Limited product diversity is one of the major constraints in the dairy processing sector having a direct bearing on the dairy farmers for their secured access to a milk market. Most processors focus exclusively in fluid milk business which comprises almost 90% of their business.
In order to catalyze the product diversification in the dairy industry, Samarth partnered with Kamadhenu Dairy Development Cooperative (KDDC) in February 2014.
As a result of the intervention, Kamadhenu has refined its business strategy and has decided to invest around NRs.300 million in the processing facilities to diversify into milk derivative such as cheese, sweets, chhurpy. To fulfill the raw milk requirement for product diversification, It has expanded its outsourced processing facilities to the hilly region of eastern Nepal to tap the product diversification opportunity suited for the climatic condition. It has also expanded milk collection activities to the remote eastern hills of Bhojpur and Terathum as well as rural remote areas of Udaypur where farmers never had access to sell milk in to the formal markets. KDDC has added 20 new cooperatives as its milk suppliers since February 2014, reaching almost 3000 smallholder farmers