Nepal’s dairy sector is in danger of turning into a sick industry with farmers abandoning it in droves due to low returns and lack of incentives. Industry watchers have blamed government apathy, inadequate rural infrastructure, high cost of production, low productivity, lack of financial security and absence of technical manpower for the slowdown in the dairy industry. As per the National Dairy Development Board (NDDB), mainly the youths among the dairy farmers have become disenchanted with their traditional occupation and are leaving it for more lucrative pursuits. “As a result, dependency on imports could rise to fulfil the market’s requirement,” said Executive Director Babu Kaji Pant of the NDDB, speaking at a programme organised by the Central Dairy Cooperative Association, Nepal (CDCAN) on Wednesday. He added that a mismatch between production costs and market prices has prompted farmers to shift to something else. “While the farmers face high production costs, their products do not fetch proper prices in the market,” said Pant. “On the other hand, lack of product diversification and a stagnant milk powder industry has increased the possibility of milk holidays.” According to the NDDB, the sector has also been suffering from the low productivity of milk cattle. Growing threat of diseases, lack of necessary medicines, low quality of cattle feed and obsolete technology have been blamed for the declining productivity of milk producing cattle. As per the Ministry of Agricultural Development, the average productivity of dairy cattle in Nepal is 20 litres per day compared to 42 litres in the developed countries. Despite the high potential for development of the industry, the country has been importing massive amounts of dairy products. According to the CDCAN, the country imports dairy products worth Rs 5 billion annually. CDCAN President Narayan Prasad Devkota blamed government policy for the slow growth of the sector. “Lack of a national milk policy and effective agriculture insurance policy has been hindering the growth of the sector,” he said. According to an estimate, the country has a milk deficit of 300,000 litres daily. Only 10-20 percent of all livestock are commercially managed, the rest are owned by small farmers. Although the government has established agricultural extension service offices in all 75 districts, only 15 percent of the farmers have access to their services. Similarly, 27 percent of the villages receive government-supported veterinary services. Devkota stressed the need to develop rural infrastructure, set up more cattle service centres, expand the rural road network and create expert manpower for artificial insemination to improve the productivity of the dairy industry. “There is also a need to compensate farmers for not being able to milk their cattle when they get their shots against diseases,” he said. Meanwhile, the government is planning to import 15,000 improved breed cows from neighbouring countries. Speaking at the programme, Agriculture Minister Hari Prasad Parajuli said they were holding talks to import 10,000 cows from India and 5,000 cows from China to improve productivity. According to him, the government budget is likely to earmark Rs 700 million for youth targeted programmes to promote the farm sector.
Posted on: Mon, 14 Jul 2014 05:52:35 +0000
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