ÐÓ°ÉÂÛ̳

February 19, 2025

Laying Foundation for the Modern Livestock Sector in Nepal

Highlights

  • ÐÓ°ÉÂÛ̳-financed Nepal Livestock Sector Innovation Project (NLSIP) benefitted about 235,000 farmers, 1400 farmers organizations, and 200 agri-business entrepreneurs through enhanced productivity and value addition along the livestock value-chains in Nepal.
  • The project supported the formulation of key livestock policies in Nepal and significantly reduced animal deaths from diseases such as Foot and Mouth Disease (FMD) and Peste des Petits Ruminants (PPR) by 63% and 88% respectively through a national vaccination program. The project built essential infrastructure, including cold rooms and market facilities, and played a crucial role during the COVID-19 pandemic
  • Using blended finance model, NLSIP helped mobilize around US$18.6 million in private investments. It established Nepal's first Pashmina Processing Center and a high-tech lab for certifying goat meat for international export.
I have a locally bred cow that was inseminated with semen from the Lahan Breeding Center, resulting in the birth of a calf. That calf now produces 12 liters of milk daily, which has greatly benefited me. Our entire village has benefited from the increased milk production by inseminating our cattle with semen from superior breeds.
Kamal Prasad Rajbanshi
Vice-chairperson, Domana Animal Market Management Committee, Rangeli

Challenges

The livestock sector is an integral part of rural livelihoods and the economy in Nepal. Agriculture makes up 24 percent of Nepal¡¯s GDP, half of which comes from livestock. More than 52 percent of Nepal¡¯s population relies on agriculture and livestock for employment and income generation. A large proportion of the labor for the sector is provided by women but they have limited asset ownership and access to resources. Women are often excluded from decision-making and get fewer trainings and economic opportunities. 

For long, the livestock sector grappled with absence of legal and policy frameworks exclusively defining the sectoral governance that led to weak institutional capacity to provide quality veterinary outreach services. Additionally, a shortage of trained human resources¡ªsuch as skilled ultrasound technicians, artificial insemination experts, and lab technicians at Livestock Service Centers and Veterinary Hospital and Livestock Service Expert Centers¡ªalong with insufficient diagnostic facilities, has impacted the capacity of these centers to provide adequate services to livestock farmers.

Despite the growing demand of livestock products such as milk and meat, productivity remains low due to several challenges, including issues around feeding, animal husbandry practices, and breeding. Farmers face significant losses from delays in detecting and treating animal diseases, along with inadequate cold chain infrastructure for vaccine storage, modern equipment and diagnosis techniques in the veterinary field. Apart from that, the inadequacy of public-private partnerships for enhanced delivery of extension services, absence of an international certification mechanism for livestock product exports, and insufficient trade facilitation are impeding the sector from reaching its full potential. 

Approach

In the backdrop of these issues, the ÐÓ°ÉÂÛ̳-financed supported the government of Nepal in formulating and implementing conducive policies to strengthen the livestock sector, promoting innovation, and improving the animal health and disease outbreak response. The project helped small farms and businesses improve livestock productivity, quality, and build resilience. 

The project helped improve the country¡¯s veterinary services with modern equipment and diagnostic techniques trainings for service providers, and worked with 229 Farmers Field Schools (FFS) to educate farmers on herd health and climate-resilient practices focusing on goat farming and dairy.

The project strengthened