Govt explores int’l markets for dairy products amidst sales challenges

Kathmandu / Oct 24: As a result of increased production and a decline in local consumption, the sales cycle for dairy products has experienced disruption. To address this issue, the government is actively seeking international markets for these products.

Officials from the Dairy Development Corporation (DDC) have initiated discussions with the private sector in several countries, including India, Bangladesh, Sri Lanka, and Tibet, an autonomous region of China.

Sanjeev Jha, the General Manager of DDC, mentioned that proposals have been put forth to facilitate the sale of dairy products in these regions, such as Patna Dairy in India, Bangladesh, Sri Lanka, and Tibet. Jha emphasized, “We are exploring external markets for dairy products to maintain market stability for farmers and institutions. We have directly engaged with the private sector in various countries and submitted proposals. Additionally, we have raised awareness within the ministry and government through diplomatic channels to ensure market sustainability.”

The DDC currently has the capability to export products such as SMG, butter, ghee, and cheese from Nepal. Notably, DDC’s ghee is already being exported to markets in Japan, the United States, and Europe. For instance, Japan alone receives 5,000 kg of DDC ghee every month.

However, the domestic consumption of DDC milk products in the Nepali market has declined by 15 percent, with a 9 percent decrease observed in the Kathmandu Valley and a 14 percent decrease in other areas.

According to the DDC, there is a daily need to process 45,000 to 50,000 liters of milk into powder and butter, which entails a capital investment of over Rs 600 million.