Balen Shah’s endorsement boosts DDC sales, Yak cheese stock sold out

KATHMANDU: A social media post by Balen Shah has significantly boosted sales of products from the state-owned Dairy Development Corporation (DDC), leading to the depletion of its yak cheese inventory within weeks. However, despite the surge in sales, the corporation has yet to clear nearly Rs 600 million in outstanding payments owed to dairy farmers.

The impact of the endorsement was visible during the opening ceremony of the Rastriya Swatantra Party (RSP) general convention in Bharatpur on Asar 7, where DDC set up a sales booth and prominently displayed a photograph of Balen Shah consuming DDC cheese.

According to DDC, sales of curd and buttermilk alone reached around Rs 325,000 at the convention venue, drawing strong interest from party members and visitors.

Yak Cheese Inventory Exhausted

DDC spokesperson Nilkantha Gautam said sales of nearly all dairy products have increased since Balen Shah shared a photograph featuring DDC cheese on social media about a month ago.

“Demand for our products has risen significantly following the publicity. Our stock of yak cheese has been sold out, and fresh supplies are continuously being sent to the market,” Gautam said.

He added that sales of yak cheese have increased by around 25 percent. Since the social media post, DDC has reportedly sold approximately 4,500 kilograms of cheese that had been held in inventory.

DDC produces around 5,000 kilograms of yak cheese and an equivalent quantity of Kanchan cheese each month, offering products in packages ranging from 100 grams to one kilogram.

Rising demand has also prompted the corporation to increase the price of yak cheese by Rs 300 per kilogram. The product, previously sold at Rs 1,800 per kg, now costs Rs 2,100 per kg.

“Demand for yak cheese has been exceptionally strong, which led us to revise the price,” Gautam said.

Demand Rises Across Product Range

Besides cheese, DDC has also reported higher sales of yogurt, buttermilk and ice cream. The corporation hopes that improved market demand will gradually reduce its large inventory of dairy products.

However, the sales momentum has not yet translated into immediate relief for dairy farmers awaiting payment for milk supplied to the corporation.

Rs 600 Million Outstanding to Farmers

Despite stronger sales, DDC still owes farmers roughly Rs 600 million and has not made milk payments for the past three months.

Farmers previously received payments within 15 days, but growing inventories of milk powder, butter and other dairy products have strained the corporation’s cash flow in recent years.

“We still have around three months of outstanding payments. As inventories are cleared, it will become easier to settle dues,” Gautam said.

The corporation is currently collecting only about half of its normal milk volume because of the off-season. DDC presently markets between 60,000 and 65,000 liters of milk daily.

Even after recent sales gains, DDC continues to hold substantial inventories, including approximately 300 tons of milk powder and 200 tons of butter.

The sharp rise in demand following Balen Shah’s social media endorsement highlights the growing influence of digital branding on consumer behavior in Nepal. Yet the episode also underscores the deeper structural challenges facing the dairy sector, where improved retail sales alone may not be sufficient to resolve long-standing liquidity pressures and delayed payments to farmers.