Livestock farming is more than just an economic sector in Nepal; it is the basis of a way of life and the main source of livelihood for the vast majority of the population. It accounts for about half of the gross domestic product (GDP) of agriculture, which in turn accounts for 24% of the country's total GDP. More than 52% of the population depends in some way on agriculture and livestock farming for employment and income. For millions of rural families, especially the poorest, livestock serves not only as a source of food (milk, meat) and income, but also as a kind of “live bank account” – an asset that can be sold in case of unforeseen circumstances.
However, behind this picture of vital importance lies a fundamental paradox. Despite its enormous social and economic role and the ever-growing domestic demand for milk and meat, the sector’s productivity remains extremely low.1The country, which has unique agro-ecological diversity - from the tropical lowlands of the Terai to the alpine meadows of the Himalayas - is forced to import significant volumes of livestock products to meet its own needs.
This gap between potential and reality is driven by a complex of interconnected issues that create a ‘low productivity trap’. In this report, we examine four key ‘knots’ holding the sector back one by one and present practical, evidence-based strategies for untying them. The analysis covers the entire value chain, from the foundation of feed, to animal health, logistics, processing and organisational models that can act as catalysts for growth.
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By Alpha Business MediaLivestock farming is more than just an economic sector in Nepal; it is the basis of a way of life and the main source of livelihood for the vast majority of the population. It accounts for about half of the gross domestic product (GDP) of agriculture, which in turn accounts for 24% of the country's total GDP. More than 52% of the population depends in some way on agriculture and livestock farming for employment and income. For millions of rural families, especially the poorest, livestock serves not only as a source of food (milk, meat) and income, but also as a kind of “live bank account” – an asset that can be sold in case of unforeseen circumstances.
However, behind this picture of vital importance lies a fundamental paradox. Despite its enormous social and economic role and the ever-growing domestic demand for milk and meat, the sector’s productivity remains extremely low.1The country, which has unique agro-ecological diversity - from the tropical lowlands of the Terai to the alpine meadows of the Himalayas - is forced to import significant volumes of livestock products to meet its own needs.
This gap between potential and reality is driven by a complex of interconnected issues that create a ‘low productivity trap’. In this report, we examine four key ‘knots’ holding the sector back one by one and present practical, evidence-based strategies for untying them. The analysis covers the entire value chain, from the foundation of feed, to animal health, logistics, processing and organisational models that can act as catalysts for growth.