S K Dairy Industries Pvt Ltd, founded in October 2018 and operational from February 2020, was established by four partners with dairy sector experience and one milk cooperative, with an equity investment of £430,000. The company has an automated processing plant with a capacity of 15,000 litres per day and employs 24 staff members. It collects milk from around 3,750 farmers in Banke and Bardia Districts (Province 5) and operates six sales outlets and 300 delivery points in the Nepalgunj and Kohalpur areas.

Selling products under the Royal Choice brand, S K Dairy processes about 3,000 litres of milk daily, producing mozzarella cheese, yogurt, paneer, ice cream, ghee, and khoa, while also packaging 1,000 litres as pasteurised milk. The company emphasises product diversification to improve resilience against disasters like Covid-19, reducing milk wastage and ensuring continued milk collection from farmers.

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Improve Product Diversification and Strengthen the Dairy Supply Chain

Completed in June 2023, this 18-month project aimed to diversify products at S K Dairy to compete with imports and strengthen the dairy supply chain, leading to increased commercialisation and profitability. Initially producing 3 kg of mozzarella cheese per day, S K Dairy expanded production to 8 kg following orders from restaurants in Kathmandu and Pokhara. However, the cheese was of lower quality and mixed with imported cheese. Recognizing these weaknesses, S K Dairy partnered with CASA to improve product diversification and the quality of the milk sourced from local farmers. CASA’s support helped S K Dairy improve the overall milk quality, boost dairy farmer productivity, and attract more farmers to formal markets.

CASA also assisted S K Dairy in producing high-quality aged hard cheese and mozzarella, leveraging an investment of £42,611.36 from BFIs to enhance its operations and relocate the factory. CASA facilitated expert consultations, including a local cheese production expert and an international cheese expert, to improve the quality of mozzarella cheese. The partnership also provided financial support for new packaging and GMP training for 1,566 farmers to enhance raw milk quality. Additionally, CASA helped S K Dairy reduce energy consumption by 31% and lower its monthly electricity bill by 24%, making the operations more sustainable. Lastly, CASA supported the development of accounting and inventory management software to streamline operations.

The project lasted 18 months, with a total cost of £38,461, funded through a combination of technical assistance and grants provided by CASA. During the project, CASA trained 1,566 farmers in Good Manufacturing Practices (GMP) to improve the quality of raw milk and strengthen the dairy supply chain.

Updated: March 2025