IX. INTEGRATED DAIRY INDUSTRY

IX. INTEGRATED DAIRY INDUSTRY

Nepal is a net importer of dairy products. The import of milk products - powder, condensed concentrate, butter, cheese - is estimated to exceed Rs. 120 mn. per annum. Despite these imports there is a severe shortage of fresh milk, infant milk and other milk products in the country.
Nepal has a long tradition in dairy farming. In fact Nepal has in the past exported milk products to India and Tibet in the form of ghee. She could develop the dairy industry to meet domestic demand as well as to renew exports to India and other markets. The topographical and climatic conditions are well suited to dairy development. An integrated dairy industry incorporating related activities such as improved livestock breeding, cattle feed production and processing of milk products would offer promising prospects for profitable investment. Such a project could build up on existing small dairy units spread around the country through a well organised programme of extension services to improve livestock breeds and an efficient collection system for processing in a central unit.