In the early 2000s, Nishes left for the United States from Nepal with some chhurpi, a traditional Himalayan hard cheese. One day, his friend Suman Shrestha noticed Nishes' dog chewing on a piece of it. Although they weren’t actively seeking new ventures, seeing how much the dog enjoyed chewing chhurpi sparked their interest in exploring it as a potential business opportunity. Chhurpi, a hard fermented cheese popular in Nepal, seemed like an ideal natural dog treat. Suman and Nishes tested it with other dogs and soon involved Suman’s brother, Sujan, to further develop the idea.
In 2007, the three co-founded Himalayan Pet Supply, pioneering the use of Himalayan yak chhurpi as an organic dog chew. Over the years, they refined the product, removing lactose and perfecting the texture to make it safe and enjoyable for dogs. The breakthrough arrived when they realised hardened chhurpi could serve as a natural alternative to rubber-based dog chews.
They introduced the Himalayan Dog Chew at a pet fair in Bellingham, Washington, in September 2007 which sold out quickly. This marked the entry of Nepal’s traditional chhurpi into the international pet industry. Today, dog chew has become one of Nepal's fastest-growing exports bolstered by strong demand from European and American markets where it is recognised as a natural alternative to rubber-based chews for pets. It now ranks among the country’s top 10 export items, closely competing with Nepal's traditional tea exports as a key source of foreign currency. In 2023/24, Nepal exported dog chew worth Rs 3.18 billion -a six-fold rise over the past five years.
Growing Demand
Nepal's dog chew exports have experienced remarkable growth in recent years. By F2023/24, these exports had expanded to 26 countries, with the United States emerging as the largest market.
In 2017/18, Nepal exported dog chew worth around Rs 850 million. It increased by 23.5% to Rs 1.05 billion in 2018/19. The growth continued in 2019/20 with exports reaching Rs 1.23 billion. The most dramatic growth occurred in 2020/21, with exports jumping nearly 60% to Rs 1.96 billion which underscored robust demand for a natural dog chew in the western markets.
The momentum continued in 2021/22, as exports nearly doubled to Rs 2.91 billion, and by 2022/23, exports had grown further to Rs 3.40 billion. However, in 2023/24, exports saw a slight decline to Rs 3.18 billion due to the implementation of new export standards, say exporters.
Despite this minor drop, exporters say the demand for dog chew is high, primarily due to its superior quality and natural ingredients as a chew for both dogs and cats. "If the government relaxes export regulations, Nepal could potentially increase chhurpi exports fourfold, surpassing Rs 10 billion within a few years," Rajendra Timilsina, owner of Himalayan Natural Food Product and Export Pvt Ltd, said. "Beyond the US, Europe presents significant opportunities, especially with the rise in pet ownership following the Covid-19 pandemic."
Timilsina currently exports 30 tonnes of dog chew to the US and Europe every year. "I am planning to double production as I have been getting inquiries from smaller European markets," he added.
After the US, Canada is the second-largest market for Nepali dog chew as the North American nation imported 123.82 tons valued at Rs 266.38 million in 2023/24. The United Kingdom also stands out with imports of 16.71 tons worth Rs 43.26 million, while Japan imported chhurpi valued at Rs 28.02 million during the review year.
Challenges
Chhurpi is produced in Nepal's mountainous regions by coagulating milk from yaks, cows and buffaloes. Ilam has emerged as an important processing hub for chhurpi in recent years. The majority of dog chews exported from Nepal are made in the eastern hilly district.
Despite the government's assurance that no fees would be imposed on agricultural products, businesses continue to face export fees when transporting goods from Ilam to Kathmandu, as well as customs duties when exporting to international markets, exporters say.
According to Nepali exporters, Belgian farmers have begun producing chhurpi which has further intensified the challenges that Nepali farmers and exporters are facing. Pradeep Bhattarai, a dairy farmer from Sandakpur Rural Municipality of Ilam said various government bodies are adding to the difficulties by demanding VAT registration, food certificates and other paperworks. “If the government can create a more favourable environment and at least provide foot-and-mouth disease-free certification for Koshi Province, it would significantly boost the market for Nepali chhurpi in Europe,” he added. Entrepreneurs have raised concerns about some businesses producing soft cheese from cow milk and falsely branding it as yak cheese. “This practice will harm the reputation of Nepali cheese. The soft cheese made from cow milk and the hard variety made from yak's milk are distinctly different. Mislabeling them undermines the authenticity and quality of Nepali products,” exporters say.
Similarly, the lack of adequate storage and transportation facilities, restrictions on breed improvement and animal health, and insufficient technical expertise in the production process pose significant challenges for farmers and producers.
Quality Standard
The Department of Food Technology and Quality Control has proposed new standards for chhurpi in response to its growing demand in international markets, particularly in the United States and Canada. The initiative aims to ensure that the protein-rich cheese complies with international sanitary and phytosanitary regulations, aligning with global food safety standards.
According to officials, the Ministry of Agriculture and Livestock Development has already submitted the draft standards to the World Trade Organization (WTO) for approval. The draft outlines specific guidelines on food safety, packaging and production processes for chhurpi.
Mohan Krishna Maharjan, the spokesperson for the Department of Food Technology and Quality Control, said it could take a few weeks for the response from the WTO to come. “The process is well underway. We developed quality standards for chhurpi because it is a traditional Nepali food that is rapidly becoming a major export commodity," he added.
The proposed standards apply to all types of chhurpi made from the processed milk of cows, yaks and buffaloes. They include specifications for fat content. It defines high-fat chhurpi as a product containing 5% percent or more milk fat, and low-fat chhurpi as containing less than 5% milk fat. Additionally, chhurpi must be free from adulterants, fungus, pests and foreign debris such as stones, plastic or metal, said Maharjan.
These measures will help protect both consumers and producers by ensuring product safety and quality, according to Maharjan. "The department is continuously developing and updating standards for traditional Nepali foods. The proposed standards will also apply to dog chews, which are widely used to feed dogs and cats abroad," he added.
Once implemented, the new chhurpi standards will not only enhance market access but also safeguard compliance. Under the Food Act, violators could face fines of up to Rs 50,000 or imprisonment for up to five years. The proposed guidelines cover several aspects of chhurpi production, including packaging, which must be clean, dry and food-grade, with proper labelling that lists all ingredients. The government will also set maximum residue levels for contaminants, toxins and other harmful substances in the cheese, according to Maharjan.
Officials are optimistic that standardising chhurpi will not only preserve this traditional Nepali product but also create new export opportunities, thereby improving the livelihoods of local dairy farmers.
"The dog chew contains no added preservatives, colours or chemicals. It is made manually using milk and natural ingredients, following traditional techniques," said Maharjan.
(The news report was originally publihsed in the October, 2024 issue of the New Business Age Magazine.)