Traditional yak farming in Nepal is declining at an alarming rate, characterised by a measured shift from traditional butter and hard cheese (Chhurpi) to modern Swedish style hard cheese, yak steak and as pack animals for tourism. Also there has been a positive shift in number of animals/herd due to economic reasons such as economic return per herd and per animal. It has been noticed that small herds (15 heads) show positive but very low gross margins compared to that of economically viable sized herds (55 heads). The economic return of a household running a hotel business in a yak raising area is five times higher than that of a household with an average herd size of 55 animals. However, yak, as a pack animal in the tourism sector, is essential to carry the loads of tourists in the Himalayan region of Nepal. Without yak and their crosses, it is impossible to strengthen the growing tourism industry in this remote and rugged terrain. In addition to this, the meat value of yak steak in these areas is another major reason closely associated with tourism development. To develop tourism in Nepal, there is an urgent need to readdress policies that affect yak husbandry for the mutual benefit of farmers as well as for rural-urban migration and employment. A slow transition policy has been prescribed in this paper to resolve the current issues related with yak husbandry and need for tourism.
