While the state-owned dairy producer – Dairy Development Corporation (DDC) – has already started importing fresh milk from India, private dairy firms are weighting the possibility of importing milk.[break]
DDC – the major player in domestic dairy market – has started importing 50,000 liters milk worth over Rs 1.5 million per day from Patna Dairy Project – an undertaking of India’s Bihar State – to fulfill increasing milk deficit.
“We have been importing milk from India since August 21 as domestic supply has dropped almost to half of our total requirement. We have no alternative to importing from India,” Ajab Lal Yadav, the general manager of DDC, told Republica Wednesday. He further informed that DDC was collecting only around 100,000 liters of milk every day through its collection network across the country against the demand for 150,000 liters per day.
DDC has been sourcing milk from India except for the three months – December, January and Feurbary – which is considered the flush season for milk production.
Chitwon Milk Ltd (CML) – the largest dairy firm established under Public Private Partnership (PPP) model – is also facing shortage of milk to run its 150,000 liter-capacity plant. CML is also turning to India to fulfill existing deficit.
“We are managing to collect only 30,000-40,000 liters fresh milk from farmers´ co-operatives associated with us. We have seen no alternative to import milk from Patna, India, to keep our plan running,” said Uday Pandit, the manager of CML.
DDC, which owns 14 percent stake in CML, supplies 30,000 to 35,000 liters of fresh milk to CML during flush season.
Sujal Dairy – a leading dairy producer in Pokhara – is also planning to import fresh milk from the southern neighbor to cope with the demand in market. “We are preparing to start milk import from India as we are facing shortage of fresh milk,” said Niranjan Shretha, the managing director Sujal Dairy. Sujal has been collecting only around 45,000 liters of milk against its total requirement of 100,000 liters.
To do away with persisting shortage of fresh milk, big dairy producers like DDC, CML and Sujal Dairy have started providing different incentives to farmers to increase milk production.
A total of 76 dairy co-operatives in Chitwan, Gorkha, Nawalparasi, Rupandehi, Sarlahi, Bara and Rautahat districts are associated with CML. CML has been encouraging farmers to make long term investment in animal husbandry to boost production.
“In the first phase, we are supporting farmers associated with Kumrose Milk Chilling Center run by local farmers’ co-operatives to import 50 Holstein breed of cows,” Pandit added.
CML itself also is preparing to set up a model cow farm with 50 imported cows at Thimura, Chitwan. It is also planning to import around 6,000 cows from China and 15,000 dose semen of improved breed.
DDC is also preparing to arrange loans to dairy farmers through financial institutions to boost milk production.
According to Private Dairies´ Association, local milk production meets only half of the installed capacity of dairy producers across the country. Dairies across the country have the capacity of processing 1.5 million liters every day.
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