

PMD8. Conclusions9. General recommendations beyond the

plan10. Acknowledgements

1. Introduction 1. Introduction

Project Title:Project Title:Training Program for Small Scale Dairy Sector in support of the Community Livestock Dev. Project

Project Number:Project Number: TCP/NEP/3103/D

Introduction contd…Introduction contd…

Starting date: May 2007

Completion date: May 2009 originally

extended till 31 December 2009Govt. responsibility for implementation: Ministry for Agriculture and Cooperatives

•Department of Livestock Services•National Dairy Development Board &•Dairy Development Corporation

2. Objectives 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 outputs3. 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.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. Budget4. Budget

1. Food and Agriculture Organization Contribution: USD 372,000

2. Government Contribution in 2008/09-10 USD 37,000

3. Community Livestock Development Project support: USD 30,000

5. Major achievements 5. Major achievements

a) Establishment of demonstration and training centre

b) Six tailor made training course developed and tested

c) Training of Trainers completedd) 11 unit of mobile outreach trainings

completed

Major achievement contd..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 6. Challenges a head for sustainability 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 7. Suggested option for the operation of PMDoperation of PMD

The PMD shall be operated under double track management system as incorporated for other enterprises at Livestock Development Farm.

8. Conclusions8. 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. …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

- 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.

Conclusion contd…Conclusion contd…

9. General Recommendations 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...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 10. Acknowledgements

- DG, DLS- FAOR Nepal.- FAO supporting Staffs (All)- International Consultants - Lead Technical Officer

Acknowledgement contd..Acknowledgement contd..

- Former Livestock Dev. Farm Manager, Pokhara

- RLTC Pokhara - Livestock Development Farm,

Pokhara - Former program officer

PMD site before construction

Thank youThank you