🐕🐄 Nepal’s Dog Chew Exports Near Tea in Value — But Soaring Milk Prices Threaten Growth

Kathmandu | July 13, 2025 — In a surprising turn for Nepal’s export economy, dog chew products made from yak milk have nearly matched tea in export earnings, underscoring the rising global demand for premium, value-added dairy products. But industry leaders are warning that rising milk prices and a lack of government support may soon put this booming sector at risk.

According to the Department of Customs, dog chew exports reached Rs3.99 billion in the first 11 months of the current fiscal year, just short of tea exports at Rs4.20 billion. In volume, Nepal exported 2,265 tonnes of dog chews (chhurpi), compared to 14,625 tonnes of tea.

The growth in dog chew exports was 34.3%, narrowly outpacing the 32.9% rise in tea exports, a trend that industry observers say reflects shifting global demand toward natural, high-protein dairy-based pet nutrition.

🌍 Global Demand, But Local Cost Pressures

Nepal’s traditional chhurpi, a hardened cheese made from Himalayan yak and cow milk, is now a premium pet treat in markets such as the US, Canada, and the UK. The US alone imported 1,888 tonnes worth Rs3.49 billion, while Canada and the UK followed with Rs308 million and Rs59 million in imports, respectively.

Despite global success, producers are struggling.

“With milk prices so high and no government subsidy, we are struggling to compete,” said Rajendra Kumar Shrestha, founder of the Manaram Group, one of Nepal’s leading pet food exporters. “Dog chew might go the same way as Nepal’s once-thriving carpet industry.”

Nepal’s milk now costs Rs10 to Rs12 more per litre than its neighbouring India, a direct competitor in the pet food market. This price differential makes Nepali dog chews Rs200 to Rs300 more expensive per unit than Indian alternatives—threatening the sector’s price competitiveness despite its superior quality.

🥛 Dairy Pricing and Sector Risk

The Nepal Dairy Association confirms that milk price inflation has affected both domestic consumption and industry payments to farmers. In March 2023, the government raised the minimum milk procurement price to Rs 65.5 per litre, with current retail prices hovering near Rs 100 per litre.

This rise in farmgate prices, though designed to benefit dairy farmers, has pushed up input costs for manufacturers reliant on bulk milk, like the dairy sector. Quality is still a Key Strength

What continues to set Nepali chhurpi apart is its natural composition: no added preservatives, chemicals, or synthetic agents. Made using centuries-old techniques, it is marketed globally as an ethical, nutrient-rich chew for dogs.

“The high quality of Nepali dog chews has driven the export growth,” said another exporter. “But our margins are thinning. Selling at lower prices while costs rise is not sustainable.”

🍵 Tea Sector Still Strong

Nepal’s tea exports also posted substantial numbers, with volumes rising to 14,625 tonnes, up from 11,920 tonnes last year. While CTC tea is primarily exported to India, Nepal’s orthodox tea finds buyers in France, Germany, Russia, Japan, and the US.

“Production has increased, and average export values have risen 5–7% year-on-year,” said Kamal Mainali, President of the Nepal Tea Association.

Orthodox tea now commands Rs500/kg, while CTC tea averages INR 125–150/kg in export markets.

📢 Policy Call: Don’t Let Chhurpi Go the Carpet Way

Stakeholders are now urging the Nepalese government to intervene with targeted subsidies or pricing reforms to protect this high-value dairy export niche.

The risk is real: Nepal’s carpet industry, once a global leader, has collapsed due to rising costs and a lack of timely support. Industry voices fear that the chhurpi sector could follow if action isn’t taken.

With dog chews nearly matching tea in export value—and demand still rising—Nepal stands at a crossroads. Supporting dairy-based exports like chhurpi could open a new chapter in value-added dairy trade for South Asia.