In Jhalthal, Jhapa, Nepal, dairy farming has long been a part of daily life for smallholder farmers. Yet for many years, selling milk was a struggle. Limited markets, low prices, and the challenge of transporting small quantities meant farmers earned far less than their hard work deserved.
That reality began to change when the Small Farmer Agriculture Cooperative Ltd., Jhalthal Jhapa, took a bold step toward value addition through milk diversification.
With support from the APFP–FO4A program, the cooperative received USD 14,919 in business plan support to establish and strengthen its milk processing enterprise.
The Asia-Pacific Farmers’ Program (APFP) – Farmers’ Organizations for Asia (FO4A) is implemented by the Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC), with funding from the European Union (EU) and the International Fund for Agricultural Development (IFAD). The program aims to strengthen the capacities of farmers’ organizations to provide economic services, advocate for enabling policies, and promote sustainable livelihoods for small-scale family farmers across Asia.
The support provided working capital for the procurement of raw milk from member farmers and enabled the purchase of essential dairy processing machinery. In total, the cooperative invested NPR 1,504,000 to turn its long-standing plan into reality.
“We were planning to establish a dairy enterprise for milk production, and with this support, we were able to purchase the necessary machines. Now we have started producing dairy products and selling them in the market,” shared Tara Bhattarai, Manager of the Cooperative.
The new dairy enterprise has significantly improved the cooperative’s financial position while creating a reliable market for milk produced by its members. Instead of selling raw milk at low prices, the cooperative now processes it into value-added products, generating higher returns and more stable income.
To ensure the enterprise remains effective, sustainable, and continuous, the cooperative has actively invested in capacity building. Through the Nepal Agriculture Cooperative Central Federation Ltd. (NACCFL), cooperative staff and members are participating in trainings on Good Manufacturing Practices (GMP) and market management. These ongoing trainings are helping strengthen both technical skills and business operations.
“We will continue working with donor organizations and NACCFL to further strengthen and expand our programs. We are confident these efforts will help farmers in this area build a sustainable source of income,” Bhattarai added.
For member farmers like Khina Maya Ban, the changes are deeply felt in everyday life.
“Earlier, we could only sell milk in the morning, and that too at a low price. We had to carry milk cans and walk long distances to deliver it,” she recalled.
Today, with the cooperative’s milk chilling and dairy enterprise in place, selling milk has become far more convenient and inclusive.
“Now, whether we have 1 liter, 5 liters, or 15 liters, the cooperative accepts all of it. This has made things much easier, and we are very happy,” she said.
Previously, transporting products like paneer, milk, and curd from home to market was difficult and time-consuming. Now, centralized collection and processing have reduced that burden, allowing farmers, especially women, to focus more on production and family wellbeing.
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