In recent days, the Dairy Development Corporation’s (DDC) “yak cheese” has come into the spotlight. And perhaps rightly so. Prime Minister Balen Shah has promoted it with the phrase “Say Cheese,” playfully borrowing the expression commonly used while taking photographs to highlight a domestic product. Earlier, the Prime Minister also drew public attention on social media with his distinct choice of attire—a plain white shirt, striped trousers, and white shoes. Over the weekend, a photo of him eating cheese served on a small wooden platter alongside walnuts and grapes quickly revived attention toward DDC, an institution that had been fading from public discourse. More notably, it is uncommon for a head of government to directly promote a state-owned enterprise’s product. However, DDC is not the only player in Nepal’s dairy sector; the private industry is also deeply involved, and consumers are not solely dependent on its products. Nepal has a substantial base of dairy farmers as well as a large consumer market. If quality dairy products are made consistently available, demand will naturally follow. Moreover, if a government institution ensures reliable distribution and timely payments, financial uncertainty within the supply chain can be significantly reduced.
Don't let dairy operators go on a 'milk holiday'
However, delays in payments to farmers have long discouraged producers. At the same time, processing raw milk into value-added products such as ghee, cheese, butter, and yogurt before marketing them could significantly improve both consumption and market performance. The Prime Minister’s social media post has opened up broader discussion on these issues. While products from public institutions generally carry a sense of trust, questions remain as to why such products are not more consistently available in the market. A state-owned enterprise designed to ensure timely farmer payments and supply urban consumers with quality dairy goods has struggled to meet expectations. Concerns also persist over inefficiencies and long-standing structural decline within the institution. At the same time, the issue extends beyond public enterprises. The private sector plays an equally important role in dairy production. Government attention, therefore, should not be limited to state-owned institutions but should also recognize the broader ecosystem. Just as earlier public enterprises once dominated industries like footwear manufacturing but were later overtaken by private growth, a similar balance is needed in dairy and related sectors today.
DDC collects over 60 million liters of milk annually, sourced from more than 100,000 farmers connected through over 200 dairy cooperatives across 45 districts. This extensive network plays a crucial role in channeling urban consumer spending back to rural producers. Notably, DDC also serves regions where private dairy companies have limited reach, filling important gaps in less profitable markets. The Prime Minister’s post has also triggered renewed debate on how to sustain public institutions and promote domestic production. However, private-sector output is equally domestic. The real priority should be expanding dairy consumption, strengthening farmer livelihoods, and encouraging healthier dietary choices. Replacing low-quality “junk beverages” with nutritious dairy products could benefit both public health and rural incomes. Ultimately, the focus should be on enhancing economic participation across sectors. Whether public or private, all parts of the economy require equal encouragement and support. It is therefore expected that the government’s attention will extend beyond DDC alone to the wider dairy ecosystem, with concrete steps aimed at improving farmer welfare and sectoral growth.
