Small-Scale Dairy Processing in Gandaki: A Sector Profile

About the photograph

The photograph shows the production floor of Shivashakti Dairy Pvt. Ltd. in Lalitpur District, one of the small-scale processing units documented during our fieldwork in Bagmati Province. The facility occupies a modest two-storey building whose ground floor is given over entirely to chilling tanks, pasteurising equipment and packaging lines. Morning light falls through high louvred windows, picking out the condensation on steel vats and the worn concrete floor — details that speak to years of daily operation rather than a recently fitted showroom.

What the image does not immediately reveal is the logistical precision behind it. Milk collection runs on a twice-daily cycle, drawing from smallholder farms within a fifteen-kilometre radius. Every surface visible here is washed and sanitised between shifts, a discipline enforced less by regulation than by the owner-operators' understanding that spoilage is the fastest route to closure in a sector where margins are already thin. The stainless-steel pipework on the far wall routes the finished product directly into the packaging hall, eliminating one of the handling steps that the industry's informal processors still rely on.

The unit was selected for this report precisely because it sits at the median of what our sample of Kaski dairy enterprises looks like: neither a cottage operation nor a factory, but the kind of mid-scale business that a returning Nepali with relevant experience and NPR 30–40 lakh in capital could realistically build and run. Its story — the capital sourced, the regulatory hurdles cleared, the staff trained from scratch — forms the backbone of the operational case study in the pages that follow.

Method

Field visits to 46 processing units, 9 cooperative interviews and district livestock office data for 2079-2081.

Who this is for

Founders weighing a venture in Kaski or a comparable district, lenders sizing working capital for agro-processing firms, and researchers looking for district-level evidence. If you are reading this from abroad, start with our guide for the diaspora and the 100 Businesses book project.