Nepal’s yak economy

When Nepal decided to mark the annual National Yak Day on 20 April 2025, it celebrated an animal that has been the backstay of mountain livelihoods for centuries. 

The sure-footed yak is more than just an iconic bovine. It is the guardian of the high Himalaya and integral to the identity of pastoralist communities. Yaks provide a lifeline: hauling goods across treacherous trails, providing milk, butter and warm wool for clothing, and providing dung that serves as fertiliser and fuel. 

(In English, yak is used to refer to both the male and female, while in Himalayan languages it refers strictly to the male, while females are called dri or nak. A dzo or chauri is a crossbreed between a yak and a domestic cow.)

At above 3000m, where the air is thin and cold, yaks and chauri have made mountain agro-pastoralism coexist. This transhumance herding and livelihood system, practiced by the Sherpa, Tamang, Thakali, Rai, Limbu and other communities shapes pastoralist identities. 

The yak also holds deep cultural ties, often featuring in folklore and festivals. Their presence has led to a rich indigenous pastoral knowledge of the alpine ecology, embodying a unique harmony between people and nature.

But despite their value and reverence, the animals and the customary practices around them are in peril. Nepal's yak population has plummeted from around 200,000 in the 1960s to just 53,000 today.

Climate change has led to the degradation of alpine pastures, increasing temperatures, while prolonged winter droughts and unseasonal snow have reduced nutritious pastures. Traditional grazing areas have shrunk, or claimed for other uses.

Nepal’s highland youth are migrating to cities or abroad, leading to a decline in second-generation pastoralists as well as a loss of traditional knowledge in yak husbandry. Those who remain face rising losses from predators and disease outbreaks, compounded by scarce veterinary services. 

At present, fewer than 10,000 households across Nepal still rear yaks, endangering an important cultural heritage.

National Yak Day, therefore, marks an important step in Nepal’s effort to revitalise the yak economy, focusing national attention to its role in food security, livelihoods, ecology and culture. 

The UN's Food and Agricutlure Organization (FAO) in Nepal is also integrating yak development into its agricultural investment programs, market facilitation, and support for high-mountain communities. 

Yak herders from 25 districts across five provinces have formed a national federation, uniting to advocate for their needs from grazing rights and market accessibility to better veterinary and extension services. 

National Yak Day has become more than symbolic: it has evolved into a collective platform to drive policy support and cooperative action to keep yak pastoralism alive.

The conservation of Nepal’s yak populations is important for the rights, mobility, and the preservation of highland cultures, but it also presents an economic opportunity. The most effective way to sustain yak herding and retain the communities that depend on it is to make it a financially viable livelihood.

What has long been practiced as a subsistence activity can, through innovation and value addition, evolve into a driver of economic growth and resilience for herding communities. 

Yak-based products ranging from Himalayan yak cheese in Langtang to churpi and yak wool already secure premium value in niche markets. With enhanced processing, improved cold-chain systems, stronger branding, and greater recognition of the collective rights of herding communities, these value chains hold considerable potential to further increase income.

Herder-led homestays and tourism also presents promising avenues for diversification. But yak herding is inherently dependent on seasonal mobility across highland pastures, yet access to traditional grazing routes is becoming increasingly constrained, and land tenure arrangements remain insufficiently defined. 

The long-term viability of yak herding systems needs to be addressed. Access to rangelands and recognition of transhumance practices are not secured, the foundations of the yak economy will continue to erode. 

Revitalising this sector, therefore, requires more value chain investment and private sector coordination; it will also need policy reform and state support. 

Highland communities need pastoral grazing rights, and strengthened claims on the lands of which they have long been the custodians. Targeted subsidies, transport support, and tax exemptions for high-altitude enterprises can help offset the structural disadvantages of remoteness. 

With investment, Nepal can create green jobs, curb out-migration from mountain areas, and give young people a reason to carry forward a livelihood that is their heritage. The yak is a climate-resilient animal, and its economy could yield high returns across social, economic, and environmental dimensions. 

The second annual National Yak Day on 20 April arrives as the world prepares for the UN’s International Year of Rangelands and Pastoralists (IYRP) 2026, a global initiative to safeguard pastoralist communities and the fragile rangeland they nurture. 

By aligning National Yak Day with IYRP themes, Nepal has amplified its message and tapped international partnerships. The shared goal is the economic empowerment of yak-herding families. With secure livelihoods and a voice in policy, Nepal’s mountain pastoralists can continue as stewards of the high mountains, protecting nature as they have for generations.

FAO is leading this momentous effort, calling for stronger support for pastoralists from the Andes to the Himalayas. Nepal’s yak herders have been the bedrock to food security, biodiversity conservation, and climate adaptation through their traditional livelihoods. 

In Nepal, FAO has been working with the government and national partners to co-host a forum to strengthen Nepal’s Rangeland Policy, aiming to ensure herders have better access to pastures and support services. FAO Nepal is also engaged in the value chain and digital innovation to support yak pastoralists.

National Yak Day 2026 is an opportunity to promote a development model that builds on, rather than replaces, traditional livelihoods. Supporting yaks and pastoralists is not just about preserving their past, it is a pragmatic approach to supporting climate-resilient mountain livelihoods. 

This means recognising pastoral mobility, securing grazing rights, investing in value chains, and ensuring highland communities are not sidelined in national development.

The moment for Nepal to act is now by enabling policies, targeted investment, and greater recognition, yak herding can serve as a foundation for a future where economic opportunity, ecological sustainability, and cultural continuity are mutually strengthened for better livelihoods across Nepal’s mountain communities. 

Ken Shimizu has been the FAO Country Representative for Bhutan and Nepal since 2021.