Nepal-EU trade cooperation helping build capacity of dairy stakeholders

The Trade and Private Sector Development (TPSD), which is funded by the European Union (EU), has been conducting an extensive capacity building project on Good Manufacturing Practice (GMP) Good Hygiene Practice (GHP) and Hazard Analysis Critical Control Points (HACCP) in the dairy sector. Ministry of Commerce is the implementing agency of the program while Department of Food Technology and Quality Control (DFTQC) is a key counterpart. Dairy sector has immense potential to contribute to economic growth and poverty reduction in Nepal, according to a press statement issued on Monday by the European Union (EU). "It is one of five value chains prioritized in the Agricultural Development Strategy. About 500,000 households are engaged in the dairy market as producers and sellers of milk." At a seminar held in Kathmandu on Sunday, participants from the private sector were familiarized with new guidelines, which will help food inspectors to enhance quality in the dairy sector, the statement added. The TPSD program together with DFTQC also launched a pilot project to assist four to five dairy enterprises in implementing GMP, GHP and HACCP. It is expected to begin in September. Speaking at the seminar, Sanjeev Kumar Karn, director general of DFTQC, noted that milk products are a rich and convenient source of nutrients provided that food safety and quality standards are properly applied. "These standards also enhance competitiveness of Nepali dairy products in the domestic and international export markets. Therefore, everybody concerned in the milk business including farmers, milk collectors, manufacturers, processors, handlers, and distributors have their respective roles and responsibilities to ensure that the milk is safe for human consumption," Karn added. Similarly, Andreas Roettger, Head of Cooperation of EU Delegation said: "A more systematic approach to quality control can expand productivity and market opportunities with healthier, tastier dairy products and it offers more and better choices to the consumers." "In addition, such approach can save energy, lower the carbon footprint and save costs," he said, adding that they were happy to have joined hands with the government toward a more effective implementation of GHP, GMP and HACCP standards. The 6 million euros program closely works together with government and organizations representing producers, exporters and importers. It covers key themes such as trade policy and capacity building, quality infrastructure and value chain development GMP, GHP, and HACCP form a preventive food safety risk management system in which every step in the manufacture, storage and distribution of milk and dairy products is analyzed for microbiological, physical and chemical hazards, according to the statement. The dairy sector offers regular cash income to smallholders as well as a ready supply of nutritious dairy products, meat (in the case of buffalo), manure, and farm power for cultivation. Smallholder dairy farmers' production in Nepal is mainly aggregated through dairy cooperatives. According to reports, there are about 1,735 dairy cooperatives in Nepal. It is estimated that almost 90 percent of total milk handled by the formal dairy processing industry comes through cooperatives. According to the Dairy Industries Association, the sector produces about 4.8 million liters of milk daily of which 15 percent is processed by large dairies, 35 percent by small dairies and the remainder consumed at farm or village level. As many as 20,000 people work in the dairy sector which is worth about Rs 15 billion in annual output. Currently the diary sector faces a trade deficit. Imports are estimated at just under Rs 1 billion while exports are negligible, according to the statement. Source: Republica