KATHMANDU, May 19: A simple social media post by Prime Minister Balendra Shah on Saturday has reignited debate around Nepal’s state-owned dairy institution, the future of local farmers, and trust in domestic products.
In the photo, the Prime Minister was seen holding Nepali yak cheese. At first glance, it appeared to be just another promotional post. But within hours, the Dairy Development Corporation (DDC) became a trending topic again across social media.
Some viewed it as a positive endorsement of local products. Others questioned whether DDC is still capable of competing in today’s market. Many users were reminded of childhood memories associated with DDC products — school-day ice creams, morning milk deliveries, summer buttermilk, homemade ghee, and festive rasbari sweets.
Yet the discussion went beyond cheese or branding. It reopened questions about the future of Nepali farmers, the credibility of public institutions, and public confidence in locally produced goods.
At a time when trust in government institutions is often said to be declining, DDC still evokes ideas of purity, reliability, and quality among many Nepalis. That emotional connection partly explains why the yak cheese post triggered such widespread reactions.
More than a dairy company
The Dairy Development Corporation, established in 1965 under the Corporation Act, is a fully government-owned institution created to provide guaranteed markets for rural milk farmers, supply processed milk to urban consumers, and build an organized dairy market in Nepal.
Over time, DDC evolved into more than just a dairy company. It became deeply tied to Nepal’s rural economy, farmers’ daily income, and the state’s presence in remote communities.
According to the institution, DDC currently collects more than 60 million liters of milk annually from over 200,000 farmers through more than 1,200 dairy cooperatives.
Its network spans 45 districts across Nepal. Officials say the milk purchased each morning in Kathmandu ultimately becomes part of an economic chain supporting rural households.
That is why many still describe DDC as a “safety net” for farmers. Even today, DDC continues collecting milk from remote villages where private dairy companies often do not operate.
Under pressure, but not in loss
In recent years, there has been repeated discussion about DDC’s financial struggles. However, DDC Information Officer and Technical Management Division Chief Neelkantha Gautam says the institution is not operating at a loss.
According to Gautam, DDC records annual transactions worth around Rs 3.5 billion. The institution currently holds products worth approximately Rs 800 million in stock, while around Rs 650 million in payments to farmers remain pending.
DDC must reform to address farmers' plight
He says delayed payments are mainly linked to seasonal milk production cycles. DDC considers the period from Kartik to Chaitra the “peak production season,” when milk collection increases while market demand falls.
Under its policy of avoiding “milk holidays," DDC continues to purchase milk from farmers even during periods of oversupply. Excess milk is dried and converted into processed products for storage, with some remaining in warehouses for up to six months.
DDC argues that this stock management process contributes to delayed payments to farmers. Officials say production and consumption remain more balanced between Baisakh and Asoj.
Farmers, however, often describe the situation differently. Many say delayed payments remain a serious issue, with some shifting toward private dairy companies for quicker settlements.
Products tied to memory
For many Nepalis, DDC products are not just food items but part of collective nostalgia.
A generation grew up eating DDC ice cream after school. Summer buttermilk, daily milk deliveries, household ghee, and festival sweets became emotionally associated with the brand.
Today, DDC continues producing milk, yogurt, buttermilk, ghee, flavored milk, paneer, sweets, and different varieties of ice cream.
Its ice cream lineup includes vanilla, butterscotch, chocolate, chocolate crunch, and strawberry flavors, sold in packages ranging from 100ml cups to four-liter containers. Vanilla cups start at Rs 65, while one-liter packs cost around Rs 455.
According to DDC’s official pricing, butter sells for Rs1,050 per kilogram. Ghee prices range from Rs 625 for a 500ml pouch to Rs 1,300 for a one-liter container. Cow ghee in a 500ml jar costs Rs700.
Among sweets, a 10-piece box of rasbari costs Rs 310, while a 15-piece can is priced at Rs 465. Paneer sells at Rs 430 per kilogram, and buttermilk is priced at Rs 70 per liter.
From the Himalayas to city homes
Milk production begins long before factory processing—often around 4 a.m. in rural farms.
DDC operates chilling centers in places such as Hile in Dhankuta, Chitre in Tehrathum, and Shantidanda, Biblate, and Fikkal areas of Ilam. Farmers deliver fresh milk there each morning.
The Hile chilling center has a 6,000-liter capacity, while Chitre handles 3,000 liters and Shantidanda processes up to 5,000 liters.
However, several chilling centers are currently inactive. Farmers have raised concerns about preserving aging infrastructure, modernizing facilities, and increasing operational capacity.
For rural livestock farmers, DDC represents more than a marketplace — it is a dependable source of household income. Analysts say weakening the institution directly affects village economies.
Why DDC is losing ground
There was a time when DDC dominated Nepal’s dairy market almost entirely. But private dairy industries have expanded rapidly in recent years.
Private companies invested heavily in attractive packaging, faster distribution systems, market-orientated branding, and modern business strategies. DDC, meanwhile, has faced criticism for slow decision-making, outdated technology, and bureaucratic procedures associated with public institutions.
Farmers echo similar frustrations, particularly regarding delayed payments and slow management practices.
Still, another reality remains. DDC continues operating in remote areas where private companies see little profit potential.
That is why many believe DDC’s true strength lies less in market competition and more in the trust it has built between farmers and consumers over decades.
Yak cheese: food or national identity?
DDC currently produces three main types of cheese: mozzarella, Kanchan cheese, and yak cheese.
Among them, yak cheese stands out as a speciality Himalayan product. Made from yak milk collected in high-altitude regions, it is available only seasonally. Milk collection usually takes place between Chaitra and Kartik.
Information Officer Gautam said increased demand following the Prime Minister’s post may have temporarily affected supply in some stores.
“After the Prime Minister’s status, I also heard sales increased,” he said. “But we have not officially received reports of shortages. Since yak cheese is distributed through DDC outlets and different marts in Kathmandu, stock may have run out only in certain stores.”
Yak cheese remains popular among foreign trekkers seeking authentic Nepali products. Officials believe that with proper branding, quality control, and international marketing, it could emerge as a signature Nepali export similar to tea or coffee.
DDC hopes Nepal’s Himalayan identity, organic production systems, and local flavors can eventually position yak cheese in international markets.
Can DDC be revived?
A single social media photo has once again revived a long-running debate: How much value do Nepalis place on domestic products? How strongly does the country stand behind its farmers? And can the state modernize its own institutions?
DDC still possesses a massive nationwide structure, long-standing public trust, and decades of emotional connection with consumers.
But nostalgia alone cannot secure its future.
The institution needs modern technology, efficient management, timely payments, stronger branding, and competitive market strategies.
Saving DDC is not simply about preserving a government company. It is about protecting farmers’ livelihoods, sustaining rural economies, and maintaining confidence in Nepali products.
Analysts say if the state prioritizes farmer-based production, strengthens processing systems, and ensures proper market management, DDC could still rebuild itself into a stronger institution for the future.
