Role of Nepal Dairy Development Board -Part 2

The mandate given to NDDB also overlaps with the functions of DLS [District Livestock Services ] with regard to finding remedies to problems relating to livestock development and animal health sector for dairy development and making arrangements for fodder and pasture resources. Because, these are the areas of DLS and it is carrying out these activities since a long time even before the establishment of NDDB.

Moreover, NDDB also is mandated by Act to formulate and recommend pricing policy to the government whereas the Dairy Development Policy has adopted the free market policy of price of milk and milk products. But in practice, being the leading government institution, the DDC is the main actor in fixing the raw milk price. Price of milk has remained a sensitive issue among the producer farmers and the buyers (i.e. DDC and the private dairies) due to which marketing of milk has occasionally been constrained. The milk producers seek to overcome this problem through their collective action because to be assured of a secure market is their real need. The DDC’s raw milk pricing is mainly based on the negotiations with the rural milk producers. The same system applies in case of pricing of raw milk by the private dairies. However, the private dairies pay some additional price so as to remain in competition for milk collection. Although the private dairies also follow the same price for the processed milk as fixed by DDC, DDC and private dairies set their own price for other milk products. Thus, the pricing of milk and milk products is characterized by conflicting Act and Policy; absence of an established pricing mechanism in terms of basis of pricing and pricing intervals; and involvement of many actors, but without any clarity on their roles.