Nepal's dog chew exports rise 7 percent despite US tariff

Nepal's dog chew exports, known locally as chhurpi, have seen a 7% increase in value during the first 11 months of the current fiscal year, despite a 10% tariff imposed by the United States. The Trade and Export Promotion Centre reported that Nepal exported 2,733 tonnes of dog chews, worth Rs4.29 billion.

The United States continues to be Nepal's primary market, absorbing roughly three-fourths of all exports, with 2,042 tonnes valued at Rs3.75 billion imported. Canada followed as the second-largest buyer. This growth persists even after the US administration implemented a 10% tariff on Nepali products in April of the previous year.

Dhurba Raj Regmi, CEO of Native Nepali Agro Suppliers, noted that the tariff has not significantly impacted major US brands sourcing from Nepal. However, smaller importers have been deterred by the increased cost. His company's exports grew to about 100 tonnes this fiscal year, up from nearly 80 tonnes previously.

These dog chews, primarily produced in the eastern hill districts of Ilam, Taplejung, and Panchthar, are made from Himalayan yak and cow milk using traditional methods. They are marketed as a natural, high-protein product without preservatives or artificial colors. Manufacturers see Europe as a major potential market, but current EU restrictions on dairy imports from Nepal hinder expansion.

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The 10 percent tariff imposed by the US has not had any immediate impact on exports of Nepali dog chews. Despite concerns over supply chain disruptions, major US brands have continued to source dog chews from Nepal.