Role of Milk Producers’ Cooperative Society in Nepal

The MPCSs [Milk Producers’ Cooperative Society ] have become one of the major actors in the present day dairy sector of Nepal by being a strong channel between the rural milk producers and the milk processing industries. However, majority of the present MPCSs is found to be operating in a condition of disarray. The available information shows that the MPCSs have not been able to generate enough capital bases for providing real support to their member milk producers except acting as an agent between the milk producers and the milk processing industries. Presently, the dairy cooperatives in Nepal are playing a limited role of collection and selling of raw milk to either DDC [Dairy Development Corporation ] or private dairies. Neither the DoC [Department of Co-operatives ] nor other related institutions have taken any initiation to regularly monitor the performance of the MPCSs and suggest measures to make them more professional and commercially oriented. Similarly, NCDB [National Cooperative Development Board ] has not been effective in promoting and providing technical support for MPCSs except for providing some occasional financial support to CDCAN [Central Dairy Cooperative Association, Nepal ] when requested.