Milking fodder benefits
How farmers are increasing milk production and profits by expanding agroforestry fodder and fruit systems financed by cooperative credit unions.
A member of the Setidevi Dairy Producers Cooperative Society showing the increase in agroforestry fodder tree cover (Photo: Duncan Macqueen/IIED)
To strengthen farmer’s climate resilience, several Nepalese forest and farm producer organisations (FFPOs) have expanded agroforestry systems with support from the Forest and Farm Facility (FFF).
This includes the networks of the Central Dairy Cooperative Association Limited Nepal (CDCAN), the Federation of Central Livestock Fishery Cooperative Ltd Nepal (FELIFICON) and the Association of Family Forest Owners Nepal (AFFON), which have all expanded successful agroforestry models that use climate-smart dairy practices and/or fruit tree agroforestry.
Forest and Farm Facility activities
Across Nepal, CDCAN’s network of over 800 cooperatives encourages dairy producers to adopt climate-smart dairy practices through agroforestry. Their model involves integrating as many as nine different nutrient-rich fodder tree species into farmland or community forest areas alongside Napier grass. They also promote improved fodder storage sheds, fodder processing and manure management.
CDCAN has demonstrated how this can improve livestock nutrition, increase profits and cut greenhouse gas emissions through an FFF-supported demonstration farm, which involves 15.25 hectares of new agroforestry, benefiting 1,366 households. Uptake is spreading rapidly through promotion and with additional support from FFF.
Many of the 800-plus cooperatives also have their own savings and loans associations, often with more than US$1 million in capital, which is loaned to farmers to accelerate the spread of these models.
CDCAN has also sought to shape a more enabling policy environment for dairy enterprises.
Significance of impact
FFF support for CDCAN advocacy from 2019 to 2025 led to an increase in the national milk purchase price from 56 to 65 Nepalese rupees: an increase of 14% per litre.
At the national level, in 2025 CDCAN addressed the crisis of US$17 million in unpaid dues owed to dairy farmers by the government-owned Dairy Development Corporation (DDC) and private companies. Through sustained lobbying, protests and direct actions, CDCAN pushed for full payment while successfully advocating for a US$4.2 million subsidised loan from the DDC, enabling regular payments to farmers every 15 days.
FELIFICON, a network representing 90 livestock cooperatives, has also been supported by FFF to scale climate-smart dairy promoting fodder species in community and private forests, improving herd productivity and women-led dairy enterprises in Dhanusha municipality.
Additionally, AFFON has worked in Tripurasundari and Tulsipur municipalities to expand agroforestry on degraded farmland, with demonstration plots covering 41.4 hectares, benefiting 122 households. The introduction of fodder and fruit trees (hog plum and Sichuan pepper) by indigenous Thami communities is benefiting women through fodder availability, the development of value-added fruit enterprises and environmental benefits (such as stabilising their farmlands to erosion and landslides).
Conclusion
The impacts of the work of these three FFPO networks is seen in widespread forest landscape restoration across dairy fodder and fruit tree agroforestry, as well as reduced dependency on purchased feed, thereby cutting costs. The actions have also supported Nepal’s climate commitment for carbon sequestration and lower livestock-related emissions.
Further reading
Upscaling agroforestry for dairy production in Nepal: the role of the Setidevi Cooperative, Deepika Acharya, Racchya Shah, Bijay Kharel (2025), project report
Insight: Agroforestry entrepreneurship by smallholder farmers – regreening Nepal, Duncan Macqueen (2025)