Milk and cream market in Nepal

Earlier Report Observations

The market for milk and cream in Nepal grew from 2 575 thousand tonnes in 2018 to 2 866 thousand tonnes in 2020, driven primarily by sustained consumer demand for traditional dairy products like ghee and yoghurt. A positive trend in milk production supported this expansion, even as the state-owned Dairy Development Corporation faced management challenges that affected supply satisfaction.

From 2021 to 2023, market volume continued to rise, reaching 3 318 thousand tonnes, though the pace of growth moderated compared to earlier years. The market's steady increase reflected the ongoing positive production trend and established demand patterns.

Production milk and cream in Nepal

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Nepal's milk and cream production has grown for the third year in a row. In 2020, the country produced 2 866 thousand tons of milk and cream, marking a 7.1% increase from the previous year. From 2017 to 2020, production rose by 21.7%, with an average annual growth rate of 6.8%.

Annual dynamics of production in Nepal in kind, 2017-2020, K t

Exports milk and cream from Nepal

Exports in kind, t

The export market for milk and cream showed significant volatility during this period. In 2018, Nepal exported just 2 tons, the lowest volume recorded. The following year, exports jumped to 4 tons, a 76.1% increase from 2018. The difference between the peak in 2019 and the trough in 2018 was 1.8 times, with the largest decline of 0.4% occurring in 2018.

Annual dynamics of product's exports from Nepal in kind, 2017-2020, t

From 2017 to 2020, Nepal's milk and cream exports were heavily concentrated geographically, with China accounting for 98.7% of the total volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nepal in kind, 2017-2020

Exports in value, K $ US

Nepal's milk and cream exports in value terms have increased for the second consecutive year. In 2019, exports reached 29 thousand US dollars, a 122.6% rise compared to 2018. Over the period from 2017 to 2019, export value grew by 159.9%, with an average annual growth rate of 37.5%.

Annual dynamics of product's exports from Nepal in value, 2017-2020, K $ US

Between 2017 and 2020, China dominated the export market for milk and cream from Nepal in value terms, representing 99.8% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nepal in value, 2017-2020

Imports milk and cream to Nepal

Imports in kind, t

Import volumes for milk and cream in Nepal displayed irregular changes, indicating a volatile market. In 2018, imports hit their lowest point at 21 tons, with the largest decline of 99.5% recorded that year. By 2019, imports surged dramatically, showing an increase of 16,453.8%. In 2020, imports totaled 48 tons, a sharp drop of 98.6% from 2019. The highest import volume was in 2017, creating a 188-fold gap with the low in 2018.

Annual dynamics of product's imports to Nepal in kind, 2017-2020, t

From 2017 to 2020, Nepal's milk and cream imports were highly concentrated by country, with India alone making up 98.8% of the total volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nepal in kind, 2017-2020

Imports in value, K $ US

Nepal's milk and cream imports in value terms experienced noticeable fluctuations during this period. In 2018, imports were at their minimum of 16 thousand US dollars, with the largest decline of 99.3% occurring that year. By 2019, imports saw a substantial increase of 11,168.5%. In 2020, imports amounted to 58 thousand US dollars, a steep reduction of 96.8% year-on-year. The peak import value was in 2017, resulting in a 141-fold difference from the trough in 2018.

Annual dynamics of product's imports to Nepal in value, 2017-2020, K $ US

Between 2017 and 2020, the import market for milk and cream in Nepal was highly concentrated, with India responsible for 97.7% of total imports in value terms.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nepal in value, 2017-2020