Needs and Benefits to Nepal
Increased Milk Production
The average milk produced per dairy cow in Nepal is 6.5 litres per day, which is less than half of the average for a Canadian cow (Joshi, D. D., n.d.). Milk production per cow is an important aspect to evaluate when improving a dairy herd (IFCN, 2012). Any farmer on a commercial dairy operation or family farm would benefit from higher milk yields because they lead to a higher income. A farmer that would have improved mastitis detection from using a strip cup would experience an increase in milk production (Bar et al, 2008). Cows have higher milk yields when they do not suffer from the effects of mastitis (Bar et al, 2008). The rise in milk production would have many benefits regarding the increased income for the farmer (Bar, 2008).
Meeting a Growing Demand for Milk
Nepal has a growing demand for milk that could be met with an increase in milk production (IFCN, 2012). The consumption of dairy is rising by 2.6% per year and the population in Nepal is growing by 1% each year (IFCN, 2016). The detection of mastitis would lead to an increase in milk production, and in turn, meet the demand for milk in Nepal.
Potential for Exports from Nepal
Nepal is only 99% self-sufficient with milk production (IFCN, 2012). The country does not ship any dairy products out of the country (IFCN, 2012). There are shortages of milk in countries east of Nepal including Thailand and China (IFCN, 2012). With an increase in milk production, Nepal would be able to export extra milk to nearby countries and help improve the Nepalese economy (IFCN, 2012).
Improved Quality of Life
Nepal is a developing country that struggles with many issues related to malnutrition (WFP, 2014). Malnutrition lowers the physical and cognitive health of people, leading to decreased production, and therefore negatively impacting the economy (WFP, 2014). Milk contains nutrients that help with physical and cognitive development (The Dairy Council, n.d.). With a higher supply of milk in Nepal, milk would be cheaper with relation to supply and demand (Aitken, 2005). The increased production would also allow easier access to milk as a result of increased supply, and this would improve the health of Nepalese citizens.
Issues Related to Export of Product
Lack of Market Infrastructure
The Milk Producer’s Cooperative Society negotiates between the farmers and the milk processors in Nepal (FAO, 2010). Although, this society lacks organization and sufficiency that has left the farmers without support (FAO, 2010). The Dairy Development Corporation brings the milk from farms to market (Seegers, 2003). This Corporation faces issues with milk quality and has not helped farmers to improve these problems (Seegers, 2003). The National Dairy Development Board was established to help further the dairy industry but has struggled due to a lack of funding (Seegers, 2003). None of these systems in Nepal have been effective in developing the dairy industry and helping the dairy farmers in Nepal.
Nepal Poverty
Nepal is a developing country that has a poor population, with many people who only make $14 USD in one month (IFAD, n.d.). There are higher poverty rates in rural areas where the majority of farmers reside (IFAD, n.d.). There would be a challenge for exporters with this population of poor farmers (IFAD, n.d.).
No Previous Exports from Company
Delaval does not currently export, and has never exported products to Nepal (Healey, 2016). The company would have to do research into Nepal’s dairy industry and recognise the potential for selling the product (Healey, 2016). There would need to be a transportation route set up as there are no current ways for Delaval to ship the product (Healey, 2016).
Transport of Product to Farmers
There are few reliable roads in Nepal and it is hard to transport products to other towns and farms (Donnges, 2005). There are many remote areas, outside of towns and cities where the majority of farms are located (Donnges, 2005). It would be difficult for farmers to travel to a nearby city to buy a product, or for a company to distribute to individual farms (Donnges, 2005).
Lack of Agricultural Education
The people of Nepal are often uneducated and do not have as much dairy knowledge as an average Canadian farmer (Ng et al, 2010). A study that trained Nepalese women in mastitis prevention showed that the prevalence of mastitis in trained households was lower after one year (Ng et al, 2010). Many of the Nepalese farmers do not have enough education about what mastitis is, how to treat mastitis and how to prevent mastitis (Ng et al, 2010).
Competitive Products from Nearby Nations
There are companies that manufacture and distribute strip cups that are located in countries near Nepal. BouMatic has locations throughout China which is north of the Nepal border (BMR, n.d.). The company locations would already have a similar product close to Nepal for exporting. This would be more convenient and cost less money rather than shipping the product overseas from Canada.
