From Traditional Drink to Growing Business

The traditional drink "Mohi" (buttermilk) is now becoming a new avenue for income. Across Nepal, Mohi is becoming a fast-growing business opportunity - from roadside stalls to full-scale dairy industries.

An entrepreneur from Dhankuta has started the 'Durga Mohi' brand and is earning well by selling 300 liters daily. A dairy in Kapilvastu produces and distributes 3,000 liters of Mohi every day. Two brothers who were students from Hetauda started a 'Mohi Ghar' from a roadside stall and are now earning 15,000 rupees daily. Baglung Dairy Cooperative is branding and marketing 'Mohi' (buttermilk) under its own brand.

Santosh Poudel from Kohalpur, Banke, has been branding and selling "Thekī Swādako Mohī" (churned buttermilk from a traditional wooden pot) in the local market. His enterprise sells approximately 400 liters of thekī mohī and about 150 liters of open (unpackaged) mohī daily. By combining traditionally churned buttermilk from wooden thekīs with modern packaging, he has carved out a distinct identity in the local market.

Source: TheHamro 18/6/2025;The Kathmandu Post 20/5/2024; The Rising Nepal 6/4/2025; Gorkhapatra 15/5/2026; Ratopati 01/06/2026

According to the Nepal Dairy Association, currently, 30,000 liters of Mohi are formally sold daily across the country, and 200,000 liters are sold informally. 

Source: The Rising Nepal 5/11/2025

👉 This market has opened up opportunities for everyone. The question now is only how to get started.

Consumers are increasingly shifting toward:

• Natural drinks, probiotic and dairy-based beverages, traditional Nepali products, and healthier alternatives to soft drinks.
• The demand and consumption of Mohi (buttermilk) have increased because it is good for health and also affordable (Source: NepalNews 13/5/2026).
• The rising demand for traditionally prepared thekī mohī reflects a continued strong preference for Nepali dishes and local flavors (Source: Ratopati 01/06/2026).
  

👉 Mohi fits all of these trends.

Mohi is now commonly served at: 

• Weddings, religious gatherings, banquets, community events, and festivals

Visitors were welcomed with buttermilk at the Sapta Gyan Mahayagya, where approximately 2,600 litres of buttermilk were distributed within seven days.    

Narendra Dhakal cited in The Rising Nepal 5/11/2025

Today, buttermilk is served at almost every auspicious event, wedding, and party in the Kathmandu Valley.  

Kamal Dulal - Kathmandu Banquet cited in The Rising Nepal 5/9/2025

The Mohi business can generally be divided into three models: 

• Small Model: Stall or Cart
• Medium Model: Home Delivery or Local Brand
• Large Model: Full-Scale Industry

👉 Each model has different investment requirements, risks, and profit potential.

Based on industry data from 2024: 

• Selling price per liter: Rs. 50*
• Production cost per liter: Rs. 38–40
• Net profit per liter: Rs. 10–12

👉 This gives large industries a profit margin of around 20–25%. 

👉 However, smaller businesses often earn higher profit per liter because they avoid:

• Packaging costs
• Labeling expenses
• Employee salaries
• Large distribution costs

Source:   TheHamro 18/6/2025; The Kathmandu Post 20/5/2024; The Rising Nepal (6/4/2025, 5/11/2025)

Note:  Based on large industry data - Selling price Rs. 50/liter, cost Rs. 38-40/liter, profit Rs. 10-12/liter.  This is based on the 2024 price.  

• Your savings
• Available time
• Risk tolerance
• Production capacity 
  

• A testing phase
• A learning period
• A chance to understand customer demand
• Avoid expanding too quickly. 
  

• Neighborhood delivery
• Event organizers
• Local shops
• Banquet halls
• Schools and offices 
  

• Clean water
• Hygienic containers
• Proper cooling
• Fresh daily production
  

Despite growing demand and strong income potential, the Mohi business in Nepal faces several practical challenges:

• Mohi is highly perishable and usually needs to be sold within a few days. Unsold stock quickly turns into direct financial loss.
• Milk production often drops during winter, while summer demand for Mohi increases sharply. Some farmers may also sell milk to competitors offering higher prices.
• Without refrigeration during transport and storage, Mohi quality deteriorates quickly, especially during hot weather.
• Large dairies can reduce prices through scale, making it difficult for small producers to compete only on price.
• Much of Nepal’s Mohi market remains informal. Many small sellers lack packaging, labeling, and brand recognition, limiting long-term growth.
• Large-scale Mohi industries require heavy investment in machinery, cooling systems, logistics, and farmer networks. Recovery may take several years.
• Food inspections, registration requirements, taxes, and hygiene standards become more demanding as businesses grow.
  

These challenges are not barriers - they are clear business opportunities:

• Produce Mohi according to expected daily sales instead of overproducing. This minimizes spoilage and improves cash flow.
• Even small investments in iceboxes, refrigerators, and insulated transport can significantly reduce losses.
• Annual agreements with farmers create a more stable milk supply and pricing.
• Freshness, cleanliness, and trust are major advantages in the Mohi business. Customers are often willing to pay more for reliable quality.
• Simple labeling, clean bottles, and local branding can help small businesses move beyond price competition.
• During lower Mohi demand periods, businesses can produce yogurt, paneer, butter, or chhurpi to maintain income stability (Source: NepalNews 13/5/2026). 
• Many successful Mohi businesses began with small roadside or neighborhood operations before expanding into larger brands.
  
  👉 In the Mohi business, profitability depends less on selling price and more on how efficiently you manage spoilage, supply, and daily sales volume.

👉 Provincial and local governments have been providing subsidies on machinery, equipment, and other purchases to operate the mohī industry. You may also inquire with your respective local government body (Source: Ratopati 01/06/2026).

Success depends on your level of investment, operational discipline, and ability to build customer trust.

• Start with a roadside stall, cart, or local delivery model
• Focus heavily on cleanliness and freshness
• Choose high-footfall locations like bus parks, schools, and markets
• Use iceboxes to maintain cold temperature
• Experiment with flavored Mohi (mint, masala, spices)
  

• Build a regular neighborhood customer base
• Invest in simple packaging and refrigeration
• Target offices, schools, weddings, and local events
• Develop a recognizable local brand
• Improve delivery consistency and customer retention
  

• Invest in processing machinery and cold-chain infrastructure
• Build strong farmer supply networks
• Partner with banquet halls, event organizers, and retailers
• Focus on quality certification and production efficiency
• Explore regional expansion and institutional contracts
  

The Mohi business in Nepal is not limited by demand - it is limited by systems, cold-chain management, and organized branding. 

• Improve storage and refrigeration
• Build consistent milk supply networks
• Invest in packaging and customer trust

👉 Mohi is no longer just a traditional drink - it is becoming a scalable dairy business opportunity in Nepal.

👉 Profit does not depend on price alone - it depends on how efficiently you convert investment into consistent daily returns (ROI).