DDC and its role in the milk industry in Nepal

FAO Nepal

DDC[Dairy Development Corporation ] is the pioneer public sector dairy entity. It was created in July 1969 under the Corporation Act of 1964.DDC is the pioneer public sector dairy entity. It was created in July 1969 under the Corporation Act of 1964. Its major objectives are to: • provide a guaranteed market for milk to the rural farmers with fair price, • supply pasteurized milk and milk products to urban consumers, • develop organized milk collection system to meet increasing demand for pasteurized milk and milk products, and • develop an organized marketing system for milk and milk products in urban areas.

A Board of Directors appointed by the GoN[Government of Nepal ] governs DDC. The General Manager or the Executive Chairperson is also appointed by the Government. Currently, DDC operates 6 milk supply schemes (MSS) and a Milk Products Production and Supply Scheme (MPPSS). DDC’s milk collection network exists in 31 districts where 55 milk chilling centers (MCCs) and about 800 MPCSs are operating.

DDC is engaged in commercial activities of collecting milk from rural areas, processing it to milk and milk products and distributing them to urban consumers. It is also the leading agency of fixing the price of milk and milk products. The main problem facing DDC is the shortage of good quality raw milk whereas demand for its milk and milk products in the urban areas is increasing. In an effort to fulfilling the increasing demand for milk and milk products, DDC has expanded its milk collection network in distant rural areas. However, DDC is not engaged in executing either milk production programs by providing technical as well as financial supports to the rural milk producers or milk quality improvement programs in its milk shed areas. Its activities are limited only to milk collection.