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Dairy Enterprise For Living Income : A Smallholders Story

By Regeena Regmi

Those were the days when the farmers of Hariyali Self Help Group were steeped in losses. With just 9 members and a meagre production of 70 liters of milk per day, their dairy enterprise was struggling to survive. When Heifer supported Chakrawati SEWC became operational in the area, they immediately decided to handover their dairy to the cooperative priced at Rs.19,000 (US$145). 

After acquiring the dairy, the women led cooperative has made great strides towards success. With Heifers constant guidance the cooperative worked hard and invested in increasing the number of dairy animals and productivity in the area and fought through many challenges. The cooperative incessantly added services and provided input supplies, access to finance, Veterinary services, fodder and forage saplings, Agri-mechanization tools (chaff cutters) to encourage its farmers. 

During the initial year, with limited market and infrastructure to store milk, the cooperative resorted to selling the milk in the nearby markets. Cooperative manager Sangita Ojha recalled “for four years, two of our staff sold milk to the pilgrims in Devghat  (a holy area for Hindus with frequent festivals) in their bicycles, those were our days of struggle, I feel happy as we have come a long way from there.” 

Today Chakrawati collects more than 500 liters of milk daily from 120 farmers and stores it in their own chilling Vat supported by Heifer. They are diversifying their products but still are struggling to meet the demands of the ever-growing market. Their recently acquired quality certification has helped them to expand their markets. Chakrawati is the second Heifer supported cooperative to receive this certification in Nepal. 

“The demand for dairy products is very high, and we are struggling to reach the desired volume” says Sangita. “Our clarified butter is the bestseller; we sell close to 300 kgs/monthly at $10 per kilo and the response from the customers is very encouraging” she added.  

Heifer also supported Chakrawati Cooperative in the packaging and branding of its products. The products have found themselves a good market in the nearby town of Bharatpur.  The Cooperative has also been teaming up with other Heifer supported cooperatives in Chitwan to meet the market demand. “Uthhan milk cooperative has been our good business partner and constantly providing us dairy products to fulfill the demand” Sangita says.  

After the onset of Covid pandemic the cooperative has suffered some mild setbacks “Since we were unable to sell all the milk produced during the pandemic, the number of dairy farmers in the area has decreased, but now that the market is back on its track, we hope to increase investments and increase the number of dairy farmers.” Sangita added.   

Since majority of farmers in Nepal are smallholding, dairy business is attractive to generate regular income. Dairy cooperatives such as Chakrawati play a crucial role and work in aggregating the farmers’ produce (production by mass as opposed to in mass) and increasing the living income of the families. Women led cooperatives are not only boosting the rural economy but also transforming the communities. Currently, Heifer Nepal is supporting 36 dairy cooperatives across the country to market the produce of over 4000 farmers.