Established in 2006, Rajdhani Dairy Pvt Ltd is one of the largest medium-scale dairy processors of Nepal. Nine individual partners, the majority with prior experience in the dairy sector, established the company with an equity investment of about £71,500. The company has an automatic processing plant with capacity to process 5,000 litres per hour. There is a team of 61 staff, of which 45 are men and 16 are women.

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Strengthen the Raw Milk Supply Chain by Expanding Aggregation and Improving Milk Quality

This project ran from July 2022 to June 2023. The £75,375 budget (£33,304 from CASA) included technical assistance for a scoping study to identify milk pockets in Province 2 and identify suitable Milk Collection Centres (MCC), provide Good Manufacturing Process training to smallholder dairy farmers, establish an in-house laboratory and support in establishing a new business model. There was also a grant for accounting software. Unfortunately, only the scoping study was completed. In the aftermath of Covid-19 and the subsequent lockdowns, the milk supply in Nepal was severely disrupted. During the lockdown period, closure of hospitality businesses led to a decrease in demand for milk, causing the dairy processors to collect less milk from the farmers who then had no market to sell to while the price of cattle feed was increasing. Consequently, farmers started feeding less feed to their cattle which in turn lowered productivity. After the market normalised, hospitality businesses re-opened and the demand of milk increased, and the decreased productivity of cattle and low milk availability in the market was not enough to meet the market demand. The area study and feasibility study revealed that even the MCCs were having difficulty in procuring milk from the farmers in their existing supply chain and they were not planning for any expansion. Thus, the project was closed without completing planned activities although Rajdhani Dairy was left better prepared to respond to market improvements in future. 

Updated: August 2025