𝐃𝐚𝐢𝐫𝐲 𝐕𝐚𝐥𝐮𝐞 𝐂𝐡𝐚𝐢𝐧𝐬 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐞𝐝 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐓𝐚𝐫𝐠𝐞𝐭𝐞𝐝 𝐈𝐧𝐭𝐞𝐫𝐯𝐞𝐧𝐭𝐢𝐨𝐧𝐬

…𝒈𝒐𝒗𝒆𝒓𝒏𝒎𝒆𝒏𝒕 𝒑𝒓𝒐𝒈𝒓𝒂𝒎𝒎𝒆 𝒆𝒏𝒉𝒂𝒏𝒄𝒆𝒔 𝒎𝒊𝒍𝒌 𝒄𝒐𝒍𝒍𝒆𝒄𝒕𝒊𝒐𝒏 𝒑𝒓𝒐𝒄𝒆𝒔𝒔𝒊𝒏𝒈 𝒂𝒏𝒅 𝒎𝒂𝒓𝒌𝒆𝒕𝒊𝒏𝒈 𝒂𝒄𝒓𝒐𝒔𝒔 𝒆𝒂𝒔𝒕𝒆𝒓𝒏 𝒅𝒛𝒐𝒏𝒈𝒌𝒉𝒂𝒈𝒔

By Sonam Choden

The dairy sector in eastern Bhutan has undergone a notable transformation through strategic interventions under the Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP). This government-led initiative, supported by various development partners, has strengthened dairy value chains across Dzongkhags including Mongar, Trashigang, Lhuentse, and Samdrup Jongkhar.

Key components of CARLEP’s support include the establishment of milk collection centres (MCCs), provision of materials for constructing dairy sheds, and the development of MCCs equipped with chilling units. The integration of solar power for bulk milk coolers has helped reduce electricity expenses and improve operational sustainability. The programme has also provided dairy processing equipment and supported the establishment of processing facilities, enhancing supply chain efficiency, reducing milk spoilage, and addressing critical infrastructural, technical, and financial limitations. In addition, it has contributed to rural socio-economic empowerment by enabling greater engagement in commercial dairy farming.

One example is the Phosorong Om Thuenkuen Dhaytsen group in Mongar Dzongkhag, which has nine members. Chairperson Sonam Zangmo recalled that before CARLEP’s support, the group faced challenges in marketing their milk. “Before, we could not supply our production of milk anywhere,” she said. “Sometimes it led to spoilage.” The absence of a formal collection system had limited productivity and earnings. With CARLEP’s assistance, including milk cans, infrastructure materials, and a cost-sharing scheme to purchase high-yielding Jersey cows, the group was able to establish a working MCC and improve operations. They now supply around 100 litres of milk daily, a result that highlights the programme’s impact on rural productivity.

In Samdrup Jongkhar, the Gomdar Om Nyamley Tshonghey shows how CARLEP has supported group expansion and technology adoption. Formed in 2012 with 18 members, the group has since grown to 150 members and supplies about 700 litres of milk daily to the Koufuko milk processing plant. CARLEP’s support in 2017 included building materials, solar panels, batteries, and processing equipment. Most members now rear five to six Jersey or Holstein Friesian cows. Group member Sangay Yangzom shared, “I own eight cows, three of which are milking cows, and I can supply 12 litres of milk per day. It is much easier to work compared to before, not having to do so much labor work.”

In the Yadi region of Mongar, a milk collection centre established in 2010 with CARLEP’s support now collects around 200 litres of milk per day from its 66 members. CARLEP provided cement, equipment, containers, and refrigeration units necessary for milk preservation. However, financial challenges remain. “The feeds are expensive, and we are not able to make much from the milk contribution as we make only Nu. 39 per litre,” said Dorji, the group’s Chairperson.

In Lhuentse Dzongkhag, the Lhamo Norjun Dhaytsen milk processing plant in Menji offers a more integrated model with value-added dairy production. The plant processes products such as cheese, butter, and yogurt, supplying them to schools and markets in Autsho, Lingmithang, and the Gyalsung Academy. According to Kencho Gyeltshen, the plant processes about 700 litres per day in peak seasons, and around 400 litres in winter. CARLEP supported the plant with equipment including butter churners and refrigeration units, along with construction assistance. “It has made the work much easier compared to before,” Kencho said. He added that the plant now generates around Nu. 50,000 in profit, reflecting improved income through value addition.

In Trashigang’s Gongthung, the dairy group has seen rising membership and increased milk production with CARLEP’s support. Member Ugyen said the group grew from 64 to 101 members, and he alone produces 23 to 27 litres daily. CARLEP’s assistance in cost-sharing for Holstein Friesian cow procurement and support for building animal sheds has been significant. “Before, we used to face challenges because of the lack of feed,” he said. “But now we are able to get enough feed.” He added that he plans to expand further, reflecting the programme’s role in encouraging rural entrepreneurship.

A critical part of the value chain is Koufuku International Limited (KIL), which manages milk collection, transportation, processing, and nationwide distribution across 20 Dzongkhags. The supply chain connects over 1,000 micro dairy farms and 16 farmer groups, with support from institutions such as the Department of Livestock, CARLEP, and financial institutions including BDB. Milk is collected from 16 MCCs, tested for quality, and transported in four dedicated tankers to KIL’s processing plants. From there, dairy products are distributed through 44 wholesalers and 418 retailers.

Despite this progress, KIL faces operational challenges that impact the efficiency and sustainability of the value chain. One of the main issues is outdated machinery. Most equipment is over a decade old, and technical support or replacement parts are difficult to access. “Sometimes our machines are down for days because the parts are no longer available in the market and we don’t have trained experts nearby who can fix them quickly,” said Tenzin, the company’s Marketing Manager.

Another challenge is the high cost structure. While farmers are paid Nu. 39.50 per litre, KIL estimates that the landing cost of milk is Nu. 46.50. This gap is mainly due to transportation expenses, as KIL uses large milk tankers and 13 Boleros to collect milk from widely scattered farms. “We are spending more on fuel and vehicle maintenance than we earn on some routes. It just doesn’t add up economically,” Tenzin said.

KIL’s processing plant layout also presents hygiene concerns. Different products such as Gouda cheese, processed cheese, and yogurt are made in the same area, increasing the risk of cross-contamination. This has led to product recalls and wastage. “It’s not ideal. We really need separate zones for different products to maintain quality and safety,” Tenzin noted.

Inconsistent raw milk quality is another persistent issue. In remote areas like Gomdhar and Balam, milk may take up to two days to reach the factory, even with chilling equipment, resulting in spoilage due to bacterial growth. “By the time the milk reaches us, it’s often borderline in terms of quality,” explained Tenzin.

At the farm level, limited awareness of clean milk production also affects quality. Many farmers are unfamiliar with basic hygiene practices. “Most of us were never trained on proper milking hygiene. We didn’t know we had to stop milking cows that were on antibiotics,” Tenzin said, citing conversations with farmers. Continued use of milk from such cows compromises safety and risks non-compliance with regulatory norms.

In addition, poor-quality containers contribute to contamination. Many farmers use plastic containers, which can retain odors and support microbial growth. “Farmers use what they have, but sometimes they know the containers are not ideal,” said Tenzin.

Chilling infrastructure in some MCCs remains inadequate. In many locations, deep freezers are used instead of proper chillers, which affects milk composition and preservation. “We don’t have proper chillers in many villages; freezers are used, but it’s not good for the milk,” Tenzin said.

Water adulteration also remains a concern. Initial quality checks revealed that 14 percent of milk samples were diluted, leading to financial losses. “We were essentially paying for water,” Tenzin explained. In response, KIL implemented stricter guidelines limiting acceptable dilution to 1 percent and began surprise inspections. “Now, we have seen it drop to about 5 percent, but we need constant monitoring,” he added.

CARLEP’s interventions have clearly advanced the dairy sector in eastern Bhutan, supporting infrastructure upgrades, encouraging adoption of improved breeds, and enabling the development of value-added production. The case studies across different Dzongkhags illustrate how integrated support involving technical assistance, financial investment, and community participation can drive rural economic growth and improve livelihoods.

However, ongoing challenges such as outdated machinery, inconsistent milk quality, and rising input costs require continued attention to ensure the long-term sustainability of the sector.