Inception of Dairy Industry in Nepal

FAO Nepal

Organized dairy development activities in Nepal began in 1952 with the establishment of a Yak cheese factory in Langtang of Rasuwa district under Food and Agriculture Organization (FAO) assistance in 1953. In 1954, a Dairy Development Section was established under the Department of Agriculture (DoA) and also a small-scale milk processing plant was started in Tusal, a village of Kavre district. In 1955, a Dairy Development Commission was formed.

The First Five Year Plan (1956-61) stressed on the need to develop a modern dairy industry. Accordingly, in 1956, a Central Dairy Plant, with an average milk processing capacity of 500 liters/hr was established in Lainchaur, with the financial assistance from New Zealand and technical assistance from FAO. Around the same time, a second mini milk processing plant was established at Kharipati, in Bhaktapur district. The plant started processing of milk and marketing activities from 1958. In the process, prior to 1960, two additional cheese factories were established under the DoA in other two alpine districts of the country. In 1960, a Cheese Production and Supply Scheme was also established. The Dairy Development Commission was converted to the Dairy Development Board in 1962. So as to meet the growing demand for milk in Kathmandu, the Board was converted to Dairy Development Corporation (DDC) in 1969.