New Business Age

Market Reeling under Shortage of Milk

Demand for Yogurt and Ice Cream Increases during Summer while Production Declines

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Market Reeling under Shortage of Milk

April 29: The market is currently reeling under shortage of milk. It is estimated that the production of milk falls short by 200,000 liters of the daily requirement in the domestic market.

On one hand, the production of fresh milk has declined, while on the other hand, the stock of powdered milk and butter of the industries is half the requirement.

As a result, the National Dairy Development Board informed that there is a shortage of 200,000 liters of milk in the market per day.

Milk production decreases from February to August and the demand for yogurt, ice cream and other dairy products increases in the summer as well as during the wedding season.

According to the board, the total demand of milk in the market is around 900,000 liters per day. However, the supply is only 710,000 liters, creating a shortage of 200,000 liters of milk. Milk production also decreases around this time as cattle do not get enough green grass to feed upon. The board informed that in previous years, the state-owned Dairy Development Corporation (DDC) and the private sector dairies used to have sufficient stocks of butter and powdered milk, which has declined this year.

Deputy Executive Director of the Board Babukaji Panta informed that the private and government dairies have 1400 metric tons of powdered milk and 2200 tons of butter in stock. Speaking at a program organized on the occasion of the 31st founding day of the board, he stated that about 3100 metric tons of powdered milk and 2900 metric tons of butter is required in the market from February to August.

The collection of fresh milk decreased with the decline in production. According to Balak Chaudhary, spokesperson of the board, the Dairy Development Corporation used to collect 150,000 liters of milk daily some time ago, but now it collects only 110,000 liters. Similarly, the Dairy Industry Association is collecting 350,000 liters of milk daily and the Nepal Dairy Association is collecting 260,000 liters of milk daily.


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