1. Present scenario and future perspectives of Nepalese agriculture: Focus on livestock development and vegetable seed production Prabhat Khanal, PhD Subash Neupane

2. Nepal – country profile Small land-locked country Highest peak in the world to the plains in Terai 147181 sq. km (800 km east to west; 144 to 240 km north to south) India (East, South, West) and China (North) at borders

3. Nepalese agriculture Distinct land use patterns (climatic variation, altitude) Migration of people from hills to plains (deforestation) Subsistence type of agriculture Agriculture associated with ethnic groups and religion

4. Nepalese agriculture - overview Land type (Mountain region 35 %; Hilly region 42 %; Terai region 23 %) Cultivated agricultural area – 20.5 % Uncultivated agricultural land – 7 % Forest area (including shrubsland) – 39.6 % Grassland and pasture – 12 % Contribution of agriculture to NGDP - 35 % Population engaged in agriculture – 65.6 %

5. Livestock in Nepal Livestock – a major component of Nepalese agriculture (11 % - GDP) Different management systems (transhumant, sedentary, stall-fed) Livestock population associated with agro-zones Mountains12.468.7943.4213.87 Hills47.1652.5744.2149.66 Terai40.3838.6512.3836.47 MoAC, Nepal

6. Livestock Production Milk production  Buffalo milk (71 %)  Cow milk (29 %) Meat production Meat production  Buff (65 %)  Lamb/mutton (1 %)  Goat/chevon (20 %)  Pork (6.9 %)  Fowl (7 %)  Duck (0.1 %)

7. Livestock production status and demand CommodityProductionGrowth rate (%) Required quantity Balance Meat (000 mt) 2033.95331-128 Milk (000 mt) 11542.721345-191 Eggs (ten millions) 54.85.04113-58.2 Department of livestock services, Progress Report Milk availability: 109 liters of milk per person per year (Lack of 57 liter per person per year in Nepal)

8. Livestock market and trading practices Traditional markets – Terai regions (communications, availability of marketable products, long porous border with India) Major consumption areas/ Meat processing industries - city areas In hills and mountains, permanent markets - only in district headquarters or a few other centers Market agents/traders visit villages

9. Livestock trade Nepal imports appr. half of its current meat and milk requirements Livestock exports - 0.2 % of total exports Livestock imports - 1.1 % of total imports Growth in animal numbers a significant contribution to output growth Average annual average growth of livestock population (cattle - 0.39, buffaloes - 3.4, goats -3.72, pigs - 1.65, fowls - 2.38 %) Department of Livestock Services

10. Trade policies 1990 (Restoration of democracy)  Market-friendly economic policies 1992 (Eight development plan)  Liberalization of domestic and international markets  Promotion of private sector initiatives 2000 (Ministry of land reform and management)  Integrated land use policies to prevent keeping land fallow and land fragmentation  Development of national geographic land information system

11. Trade policies Agriculture perspective plan (1997 – 2017)  Livestock production and productivity as an engine for growth in agriculture Free trade zone agreement with SAARC countries and member of WTO (2004) Bilateral agreements with different countries Tenth development plan (2002- 2007)  Livestock as a means to meet poverty reduction targets Livestock and Poverty ?

12. Livestock and poverty About 70 % of households keep some type of livestock Farmers with landholding size of: – 0.2 - 0.5 ha keep ~25 % of livestock –<0.2 ha of land own ~11 % of livestock Nepal - one of highest ratios of livestock to humans in Asia (5.8 livestock and poultry/ household) Development of livestock sector – a way to reduce poverty in Nepal

13. Core problems ADS (2012)  Low productivity of animals – a major problem of livestock sub-sector Genetic inferiority of local breeds Poor livestock practices  Breeding and forage management Lack of commercialization  10 – 20 % of livestock – commercially managed  40 – 45 %: Poultry ADS, Agricultural Development Strategy

14. Future opportunities Increased milk productivity  Now, low average milk production: 426 per cow and 824 kg per buffalo/ year  Improved breeds  Feeding strategy  Investment Israeli-Holstein Cow, Photograph taken in 2009

15. Future opportunities Increased meat productivity  Improved breeds  Genetic improvement  Commercial management  Feeding strategy  Integrated farming  External investment

16. Future opportunities Reproduction and breeding  Improved breeds / efficient milk and meat producers Feeding  Feed availability throughout the year  Feed preservation  TMR / Complete ration systems TMR, Total Mixed Ration

17. Agro-industry Productivity  Better management o Breeds o Feeding o Health of animals o Commercialization o Technology Investment ! Agro-industries  Sufficient capacity

18. Quality control Productivity Agro-industries  Agricultural products Quality control  Industrial products Quality control Market

19. Marketing Cost of production Good quality Export volume Stability in supply Product diversification Processing plant Collaboration with external partners partners Efficient marketing systems/ channels

20. What we have now? - Examples Poultry farming in Chitwan district  Location  Suitable agro-climatic condition  Feed companies  Agriculture university  Veterinary services available Future?  Lands – residential areas  Poultry health  Competition  Breeds  Processing and market Israeli featherless chicken, Photograph taken in 2009

21. Meat production "Animal Slaughterhouse and Meat Inspection Act (1999)”.  License for slaughterhouse  Appointment of meat inspector and supervisor  Quality and quantity of meat for marketing Future?  More attraction to commercial farming  Meat processing and product diversification (value production?)  Efficient marketing channel

22. Dairy sector > Half of livestock sector contribution to AGDP Crop-Livestock-Forest integrated system Bilateral agreements with New Zealand, Switzerland and Denmark (e. g. cow farm in Dolakha under PPP) DDC in 1964 under corporation act and DANNIDA supports programs by NDDB (1992) Future?  Attraction to commercial farming  Marketing and product diversification (Yak cheese production!) DDC, Dairy Development Corporation; AGDP, Agricultural Gross Domestic Product; PPP, Public-Private Partnership

23. Productivity  Human resources  Agricultural inputs (feed, breeds etc.)  Quantity Product quality  Processing  Diversification Government policy  Favorable trade policies Marketing system  Local market  Product internationalization Future investments

24. Commercial farming and development Commercial farming and agricultural productivity Agribusinesses and agro-based industries 65.6% of total population Increased number of people in industries

25. Thank You

26. Vegetable seed production in Nepal

27. Status and Overview Vegetable holdings : 69% of total household (18% involved in commercial production) Expense on farm input : 26% for seed/seedlings About 58% of vegetable farmers receive quality seed (around 40% in both hills and mountain)

28. Status and overview contd… 51% of total household 51% of total household Area: 246392 hac, Yield: 13.4 mt/hac Area: 246392 hac, Yield: 13.4 mt/hac (30 mt/ha in developed countries in average) (30 mt/ha in developed countries in average)  Traditional management practice  Lack of fertilizers  Lack of Improved seeds (20-25% reduction) Insufficient vegetable consumption

29. Status and Overview contd… Trade and export promotion center, 2013

30. Seed system in Nepal Informal Farmer’s produced and preserved for own purpose 50% supply of seed requirement Formal Vertical production and distribution of registered and improved seed 50% supply

31. Scope for vegetable seed production Vegetable seed: High value low volume commodity Diverse climatic zones: Production diversity Increasing seed replacement rate Increasing trend of hybrid seeds use

32. Situation of food shortage and import Increasing import led seed business Lack of national hybrids Qualified manpower Potential export market: Asia and Europe (Through participation of European investments) Scope for vegetable seed production Seed security : prerequisite of food security

33. Potential seed production niches surveyed by MoA Thak Marpha 2516 masl Mushikot 1460 masl Kathmandu 1100 masl Sarlahi 60 masl Cabbage Carrot Cress Peas Turnip Broad leaf mustard Onion Radish Peas Cauliflower Turnip Spinach Cauliflower Cress Spinach Turnip Radish Broad leaf mustard Tomato Tomato Egg plant Cucurbits Capsicum Okra MoA : Ministry of Agriculture, masl: meter above sea level

34. What is quality seed??? Genetic purity True to type and Physical purity High germination % Optimum moisture and vigour Free from disease, pests and noxious weeds Increased productivity

35. What can be produced? Nucleus seed: Genetically pure parent material produced by breeder Breeder seed: Progeny of nucleus seed under complete supervision of breeder Foundation seeed: Progeny of nucleus or breeder seed in multiplication farm Certified seed I and II: Progeny of foundation seeds in farmer’s farm or research farms

36. Organizations involved in veg seed production NARC and DoA National seed company limited (NSCL) NGO’s as CEAPRED, FORWARD, LIBIRD Private seed companies Community based seed production (CBSP) District level seed self sufficiency programmee (DISSPRO) NARC: National agricultural research center, DoA: Department of agriculture

37. Vegetable Seed development projects Koshi hill agriculture project (1987-1992) Fresh vegetable and vegetable seed production project (1979-1994) : Swiss govt and FAO Community based economic development project (1997-2002) Vegetable seed project (2004-2014): Veg seed production and marketing utilizing resource poor farmers

38. Seed vision 2013-2025 Opportunities in seed sector Foreign investment friendly policy Varietal development Seed multiplication Seed processing Seed supply Seed use

39. Constraints of seed multiplication Inadequate supply of source seed (BS/FS) Lack of research for development of new varieties Cross border flow of non notified seeds Preference of farmers : Quick return from vegetables rather than seed production Fragmented land use

40. Ways forward Inclusion of biotechnology and plant breeding Development of new varietal options Establishment and maintainence of seed banks Establishment of hybridization program

41. Areas we can contribute Varietal and hybrid development Research and collaboration with NARC, Agricultural universities Seed multiplication and dissemination Private commercial, collaboration with farmers, MoA and I/NGOs