RERP

Government of Nepal

Ministry of Industry, Commerce & Supplies

Rural Enterprises and Remittances Project

(SAMRIDDHI)

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nepal government

Government of Nepal

Ministry of Industry, Commerce & Supplies

Rural Enterprises and Remittances Project

(SAMRIDDHI)

Stories

Hadiya milk group gets premium price

Hadiya, Chaudandigadhi Municipality Ward No.9 and 10 of Udaypur district found potential  for Milk after  RERP Supply Chain team organized a B2B interaction Programme on 24 January 2019(10 Magh of 2075). During the interaction, the participants listed as Milk producer groups, input supplier, Livestock technician (from municipality), representative of Laxmi Bank, Deputy Mayor of Chaudandigadhi Municipality and trader from Dharan Dairy.  It was found that around 90 percent of people were involved in livestock and approximately 9000 Liter milk per day was being produced. Five of the livestock farms were registered in ward no 9. As reported they had no sufficient market for their production so they used to consume all the milk themselves.

One of the key aspects which motivated RERP team to go there was due to the presence of cooperative Janotthan Pashu tatha Krishi Sahakari Sastha Ltd who was curious to start milk collection business and provide their milk producer member with maximum benefits. Apart from this, Chaudandigadhi Municipality Office had also convinced to allocate budget in Hadiya to promote Milk producer farmers. During the community orientation and B2B workshop organized by RERP, Deputy Mayor of Chaudandigadhi Palika committed that they will be supporting the Cooperatives with NRS 15, 00,000 for the establishment of Milk collection unit. During B2B interaction, Milk trader Kamlesh Shrestha (Proprietor of Dharan Dairy food Pvt Ltd, Dharan) and producer farmer discussed on major constraints and possible path for common consensus. The interaction played a vital role to make trader and cooperative closer. Both of the parties agreed in communicating and visiting each other’s business site and get possible support from RERP, Laxmi Bank and other promoters when required.

By the facilitation of supply chain team, one Milk producer group namely Gauri Gosain Dugdha Utpadak Krishak Samuha was formed in Hadiya. The group  was also supported for an exposure visit to Mahottari-Gaushala where Sana Kisan Sahakari is operating milk collection business. Further, RERP had organized a MSP workshop, a platform for multisector actors working in Milk value chain. The Chair of Janothan Cooperative and Chair of Gauri Gosain Milk producer group, Hadiya was invited for the participation. 

As a result of all those small efforts, a successful business linkage has been established now between trader and Garuri Gosain Samuha. A formal agreement has been made between Dharan Dairy food Pvt Ltd Dharan and Janothan Krishi Cooperative in the facilitation of RERP. During this period, Janothan Cooperative has also established a Milk collection unit as a support from the concerned Municipality and Province 1 Ministry of Cooperative, land and Agriculture. These days, Dharan Dairy collects 1000 Liter Milk every couple of day from the collection unit.  The major achievement is the reasonable price. Due to better price negotiation, Milk farmers are getting Rs.42.00 to 70.00/Per Ltr depending upon the Fat and SNF ratio of the Milk while they used to only get up to Rs.50 earlier. Along with this Cooperative is also getting 30.5 % TS charge from the Dharan Dairy as overhead and transportation cost. Similarly, Dharan Dairy agreed to deposit Welfare fund for Milk Promotion for cooperative members where Rs.0.25 per Ltr is allocated from Dharan Dairy and the same fund is allocated by Cooperative. Ms. Radhika Dahal, Chair of Gaurigosain Milk producer group expressed that they were getting an additional price of Rs.15-25 per Ltr than earlier and the entire Milk collected in Cooperative milk Centre also costs above than Rs.60.00/Ltr.  Likewise, milk Trader Shrestha stated “The quality (Fat and SNF) of the milk and sanitation of the Chilling vat is satisfactory”. He expressed his gratitude to RERP. The producer groups also seem happy and hopeful for entering into sustainable business partnership.

 

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