In the year 2021, a dairy group comprising 23 households from Tshothang was established, consisting of 20 male and 3 female participants. The formation of this group was facilitated by financial assistance from the Commercial Agriculture and Resilient Livelihoods Enhancement Programme (CARLEP), which adopted a cost-sharing model whereby 70% of the expenses were covered by the agency and 30% by the beneficiaries. Primarily focusing on the procurement of improved cattle, specifically Jersey breed, this initiative aimed to enhance dairy farming practices within the community. Due to the remote location of the dairy group, accessibility to market facilities was limited. Consequently, plans were made to construct a Milk Chilling Centre to address this deficiency. The construction of this facility commenced with financial support amounting to Nu. 1.4 million from CARLEP-IFAD. Furthermore, the acquisition of essential dairy equipment, including 1 Deep freeze, 2 display freeze, 5 cream separators, 2 butter churners, 1 bulk milk chiller, and 20 milk cans, was made possible through CARLEP funding totalling to Nu. 7 lakhs. These resources were crucial in ensuring the operational efficiency of the milk chilling centre and facilitating the processing and value-addition of dairy products. The establishment of the Milk Chilling Centre, coupled with the provision of necessary equipment, has instilled optimism among dairy farmers regarding the potential for value-added product development. It is anticipated that such endeavours will contribute positively to the rural income and livelihoods of the community members involved.