Feed the Future Innovation Lab for Livestock Systems Nepal: Animal Source Foods Production and Marketing Brief

The percentage of improved livestock accounts for only 13% in cattle, 25.9% in buffalo, 4.6% in sheep, 6.1% in goats, 34.2% in pigs, and 54.2% in poultry. The remaining livestock population consists of local indigenous breeds, which are low in productivity and performance. The livestock subsector is declining due to low productivity of animals, mainly due to poor husbandry practices by farmers, genetic inferiority of local breeds, and poor animal health. Lack of adequate marketing systems and channels for animal products is another major hindrance to the development of the livestock sector. Nepal's supply of animal products is not sufficient to meet the increasing demand for these products, resulting in an annual expenditure of more than US$40 million to meet the demand. The import rate of livestock and livestock products is significantly higher than their export rate, contributing to the country's trade imbalance. The animal production system in Nepal is influenced by the diverse climate and vegetation that exists in the country's different eco-zones. There are three parallel ecological regions in the country: the Terai (Plains) region, the Hills region, and the Mountain region. The animal production system in Nepal can be grouped into three major types: transhumant migratory, semi-migratory, and stationary or closed-system intensive farming. The transhumant migratory system is found in the northern Mountain region, where animals graze on alpine pastoral areas during summers and are brought down close to villages during winters. This system is mainly used for raising yak/nak, chauri, goat, and sheep. The semi-migratory system is common in the Hills region, where animals are kept in sheds at night and are taken out for grazing during the day. The stationary or closed-system intensive farming system is more common in the Terai and lower Hills regions, where high-yielding milking buffaloes and exotic or crossbred cattle are kept. In this system, animals are fed with straw and other crop by-products, along with limited amounts of concentrates and green forages. Dairy farmers and those who raise cattle, buffalo, goats, and poultry often adopt this type of animal production system, contributing to a substantial portion of the production of milk, meat, and eggs in Nepal. Nepal has different types of feedstuffs in its various agro-ecological zones that are used to support the country's large numbers of livestock and poultry. However, a shortage of feedstuffs, lack of knowledge on nutrients and anti-nutrient contents of feed, and lack of scientific knowledge on feed formulation and proper use of feed resources based on the physiological requirements are the major hindrances for the development of the livestock sector in the country. The feed deficit is the number one limiting factor of reduced production and productivity of livestock in Nepal, with a 31% shortage of dry matter content to fulfill the requirements of existing livestock and poultry in the country.