DDC Reports 50 Percent Sales Growth As Major Reforms Improve Milk Quality And Farmer Payments

The state owned Dairy Development Corporation (DDC) has reported major improvements in milk quality, financial performance, and overall operations after implementing directives issued by the Office of the Prime Minister and Council of Ministers.

According to DDC General Manager Dr. Sharan Kumar Pandey, the corporation introduced stricter quality control measures after concerns were raised over the quality of its milk. The reforms include the removal of suspicious milk consignments and the revision of procurement standards for milk fat and solids not fat (SNF), ensuring that only milk meeting the required standards enters the production process.

The corrective measures came after the Department of Food Technology and Quality Control (DFTQC) tested DDC milk samples and found that the fat and SNF content was lower than the levels stated on product packaging. Following the findings, the Prime Minister's Office directed the corporation to take immediate corrective action, hold those responsible accountable, and prevent similar incidents in the future.

As part of the disciplinary action, the head of the Bharatpur Chilling Centre in Chitwan has been removed from his responsibilities, while explanations have been sought from the heads of other chilling centres within three days. A laboratory employee, Manahari Sharma, has also been removed from his position after being found involved in irregularities. The corporation said further action will be taken after reviewing responses from the concerned employees.

DDC also confirmed that approximately 3,000 litres of substandard and adulterated milk were destroyed following laboratory testing. Since the stricter monitoring began, the corporation said the quality of milk supplied by dairy producers has become more consistent.

Alongside quality improvements, the corporation has significantly reduced payment delays faced by dairy farmers. Payments to 235 dairy cooperatives across the country have been shortened from eight months to three months, while DDC aims to reduce the payment period further to just 25 days by the first week of Bhadra. Dr. Pandey said nearly Rs 400 million has been paid to dairy farmers during the past two months alone.

The corporation has also reported a sharp rise in product demand. DDC said sales of its dairy products have increased by more than 50 percent compared to the previous year, helped by increased public attention after Prime Minister Balendra Shah publicly endorsed DDC products. Ice cream production, which had previously been suspended, has resumed, while yogurt production and sales have increased by 75 percent.

To expand its market, DDC has appointed 10 new distributors, which is expected to generate an additional Rs 5 million in daily sales. The corporation's daily revenue has already increased by around Rs 2 million, with a target of reaching Rs 13 million in daily sales from the month of Shrawan.

The corporation is also preparing to enter international markets. Final preparations are underway for an agreement to export at least 50 metric tons of ghee annually to Gulf countries, a move expected to generate approximately Rs 50 million in yearly revenue. The process of exporting ghee to China has also been initiated.

Looking ahead, DDC plans to expand domestic production by establishing a new cheese production plant in Pashupatinagar of Koshi Province and reopening its cheese production centre in Nagarkot, Bhaktapur, which has remained closed for the past 10 years. The corporation is also preparing to launch a web based digital membership and online procurement system while expanding dedicated sales counters across the Kathmandu Valley.

According to Dr. Pandey, studies are currently being conducted to identify operational challenges within the corporation. Based on the findings, DDC has already begun implementing a three month institutional reform action plan, with additional reforms expected after further assessments are completed.