NEPAL – Milk collection and diversified dairy enterprise transform livelihoods in Santapur

The Small Farmer Agriculture Cooperative Ltd. (SFACL) Santapur, Rautahat, Nepal, has been a pillar of support for local dairy farmers for nearly two decades. Since its establishment in 2006, the cooperative has worked steadily to help smallholder farmers overcome poverty, strengthen their livelihoods, and improve their quality of life through the dairy sector. Despite facing many challenges over the years, the cooperative remained committed to its mission, which is to collect milk from farmers and supply it to established buyers such as Nepal Dairy Development Corporation (DDC) and Sujal, ensuring farmers have a reliable market for their produce.

According to Durba Koirala, Chairperson of SFACL Santapur Rautahat, the cooperative’s journey has been one of persistence and growth. From the beginning, the cooperative focused on dairy, but limited resources meant that most milk was sold raw, with little opportunity to add value. This changed with support from the Nepal Agricultural Cooperative Central Federation Limited (NACCFL) and the APFP-FO4A program, which provided funding of USD 16,554. The funding support was used to procure machinery and equipment, and conduct training for the cooperative’s plan to have diversified dairy products.

The Asia-Pacific Farmers’ Program (APFP) – Farmers’ Organizations for Asia (FO4A) is implemented by the Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC), with funding from the European Union (EU) and the International Fund for Agricultural Development (IFAD). The program aims to strengthen the capacities of farmers’ organizations to provide economic services, advocate for enabling policies, and promote sustainable livelihoods for small-scale family farmers across Asia.

With new facilities, the cooperative is now able to process milk more efficiently and produce a range of dairy products.

Farmer member Tej Prasad Bhayal shares that the cooperative increased the price farmers receive for their milk and that they received the payments promptly. “Because of the services and support given by the cooperative, we farmers have truly benefited,” he says.

The cooperative’s growth is also reflected in its remarkable increase in milk collection. Ananta Prasad Sigdel, the cooperative’s coordinator, recalls that when milk collection began in 2006, the cooperative collected only 20 liters of milk per day. Today, that figure has grown to 5,000–7,000 liters daily, a testament to farmer trust, improved management, and strengthened systems. He notes that after becoming part of the APFP-FO4A program, the management team, together with NACCFL, successfully submitted a proposal that unlocked vital resources, including equipment, materials, training, and financial support.