1. NEPSHIRE
A NEPALI BARN
Himosh

2. INDEX
• Company Introduction
• Environment
• Changes in Environment
• Opportunity Due to the changes
• Business concept
• Marketing Strategy
• SWOT
• Feasibility

3. COMPANY INTRODUCTION
• Name: NepShire (The Nepali Barn)
• Location: Dhading, Nepal
• Industry: Organic Dairy industry
• Philosophy: Work to Excel.
• Mission: Work, Maximize and Grow.
• Vision: Reputed name and happy stakeholders.

4. ENVIRONMENT
• Co-operative collection of milk.
• Not much verity of dairy
products.
• No breeders of Holstein Cows
• Pipeline milking system not used.

5. CHANGE IN ENVIRONMENT
• Consumers seek verity in dairy products (high
demand but low supply)
• Seek replacements for Jersey cows.
• Government have increased subsidies for farmers.
• Electricity is a problem and people seek cheap
Electricity.
• Milking pipelines are available that would increase
the milking speed.

6. OPPORTUNITIES
• A new market: Due to the lack of verity in dairy
products.
• Cheaper to import Holstein Cows: Government
subsidies made it cheaper to import from Germany.
• Market for Holstein Cows: Quantity of milk produced
by Holstein cows attract farmers.
• Electricity is a problem and bio electricity with a
locality could be a good start.
• Milking pipelines increase the production and assist
in achieving economies of scale.

7. BUSINESS CONCEPT
• It is simply dairy farming along with breeding and
providing bio electricity.
• Comparatively low investment.
• Change the traditional cattle farming method.
• Use the best breed of Dairy cows- better production
• Managing is comparatively easier.

8. • We provide new verities of dairy products.
• Have our own distribution channels and retail
outlets (elimination of the middle men)
• We consume and provide electricity which is
produced by the waste from our cattle.

9. TARGET MARKET
Market Segment Selection Product
Age NA NA
Gender NA NA
Location Kathmandu, Pokhara, NA
Chitwan, Bhairawa,
Butwal, Birgunj,
Mahendranagar,
Biratnagar
Income Level NA NA
Social Class and NA NA
Occupation

10. B TO B CUSTOMERS
(DEALERS WILL NOT BE INVOLVED WITH NEPSHIRE)
Particulars Deals
Industry Food oriented: 4-10% discount
depending upon order and
location.
Firm Café: 5% discount on yogurts
Firm Functions: 5% on all products.
Retailers: 10- 15% depending upon
the quantity and location.
Location Metro and Sub-Metro: 15% for
retailers, 5% for Food oriented
businesses.
Villages: 10.5% for retailers, 8% for
Food oriented business.
Size of the firm Larger the firm, larger the discounts
(according to order)

11. SWOT (STRENGTH)
• Livestock products i.e. Milk & Meat are major source of
food.
• Dairy sector has enormous potential for sizeable earnings
• Dairy sector in Nepal has a really low cost of production
compare to competitive milk producing countries
• Plenty of human resource and manpower availability in
dairy farming

12. STRENGTH
• The villagers do have long tradition of cattle and
livestock rearing
• Large base of cattle for milk production
• Use of different breed of cow, the Holstein
• Introduction of new product in Nepali market
• Introduction of new technologies in the market

13. WEAKNESS
• Relatively small dairy cattle milk production market
• Unorganized sector, unaware of basic farm
management practices including sanitary
practices.
• Nutrition is still a problem and would increase the
cost if the cow is sick.

14. WEAKNESS
• Enormous production losses due to endemic
diseases every year (according to the research)
• Farmers lack education, technical skills, initiative
and experience in modern dairy farming

15. OPPORTUNITIES
• Increasing demand of value added dairy products
• Local and global dairy products needs are much
higher than supply
• Govt. of Nepal provides subsidies and tax cuts in
dairy farming
• Commercially viable sector with great credit
potential and absorption capacity

16. OPPORTUNITIES
• Cooperatives can play a big role for development
of dairy sector in Nepal
• Dairy sector provides raw material for food industries
• Government provides technical support for the
government

17. THREATS
• Implementation of WTO will result in open &
competitive commodity pricing
• High risks of diseases in live stock
• Unorganized sector in Nepal, needs a lot of
cleaning

18. THREATS
• Lack of media projection, non-recognition of
problems and the stand of the government
company-DDC
• Lack of coordination towards common causes &
goals
• Lack of understanding of the farmers can make the
farmers lose track of what they are doing.

19. FEASIBILITY
• Competition:
Currently, there are not many dairy processing plants
operating in the country. The major market players
are as follows:
DDC
Sitaram
Kathmandu Dairy

20. SUPPLY FOR MILK IN GLOBAL MARKET
RANK COUNTRY PRODUCTION
(BILLION KG/Y)
1 India 114.4
2 United States 79.3
3 Pakistan 36
4 China 32.5
5 Germany 28.5

21. THE PRICE
• In Nepal, price of milk increases by one rupee per
liter at every stage of production.
• Growing demand for dairy products in Asia is driving
global milk prices.
• Before 2009 the milk prices went up to 46 US$/100
kg.

22. THE PRICE
• Market price dropped to below 20 US$/100 kg at
the beginning of 2009.
• The milk price varies according to its quality and the
season.
• In an average, it is sold at NRS. 48 per liter in the
direct consumption, but varies at the Business to
Business levels.

23. SALARY PLAN/ MONTH
• Total of 11 employees
• 3Managers: NRS 30, 000
• 4Production Staffs: NRS 15, 000
• 5Sales/Distribution: NRS 10, 000
• 2Care Takers: NRS 5,000

24. PRODUCTION
• Production Technique
Farmer-Storage-Test-Purification-Package
• Quality control
Lab test/ISO standards for dairy products to be followed
• Inventory control
Load cold storage wagon and transport to respective
warehouses immediately.

25. PROFITABILITY
• Milk price in Nepal per liter is NRS 48 in an average.
The estimated sales of 10,000L/Month will generate
NRS 480,000
• The sales of the other products at the rate of NRS 50
(average selling price) for estimated sales of 6,000
units would add NRS 300,000
• Purchase of milk NRS 15/unit, workforce: 14/unit,
transportation: 4.2/unit, others: 2.2/unit= NRS
35.4/unit
• GP forecast at given scenario: NRS12.6/unit (avg)