What about the milk supply situation? In a reflection of the subsistence nature of the Nepali economy, 50 percent of the milk produced in Nepal is consumed by the milk producing farmers themselves.
पुरा भिडियाे हेर्न चाहानुहुन्छ भने पहिले
माथीकाे फाेटाेमा दुइपटक क्लिक गर्नुहाेला । धन्यवाद
The remaining half is distributed as follows: 15 percent supplied by the organized sector, 25 percent goes into production traditional milk and milk-related products like milk, yoghurt, hard cheese, milk solids, butter and other products, and 10 percent is supplied by the informal sector operating in various urban centres.
The traditional and informal sector still dominates this industry. The links in the value chain—from grass to the glass, that is, from the production of milk to final consumption—are all disjointed because we do not have a large scale dairy industry with cattle farming for milk. The disjointed value chain also increases the risk factor in the production and distribution of milk products.
Compared to the daily demand of 8.2 million litres, the daily supply is 4.26 million litres. This demand-supply gap in milk is reflected by a huge disparity in the importation and exportation of milk products. We import Rs 1 billion worth of milk products and export Rs 13 million worth of the same, a mere fraction of the total trade. Exporting milk and milk related products is still a long cherished goal; we are still dependent on imported milk.
Of the daily production of 650,000 litres of milk in the formal sector, 450,000 litres or around 70 percent is concentrated in the Kathmandu valley. There are around 600 domestic, small, medium and large scale milk plants. The sector is a highly concentric and competitive industry.
