Dairy sector has been a vector in providing dairy products to the urban population and pull the urban capital into the rural areas. Dairy industries have been successful in creating a strong network between the dairy farmers and the consumers and have been established as a bridge between the urban and rural trade across the country. The entire dairy chain is dependent upon milk production. At present, Nepal contributes approximately 0.247% of the world's total milk production. Nepal's milk output is estimated to be 2.05 million metric tons. The per capita availability of milk in Nepal is around 158.9 grams per day, which is far below than the value recommended by World Health Organization (WHO). The current milk production growth rate should be raised to 4 percent per annum so as to meet the WHO recommended minimum value of 250 gm per day per-capita milk consumption by the year 2025.The dairy sector in Nepal is the most important sub sector in Nepalese livestock production. Almost 28% of the national GDP comes from the agriculture and livestock sector. However, the share of dairy sector in agricultural GDP of Nepal is 8% of the national GDP. Beside contributing to the GDP, the agriculture sector also provides employment to the two-thirds of the country's population. The cooperative sector in Nepal has been in the emerging state and is playing an important role in socioeconomic development of millions of rural families.