DDC Nepal struggles to sell 600 tons of dairy products

The DDC’s effort to sell products worth over Rs 1 billion failed to attract a single bid, raising concerns over storage overflow and unpaid dues to dairy farmers.

An official from DDC said the remaining shelf life of the stock is just four to five months. “Our warehouses are full, including those we’ve rented. We have no space left for fresh production,” the official told Onlinekhabar. The DDC regularly publishes sale notices for its dairy products—including liquid milk, curd, ghee, powdered milk, and butter—but consistently struggles to sell them.

According to DDC spokesperson Neelkantha Gautam, the recent tender attracted no bidders, forcing the closure of the sale process. He revealed the DDC currently has 750 tons of butter and 900 tons of powdered milk in stock, with a combined value of over Rs 1.25 billion. These products, manufactured in June 2024, are set to expire in the next 5–6 months.

Private dairies, previously key buyers, have stopped purchasing DDC products due to their own oversupply. Powdered milk is typically used by biscuit factories, but Gautam noted they also store their own stock during peak seasons. A weak export network further limits DDC’s options.

Meanwhile, DDC has not paid dairy farmers for the past six months. The last payment of Rs 900 million was made in mid-January 2025. The Central Dairy Cooperative Union claims DDC still owes farmers about Rs 1.5 billion, although DDC has provided inconsistent figures—first citing Rs 980 million, then Rs 900 million, and most recently informing the Ministry of Agriculture that the due amount is only Rs 880 million.

Agriculture Minister Ramnath Adhikari, while presenting the ministry’s annual progress report this week, stated the remaining dues would be cleared in the first quarter of the current fiscal year. He also said efforts are being made to export the unsold powdered milk and butter to China.

Due to the mounting surplus, DDC has slashed its daily milk collection from the usual 150,000–200,000 liters to 80,000 liters. Daily market sales have dropped to just 65,000–70,000 liters, down from 120,000 liters five years ago.

The Finance Ministry had earlier provided DDC with a Rs 600 million loan in September 2024, to which DDC added another Rs 300 million and paid Rs 900 million to farmers. However, with sales stagnant and storage over capacity, the DDC remains under financial and operational stress.

Source : Dairynews7x7 July 23rd 2025 Online Khabar by Ritu Kafle