Agriculture is the mainstay of more than 65% people of Nepal. It is the major determinant of economic activities and the nations socio-political identity (Regmi, 1999). Livestock is an integral and important component of the Nepalese farming system (Singh et al., 2002). It contributes about 33% of the total agricultural gross domestic products (AGDP) in the country, which has been envisaged to increase at 45% by 2015 (APP, 1995). The Nepal Agriculture Perspective Plan (APP) with a horizon of 20 years has been effective in the countrys agriculture since 1997/98 (MOAC, 1998). The plan has targeted an annual growth rate in AGDP of 5% whereas it has identified livestock sector as one of the most potential sectors with average annual growth rate at 5.5% as a whole in the livestock sector and 6.1% in the dairy sector (APP, 1995).Cattle and buffaloes are raised for supply of animal protein (cows for milk, and buffaloes for both milk and meat), draft power (oxen/male buffalo) and production of animal manure. In relation to the amount of arable land per person, the livestock population in Nepal is one of the highest in Asia (LRMP, 1993; Shakya, 2004; AICC, 2005; MOAC, 2005). Economic importance of buffaloes in Nepal has been realized in recent years, as they have been reported to contribute 52.9% of the livestock share in the national GDP. Farmers of Nepal prefer buffaloes over cattle because of higher fat content in the milk, presence of salvage value, better adaptability to local feed resources, more resistance to diseases, and provide more manure than cattle (Joshi, 2003). APP has given first priority to milk and then to meat. Buffaloes are the main sources of milk and meat, producing about 71 and 65% of the total annual production of milk and meat (1.35 and 0.28 million mt.) respectively (AICC, 2008). However there have been only limited studies relating to improvement of their production performance (Shrest and Sherchan, 1997).