Nepal's Sacred Cattle: Profitability Analysis and Policy Implications

This paper analyzes Nepal’s current livestock policy, which is rooted in culture and religion, and the extent to which its design has not kept pace with the continuing transformation of the country’s agricultural landscape. It estimates the impact of the no-slaughtering of cattle policy on dairy producers using Latin hypercube simulations to quantify a baseline and alternative scenario for cattle milk production. The baseline models the current production system, while the alternative scenario models milk production where producers are allowed to slaughter or export cattle. Results indicate that farmers’ profit per liter of milk increases by 19 to 31 percent in the alternative scenario.