Swiss-Nepal Collaboration Boosts Koshi’s Dairy Sector: Innovation Reduces Import Dependency

Sustainable agriculture
30.01.2025
The Swiss Agency for Development and Cooperation SDC funded project, Sahaj, hosted a “Showcasing and Tasting of Diverse Dairy Products” event. The event featured the winners of its second round of the Challenge Fund. Challenge Fund has contributed to strengthen the dairy sector of Koshi Province by reducing import dependency and has also improved the livelihoods of thousands of farmers in the province.
Hon. Khagen Singh Hangam, Minister of Industry, Agriculture, and Cooperatives of Koshi Province (center), and Reema Shrestha, Team Leader of the Sahaj Project (left), along with other participants, visit the Adhunik Nepal Dairy stall to check their new products Gouda and Cheddar cheese, one of the four winners.

Koshi’s Dairy Success Story

Koshi Province is a dairy powerhouse, with around 14,698 families engaged in dairy farming, producing 500,000 to 600,000 tons of milk annually, according to the Department of Dairy Development (DDC). Sahaj has played a pivotal role in boosting productivity and profitability, addressing challenges like limited technology access and market linkages.

Flavoured milk being packed and prepared for the market at Ritika Dairy’s factory. Ritika Dairy is also one of the winners of Challenge Fund II.

Innovation Takes the Centre Stage

The event showcased the work of four Challenge Fund II winners, selected from 146 applicants for their innovative solutions. Attendees sampled locally produced dairy products, including lassi, flavoured milk, small sachets of milk powder, cheddar cheese, and gouda cheese.

One of the success stories shared at the event was that of Adhunik Nepal Dairy, a company that has significantly scaled its operations with SDC project Sahaj’s assistance. Mr. Krishna Ghimire, Managing Director of Adhunik Nepal Dairy, revealed that prior to partnering with SDC project Sahaj, the company processed only 500–600 litres of milk daily. With technical support from Swisscontact’s Senior Expert Contact, the company now processes 1,800–2,000 litres of milk daily, producing high-quality Gouda and Cheddar cheeses for the Kathmandu market. The Senior Expert Contact (SEC) programme is part of the Swisscontact Development Programme, which is co-financed by the Swiss Agency for Development and Cooperation (SDC).

Government and Industry Backing

Government and industry leaders praised the initiative. Mr. Raj Kumar Dahal of the Dairy Industry Association commended the Challenge Fund’s practical approach, while Mr. Rajendra Raut, Federation of Nepalese Chamber of Commerce & Industries (FNCCI) Koshi President, highlighted the government’s ban on dairy imports from India as a boost for local producers.

"The future of the dairy sector in Koshi is very bright. "
Hon. Khagen Singh Hangam, Minister of Industry, Agriculture, and Cooperatives of Koshi Province, emphasising the government’s commitment to farmers. 

Building on the minister’s statement Dr. Sarad Kumar Pandey, Secretary to the Ministry of Industry, Agriculture, and Cooperative, pledged further support to make the sector internationally competitive through innovation and quality assurance.

Swiss-Nepal Partnership Drives Progress

Sahaj, a bilateral initiative between the Government of Switzerland and the Government of Nepal, is implemented by Swisscontact, as the lead agency, and Center for Environmental and Agricultural Policy Research, Extension, and Development (CEAPRED). It focuses on enhancing four key agricultural sectors: dairy, cardamom, vegetables, and maize. Koshi Province has emerged as a leader in Nepal’s dairy industry, thanks to SDC’s support.

The Second Round of Sahaj Challenge Fund provided financial and technical assistance to local dairy entrepreneurs, fostering innovation and scalability. This collaboration highlights Switzerland’s commitment to sustainable economic development in Nepal.

A Model for Sustainable Growth

The Sahaj project exemplifies how targeted technical and financial support can drive local innovation, accelerating the transformation of agricultural economies. By reducing import dependency and empowering farmers, Sahaj has set a benchmark for sustainable development in Koshi’s dairy sector.

2020 - 2025
Nepal
Sustainable agriculture
Sahaj - Nepal Agricultural Market Development Programme
In 2017, agriculture contributed around 27.04 per cent to Nepal's GDP. Agriculture is a major source of livelihood in the country. However, the agriculture sector is still in a nascent stage as far as technology and modern cultivation methods are concerned. Agriculture mainly engages smallholder farmers who continue to use traditional methods of...
Benin, Bolivia, Cambodia, Kosovo, Nepal, Peru
Entrepreneurial ecosystems
Senior Expert Contact
Promoting entrepreneurship through expertise - Imparting technical skills through volunteer work Through their services, Senior Expert Contact (SEC) experts provide hands-on, direct support to companies and institutions in their efforts to grow.
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