Sindhuli Dairy General Background

Dairy is one of the significant occupations. Milk is the best food for each stage of life to keep healthy body. Milk and milk products are considered very important for health. It is found that dairy products are in high demand in domestic and foreign markets. There is big market potentiality of milk products in Maldives and Bangladesh according to SAARC Statistics. According to ‘Ujjyalo 90 Network’ a news F.M. station, 50% of Nepalese are out of proper reach of milk. The existing Dairy industries are not able to meet even the demand of domestic markets.

Dairy also represents the basic agricultural industry products. Agro-based country like Nepal must focus an Agro-based industry. Dairy sector plays a vital role in Agro-based industry. In our country Nepal "Dugdha Bikas Sansthan" Harihar Bhawan lalitpur is promoting Dairy industries. The dairy development activities in Nepal started from Tusal village of Kavre District in 2009 B.S on experimental basis with a small scale milk processing plant under the development of agriculture. The central dairy plant was established in year 2010 B.S by Dairy Development Board. It started milk collection, processing and marketing activities from the year 2014 B.S.

There are many dairy firms established and owing as sole proprietorship, partnership, private ltd. company and public ltd. company, registered under Company Act and Co-operative Act. In Nepal, Dairy Development Corporation is a leader firm in dairy industries. Sole proprietorship firms are that firms which are invested and operated by a firm, the firms which are invested as many sole proprietorship Dairy centers in Nepal. Among them Siddhababa Dairy Industry, Sindhuli is the one. Siddhababa Dairy Industry is located in 1 No. bazar Kamalamai-06, Sindhuli District. It was established in 2060 B.S. as a sole proprietorship firm in register office. It has been operating smoothly since its establishment. Its proprietor is Mrs.Bimala Kafle. It has made improvement in production, processing, sales and distribution of milk and milk products like ghee, butter, curd, cheese, paneer,ice-cream,lassi etc. in Sindhuli since its establishment.

Siddhababa Dairy Industry is one of the biggest dairy industries of Sindhuli. It has been collecting raw milk from farmers of rural and urban areas of Sindhuli district. Mainly raw milk for the industry is collected from jarayotar, lamapantar, Bahuntilpung, Ambote, Belghari, Bhimasthan ,Ranichuri ,Ranibas, Hatpate etc. Siddhababa Dairy Industry has fair price and supplied  hygienic pasteurized milk and other standard dairy product to the rural and urban customers and also has supplied to the cities like Bardibas, Khurkot and Kathmandu etc. since its establishment. It has  helped a lot to the unemployed rural and urban people to raise their living standard and to solve the hand to mouth problem by making them involve in cows and buffaloes farming.

Cost Volume Profit Analysis of Siddhababa Dairy Industry is defined as the supplementary tool used by the industry in developing strategies in the sales planning and cost estimation for short period of time. It was initially established with a fixed capital of 70 lakhs with an aim to produce and promote dairy products in Sindhuli district. The cost of production of the industry is calculated as Rs. 60-70 lakhs with the sales volume of 70-80 lakhs annually. The profit for the industry varies according to seasons. The profit margin of the industry is not in a level of satisfaction. However, it is planning to establish its own cows and  buffaloes farm in the near future.