EXPORT POTENTIAL:
The Emerging Dairy Industry in Nepal
FIGURE 3.1
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Agriculture plays a crucial role in Nepal’s economy. It is the main source of employment for the majority of the population (USAID, 2015) and occupies a total one-third of GDP. Agriculture represents an important source of growth and remains, and is the largest employment sector for over three-quarters of the population (World Bank, 2013). There are many opportunities to help ensure an adequate food supply for all Nepalese farmers (USAID, 2015). However, recognizing differences and comparing historic ways of milking will help change Nepal’s dairy sector. This includes the recognition of standard means of milking, amount of milk produced per cow, and taking inadequate supplies into consideration. Livestock is found to contribute significantly to agricultural income both in the form of home production consumed within the households and agricultural cash income (PPLPI-FAO, 2004). Optimistic Approach to Agriculture With reports stating specific dated interim reports, Nepal has considered into developing a strong agricultural sector. This would include things such as increasing agricultural production and productivity, ensuring food security, transforming subsistence agriculture into commercial one and making it competitive, increasing employment opportunities for rural youth, women, disabled, Muslims and deprived groups, and conservation, and promotion and utilization of agro- biodiversity through environment friendly technologies (FAO, 2007-2010). This is important to focus on because as the Nepal continues to develop this vital sector, it provides Canada a chance to work along side and give insight on how to make their sector more successful. Canadian Agricultural Product Export Support According to the Conference Board of Canada, every $100-million increase in exports creates approximately 1,000 new jobs (OMAFRA, 2015). In terms of Canadian agricultural small-scale companies coming to market exporting products, the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) is very supportive through their Global Growth Fund- Ontario’s trade strategy. The goal of this fund is to improve Ontario’s export performance, with a special focus on helping Ontario’s small and medium enterprises (SMEs) (OMAFRA, 2015). The Ministry uses a combination of its sectors to help connect business and government in order to successfully export Canadian Agricultural products. The Ontario Chamber of Commerce connects exporters to new markets through programs (OMAFRA, 2015). The Early Stage Exporters fund helps smaller companies to develop and grow export markets and generates new sources of funding, while the Ontario Exporters Fund helps to cover the costs of hiring an export manager (up to $80,000) (OMAFRA, 2015). This is a great opportunity and aspect to take into consideration for the company Udder Comfort, as it is an SME that would be a possible applicant for this funding exportation program. |