Assessment of dairy farmers groups and cooperatives of Bhutan

Abstract

The study assessed the performance of Dairy Farmers Groups (DFGs) and Dairy Farmers Cooperatives (DFCs) in Bhutan using secondary data obtained through “One Gewog Three Product” reporting system. The results indicated that the DFGs are mostly concentrated in the eastern region. It was recorded that there are 242 DFGs and DFCs with average member size of about 28 people in the country. The findings indicated that Milk Processing and Marketing (MPM) was found to be the most common working model adopted by the DFGs and DFCs. The raw milk collected by the DFGs and DFCs is either sold as liquid milk to and processed and marketed as butter and cottage cheese (datshi) in the local markets. The DFGs and DFCs on an average collected 58,436.22 litres of fresh milk annually. The members are paid an average farm gate price of Nu 36.85 per litre of milk. The study found that 88 % of the total functional (182 DFGs and 9 DFCs) were earning profits. In general, the study indicated that DFGs, were performing financially better off than DFCs. The number of group and cooperative, milk production and prices are increasing; but the number of members remained stagnant, and the sale, cash flow, gross income, and employment generation had decreased in the study areas. The study concludes that improving physical and financial turnover, basic infrastructure, capacity building on development of business plan and Bylaws, product diversification and policy support to the DFGs and DFCs through a coordinated support from different stakeholders is crucial to strengthen and sustain these farmers’ institutions.