Due to high production and weak domestic demand, which has caught, the sales cycle for dairy products to collapse.
To explore international market, the government has initiated discussions with the private sector in India, Bangladesh, Sri Lanka, and Tibet, an autonomous region of China. Officials from the Dairy Development Institute (DDC) have confirmed these discussions.
Sanjeev Jha, the General Manager of DDC, has announced a proposal to sell dairy products to Patna Dairy in India, Bangladesh, Sri Lanka, and Tibet. Jha said, "we are seeking external markets for dairy products to avoid disrupting the business cycle of the market, farmers, and institutions. We have contacted the private sector in some countries and sent proposals. Diplomatic channels have also been utilized to garner the attention of the ministry and the government to ensure access to the market."
The institute now allows for the export of SMG, butter, ghee, and cheese products from Nepal. Currently, DDC's ghee is exported to markets in Japan, America, and Europe. DDC officials reveal that Japan alone imports 5,000 kg of ghee monthly.
However, the demand for DDC milk products in the Nepali market has declined by 15 percent, with a 9 percent drop in the Kathmandu Valley and a 14 percent decrease outside the valley.
According to the institute, 45,000 to 50,000 liters of milk must be converted into powder and butter daily, requiring a capital investment exceeding 60 million dollars.