DDC Discusses Financial and Management Challenges, Future Plans

Kathmandu. The Dairy Development Corporation (DDC), which has been facing management and financial crises recently, has come into discussion again after Prime Minister Balendra Shah's (Balen) yak cheese post. After the Prime Minister's post, DDC is busy selling cheese.

 DDC is also undertaking some management reforms. DDC aims to reduce the backlog of 6 months to 3 months, overcome the fear of 'milk holiday', and supply production to international markets (Japan and Dubai).

 In this context, an interview was conducted with DDC's General Manager Dr. Sharan Kumar Pandey on Ratopati's 'Business Talk'. Here is the edited part of the interview (detailed video can be watched and listened to):

•  Prime Minister Balen's post on social media about yak cheese has increased DDC's discussion. What impact has this had on the market?

 The post by the Prime Minister regarding DDC's yak cheese has given great energy to the corporation. At a time when the corporation has appeared somewhat weak financially and managerially recently, it has added new enthusiasm among employees, businessmen, and farmers. This has sent a message that the government wants to move DDC forward positively, which has given us more courage.

•  What is the overall condition of DDC now?

 The current situation should be considered satisfactory. We are marketing about 1 lakh liters of milk daily, centered in Kathmandu. We have the capacity to double our collection and sales. Overcoming past problems and challenges, we are enthusiastically working to deliver DDC's quality products to consumers.

Farmers' payment is the main issue. It is true that payments were delayed for up to 6 months in the past. But now we have increased revenue collection by cutting expenses and expanding the market.

•  DDC is said to be sick and in need of much improvement, what are the challenges?

 I view problems as opportunities. This is a center of trust for about 3 lakh farmers. DDC acts as a bridge between consumers and farmers. While there have certainly been some difficulties in the past due to managerial weaknesses and lack of market assurance, we are now firmly convinced that we will take it forward to be stronger, more attractive, and memorable than before.

• There is a big accusation that farmers' money is not paid on time and payments are pending, how are you resolving this?

Farmers' payment is the main issue. It is true that payments were delayed for up to 6 months in the past. But now we have increased revenue collection by cutting expenses and expanding the market. We have reduced the backlog of 6 months to 3 months. Since I took office, we have already paid 20 crore rupees. We are working with high priority on farmers' payments.

•  There are complaints that DDC has not been able to find markets and cannot compete with the private sector, what is the plan for the international market?

 There were some shortcomings in the market in the past. But now we are becoming competitive with quality products. We are in contact to export our products to countries like Japan and Dubai. After completing some export protocols, our products will reach abroad in the near future. Currently, the demand for DDC's products has increased significantly.

Although some of our machines are old, they are international standard and high quality. Now we are planning to go into automation.

•  Consumers complain that milk prices are high, more expensive than cold drinks, how do you view this?

 We also have to consider the farmers' production costs. With the increase in the cost of feed, fodder, and transportation, the price of milk at the farmer's level is not very high. Considering the nutritional content and health benefits of milk, it cannot be compared with cold drinks. DDC's products are still cheaper and of better quality than external products.

• The private sector has moved to modern technology, DDC's machines are old and the staff structure is chaotic, isn't it?

Although some of our machines are old, they are international standard and high quality. Now we are planning to go into automation. Regarding staff, out of a sanctioned strength of one thousand people, only about 500 are employed. However, we are managing to get a lot of output from a small number of employees. We will train and deploy staff with a market focus.

• 12 General Managers have been changed in DDC in 11 years, how does such instability affect the organization?

 Leadership change is a normal process, but the main thing is achieving the organization's objectives. The results delivered by whoever comes to leadership are important. Although weaknesses have been seen in the past, now, regardless of who leads, we all need to have the same thinking and courage to move DDC forward and protect its reputation.

If anyone's milk doesn't sell, give it to DDC, we will manage it. We will not let a 'milk holiday' situation arise.

• There was talk of a large stock of milk powder and butter, nearing expiry, what is the current situation?

 It is natural for a corporation with a turnover of 4-5 billion to have some stock. We need 4-5 hundred tons of milk powder and 3-4 hundred tons of butter for our internal consumption. Currently, there is a stock of about 80-90 crore rupees, which is necessary for us. Therefore, it should not be seen as a problem.

• There is fear of 'milk holiday' among youth involved in agriculture, how do you alleviate the concern that farmers' milk might not sell?

If anyone's milk doesn't sell, give it to DDC, we will manage it. We will not let a 'milk holiday' situation arise. We work by managing demand and supply. DDC is always on the side of the farmers.

I want to tell the farmers - don't be afraid, DDC and the government are with you.

• There are complaints that Nepali farmers are suffering due to the illegal entry of milk from the Indian border, aren't there?

The government has tightened security at the border checkpoints now. Those who illegally bring in milk should be punished. The government is showing activeness in this, and we are also vigilant.

•  Recently, about 3,000 liters of inedible milk from Panauti was destroyed, how do you prevent such problems?

As soon as I received the information, I instructed the lab and project chief to investigate. After the investigation, it was found to be inedible and was immediately destroyed. We are very sensitive to consumer health. Anyone who compromises on quality will be punished. Consumer health is our first priority over business.

• What message do you want to give to farmers and consumers?

I want to tell the farmers - don't be afraid, DDC and the government are with you. Produce quality milk. To consumers, I urge - be assured of DDC's products. We are committed to providing service and quality goods rather than making a profit. If you have any complaints, inform us directly.

Photo/Video: MANOJ KHADKA/Ratopati