Dairy Development Corporation (DDC) is exporting its ghee to Dubai for the first time, with an initial shipment of 600 kg being sent to the United Arab Emirates.

The export is being carried out under an agreement between DDC and Rato and Chandra-Surya International. The two sides have agreed to target a minimum of 50,000 kg of ghee exports per year, although the first shipment currently stands at 600 kg.

According to company Managing Director Prakash Chandra Ghimire, the initial shipment will be used to test the market response in Dubai. The company's subsidiary, Matrubhumi General Trading LLC, is preparing to open its own department store in Dubai, where the ghee will be placed for sale.

Ghimire said the company will assess consumer response to the initial shipment before placing additional orders. If demand is encouraging, the company plans to increase the volume of ghee exported from Nepal.

The company is also preparing to expand beyond Dubai and target other markets in West Asia. The initial shipment is therefore being viewed as a market-entry step rather than a one-off export.

The ghee will undergo another food safety test after reaching Dubai. According to Ghimire, DDC's laboratory report has already been used to obtain a health certificate from the Department of Food Technology and Quality Control confirming that the product is fit for consumption.

The product will be tested again by authorities in Dubai based on the health certificate and documentation issued in Nepal. The additional testing is part of the process for introducing the product into the new market.

DDC ghee packaged in jars or bottles has a shelf life of around one year, according to the company. While ghee is the first product being exported under the arrangement, preparations are also underway to export yak cheese to overseas markets in the future.

Nepal already exports ghee to several international markets, although Japan has historically accounted for the overwhelming majority of exports. According to the Customs Department, Nepal exported 39,859 kg of ghee worth Rs 43.344 crore in the last fiscal year.

Of that total, ghee worth Rs 43.275 crore was exported to Japan, while exports worth Rs 51,000 went to India, Rs 16,000 to the Netherlands and Rs 1,000 to the United Kingdom.

The Dubai shipment could therefore give Nepal's dairy products a new market in West Asia. If the initial response is positive and the planned annual export volume is achieved, the agreement could create a larger overseas market for DDC's ghee and potentially other Nepali dairy products.