The Dairy Development Corporation (DDC) began its first export of ghee to Dubai on Friday, sending an initial 600 kg shipment under an agreement with Rato ra Chandra-Surya International Pvt. Ltd.

The agreement calls for at least 50,000 kg of ghee to be exported annually. The company is starting with 600 kg to test demand and assess consumer response in the Dubai market.

“We are opening a department store through our subsidiary, Matribhoomi General Trading LLC. The ghee will be sold there,” said Prakash Chandra Ghimire, managing director of Rato ra Chandra-Surya International. “We will place further orders based on the response from the market.”

The shipment marks DDC’s entry into the Dubai market as the company seeks to expand ghee exports beyond its existing destinations and establish a presence in the wider West Asian market.

Ghimire said the ghee has already received a health certificate from the Department of Food Technology and Quality Control based on a laboratory report from DDC. The product will undergo another test in Dubai before it is cleared for sale.

“We have obtained the health certificate from the department based on the DDC’s laboratory report. It is internationally recognised,” Ghimire said. “The product will be tested again in Dubai on that basis.”

The ghee is packed in jars or bottles and has a shelf life of one year, according to the company.

The company plans to expand beyond ghee as well. It is working on exporting yak cheese to Dubai in the future, Ghimire said.

The move into Dubai comes as Nepal continues to export ghee to a small number of overseas markets. According to Department of Customs data, Nepal exported 39,859 kg of ghee worth Rs43.34 million in the last fiscal year.

Japan was by far the biggest market, taking ghee worth Rs43.28 million. Nepal also exported ghee worth Rs51,000 to India, Rs16,000 to the Netherlands and Rs1,000 to the United Kingdom.

“Dubai is a new market for us. This is the first time we are sending ghee there,” Ghimire said.

The company said it plans to use the Dubai market as a stepping stone to expand ghee exports across West Asia.