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.

Agriculture is the backbone of Nepalese economy but higher poverty, constant trade deficit and erratic inflation rate has led to the shrinkage of agriculture share in the national GDP from 27.59% in last fiscal year to 26.98% in this fiscal year. Agriculture production rate is increasing at an average rate of 2.7% but is expected to grow at 5.1% this year due to the better monsoon. Nepal shares 0.66%, 0.27%,0.22% and 0.4% in global production of rice, wheat, maize and pulses respectively in the year 2018-19. The production of oilseeds has increased to 9.89% in 2018-19 from 4.68% in 2014-15. The minimal increment to 0.36% in 2018-19 from 0.3% in 2008-09 is noticed in case of production of vegetables. The share of Nepal in global production of fruit is only 0.16% in 2018-19 after increment from 0.1% in 2008-09. The share of Nepal in global milk production is very low i.e.0.247% though dairy sector is in prosperous state in Nepal. After adopting different suggestive measures better growth can be attained in the agriculture sector. The agriculture sector is in booming stage with the help of different government policies. An integrated sustainable approach is necessary to increase the income of people involved in agriculture sector.