Kathmandu, August 12, 2026 - A tripartite Memorandum of Understanding (MoU) has been signed between the Dairy Development Corporation (DDC) , Nepal Agricultural Cooperative Central Federation Limited (NACCFL) and the Sana Kisan Bikas LaghuBitta Bittiya Sanstha Ltd. (SKBBL) strengthen the dairy sector, ensure sustainable milk supply, promote commercial dairy farming, and improve the livelihoods of smallholder dairy farmers.
The agreement was signed at the DDC office in Lainchaur, Kathmandu, on Shrawan 27, 2083 (August 12, 2026). Under the agreement, dairy-producing cooperatives promoted and partnered with NACCFL and SKBBL, along with their member farmers, will increase milk supply to DDC by an additional 15,000 liters per day from Bhadra 1. The three institutions have committed to gradually expanding the supply, with the target of providing more than 60,000 liters of milk per day to DDC within the current fiscal year.
At present, cooperatives within NACCFL’s network alone are producing MORE THAN 50,000 liters of milk per day. The new agreement is expected to create a stronger and more reliable market for this production while encouraging farmers and cooperatives to further increase milk production.
Strengthening the Dairy Value Chain
The MoU focuses not only on milk collection and marketing but also on the broader development of dairy farming and the livestock value chain. DDC has committed to settling outstanding payments for milk previously procured through the networks of NACCFL within one month. The agreement also provides for maintaining the quantity and quality of milk measured at the initial collection centers throughout the supply process.
The parties will also work to facilitate milk transportation and implement training and capacity-building programs aimed at improving livestock management, increasing milk production, and strengthening the technical and commercial capacity of farmers and cooperatives.
Speaking after the signing, Dr. Sharan Kumar Pandey, General Manager of DDC, expressed confidence that the agreement would become a milestone in the development and promotion of Nepal’s dairy sector.
Dr. Pandey appreciated the significant contribution of Small Farmer Agricultural Cooperatives Ltd. (SFACL's) in promoting the principles of cooperation and strengthening the livelihoods of farmers. He said DDC was pleased to work through the extensive cooperative networks of NACCFL and SKBBL.
He further stated that DDC would focus not only on milk collection and marketing but also on various aspects of livestock development and increased dairy production. Addressing concerns regarding payment delays experienced in the past, he assured that DDC would move forward with a commitment to ensuring regular and timely payments to farmers.
Emphasizing that prosperity can be achieved only through collective efforts and initiatives, Dr. Pandey said the agreement has opened new avenues for collaboration among farmers, cooperatives, financial institutions, and DDC. He added that improving the economic and social well-being of farmers would contribute to broader economic transformation.
Increasing Farmers’ Income and Production
Khem Bahadur Pathak, Chairperson of SKBBL, said the agreement would contribute to increasing farmers’ income, expanding production, and strengthening self-reliance among smallholder farmers.
Chairperson Pathak said SKBBL has consistently supported government policies and programs aimed at strengthening the agricultural sector and improving farmers’ livelihoods. He described the MoU as another important step in expanding cooperation among the institutions working for the development of farmers.
He emphasized that DDC, which has received priority from the Government of Nepal, needs collective support from farmers and stakeholders to strengthen its operations and improve its performance. He expressed commitment to supporting the national goal of making Nepal self-reliant in milk production.
Stating that positive changes and reforms are already becoming visible within DDC, Pathak encouraged dairy farmers to confidently join the new initiative. He also called on farmers and stakeholders to provide immediate feedback and suggestions wherever improvements are required.
Historic Initiative for Dairy Smallholder Farmers
Speaking on the occasion, Eka Raj Upreti, Chairperson of NACCFL, described the agreement with DDC as a historic development for Nepal’s dairy-producing farmers.
Chairperson Upreti said the agreement would contribute to strengthening the economic position of farmers and bringing greater prosperity and happiness to their families by creating a more reliable market for their milk.
He noted that cooperatives within NACCFL’s network are currently producing more than 50,000 liters of milk per day. The agreement, he said, would provide further motivation to increase production and expand the participation of smallholder farmers in commercial dairy farming.
“Initially, an additional 15,000 liters of milk per day will be supplied to DDC, with the objective of increasing the total supply to more than 60,000 liters per day within this fiscal year,” Upreti said.
He expressed confidence that the agreement would provide greater assurance that farmers receive payment for their milk on time, thereby encouraging them to increase production and invest further in dairy farming.
Chairperson Upreti also emphasized that NACCFL would continue working through its cooperative network to connect smallholder farmers with reliable markets and strengthen their participation in the dairy value chain.
Commitment to Sustainable Dairy Development
The tripartite MoU is expected to strengthen collaboration among cooperatives, financial institutions, and DDC while creating a more sustainable market system for smallholder dairy farmers.
Through increased milk procurement, timely payments, improved transportation, quality assurance, technical training, and capacity development, the partnership aims to encourage farmers to expand commercial livestock farming and increase household income.
The initiative also aligns with the broader objective of strengthening Nepal’s domestic dairy production and moving toward greater national self-sufficiency in milk.
The MoU was signed by Dr. Sharan Kumar Pandey, General Manager of DDC, Dr. Rudra Bahadur Shrestha, General Manager of NACCFL and Basu Adhikari, Chief Executive Officer of SKBBL.
The signing ceremony was attended by Deputy General Manager of DDC; Jhalendra Bhattarai, Deputy Chief Executive Officer of SKBBL; Dipakar Rupakheti, Senior Manager of NACCFL, officials of DDC; and other representatives and staff of the participating institutions.
The agreement was formally signed between DDC, Lainchaur, Kathmandu; NACCFL, promoted by Small Farmers and based in Dhobighat, Lalitpur; and SKBBL, Babarmahal, Kathmandu, with the shared objective of developing and promoting the dairy sector, ensuring sustainable milk supply, strengthening the commercialization of dairy farming, and improving the livelihoods of farmers.
