KDDC is registered as a cooperative and is a member of the Dairy Industry Association, mainly comprising medium and large dairy companies (companies processing more than 10,000 litres/day are considered large-scale dairy, while medium-scale dairies process 3,000-10,000 litres/day). KDDC, which is set to become one of the largest dairy processors in Province 1 of Nepal in terms of milk collection and processing, was established in the year 2000.  The company had a revenue of over £2m in 2021. In 2022 it completed installation of a new dairy plant in Tarahara, Province 1, raising its processing capacity to 50,000 litres/day raw milk. The management board of the cooperative has 11 members, including three women. The dairy operation is headed by Mr Gajendra Osti, who is the managing director and has over 25 years of experience in operating and running a dairy plant. Prior to joining KDDC, he worked with Sujal Dairy, one of the largest private dairy companies of Nepal. KDDC also has a savings and credit department, through which it provides financial services to its members. KDDC employs 68 (20 women) staff members, out of which 30 (10 women) are directly involved in dairy operations.

Strengthen Utilisation Capacity of Dairy Companies to Aggregate and Process More Milk

The project had a £61,161 budget (£28,786 from CASA for TA and grants). CASA’s intervention helped KDDC scale up its operations by expanding milk collection networks, scoping and opening new milk collection centres in Province 2, improving product quality by training dairy technicians in product diversification, optimising plant utilisation strategies, and enhancing marketing and distribution strategies. Between September 2022 and November 2023, the 15-month project reached 4,800 farmers (53% women) enabling them to increase incomes through new or increased access to markets. With technical assistance and market support, milk aggregation grew from 6,000 litres per day and during the flush season, KDDC collected about 40,000 litres of milk per day, out of which it sold 20,000 litres of raw milk to another dairy company and used the remaining 20,000 to diversify into high-quality dairy products like table butter and paneer, ghee, packaged milk, and skimmed milk powder (SMP) under its own brand name. CASA also provided training for staff and assisted in the development of branding, packaging, and distribution strategies to boost market presence and sales. KDDC rolled out table butter in various quantities and new packaging, and the company also now produces unsalted butter for commercial buyers, paneer, ghee, and dry aged hard cheese (churpi) for both export and domestic markets. The company added ten more dealers and now has 40 retailers in Laxmimarga, Laliya, Dhagihat, Bahuni, Babiya, Karsiya, Rangeli, Daeniya, Farsadagi, Daleli and Ramilo. KDDC also added four new outlets in Kathmandu, Biratchowk, and Itaharinow and has a total of six outlets. 

Updated: August 2025