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Thaneshwar Bhandari
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International Journal of Agricultural Marketing

Dairy business value chain analysis in Lamjung district of Nepal

Thaneshwar Bhandari 

Accepted 17 April, 2015 

Citation: Bhandari T (2015). Dairy business value chain analysis in Lamjung district of Nepal. International Journal of Agricultural Marketing, 2(3): 057-067.

Copyright: © 2015. Bhandari T. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.


Among agricultural sub-sectors adopted, dairy business was one the most profitable agri-businesses in Nepal but past studies to support this statement was lacking in Lamjung district Nepal. The survey was carried out from April 2013 to January 2014 with the aim of analysing chain functions, capabilities of and support level of operational service providers, value addition, and market analysis of milk business actors. The study collected primary information from 97 respondents by using focus group discussion, key informant survey, observation and SWOT analysis. Results after using descriptive tools identified six chain functions. Estimated 33660 farming households milked 15272 tons raw milk annually but marketed only 13 percent milk and milk products in the 23 peri-urban local market-outlets through two routes: 784 tons milk fed through 7 small-scale chilling centres particularly cold chain process and 1201 tons through hot-milk base processing. Unmet 297 tons (32%) dairy products, all in processed form, were supplied from adjoining districts. The value addition analysis of cow milk showed that not only producers and processor added the largest cost share but also received the highest profit share among the succeeding agents. However, pricing and payments of dairy product were buyer-driven without making contract and no system of market sharing among the micro-actors.

Key words: Dairy business, value chains, market outlet, margins, profitable, self-life, SWOT