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Realizing efficient operation of new dairy factory

Kamadhenu Dairy Development Cooperative (KDDC) is a farmer-led organization in the eastern part of Nepal with a dual membership model. Membership is open for primary cooperatives (45) and also for individuals (230). The members of the cooperative are from the entire dairy value chain: producer farmers & cooperatives for milk supply, KDDC's staff members, distributor staffs, retailers as well as consumers. About 10,000 (small) dairy farmers are indirect members of the cooperative and deliver milk either directly to KDDC or through their primary cooperatives. The cooperative provides two main services to the members: dairy processing and financial services. Since April 2016, a new Board of Directors and Audit Committee was elected. The daily operation is managed by a management team with both experienced and junior managers. The current product portfolio includes milk, yogurt, ghee, paneer, khoa and butter, selling around an average 14,000 litres per day, with some seasonal fluctuations. Market opportunities are good. The capacity of the current factory is 15,000 litres as well as is located in the middle of the town and also is not large enough to handle the increasing demand of the dairy products. The cooperative is planning to construct a new dairy factory in a location away from crowded human dwelling with a processing capacity of 50,000 liters/day to fulfill the growing demand for milk products within the end of June 2018. A clear strategy and focus on the implementation of the strategy will help KDDC to run the new factory smoothly and also in smart marketing of the dairy products after 1 year time. In existing condition, KDDC has processing plant of 15,000 capacity in the middle of the town. Also, KDDC has enough raw material, milk, for processing and also there is a big market for dairy in the Eastern part of Nepal. Constructing of new processing plant will help KDDC to grow its market in dairy sector. Visiting of a big dairy plant, like Amul, will help KDDC to get an idea of processing, marketing and branding. Also with the increase in processing capacity, it is also important to become competent in the marketing. Working together with Agriterra, KDDC will develop its marketing capacity. The BHAG for KDDC is to increase the processing capacity of the dairy factory from 15,000 liter to 30,000 liter of milk per day by supporting them in marketing and financial management realized at the end of 2018.

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USD 0 budget ·USD 11K disbursed ·Stichting Agriterra implementer ·Nepal location ·Nov 28, 2017 – Dec 31, 2018 timeline

Overview

About this project

Kamadhenu Dairy Development Cooperative (KDDC) is a farmer-led organization in the eastern part of Nepal with a dual membership model. Membership is open for primary cooperatives (45) and also for individuals (230). The members of the cooperative are from the entire dairy value chain: producer farmers & cooperatives for milk supply, KDDC's staff members, distributor staffs, retailers as well as consumers. About 10,000 (small) dairy farmers are indirect members of the cooperative and deliver milk either directly to KDDC or through their primary cooperatives. The cooperative provides two main services to the members: dairy processing and financial services. Since April 2016, a new Board of Directors and Audit Committee was elected. The daily operation is managed by a management team with both experienced and junior managers. The current product portfolio includes milk, yogurt, ghee, paneer, khoa and butter, selling around an average 14,000 litres per day, with some seasonal fluctuations. Market opportunities are good. The capacity of the current factory is 15,000 litres as well as is located in the middle of the town and also is not large enough to handle the increasing demand of the dairy products. The cooperative is planning to construct a new dairy factory in a location away from crowded human dwelling with a processing capacity of 50,000 liters/day to fulfill the growing demand for milk products within the end of June 2018. A clear strategy and focus on the implementation of the strategy will help KDDC to run the new factory smoothly and also in smart marketing of the dairy products after 1 year time. In existing condition, KDDC has processing plant of 15,000 capacity in the middle of the town. Also, KDDC has enough raw material, milk, for processing and also there is a big market for dairy in the Eastern part of Nepal. Constructing of new processing plant will help KDDC to grow its market in dairy sector. Visiting of a big dairy plant, like Amul, will help KDDC to get an idea of processing, marketing and branding. Also with the increase in processing capacity, it is also important to become competent in the marketing. Working together with Agriterra, KDDC will develop its marketing capacity. The BHAG for KDDC is to increase the processing capacity of the dairy factory from 15,000 liter to 30,000 liter of milk per day by supporting them in marketing and financial management realized at the end of 2018.

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