Inclusive milk supply chain development to increase food security

Note: This project is closed prematurely, so not all project activities have been implemented.

In the absence of an organised fresh milk supply chain, Bhutan relies on the import of milk to feed its growing population. This FDOV project will establish an inclusive milk supply chain to increase food and nutrition security, while improving incomes of smallholder dairy farmers in Bhutan.

Project activities include the establishment and/or strengthening of 40 Dairy Farmer Groups (DFG) in South West Bhutan, each with 30 farmers, the establishment of professionally managed milk collection centres (MCC), and the introduction of quality-based principles. It also includes the improvement of dairy husbandry practices and establishes a cattle feed production pilot near to the DFGs to warrant the sustainable availability and quality of cattle feed. On top of this, improved breeding using enhanced Artificial Insemination will be established, and general quality awareness among retailers and customer raised. End products include pasteurized milk and sterilized milk in different types of packaging. Besides urban retail, the project also aims at supplying fortified milk to schools on a (yet to be decided) government subsidised programme.