Dairy Industry In Pakistan: A Scenario


Published on

Past, Current and Future aspect about Dairy Industry

Published in: Education, Technology, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Dairy Industry In Pakistan: A Scenario

  1. 1. DAIRY INDUSTRY IN PAKISTANA SCENARIOPrepared By:MUHAMMAD ASJAD KHURAM1652-411036EMBA Final YearPreston University Lahore
  2. 2. Dairy Industry In Pakistan: A Scenario 1TABLE OF CONTENTSAcknowledgment 04Preface 05Executive Summary 06Introduction 07History 08Milk Production System in Pakistan 09Pakistan Dairy Farming 12Processing Of Milk 13Milk Consumption 15Main Feature of Dairy Sector in Pakistan 17Population of Bufallo and Cattle 17Dairy Breeds and Breedings 18Feeds and Feedings 22Usage Of Treated Straws 25Animal Health 25Dairy Production System 261: Grazing System 262: Mixed Farming System 273: Peri Urban Dairy Colonies 27Global Milk Production 29Milk Consumption Pattern 30Milk Marketing 32Milk Production and Procurement 35Milk Procurement Types 36MPS 38
  3. 3. Dairy Industry In Pakistan: A Scenario 2Crucial Factors and Steps 39Strength 39Weaknesses 39Oppertunities 40Milk Production 40Future Prospectus 42Consulting and Planning 44PLDDB 48Pakistan Dairy Association 48Future Strategy 49Key Success Factors 50Summary of Articles 51Conclusion 53References 53
  4. 4. Dairy Industry In Pakistan: A Scenario 3Submitted To:SirYasir HassanDairy Industry In Pakistan: A ScenarioSubmiited By:Muhammad Asjad Khuram1652-411036Dairy Industry in Pakistan: A Scenario
  6. 6. Dairy Industry In Pakistan: A Scenario 5PREFACEPakistan Dairy industry is one of the most essential sectors in the country GDPcontributions and it is the spine of Pakistan economy. Capital structure is veryimportant for the firm particularly Dairy Industry sector. Because it has an impact onlong term corporate profits, firm‟s valuation and capital budgeting decisions.Dairy Industry is influenced by many factors like size, growth, profitability andspecific industry also plays its role in economic growth. Dairy Industry is the mostimportant segment of Pakistan which contributes main part in country‟s exports.Performance of this segment has a powerful influence on state economy. Studyinitiates the major determinants of Dairy Industry and their different aspects. Itdetermines the impact of Milk Production on profitability of Dairy industries inPakistan.
  7. 7. Dairy Industry In Pakistan: A Scenario 6Executive SummaryThe livestock sector plays a vital role in the economies of many developing countries.It provides food or more specifically animal protein in human diets, income,employment and possibly foreign exchange. For low-income producers, livestock alsoserves as a store of wealth; provide draught power, and organic fertilizer for cropproduction as well as means of transport.Milk provides relatively quick returns for small-scale livestock keepers. It is abalanced nutritious food and is a key element in household food security.Smallholders produce the vast majority of milk in developing countries where demandis expected to increase by 25% by 2025. Dairy imports to developing countries haveincreased in value by 43% between 1998 and 2001. Informal market traders handleover 80% of milk consumed in developing countries. Two thirds of total world milk isproduced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EUmember states. Developing countries produced one third of total world milkproduction in 2000 (216 million metric tones) and it is increasing. Various animalsincluding buffalos, cows, sheep and goats produce milk. Total world milk productionis dominated by cow‟s milk followed by buffalo, goat and sheep.There is a dearth of research and documentation regarding the dairy sector in Pakistan.No serious effort has been made to understand dynamics of this important sector. Itsimportance could be judged from the fact that in terms of market value, itscontribution to Gross Domestic Product (GDP) surpasses all the major crops.Pakistan is the fourth largest milk producer in the world. About a third of the totalmilk produced by the rural families flows out to urban consumers and processingindustries. In urban areas milk is available to common consumers in two ways: loose /unprocessed milk and packed/ processed milk.
  8. 8. Dairy Industry In Pakistan: A Scenario 7IntroductionThe livestock sector plays a vital role in the economies of many developing countries.It provides food or more specifically animal protein in human diets, income,employment and possibly foreign exchange. For low-income producers, livestock alsoserves as a store of wealth, provide draught power, and organic fertilizer for cropproduction as well as means of transport.Milk provides relatively quick returns for small-scale livestock keepers. It is abalanced nutritious food and is a key element in household food security.Smallholders produce the vast majority of milk in developing countries where demandis expected to increase by 25% by 2025. Dairy imports to developing countries haveincreased in value by 43% between 1998 and 2001. Informal market traders handleover 80% of milk consumed in developing countries. Two thirds of total world milk isproduced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EUmember states. Developing countries produced one third of total world milkproduction in 2000 (216 million metric tones) and it is increasing. Various animalsincluding buffalos, cows, sheep and goats produce milk. Total world milk productionis dominated by cow‟s milk followed by buffalo, goat and sheep.There is a dearth of research and documentation regarding the dairy sector in Pakistan.No serious effort has been made to understand dynamics of this important sector. Itsimportance could be judged from the fact that in terms of market value, its
  9. 9. Dairy Industry In Pakistan: A Scenario 8contribution to Gross Domestic Product (GDP) surpasses all the major crops.Pakistan is the fourth largest milk producer in the world. About a third of the totalmilk produced by the rural families flows out to urban consumers and processingindustries. In urban areas milk is available to common consumers in two ways: loose /unprocessed milk and packed/ processed milk.History:Livestock sector in Pakistan contributes almost 50 percent to the value addition in theagriculture sector, and almost 11 percent to GDP, which is higher than thecontribution made by the crop sector (47.4% in agriculture and 10.3% in GDP). Therole of livestock sector in the rural economy is very crucial as 30-35 million ruralpopulation of the country is engaged in this sector for its livelihood. Within thelivestock sector, milk is the largest and the single most important commodity.Pakistan also has an industrial production capacity of approximately 47.5 million litersper year of ice cream.Pakistans dairy industry is plagued by a number of problems which include lack ofcommercial dairy farms, low productivity due to poor nutrition, a weak infrastructure,lack of financial facilities, and the ready availability of raw milk to a poor anduneducated population. Although Pakistan was ranked fourth among the five leadingmilk producing countries in the world, with an estimated 24 million animals havingproduced closely to 28 million tons of milk in year 2003 and over 31 million tonsduring 2005-06 as the 5th largest producer of milk in the world, its yield per animal isonly one-fifth of that of Western Europe.Government, after ignoring the dairy sector has taken cognizance if the importance ofthe dairy sector and embarked upon a number of initiatives to boost the dairy sector.Under the new programmes, Pakistan government has created National DairyDevelopment Board (NDDB) and Livestock & Dairy Development Board (LDDB).Following are some of such initiatives.During the years 2002-2005 milk and milk products worth US $ 10.167 million wereexported from Pakistan. Pakistan imports dry/powered milk from Eastern Europe, andCentrally Independent States (CIS).
  10. 10. Dairy Industry In Pakistan: A Scenario 9In Pakistan only 3-4% of the total milk is processed and marketed through formalchannels whereas the remaining 97% of the milk reaches end users for immediateconsumption through an extensive, multi-layered distribution system of middlemen.However the processed milk consumption is growing at the rate of 20% per year.Pasteurized and UHT milk in tetra packs are very popular products.Large dairy shops also produce Desighee and butter. Processing plants have alsointroduced a number of dairy products like yogurt, drinking yogurt, flavored milk,cream, butter, ghee, cheese, ice cream etc. The quantities sold however are smallexcept for yogurt & butter. Industrial processing units in addition to the traditionaltraders of sweetmeats, milk, yogurt, ghee and other dairy products have been set-up.Most of processing capacity is concentrated near larger markets and away frompotential sources of milk. More than 53 modern milk processing facilities wereestablished before 1974. By 1974 less than half were operating and after theintroduction of the first UHT, long-life milk plant came into operation.Milk Production System in PakistanThe average farm gate price of milk is Rs 10 per liter. It varies from Rs 8 to Rs 16 perliter. Variation of farm gate price is not linked to the quality of the milk. It is ratherdetermined by two factors. One is the financial arrangement between the buyer andseller. The second factor is the geographical location. In areas where livestock rearingis difficult due to very hot weather or scarcity of fodder like in Rawalpindi, farmersget a better price for their milk. But when the price of the fodder is taken into account,the net income of these farmers is not significantly higher than the income of farmersfrom other areas of Punjab. Currently, there are no policies to regulate milk prices atthe farm level. The middlemen, contractors, Gawalas (local milk collection,transportation, and distribution people) processors, processed unpacked milk, loosemilk, and processed milk are the segments of the dairy value chain. The processedpacked milk costs Rs. 35 per liter whereas the loose milk costs Rs 24 per liter.Around a third of the total milk produced by the rural families flows out to urbanconsumers and processing industries. More than half of the milk collected by urbantraders and processing industries comes from small herd families. The familys
  11. 11. Dairy Industry In Pakistan: A Scenario 10decision to sell milk and the amount to sell is clearly poverty driven. Small farmerssell milk only because they have no other source of cash income. Milk in urban areasis accessible to common consumers in two ways: loose, unprocessed milk and packed,processed milk. Each has its own price regime.The unprocessed milk passes through the middle persons before it reaches the urbanretailer. The price of milk increases by one rupee per liter at every stage of sale. TheDodhees (Gawalas)‟ generally have undocumented contracts with farmers for regularmilk supply. They pay farmers an average price of Rs. 10.74 per kg. Some dodheeshave milk storage and chilling system and transport system. Transportation generallycosts Rs.0.50 to Rs.1.0 per liter. Dodhees make one rupee per liter.The urban retailers deliver milk door to door, by motorbike or sell it in a shop toconsumers. Consumers pay between Rs.18 to Rs.28 per liter depending on the fatcontent of the unprocessed milk.Farmers are forced to sell milk for cash income. But the market forces operating in atotally unregulated environment are exploiting the poor farmers by offering low pricesfor their produce. There is also no restriction on the quantity of milk that a companycan collect from an area.Pure Food Rules of 1965, Cantonment Pure Food Rules of 1967 (for military areas),and parts of the Pakistan Penal Code of 1860 are applicable to the dairy industry alongwith the other food items. Legislative and regulatory measures that affect the milkmarket in Pakistan are dictated primarily by the salient features of laws that govern themilk industry.The dairy industry of Pakistan is constrained due to a number of factors that includelow genetic potential of animals, animal health, improper feeding and housing foranimals, transportation and quality of milk. Lack of commercial dairy farms is also alimiting factor the dairy sector in Pakistan. The current process of collecting milkfrom a large number of subsistence farmers is time-consuming, costly and prone toadulteration.Agriculture sector with its integral component of livestock (animal agriculture) isregarded as most vital part of the national economy since the emergence of Pakistan.
  12. 12. Dairy Industry In Pakistan: A Scenario 11Agriculture not only contributed importantly to the nationalGDP of Pakistan duringlast five decades but also the provision of employment and food to rapidly growingnation remains important obligations of this sector. In the changing scenario ofeconomy of Pakistan and other developing nations, agriculture is still the largestsector. InPakistan, agriculture contributes slightly above 25% to GDP, employsaround 44% of work force, is the main source of foreign exchange earnings andprovides linkagesthrough which it can stimulate growth in other sectors (EconomicSurvey of Pakistan, 1999-2000). Livestock is the most important sub sector ofagriculture in Pakistan that accounts for nearly 37% of agriculture value added andabout 9% of the GDP. The netforeign exchange earnings were about 35 billion rupeesin 1999-2000, which was about 9% of the overall export earnings of the country(Economic Survey of Pakistan,1999-2000). Livestock sector has its due importance inPakistan due to the fact that 30-35 million rural population is engaged in livestockkeeping (Economic Survey, 1999-2000). Milk plays a tremendous role in building ahealthy society and can be used as vehicle for rural development, employment andslowing down the migration of the ruralpopulation. Pakistan stands 7th positionamong the top ten world‟s milk producing countries. Milk and milk products providenearly one third of world‟s intake of animal protein (FAO, 1998). This is not true forPakistan where milk provides more than half of the 17.4 g of animal protein availablefor each person daily and so traditional dietsassign a balancing role to milk(Anonymous, 1996). However, per capita availability of milk is far less than therecommended levels (0.5 liter per person per day) of WorldHealth Organization.About 80 thousand tones of dry milkwas imported in Pakistan during the last year tomeet local demands of milk (Agriculture Statistics, 1999-2000). The total milk yieldin Pakistan is 26.4 million tones and entiredairy processing industry was using onlyabout 15% of it (Hemani& Khan, 1997). The importance of milk as a cash crop isalways neglected in the past. While comparing thevalue of milk with other cash crops,it was mentioned that milk had a value about 60% higher as compared to both wheatand cotton together. The land of Pakistan is benefited with both irrigated plainsthrough mighty Indus river with its tributaries and desert areas like Cholistan and
  13. 13. Dairy Industry In Pakistan: A Scenario 12Tharparker. Pakistan is expended from costal range areas in the south to the alpinepastures in the north and has variability in topography,rainfall, humidity, temperature,plant and animal species, social and cultural heritage. So dairy development is notonly needed to meet the growing demands of animal proteinbut for socioeconomicreasons as dairy animals provide regular cash income, economic utilization of familylabor, create social security and supply growing markets.Milk production is an extremely labor intensive occupation, however, in manycountries of the world including Pakistan, it is the most productive way of convertingcrop residues and agro industrial wastes into valuable food. But due to biological andtechnical constrains like shortage of feed, high mortality rate, poor genetic potentialetc; socio economic constraints like high input cost, scarcity of sources, inadequatemarketing systems, commercial feed industry and policy constraints render this sectorundeveloped and truly in a miserable condition. The main objective of this article is toreview the potentials, problems and solutions pertaining to dairying in Pakistan.Being major player in national economy livestock sector has been selected as aneconomy engine for poverty alleviation from Pakistan. According to economic surveyof Pakistan 2011-12, its contribution to agriculture value added is approximately 55.1 %and to national GDP is 11.6 %. Livestock is raised by more than 8.5 million small andlandless families in the rural areas and 35-40 million rural populations are dependent onthis.Pakistan Dairy Farming:In Pakistan livestock includes cattle, buffalo, sheep, goat, camels, horses, asses andmules. Milk, meat, wool, hair, bones, fat, blood eggs, hides and skins are the mainlivestock products among which milk and meat are taken as major products. Besidesthis, these animals are used for draught purposes.Pakistan is fourth largest milk producing country in the world. Milk is produced bybuffalo, cattle, sheep, goat and camel but being major contributor in milk production,cattle and buffalo are considered as major dairy animals and are always mainly focusedand discussed. These dairy animals are also used as draught and beef animals. When a
  14. 14. Dairy Industry In Pakistan: A Scenario 13dairy animal has spent her productive life and becomes uneconomical for milkproduction then she is used as a beef animal. Male calves of dairy animals and dairybulls when no further required for breeding purposes are also utilized for beef purposes.Buffalos found in Pakistan make up 47% of Pakistans major dairy animals populationproviding more than about61% of the total milk produced in the country. Buffalo breedsfound in Pakistan are Nili Ravi, Kundi and AzaKheli. Nili Ravi is considered bestbuffalo breed in world and known as Black Gold of Pakistan. Cattle constitute about53% of the national population of major dairy animals in Pakistan and contribute theshare of almost 34.9% to the total milk production in country. The cattle breeds foundin the country are Sahiwal, Cholistani, Red Sndhi, Achai, Bhagnari, Dajal, Dhanni,Gibrali, Kankraj, Lohani, Rojhan, and Thari. Out of these, Sahiwal, Cholistani, and RedSindhi are main dairy breeds and well known internationally due to their distinctcharacteristics. Other than well-defined cattle breeds, there are a large number ofnondescript cattle breeds and crossbred cattle.Processing of Milk:In Pakistan, modern milk processing in the dairy sector started in early 1960s, and bymid-1970s 23 milk pasteurization and sterilization plants were set up. With oneexception, all of them are closed due to low consumer acceptance, the short shelf-lifeof the product and lack of trained manpower. The first UHT plant was set up inPakistan in 1977. The success of this plant attracted many other investors also andduring 1983-87, 20 new plants were set up. In the current situation, UHT capacity inthe dairy industry is more than the demand for the product. Existing plants areoperating below capacity and growth in demand is not likely to keep pace with thedemand for relatively high-priced UHT milk.Goat is considered as `poor mans cow. Some rural and urban people keep goats andsheep and use their milk for domestic consumption. The same is true about certainnomads who raise camels and use their milk to meet family needs. Some camelmenwhen in periurban situation sell milk in urban areas. Certain breeds of camels inPakistan have the potential to be called as dairy animals, but being slow breeders they
  15. 15. Dairy Industry In Pakistan: A Scenario 14remained ignored since long.More than 96% of the milk produced in Pakistan comes from cattle and buffalo. Therest of it is collectively produced by sheep, goat and camel which, most of the time, isnot sold as such, rather mixed with buffalo and cow milk. Estimated national livestockPopulation and milk production of 2011-12 based on National Livestock Census 2006 isgiven below:SpeciesPopulation(Million)Milk Production(Million Tons)Cattle 36.9 16.741Buffalo 32.7 29.565Sheep 28.4 0.037Goat 63.1 0.779Camel 1.0 0.829Total 162.1 47.951Current Estimated Province Wise Livestock Population is given below:(Millions)Province Cattle BuffaloSheepGoat CamelPunjab 18.1 21.2 6.8 23.3 0.22KPK 7.4 2.3 3.7 11.3 0.07Sindh 8.5 8.8 4.3 14.5 0.30Balochistan 2.9 0.3 13.6 13.9 0.41
  16. 16. Dairy Industry In Pakistan: A Scenario 15Milk Consumption:Milk is favorite food in Pakistan and is consumed as fresh, boiled, powdered and inprocessed form as yogurt, ghee, lassi, butter, cheese, ice cream, sweets and in otherconfectioneries. The interesting thing regarding the dairy sector of Pakistan is thatalthough we are fourth largest milk producing country in the world but still thisproduction falls short to meet national demand. As a result milk is to be imported tofulfill this demand. Human milk consumption in Pakistan for year 2011-12 is givenbelow:SpeciesHuman MilkConsumption (MillionTons)Cattle 13.393Buffalo 23.652Sheep 0.037Goat 0.779Camel 0.829Total 38.690Lets have a look on different production systems of Pakistan. Till late eighties, morethan 60% of buffaloes and some cows were maintained under the system of RuralSubsistence Production System. In this system on an average there were 3 to 4 dairyanimals with one or two adult females. Almost 50 to 60% of the feed requirements ofthese animals were fulfilled from grazing along with wheat straw and some greenfodder. ¼th of milk produced was sold out and remaining was utilized for domesticuse. This system still exists in some areas of Pakistan.With the time being Rural Subsistence Production System changed into Rural Market-Oriented Smallholder Production System. Under this system, on an average there were5 to 7 animals per herd, inclusive of cow; 3 to 4 adult lactating animals, one or two
  17. 17. Dairy Industry In Pakistan: A Scenario 16heifers, and one or two male calves, but most often no bull. Feeding requirement oflactating animals were fulfilled from fodder along with wheat straw and seed cake.More than 70% of milk produced was sold either directly or through middlemen. Thissystem was practiced by those smallholders who have access to nearby livestockmarkets.In 1980s, dairy sector in Pakistan moved towards commercial side and developmentof rural commercial dairy farms started. A typical rural dairy farm running oncommercial basis consisted of about 30 animals of which 70% were females,including some cows. Approximately 40% of these adult females were in milk duringmost of the year. Fodder crops provided 50% and straws about 35% of the feedrequirements and concentrates made the rest of it.More than 90% of the milk producedat the farm was sold.With growing demand for milk in urban areas rural commercial dairy farming movedtoward peri-urban areas. In peri-urban areas there are large and small dairy herdsconsisting of 20-50 animals with nearly 90% of adult females in production. Malecalves are disposed off within first two weeks of birth. These animals are fed choppedgreen fodder and wheat straw and concentrate mixture with target to sell almost totalmilk produced.Due to enhanced rate of urbanization over the last 2 to 3 decades, large peri-urbancommercial dairy farming is going towards urban commercial farming. Targets ofthese farms are to get maximum milk production with economical and quality feedingand good management. Animals on these farms are fed good quality green fodder orsilage along with concentrate mixture. Dairy animals maintained at these farms areconsidered elite animals, hence their yields per lactation are considerably higher thanthose of animals maintained under other production systems. Milk produced on thesefarms is either sold out in processed/fresh form through outlets or departmental storesor supplied to dairy companies.During last ten years major changes has been occurred in dairy sector of Pakistan anddue to these change this sector is on the way to become an industry. A large number of
  18. 18. Dairy Industry In Pakistan: A Scenario 17modern dairy farms have been established in different areas. Most of these dairy farmshave exotic animals and number of these animals is in hundreds and even inthousands. Dairy farms with more than 3000 animals also exist and with 5000 animalsare in plan. Such farms have adopted most modern manage mental and feedingpractices and well trained man power. Milk produced on these farms is either sold outin processed/fresh form through outlets or departmental stores etc. or supplied to dairycompanies.Main features of dairy sector in Pakistan.Dairy industry in Pakistan has similar characteristics, like other developing Asiannations, which include small herd, poor genetic potential of animals for milk, lowquality feeds, high risks of epidemics, improper marketing channels, lack of technicalman power for dairy industry, high environmental stresses, reproductive failure andhigh udder abnormalities, orthodox management practices, poor extension servicesand lack of commercial rations. Despite of all above problems, dairy animals, mainlybuffalo and cattle are producing 26.4 million tons of milk in Pakistan (AgricultureStatistics, I999-2000). Per capita availability of milk in Pakistan is 82.4 kg annually.This quantity of milk provides more than half of the 17.4 g of animal protein availablefor each Pakistani daily. But Pakistan still has to import dry milk and other milkproducts e.g. butter, cheese, yogurt, cream, whey etc. every year to fulfill the everincreasing demands for milk and milk products. During year 1999-2000 Pakistanexpended about 1213.5 million rupees of valuable foreign exchange to import the milkand milk products (Agricultural Statistics, 1999-2000). The increasing demands fordairy products are attributed to high population growth rate and rapid urbanization.Population of buffalo and cattle.Species 2009-10 2010-11 2011-12Cattle 34.3 35.6 36.9Buffalo 30.8 31.7 32.7Sheep 27.8 28.1 28.4Goat 59.9 61.5 63.1Camel 1 1 1
  19. 19. Dairy Industry In Pakistan: A Scenario 18Pakistan owns about 23.3 million heads of buffalo (Agriculture Statistics 1999-2000).The buffalo population increased about 14.7% during the last 6 years from 1996 to2001 in Pakistan. Population trends indicate that their number is likely to furtherincrease in future (Khan, 1998) Punjab, Sindh, NWFP and Balochistan provincescontribute 64, 28, 7 and 1%, respectively, to the total buffalo population of the country(Livestock Censes, 1996). These figures indicate that most of the buffaloes are presentin irrigated areas and along riversides of the country. About 60% of the total buffalostock is, female buffalo stock, of above three years of age. It is estimated that about8.7 million heads of buffalo are in milk, remaining either in dry stage or not yetcalved. About 0.42 million buffalo bulls are available either for breeding or for workpurposes.According to Economic Survey (1999-2000) of Pakistan about 22.4 million heads ofcattle are available in the country. Data about cattle population in Pakistan from 1996to 2001 indicated about 9.36% increase cattle population as shown in Fig. 1. It wasestimated that around 10.4 and 4.1 million heads of mature cows and bulls are presentin Pakistan. However, cattle population data from 1986-1996 suggest a negativegrowth for bull population. This may be supported by the fact of increasedmechanization in agriculture sector or it may be due to the preference for artificialinsemination in cattle by the farmers. However, second factor seemed to be ineffectivebecause data in 1996 livestock censes indicated a positive growth trend for cattlebreeding bulls and negative for cattle bulls engaged in work.Dairy breeds and breeding.Worldly two well-known breeds of buffalo (Nili Ravi &Kundi) are major contributorsto buffalo stock in the country. Buffaloes are the main dairy animals in Pakistan(Khan, 1998). According to Livestock Censes (1996) about 33 and 20.8% of the totalbuffalo population belongs to Nili Ravi and Kundi breeds, respectively. Otherbuffaloes belong to either their crosses or some other breeds of the region. Khan(1998) reportedthat milk yield in Nili Ravi buffaloesranged from 1835 to2543 kg perlactation.
  20. 20. Dairy Industry In Pakistan: A Scenario 19Fig. 1. Population trend of buffalo and cattle from 1990to 2001Ahmad (1999) reported that production recording on civil and military dairy farms inan organized manner was undertaken in 1920. Under field condition, the first milkrecording was undertaken in 1979. Progeny testing of buffalo bull was started in 1980.In 1996, Pakistan government approved a technical document entitled “production ofbreeding bulls in Pakistan for implementation. The production of breeding sires is amultiple step process that requires simultaneous action onproduction recording andidentification of “Elite cows”, identification of male bull calves and their raising up toperformance testing, raising of donor bulls at semen production units, artificialinsemination and progeny testing of donor bulls. As follow up, various actions wereinitiated during 1996-1999 for implementation of the above steps. In spite ofprolonged efforts, the proposed and planned actions have failed to achieve requiredobjectives. Khan (1998) reported that breeding values for milk yield averaged 9.3 and32.2 kg in Nili Ravi buffaloes and bulls, respectively. Variation in the breeding valuesof tested bulls was lower than expected. He reported that genetic trend in buffaloeswas negative but sire used in the recent years was better than those in the past. Thenegative trend in the buffalo population merely depicts lack of effectiveness of theselection procedures employed in the past. Selection based on the physical conditionof the bull, or the type in general, and dam‟s performance failed to bring any geneticimprovement in the past. He stated that policy of choosing on the basis of geneticworth is likely to be a step in right direction. However extensive studies are requiredin refining the procedures of data collection and evaluation. He suggested that withmillions of small buffalo farmers, sustainable development of buffalo requires
  21. 21. Dairy Industry In Pakistan: A Scenario 20national and international programs. Payne and Wilson (1999) described that Sahiwal,Red Sindhi and Tharparker (a dual purpose cattle) breeds of cattle are important cattlemilch breeds of Pakistan. Sahiwal is a large, heavily built, long deep rather flashyanimal. The coat color varies, but reddish dun is common. Red Sindhi is medium tosmall animal having round droopy quarters. Coat color is usually red to dun yellow.The origin herd is found at Malir in Sindh province. They survive under subtropicaland semiarid environment. It is considered one of the best breeds of subtropics. It hasbeen exported all over the tropical world and is used for upgrading indigenous cattle,especially for milk. Tharparker (white Sindhi) breed is present in Thar Desert in southwest of Sindh province. This is an arid area where rainfall averages 200 mm perannum and during drought years cattle have had to be removed to surrounding areaswhere they have crossbred with Kankrej and Red Sindhi. They are strongly built,medium size animals with comparatively short, straight limbs and good feet. The coatcolor is white to gray with gray strip along top line. This is one of the best dualpurpose, milk and work, breeds found in Pakistani subcontinent. It has beendocumented that age of first calving in Sahiwal and Red Sindhi varies between 30 and43 months. Milk production in Sahiwal ranges from 1200 to 3100 liters withmaximum record of 5500 liters in a lactation (Nagarcenkar, 1983). Length of lactationin Sahiwal and Red Sindhi varies between 270 and 490 days (Pyne& Hodges, 1997).Sahiwal is one of the most productive tropical dairy breeds. In Jamaica, they havebeen crossed with jersey to provide the foundation stock for the milch breed known asJamaica Hope. In Australia, the Sahiwal has been used in the development of two newdairy breeds, the Australian Milking Zebu and Australian Friesian Sahiwal. In bothAustralia and New Zealand a new export trade has been developed that of crossbred(Sahiwal х European milking breeds) dairy heifers to Southeast Asia (Nagarcenkar,1983). Payne and Wilson (1999) reported that unless crossbred animals were managedin closely controlled environment, it is very doubtful whether crossbred dairy cattleshould be used under tropical conditions. Ahmad (1990) reported that crossbreedingof local cattle with Bostaurs was started in 1900 on military dairy farms and by 1937sufficient information and data had emerged and published. He further reported that
  22. 22. Dairy Industry In Pakistan: A Scenario 21for a long time after independence, the introduction of cross breedingin the countryremained controversial. However, it has been well documented that indigenous cattlehave been adapted to the local conditions through natural selection over generations.In view of the impressive results obtained fromselection in many temperate dairybreeds, there should be considerable scope for improving indigenous cattle. Thevariability, in terms of the coefficient of variation is generally higher in Zebu than intemperate cattle so there is possible scope of improving milk production in Sahiwaland Red Sindhi cattle through application of modern animal selection techniques.In modern dairy cattle breeding programs in temperate countries, 60-70% of geneticprogress was derived from the selection of bulls on the basis of progeny testing.Dahlin (1998) reported that genetic trend in Sahiwal cattle for all traits were closed tozero over the period studied, but substantial deterioration in the performance causedby environmental factors was observed. It was concluded that selection against milkproduction and poor reproduction in cows was desirable, but feeding and bodycondition call for greater attention if reproductive performance is to be improved. Hereported that alternative selection strategies showed that the expected annual geneticgain by selection for 305-day milk production might be in the range of 0.7 to 1.1% ofthe mean. The number of pure Sahiwal breeding and crossbred cows was ranging from9000 to 10500 and 100,000, respectively in Pakistan (Pyne& Hodges, 1997).Although the Sahiwal is the premier dairy breed among the zebus, the pure bredpopulation has been decreasing. By virtue of its unique characteristics the Sahiwalrepresents a genetic resource, which is of the utmost importance. Dahlinsuggested thatin the long run it was likely that best course of action to maintain and to conserve thebreed, was to keep it commercially viable. He reported that a much quickerimprovement, measured in kg per animal, could be achieved with Sahiwal. By usingbetter methods for genetic evaluation and modern reproductive techniques, geneticgain can be increased considerably.Feeds and feeding.Feeding and nutrition have repeatedly been highlighted as the major constraint in
  23. 23. Dairy Industry In Pakistan: A Scenario 22animal production (ILRI, 1995) and also sub regionally in South East Asia(Devendraet al., 1997) and South Asia (Devendraet al., 2000). The significance ofimproved nutrition in dairy production is therefore a major consideration. The reportof working group on milk (1999) indicated that the feed/fodder deficit was variouslyestimated at 15-30% of the total animal requirement in terms of total digestiblenutrient. However, the shortage will be probably larger in terms of digestible proteinand energy. Sarwaret al. (2001) explained that in Pakistan dairy animals are raisedunder 3 different managerial feeding circumstances.• In irrigated rural areas (Punjab & Sindh provinces) in the form of small herds wherebuffaloes and cattle mainly rely on crop residues and fodder crops.• Under peri urban environment where dairy animals are maintained on fodder crops,agro industrial wastes and concentrates (oil cakes).• Large herds of cattle are raised under range and barani conditions where they arekept on naturally grown grasses, shrubs and tree leaves. The major constraint in thedevelopment of dairy sector in Pakistan is poor availability of nutrients in quality andquantity for dairy animals. In Pakistan nutritional requirements of dairy animalsmainly met through fodder crops, shrubs, grasses and agro industrial wastes. It hasbeen reported that livestock are getting 51, 38, 3, 6 and 2% of their required nutrientsfrom green fodder/ crop residues, grazing/vacant lands, post harvest grazing, cereal byproducts and oilcakes/meals, respectively (Hanjraet al., 1995). In advance countrieswhere dairy animals are fed liberal grains forage still contribute about 75% of thenutrients but when grains are not available like in Pakistan, 95% nutrients are obtainedthrough forages (Bulaet al., 1977)It was reported by the working group on milk (1999) that the shortage of feed andfodder in the country affected the production potential of dairy animals. The situationis further aggravated by the continuous increase in the number of dairy animals.Fodder yields have not significantly increased and low productivity per acre hasfurther worsened its availability. It has been reported that Livestock are getting only75% of the required amount of total digestible nutrient (TDN) and there is alsoshortage of digestible crude protein (CP) up to 60% (Akram, 1990). Improvement in
  24. 24. Dairy Industry In Pakistan: A Scenario 23quantity and quality of feeds could bring improvement of livestock production up to50% from exiting genetic pool of animals (Hasnain, 1983). The nutrient reservoir likerangelands are subjected to deterioration and still no proper attempt hasbeen made to sustain and improve their productivity. Livestock farmers hesitate to useagro-industrial byproducts or non-conventional feed resources to improve livestockfeeding because they are unaware of the usefulness of such materials and so strictlyadhered to their traditional feeding patterns. Area under fodder production isdecreasing @ of 2% after each decade (Gill, 1998). According to Fig. 2, June-July andOctober-November are fodder scarcity periods in our region.Livestock policies in Pakistan are supportive to the horizontal expansion of livestockrather than vertical expansion of the sector, which cause further problems. Currently,121.1 million heads of animals require about 10.92 and 90.36 million tons of CP andTDN, respectively, annually in Pakistan. However, the respective availability of thesenutrients is only 6.7 and 69.00 million tones, which indicate a deficiency of 38.10 and24.02% of CP and TDN, respectively, per year (Sarwaret al., 2001). Thus the existingavailable feed resources can only fulfill the maintenance requirements of animals.There is an immediate need to explore the available feed resources and to suggestremedies to minimize the gap between nutrients availability and nutrientsrequirements of animals (Sarwaret al., 2001).The gap between requirement and availability of nutrients could be minimizedthrough proper fodder research and extension policies in terms of better quality seed,seed rate, improved agronomic practices and improved inputs (fertilizers, water,pesticides). Rangelands are 60% of the total area of Pakistan and proper rangemanagement and improvement policies like artificial reseeding, introduction of exoticspecies, water conservation methods and community organization could bringimprovement in the supply of quality biomass in sufficient quantity. Urea and poultrylitter as a source of NPN could help a lot to minimize the gap between proteinavailability and protein requirements of ruminants if proper coupling of nutrients atfeed, digestive and cellular level is achieved. Agro industrial byproducts and non-conventional feed resources could be used for feeding of livestock if farmers are
  25. 25. Dairy Industry In Pakistan: A Scenario 24trained to do so. Situation may be further improved if year round fodderFig. 2. Seasonal availability of fodder in Pakistansystem and fodder conservation techniques are introduced in livestock feedingsystems. Establishment of cattle feed industry is required to provide dairy mixes to thefarmers at cheaper rates.Usage of treated straws.Methods to improve the quality of straws have not gained popularity among theanimal owners because the scientists contributed so little to increasing animal outputsin developing countries. There seems to be a number of reasons but among thestrongest influences have been1) The lack of opportunity for farmers to communicate their priorities for animalimprovement to scientists and have the appropriate research undertaken,2) The preoccupation of scientists with accurately describing the nutritionalconstraints under controlled conditions rather than to work on problems offarmers as they pertain to the field conditions,3) The largely unrecognized or ignored differences in nutrient requirements oflivestock in the tropics as compared with temperate countries,4) An inability of many scientists to translate their research results intoappropriate developments and apply them to farming systems,5) Logistic problems in taking the technology to the massive number of farmers inthe developing countries who in general own only 1-5 animals,
  26. 26. Dairy Industry In Pakistan: A Scenario 256) gender considerations - often information is not given to the real managers oflivestock on a farm,7) An unwillingness of farmers, who are risk averse to take up new technologiesunless the rewards are large and/or immediate and8) Lack of market access, often aide programs push technology on to farmersrather than pull them into a production area by creation of markets. There appearsto be an increasing ground swell for change and acceptance of innovation byfarmers in many developing countries who are presently experiencing a substantialincrease in demand for animal products, particularly in Asia, as the populationexpands and standard of living improves. The increase in demand for animalproducts is likely to be much higher than for plants in the less-well developedcountries over the next 20-50 years (i.e. 3.6% as compared with 2.4% per annumfor crops) There are other influences which have seen a change in attitude,particularly the need to consider environmental pollution in development projectsand in particular the value of curbing greenhouse gas emissions into theatmosphere from agriculture.Animal health.The importance of maintaining animal‟s health does not need to be expressed. This isthe basic requirement, but despite the widespread veterinary hospitals anddispensaries, the prophylactic measures are not reaching down to farmers. Regularvaccinations program against foot and mouth disease, which affects the productionseverely and not only seasonally but has a lasting effect, and the prevailingbacterial/viral diseases, which cause mortality, should be effectively launched. Inaddition, heavy worm burden and arthropod borne diseases inflict high productionlosses in dairy animals. Among helminthes, Fasciola hepatica invades dairypopulation, and nematodes cause severe parasitic gastro-enteritis leading to lowproduction. The parasitic problems further multiply due to poor management andunawareness of the farmers about the common control measures.
  27. 27. Dairy Industry In Pakistan: A Scenario 26Dairy production system.Dairy production in Pakistan competes with crop farming and under traditionalagriculture farming; preference always goes to crop production because of high graindemand for human population. Existing livestock production systems in Asia havebeen well documented by various investigators such as that by Devendraet al. (1997).Pakistan has similar dairy production systems like other developing nations in theregion with little difference. Under Pakistani conditions dairy animals are kept underdifferent production set ups including1) Grazing systems2) Mixed farming system and3) Peri-urban dairy colonies(Devendraet al., 1997; Devendra, 2001). Now this third category of dairy productionis becoming important to supply fresh milk for urban population.Grazing system.This system is especially important for small ruminant (goat and sheep) and to lesserextent to the dairy animals (buffalo) in Pakistan. In this system, animals depend ongrazing in open grasslands or lands not suitable for cropping. Pakistan has 63% of itsarea as rangelands that supports most of the cattle population in Balochistan, Sindhand to lesser extent in Punjab province. Alpine pastures of northern high lands arevital for yak, which is the only milk source in northern areas. However buffaloes inPunjab and sindh provinces may use the natural vegetation around canal riverbanks,along roadsides and in wastelands. According to livestock censes (1996) only 8.69%of cattle and 6.28% of buffaloes in Pakistan totally reside on grazing and about 40.8%of grazing cattle and 49.3% of grazing buffaloes are kept in less than 10 animals/herd.Now it is being realized that grazing systems for animal production will become likelyto deteriorate in future due to rising demands for food by high population growth ratein Pakistan.
  28. 28. Dairy Industry In Pakistan: A Scenario 27Mixed farming system.The ownership of 2-15 animals, in which milk production is major component of farmincome, is the main characteristic of this system. This system is prevalent in Pakistanin which fodders, crop residues, agro industrial by products and weeds in croplandafter harvest are used as animal feed. The much advance farm of mixed system issmallholder dairying, which with additional input like mixed concentrate feeding andslightly better managemental practices are going to make its place inPakistan.Devendra (2001) reported that among the avenues of food production of animalorigin, smallholder dairy production systems are potentially important. They areCharacterized by their rapid expansion, strong market orientation in rural areas andthe many opportunities for increasing the current level of production. Some of themilk produced is used for home consumption, but most of it is sold directly by thefarmer or to middleman. It is evident from the figures in livestock censes (1996) thatthis system is most important contributor to total milk production in Pakistan.According to livestock censes (1996) about 59.3%425 of total cattle and 45.5% of thetotal buffalo population is dependent on both stall feeding and grazing that is the maincharacteristic feature of mixed farming system. About 57.4% of buffalo and cattlepopulation that is raised under this system is kept in small herds below 10 animals.This system is of a subsistence nature and resource-poor situation has not enabledintensification and specialization, mainly because of access to services and resources.Peri urban dairy colonies.The government of Pakistan had launched a campaign to depopulate the livestockfrom metropolitan cities to avoid pollution problems. As a result of this campaign, alarge number of buffaloes and cattle colonies have erupted in the periphery areas ofbig cities like Lahore, Karachi and Faisalabad to meet the urban demand for freshmilk. The aim of confining milk production to rural areas is to reduce pollution andtraffic load, mass migration to urban areas, to curtail genetic degradation of dairystock and provision of employment opportunities in the rural areas. This system is
  29. 29. Dairy Industry In Pakistan: A Scenario 28more advanced and mature when compared to other systems. It is formed from anatural aggregation and concentration of small dairy holder units.The peri urban dairy colonies enable the farmer to improve their competitive edge inopen market economies. Devendra (2001) reported that Landhi cattle colonyinKarachi had about 220,000 animals in a 5 km radius. Pregnant animals arepurchased from rural areas, and they are completely stall-fed on cereal straws, greenfodders and concentrates. After calving, female calves are sold except for a smallnumber, which are kept as replacements for breeding while male calves are fattenedfor four months andslaughtered. At the end of lactation, dry animals are also sold outwhich are consequently slaughtered. Indiscriminate growth of these colonies in theabsence of any regulatory and policy interventions has given birth to a serioussituation, which is further complicated by poor hygiene, health hazards such ascontaminated ground water, everincreasing unused manure. All this has adverseimpact on the environment. Under this system of dairying stall feeding is preferablypracticed, fodder crops, agro industrial wastes and concentrate dairy mix areimportantly contribute to the daily nutrient requirements of dairy animals. Accordingto livestock censes (1996) about 31.99 and 48.71% of total cattle and buffalopopulation, respectively, is being whollydependent on stall-feeding. In peri urbandairy colonies dairy animals (mainly buffalo) are kept under better feeding,managemental conditions and a good veterinary cover is now being advocated.However, number of problems likes fodder availability, milk collection andtransportation facilities, proper manure disposal and availability of artificialinsemination facilities are needed to be solved (personnelcommunication). As periurban dairy colonies have large number of animals in specific areas so it is viable andfeasible to develop these setups in to a modern dairyenterprise with relatively moreease.
  30. 30. Dairy Industry In Pakistan: A Scenario 29GLOBAL MILK PRODUCTIONINDIA 92 billion lit / annualUSA 78 //Pakistan 48 //RUSSIA 33 //GERMANY 29 //The dairy buffalo is the major contributor to the milk production by accounting forroughly 75% of all milk produced in Pakistan. Cattle account for the remainingproduction with small share coming from goat, camel and sheep. The Nili Ravi ismost popular breed of buffalo and is liked due to its high productivity standards interms of high fat %age and milk production. Dairy cattle farms are less popular inPakistan due to consumers demand for buffalo milk and preference of buffalo byfarmers because of its abilities to effectively utilize poor quality fibrous feeds andwithstands high environmental temperature. However, Sahiwal, red Sindhi, Cholistaniand Tharparker breeds of cattle are considered worthy for milk production in areas ofPunjab and Sindh province as previously mentioned.Crossbred cattle (BostaursandBosindicuscrosses) are also becoming considerable contributor to total milkproduction in the country. However, unplanned crossbreeding practices incombination with poor feeding and managemental conditions rendered the crossbredcattle as poor performer in Pakistan. Pakistan economic analysis network project(1989) reported that a cow annually produced 2530, 1840, 860 and 450 kg underprogressive dairy farming, peri urban, irrigated and arid (barani) dairy productionsystems, respectively. However, in contrast to this it was estimated that undercommercial, peri urban, rural market oriented and rural subsistence setups buffaloannually produced 2510, 2460, 2060, and 1200 kg milk, respectively. It was alsoestablished that commercial and peri urban dairying could only able to market theirproduct (milk).
  31. 31. Dairy Industry In Pakistan: A Scenario 30The calving season of buffaloes is concentrated during the autumn and start of wintermonths so they reach their peak milk production after two months from November toFebruary. The abundant legume fodder available at that time resulted in high milkproduction. But during summer season milk production of buffaloes drops rapidly dueto low feed availability, high environmental temperature and late lactation. This is nottrue for dairy cows, which are more productive during summer, however, as notedearlier, most milk produced in Pakistan is from dairy buffalos. During the summerwhen demand for milk is high and supply is low, adding water and ice to fresh milkfills the gap. This excessive milk production during winter and less milk productionduring summer month causes many problems in milk marketing. Currently 26.6million tones of milk are being produced in the country.Milk consumption patterns.Milk and its products are important food items in diets, representing 27% of totalhousehold expenditures on food items (Economic Survey,1999-2000). As food group milk and its products are second only to cereals in termsof per capita consumption and by weight milk makes up about one third of the foodconsumed by each Pakistani. About 55% of the total milk produced in the country is
  32. 32. Dairy Industry In Pakistan: A Scenario 31consumed as fresh and remaining is used in the form of processed milk, as yogurt,lassi (butter milk),Fig. 3. Milk production trend in Pakistanbutter, cheese, ice cream, sweat meals and other confectioneries (AgriculturalStatistics, 1999). Out of the total milk produced in the country about 25% isconsumedin urban areas and about 70% in rural areas (Hemani& Khan, 1997). Anabout 80 thousand tone of dry milk was imported in Pakistan during last year to meetlocal demand of milk. According to Agricultural Statistics (1999-2000) percapitaavailability of milk is 82.4 kg /annum which is increasing at the rate of 2.44%annual (Fig. 4).
  33. 33. Dairy Industry In Pakistan: A Scenario 32Milk marketing.Milk is a highly perishable commodity so prompt collection from producer and itsquick transportation to consumer is prerequisites to market it properly without anychange. The prerequisite of successful production of high quality dairy products is thatthe raw milk must be of good quality. Efficient cleaning of equipment dealing withmilk handling is of paramount importance. All possible efforts must be made topreserve its quality during storage and transportation. The basic method to preserve ahigh milk quality is cooling or activation of naturally occurring Lacto peroxidasesystem in milk. In Pakistan, the landless dairy owners in remote areas either use milkfor their own consumption or sell out surplus milk, as a supplementary income sourceto meet their daily monetary needs.Fig. 4. Per capita availability of milk in Pakistan
  34. 34. Dairy Industry In Pakistan: A Scenario 33The general backwardness of dairy production and marketing can be judged from thefact that although the value of milk produced (26.2 million tones) is second only towheat crop, the commercial herds comprise only 0.5% while 54.4% comprise ruralsubsistence herds with out any proper market out let with only 33.5% as having ruralmarket orientations and 11.5% as peri urban herds that provide milk to urban areas(Anjumet al., 1989). At present condition is almost similar with smaller increase inperi urban milk production and marketing system. This indicates that more than halfof the milk produced in rural areas has no access to market. This resulted in an annualimport of about 1.4 million tons of dry milk and milk products that costs about rupees1213 million of valuable foreign exchange (Agricultural Statistics, 1999-2000). Interms of volume, it is estimated that out of the total production of 26.2 million tonemilk about 50% (13.1 million tons) only is marketed; 35% is used by the producerthemselves either at home or converted to ghee or other milk products and 15 % isused for calf feeding or wasted. Marketing channels for milk are largely determinedby the location and nature of the producer. The farmers usually sell their milk to firststage collector „katchadodhis‟ who are the backbone of our present day milkcollection system. Katchadodhis collect the small marketable surpluses of fluid milkfrom several small producers and transport it either direct to consumers or to milkshops or to the milk collection centers. The transportation facilities used in this systemare poor and KatchaDodhis usually own a bicycle to transport milk. They usuallycarry about 100 liters of milk in each trip. To ensure the milk supply around the yearthey advance some money to the producer. Paccadodhi (second stage milk collector)have better transportation facilities so they are able to collect the milk from moreremote areas and in large quantities. Paccadodhis usually own a horse driven cart orvan and usually carry about 1000 liters daily in two trips. Paccadodhis supply theirmilk to collection center or milk shops, usually after decreaming. Peri urban milkproducers usually sell their product directly to consumers, milk shops and to largerestablishments through contracts. The adulteration and decreaming of milk arecommon practices of all milk collectors. The milk marketing channels are given inFig. 5. If the paccadodhis sell milk to decreamer or hire his services, the milk is
  35. 35. Dairy Industry In Pakistan: A Scenario 34separated into cream and skim milk. The skim milk is mixed with other whole milkand sold to urban milk shops. Anjumet al. (1989)reported that this multi-layermarketingsystem appears to buffer the producer from the price and purchase signalsgiven by theconsumer. The producer appears not to receive a premium for summermilk or for milk with higher milk fat content except for that paid by the milkcollection centers that are operated by processors. Also the producer is not known toreceive a premium or penalty for solids not fat. However, the apparatus andprocedures used by the collection centers are not reliable to estimate milk fat%accurately. It is suggested that digital fat measuring instruments should be used onmilk collection centers. The investment of public and private sector in dairy industryis scarce. The financial institutions do not have a pleasant experience with the milkprocessing industry. During 70‟s and 80‟s huge loans were sanctioned by banks(particularly Agriculture Development Bank) and about 23 milk processing plants forpasteurizing and sterilizing were imported in the country to establish milk processingindustry on modern lines. The milk products and byproducts produced in the countryare pasteurized milk, UHT milk, milk powder, cream, butter, ghee, yogurt and cheese.However, no consolidated information is available to assess the production of abovecited products. Report of working group on milk in Punjab (1999) showed that a largenumber of milk plants are not in operation. The possible reasons of failure of thesemilk plants may be unskilled and inexperienced management, high level capitalizationdue to kick backs at the time of setting up, resulting in misuse of funds, conventionalpurchasing system, high price of processed milk, low demand of processed milk, highproduction cost and the over build UHT milk processing capacity to suit the needs ofconsumers. Anjumet al. (1989) reported that after all experimentations a new set up ofMilk Pack Ltd., Pakistan, could only able to sell its UHT treated milk in the country.At present Choudry Dairy Pvt. Ltd. Is also making a great contribution in productionand sale of UHT milk. However, at present Tetra Pack Pakistan Ltd. is the onlydomestic plant producing aseptic packaging material for UHT milk. This monopolyposition and its implications for cost and quality of material are of major concern tothe present day and future UHT milk manufacturing industry in the country. Anjum, et
  36. 36. Dairy Industry In Pakistan: A Scenario 35al. (1989) further reported that on overall bases, UHT is an inherently expensiveprocess. If all the various taxes and regulations were removed then it would stillremain as a relatively high priced product beyond the purchasing capacity of mostconsumers. Under 1987 market conditions, UHT milk was nearly 40% higher pricedthan raw milk (Anjumet al., 1989) whereas at present it almost costs double than theprice of raw milk. To promote the consumption of hygienic milk among a largesegment of population, Pakistan will have to look towards alternative technologies,particularly pasteurization as previously reported by Anjumet al. (1989) and in reportof working group on milk in Punjab (1999). As reported previously that theexperience with pasteurization plants in 1970s was not successful, a large part of thefailure was probably due to the public sector orientation with emphasis on recombinedmilk, poor management and inadequate marketing. Conditions for marketing ofpasteurizing milk are now favorable because the marketing infrastructure hasimproved. Pasteurized milk, because of its low processing and packaging costs, couldcompete more effectively with unprocessed milk and the future development of thedairy industry may lie in this direction.MILK PRODUCTION AND PROCUREMENTPakistan has one of the highest per capita milk and dairy products consumption ratesin Asia (150-200 liters per year) and is the fourth largest milk producing country inthe world with approximately 29-32 billion liters annual milk production. Higher milkyield is indeed a notable aspect of the milk sector. According to an expert, yield peranimal has gone up from 700 liters per year to 1,200 liters in the last six to sevenyears. This is significant in more than one way and opens the door of success wide forthe livestock sector as also for national economy. In spite of the dairy sector,identified by the government as one of the key priority sectors for development, thefarmers which are the key players were still facing constraints, inherent because oftheir small size, can not reach consumers or industry directly. They have littleinfluence, therefore, on the price or quality of their milk. It has been estimated thatover 90 percent milk is produced by a large number of small holders or landless
  37. 37. Dairy Industry In Pakistan: A Scenario 36farmers in the remote rural areas.Milk producer‟s foremost problem is marketing the milk, a highly perishable item.The Punjab‟s Department of Dairy Development and Livestock is collaborating withthe IdaraKisan (IK), a non-profit organization active in the procurement andmarketing of milk to ensure fair rates. Their efforts now cover 13 districts in Punjab.According to SMEDA findings, it is generally understood that the primary hurdle toindustry‟s growth is the non-availability of milk in the right quantities and of goodquality, especially in the lean production months of May to August when milkconsumption is also the highest. To formulate appropriate strategies for developmentof the sector and identifying suitable strategic initiatives for the implementation of thesame, a ‟Strategy Working Group‟ (SWOG) has been constituted under USAID,supported by Pakistan Initiative for Strategy Development and Competitiveness(PISDAC).The need of a dedicated national entity for better sector management was realized bythe Dairy SWOG at an early stage. The importance of a sector-level managementcompany was further realized after study of benchmarked countries with respect tosector management. Successful models of entities working in other countries like‟Dairy Australia‟ in Australia, ‟Dairy Insight‟ in New Zealand and ‟National DairyDevelopment Board‟ of India were studied, particularly. The concept of ‟DairyPakistan‟ has been evolved as a dedicated company in the private-public partnership(PPP).Milk Procurement Types:Milk Procurement is the starting point of dairy industry supply chain. Theprocurement process starts on the farm, where producers are advised, quality ismonitored and raw milk is collected daily from various Farmers/progressive farmersby mini-suppliers and village milk collection centers countrywide and transported tofactories in the most cost-effective manner. Raw milk quality is the cornerstone ofexcellent dairy products. Milk Procurement guards this quality with an eagle eye andensures that company?s production needs are met. Through teamwork within the
  38. 38. Dairy Industry In Pakistan: A Scenario 37supply chain, procurement teams of companies ensure that raw milk losses are kept tothe absolute minimum.Milk procurement is basically of two types :1. Supplier’s collection2. Self-collectionSupplier Milk collection system :In this case supplier brings milk with their ownsources at factory. The milk is scrutinized by quality assurance department of dairy asper their standards. If milk pass all the quality test then this milk is received otherwisethe milk is rejected.Mini/Hilux contractor :In this type of milk collection local supplier of area, collectsmilk with their own resources and bring this milk to companies sub center. If milk isaccording to company?s standard that milk is received otherwise rejected. All types ofcollected milk are brought to sub centers, where it is chilled (by chiller or by ice) andtransported to Main center either through 1.7, 5 or 9 tons of tankers depending uponthe quantity of milk, here milk is chilled through chillers and transported to plant.Self Milk collection system :Village Milk Collection (VMC) : In this case a local community nominated person(VMC agent) collect milk from local farmers on behalf of company by using companyfacilities. The VMC agent get commission from company on per litter collected milk.After collection VMC agent either himself approach the near by center of companyfor handing over of collected milk or company vehicle collect milk from that VMCagent as per written agreement. Very good quality milk is collected through theVMCs.. No doodhi is involved in this type of collection.Progressive formers : Having 10 adult buffalo or minimum 25 liters milk.Direct Farmer : Having one or more milch animal and bring milk directly to subcenter or MCC.Bulk milk transport:Milk procurement teams of companies ensures that milk is collected and transportedto factories daily. Milk cooled on the farm or cooling centre may be transported inbulk tankers. Bulk tankers are insulated, so the milk will remain cold until it reaches
  39. 39. Dairy Industry In Pakistan: A Scenario 38the plant (provided the transport is fast, i.e. short distance or good roads enabling milkto be delivered before the temperature of milk rises above 10? C).Reception of milk at plant :At reaching plant quality assurance staff of reception lab takes the representativesample of whole milk tanker and analyses it for various parameters as per standards ofcompany. If milk found as per quality norms of company the tanker is weighed andproduction department staff receive the milk for further processing otherwise the substandards raw milk tanker is rejected.Milk Procurement System (MPS) :The primary function of any Milk Procurement System (MPS) is to expedite dairymilk producer‟s payroll process. This is accomplished using a complex system thatdocuments the pickup, testing, delivery of milk, and issues payment to producers ofmilk and those responsible for its transport. In addition to tracing the movement ofmilk as it is picked up, tested, and transported to the plant, the Milk ProcurementSystem issues checks and records financial information for producers, haulers, andvendors. MPS facilitates the dairy?s milk producer payroll process from beginning toend.Role of MPD of any Company in Milk Procurement :Milk procurement department of any company provides a value-added service to alltheir milk producers, ensuring that milk of the correct quality is produced and thatsufficient raw milk is always available to satisfy company‟s needs, through the use ofstrategies, processes, projects, systems and policy. Procurement teams of companiesmanage a number of Milk Procurement responsibilities including :Ensuring that theproducers are paid promptly and accurately. Purchasing raw milk from producers andtransporting it to factories effectively and efficiently. Successful clean milk routedevelopment in various new identified areas.Installation of bulk coolers in the area.Milk yield improved. Hygiene practices improvement at all levels of milk productionand procurement Reduction of Bacterial Count of milk. Advanced training to driversin the handling of mass milk in case of emergencies. Trainings to field staff forhandling of sample and client.
  40. 40. Dairy Industry In Pakistan: A Scenario 39CRUCIAL FACTORS & STEPSDairy production is all-inclusive activity, related to animal care, reproduction, feeding,and management. It is defined as all those aspects and activities relating to rising ofdairy animals during their various phases of life to get wholesome milk. Beforemaking the decision, whether to invest in the dairy and livestock farming or not, oneshould carefully analyze the associated risk factors. A SWOT analysis can help inanalyzing these factors, which can play important role in making the decision.Strengthso Concentrated production.o Favorable breeding backgrounds.o Relatively cheap farmland.o High domestic consumptiono Good milk quality.o Major source of food, i.e. Milk& Meato Ample human resource employment sector.o Low cost living standard.o Full family involvement, Devoted & Hardworking Sector.Weaknesseso High production costs.o Low levels of bulk feed production.o Poor management level in quite a few cases.o Lack of education and initiative in farmer.o Unorganized sector, unaware of basic farm management practices.o No or low application of research work and pedigree record keeping.Opportunitieso Govt. of Pakistan & Sate Bank of Pakistan priority sector.o Dairy products needs are much higher than supply.o Commercially viable sector with great credit potential and absorption capacity.o Vast range of area of operation, more needs and scope of development.o Value added dairy products are in demand.
  41. 41. Dairy Industry In Pakistan: A Scenario 40o Cooperatives can play a big role for development in dairy sector like India.Threatso High risks of diseases in livestock.o Imbalance between prices of inputs & outputs.o Rising trend of cost of production with higher rate of interest as compared toprofit ratio.o Increasing level of poverty.Milk ProductionThe buffalo and the cow and to a very limited extent the goat are the main milchanimals in the Indo-Pak sub-continent. The buffalo contributes some 64 percent, thecow 33 percent and the goat 3 per cent of the total milk produced in Indo-Pak. Thereare several well recognized breeds of cows and buffaloes in the region such as RedSindhi, Gir, Tharparkar, and Sahiwal among the cows, and Murrah and Neeli Raviamong the buffaloes, are outstanding breeds. The milk of the buffalo is comparativelyricher in fat content than that of the cow. Because of the lack of scientific animalhusbandry and nutritional practices, the yield of the milch animals in Pakistan hasbeen rather low compared to that of the dairy cow (especially) in the advanced dairycountries. In order to increase milk production we must have to :Upgrade our animalsBetter feeding practices andWell organized veterinary services, including artificial insemination.The population of the cross-bred cows and the upgraded buffaloes is expected toincrease the milk production significantly.Milking Conditions and HygieneMost of the milk in Pakistan is produced in the villages by farmers with small landholdings and also by landless agricultural laborers. Although an increasing portion ofthe milk produced is collected by the Supplier and other organized dairies, asignificant portion of the milk is still being converted into traditional dairy productsdue to lack of refrigeration and transportation facilities. Conditions under which milk
  42. 42. Dairy Industry In Pakistan: A Scenario 41is produced in the villages are far from satisfactory, mainly because of the economicbackwardness of the producers. The milk animals are housed in a part of the livingspace of the family or in small closed or open yards adjacent to the family house.Flooring is usually a plaster of mud. The cows are rarely washed before milking.Buffaloes generally wallow in ponds, especially in the hot summer months.Milking is done by hand, usually after suckling by the calf. Except in a few modernlarge farms, milking machines are not used. Because of the distances between theproducing and consuming points, milk is unavoidably held at ambient temperaturesfor a significantly long time leading to high microbial growth. The high ambienttemperatures in the region for the major part of the year support rapid microbialgrowth.The predominant types of micro flora in milk received in dairies are coliforms,micrococci, lactic streptococci, spore-forming aerobes and corynebacteria, themajority of these being contaminants from milk utensils. There is also a highincidence of thermoduric bacteria.
  43. 43. Dairy Industry In Pakistan: A Scenario 42Future ProspectusPakistan is the worlds highest milk producer and all set to become the worlds largestfood factory. In celebration, Pakistani Dairy sector is now ready to invite NRIs andForeign investors to find this country a place for the mammoth investment projects.Be it investors, researchers, entrepreneurs, or the merely curious – Pakistani Dairysector has something for everyone.Milk production is relatively efficient way of converting vegetable material intoanimal food. Dairy cows buffaloes goats and sheep can eat fodder and crop byproducts which are not eaten by humans. Yet the loss of nutrients energy andequipment required in milk handling inevitably make milk comparatively expensivefood. Also if dairying is to play its part in rural development policies , the price tomilk producers has to be remunerative. In a situation of increased international prices,low availabilities of food aid and foreign exchange constraints, large scalesubsidization of milk conception will be difficult in the majority of developingcountries.Hence in the foreseeable future, in most of developing countries milk and milkproducts will not play the same roll in nutrition as in the affluent societies ofdeveloped countries. Effective demand will come mainly from middle and highincome consumers in urban areas.There are ways to mitigate the effects of unequal distribution of incomes. In Cubawhere the Government attaches high priority to milk in its food and nutrition policy,all pre-school children receive a daily ration of almost a litre of milk fat the reducedprice. Cheap milk and milk products are made available to certain other vulnerablegroups, by milk products outside the rationing system are sold price which is wellabove the cost level. Until recently, most fresh milk in the big cities of China was areserved for infants and hospitals, but with the increase in supply, rationing has beenrelaxed.
  44. 44. Dairy Industry In Pakistan: A Scenario 43In other countries dairy industries have attempted to reach lower income consumersby variation of compositional quality or packaging and distribution methods orblending milk in vegetable ingredients in formula foods for vulnerable groups. Forinstance, pricing of products rich in butter fat or in more luxury packaging above costlevel so as to enable sales of high protein milk products at a some what a reducedprice has been widely practiced in developing countries. This policies need to bebrought in Pakistani Dairy scenario.ObjectivesFacilitate 71% landless/small holding farmers Genetic improvement of non descriptcattle herd for higher productivity & poverty alleviation.Accelerated promotion of livestock in the corporate sector for exploiting the consumermarket potentials Promotion of producers owned/controlled co-operativeorganizations& mediums of dairy farmin Establishment of State of the Art SPUs Preservation &genetic up-gradation of local breeds to compete international standards/marketFacilitation & adoption of modern technologies for developing high pedigree purebred and cross bred cattle herdProviding professional services of Consultation, Assistance & Advice in all fieldsassociated with Livestock Arrange training programs, seminars and courses Facilitateprogressive farmers in establishing modern livestock farms Undertake Joint Ventureswith any persons, firms, companies, institutions, corporations, entities, entrepreneurslocal or foreign engaged in livestock Promote Concept of Silage & Hay for yieldinghigher growth through better Nutrition Resource Management MissionExploit the potentials of Livestock sector as an Economy Engine for the povertyalleviation / employability & transforming into a viable industry through PublicPrivate PartnershipVision To make Punjab a Livestock hub for meeting the indigenous demand andcompete the international marketMilking SystemsA modern dairy business makes it possible to produce high quality milk profitably. At
  45. 45. Dairy Industry In Pakistan: A Scenario 44the same time, it gives workers and animals a safe and friendly environment.DairyCare Pakistan offers a complete range of Milking Systems of Milkline Italy,from the most traditional types up to the most technologically advanced solutions,with both standard and customized options able to suit any breeders requirements.Milking System type and size are the result of designing activities carried out byMilklines Technical Department to the pursuit of offering solutions ensuring farmingsystems that are fast and comfortable for all type of animal, while also smooth andsafe for operators at the same time.Consulting & PlanningConsultingDuring the development stage of your dairy farm business, you need to considerimportant factors such as: Animal health and reproduction, Herd and systemmanagement, Milking routine, Efficiency, Future expandability. DairyCare Pakistantechnical expert will help you identify and define your needs and then guide youthrough the selection of the various blocks that will meet your dairy farmrequirements and budget.Dairy DesigningDuring the planning stage, your DairyCare Pakistan expert will consider the wholedairy facility. Well-designed systems around your farm improve the animalsenvironment, while equipment that functions smoothly also facilitates and helps thefarmer. This whole planning process is supported by the knowledge, tools andresources made available through the Milkline Team in Italy. With a internationalteam of professionals experienced in dairy design and planning, DairyCare Pakistanbrings a wealth of knowledge and expertise to you. Using precision technologyMilkline keeps its international team up to date with the latest dairy designinformation and tools, regardless of their location. This all means that when you talkto a DairyCare Pakistan expert you are not only benefiting from their knowledge andexperience but that of a international team. An example of the DairyCare PakistanTeam services is in the planning of cow traffic. Smooth cow traffic with quick
  46. 46. Dairy Industry In Pakistan: A Scenario 45management in and out of the parlour reduces the cycle time and raises the efficiencyof the installation, independent of the choice of milking system type. Efficient cowtraffic and management minimizes the time to change groups and increases thethroughput of the parlour. The holding pens and gate systems help smooth animalfriendly flow into the parlour.Milking parlour positioningMilk pick up, feed deliveryMilking parlour selectionReduction of working hoursMilking easeCattle-friendly housingGroup sizes of animalsOptimal cow trafficCow comfortDairy Farm IntegrationParlour LayoutOnly a well laid out milking parlour assures a high milk yield, guarantees the health of thecattle and pays for itself by efficiency. Parlours designed for cow comfort and smooth cowflow not only reduce the stress on the cows but also the operators as well.From the milking cluster to the cooling system, your DairyCare Pakistan expert will matchevery component in the system exactly to ensure that the whole system will meet yourrequirements. If your system smoothly and efficiently extracts the milk from the cow butyour cooling system cannot handle the load then you only have half a system! Only with welldesigned and matched systems can you minimise the total cost of ownership.InstallationDairyCare Pakistan places a lot of value in offering you the benefit of its knowledgeand making sure you are 100% satisfied with the end product. This is especiallyimportant during installation, farmer training and starts up of the system.DairyCare Pakistan will help plan the installation around your schedule in order tokeep time and financial costs at minimum possible levels without compromisingquality. Trained and experienced professionals from DairyCare Pakistan will use theirexpertise to install your system to meet the very high Milkline quality standards.
  47. 47. Dairy Industry In Pakistan: A Scenario 46After installation, the technical expert will train you with your new milking system.Quality assurance is about setting a system so that a quality outcome is guaranteed.This is why we place so much value on helping you understand the system and theprocess from the very start.All Milkline milking systems and components are manufactured in Italy and meetstrict ConformitéEuropéenne standards.Dairy animals with high genetic potential for milk production always remain thecorner stone of dairy production strategy in any country of the world. Pakistan owns aquite a number of breeds having the characteristics of high milk production and arewell adapted to the local environmental conditions. The genetic potential for milkproduction in indigenous cattle and buffalo could beimproved by selective breeding.Feeding management .Superior fodders germplasm should be identified and propagated in the field. Hybridseeds either imported or endogenously produced should be distributed among thefarmers. With the seed provision a complete package of agronomic practices shouldbe transferred to the farmer. Year round fodder production systems should be devised.Legume, non-legume crop combination could improve the feeding status of livestock.Farmer training is required so that they can use cheaper feed resources(nonconventional feed resources) for feeding of animals. BetterMilk marketing channelsfeeding of livestock could be achieved if vertical expansion of livestock production isfollowed. Ensiling and hay making systems should be devised and extended to thefarmers according to local livestock production system. Different rations should beformulated to achieve synchrony of nutrient utilization in animals. Feeding should beaimed keeping in view the physiological stage of the animals rather than feedinganimals haphazardly.
  48. 48. Dairy Industry In Pakistan: A Scenario 47Coordinating research and extension activities.There should be close collaboration amongst different institutions (universities,livestock research stations and research institutions) so that they can benefit from eachother‟s results and also avoid any duplication of work. The rural small holders shouldbe trained in the skills of efficient dairy production. Specially designed literature andaudio visual aids be used for this purpose. The small holders (maintaining about 80%of total dairy animals) must get due attention of policy makers for support andnecessary assistance in running their day-to-day activities. There is no pricemotivation for the milk producers. Most of the milk is produced on subsistence basisrather than commercial basis. It needs to be organized on a commercial basis.Disease control.Proper vaccination against different diseased to maximum dairy stock should becarried out. Manufacturing of different vaccines in quantities to meet demand oflivestock population is essential. All viral vaccines being prepared by conventionalmethods should be shifted to tissue culture technology. Control of internal andexternal parasites through efficient and adequate drenching and dipping operationsespecially in crossbred is needed to avoid morbidity and mortality. Expansion andmodernization of diagnostic facilities at least at district level can be helpful. Educationof farmers regarding, mastitis, vaccination, and metabolic nutritional and reproductiveproblems is required to avoid monetary losses in dairy sector.Public sector participation.Short-term interest free loans to help small farmers may be extended so that theycould able to use optimum level of farm inputs. To attract, motivate and encourageprivate sector to invest in the livestock sector, facilities like tax holidays/ rebates andduty free import of necessary machinery pertaining to dairy should be provided.
  49. 49. Dairy Industry In Pakistan: A Scenario 48PLDDBPunjab Livestock & Dairy Development Board (PLDDB) has been established on thedirection of Chief Minister Punjab with the aim to promote, develop, facilitate,improve and expand livestock industry, sector, farming, business and infrastructure inPunjab for accelerating investment therein and maximizing the potentials of the sector,using most modern technology and as a tool for poverty alleviation and economicgrowth of Punjab.Punjab Livestock & Dairy Development Board is a not for profit company,established under Section 42 of Companies Ordinance 1984. The Board of Directorscomprises of representatives from the private as well as public sector. Three majorwings of board i.e. Farm Production & Planning, Nutrition Resource Management andField Service & Capacity Building have set their priorities in the field of reproduction& breeding services through skill development, empowerment of women from ruralPunjab as extension workers, establishment of semen production units, promotion ofsilage and hay for higher milk production, provision of unadulterated milk toconsumers through milk dispensers at an affordable price in Lahore and establishmentof model dairy farms. The board also encourages and facilitates the private sector toenter into joint venture with the board for the development of Livestock sector.Punjab Livestock & Dairy Development Board aims at developing milk and meatindustry by interventions at every tier i.e. production, processing and marketing,complying with all requites of national/international quality standards for humanconsumption.Pakistan Dairy Association.To comply with all the requirements of the Trade Organization Ordinance 2006 readwith Trade Organization rules 2007 as amended from time to time, and directivesissued, there under.To collaborate with R & D Organizations, bodies in private and public sector & NGO
  50. 50. Dairy Industry In Pakistan: A Scenario 49at national, regional or global level for the socio-economic improvement of ruralmasses through uplift of live, took sector from family subsistence to economicallyviable production and awareness.To co-operate with other charitable trusts, societies, associations, institutions orcompanies formed for all or any of these objects and statutory authorities operating forsimilar purposes and to exchange information and advice with them.To provide opportunities for the dissemination and exchange of knowledge and ideasgained from experiments and experience through meetings, conferences, seminars andfor collaboration between persons and/or institutions interested in research & planningand those in production, processing and marketing.To take such actions as are considered necessary to raise the status or to promote theefficiency of the Association.To carry out all such other lawful functions as may be incidental or conducive to theattainment of the above aims and objects.Future StrategyThere is an urgent need for launching a comprehensive policy for breed improvementof both buffalo and cattle for dairy and beef.Controlled legislation for local cattle semen and buffalo semen production.(SPUs)Improvement in method of data collection to formulate authentic statistics of thelivestock sector.Reinforce quality production of local vaccines and ensure proper vaccination oflivestock in rural areas. Quality controls to be enforced on raw/loose milk. The aimsand objectives for which the Association was formed are:-To diffuse among the members information effecting their trade, commerce andindustry and to collect, print, publish, issue and circulate papers, periodicals, books,statistics and such other publications as may be deemed to be conducive to the objectsof the Association.
  51. 51. Dairy Industry In Pakistan: A Scenario 50Key Success Factors/Practical Tips for SuccessCommercial dairy farmers depend on land, labor and animals as the major resources.Thethrust in modern dairy farming is on the increased use of capital and management.Successful dairy farming harnesses all available resources into productive andprofitable unit. Dairy farming is highly complex as it includes breeding, management,feeding, housing, disease control and hygienic production of milk on farm. Thejudicial use of means and resources to achieve clearly defined goals is the key successfactor in modern dairy farming i.e. the art of maximization and optimal utilization ofresources and meansfor maximizing productivity and profits.The low yielder animals are uneconomical to keep, hence these should be culled. Theover all genetic improvement of all the dairy animals is necessary for improved milkproduction. It involves milking records at equal intervals, selection of bull from highproducing mothers, progeny testing of breeding bull and then making extensive use ofthese bulls by well-organized Artificial Insemination (AI) program.Feeding dairy animals on nutritious and high yielding hybrid varieties of forages canbe adopted. The surplus forage should be preserved as silage or hay. Other farmmanagement practices include feeding for growth, lactation, pregnancy ormaintenance, hygienic milk production, comfortable and ventilated barns, spraying/wallowing of animals in summer, timely detection of heated, mating, with selectedbull or AI service. If animals are bred within the 60-90 days of calving provided withclean surroundings, drinking water and feed according to the requirements, the overall performance of herd can be improved.Timely vaccination against Rinderpest, Black Quarter, Foot and Mouth Disease,Brucellosis along with the prevention of mastitis and parasitic control will alsoimprove the over all performance of dairy herd. Hygienic milk production dependsupon healthy animals, clean surroundings, clean hands of milkman and clean utensils.Pakistan has one of the highest per capita milk and dairy products consumption ratesin Asia (150-200 liters per year) and is the fourth largest milk producing country in
  52. 52. Dairy Industry In Pakistan: A Scenario 51the world with approximately 29-32 billion liters annual milk production. Higher milkyield is indeed a notable aspect of the milk sector. According to an expert, yield peranimal has gone up from 700 liters per year to 1,200 liters in the last six to sevenyears. Below system introduce for maximum resultsMilk Production and Procurement in PakistanMilk ProductionMilking Conditions and HygieneHistroy of Dairy Industries in PakistanPresent Dairy Processing PlantMilk Procurement Department (MPD)Milk Procurement TypesMilk Procurement System (MPS)Role OF MPD of Any Compay in Milk ProcurementQuality Systems in Milk ProcurementMilking Season in PakistanQuality Norems (Generalized) for Raw Milk Reception During Different SeasonsTest Performed at Various LevelsReferencesSummary of ArticlesLIVESTOCK RESOURCES OF PAKISTAN: PRESENT STATUS AND FUTURETRENDSBy: M. Afzal* and A.N. NaqviPakistan is endowed with diverse livestock genetic resources. In fact it is postulated that oneof the centres of animal domestication lay in this part of the world. Pakistan has a largelivestock population, well adapted to the local environmental conditions. Current populationof farm animals in Pakistan consist of 23.34 million buffaloes, 22.42 million cattle, 24.24million sheep, 49.14 million goats and 0.77 million camels. Pakistani buffaloes are riverinetype and belong to two breeds i.e. Nili-Ravi and Kundi. Nili-Ravi is the best dairy buffalobreed of the world. There are ten distinct breeds of cattle found in Pakistan. However,these breeds probably only make up 30 percent of the population and the rest of thepopulation is generally classified as non-descript. Cattle breeds of Pakistan are Sahiwal, RedSindhi, Cholistani, Dhanni, Tharparker, Bhagnari, Djal, Lohani, Rojhan andKankrej. There are 30 local breeds of sheep in the country. Important sheep breeds areBucchi, Lohi, Thalli and Salt Range in Punjab; Bumbi, Kachhi and Kooka in Sindh; Balkhi,Damani and Kaghani in NWFP and Baluchi,Bibrik, Harnai and Rakhsani in Balochistan.
  53. 53. Dairy Industry In Pakistan: A Scenario 52Dairy Industry in Pakistan:By: SARWAR, M., M.A. KHAN, MAHR-UN-NISA AND ZAFAR IQBALMilk and its products provide nearly one third of world‟s intake of animal protein (FAO,1998). Milk and milk products represent 27% of total household expenditures on food itemsin Pakistan. Per capita availability of milk in Pakistan is 82.4 kg per annum. About 80thousand tons of dry milk, worth rupees 1213.5 million, was imported to Pakistan during1999-2000 to meet local demands of milk. Small herd, poor genetic potential of animals formilk, low quality feeds, high risks of epidemics, improper marketing channels, lack oftechnical man power for dairy industry, high environmental stress, reproductive failure andhigh udder abnormalities, lack of commercial rations, orthodox management practices andpoor extension services are the major constraints of dairy sector in Pakistan. The buffalo isthe main dairy animal in Pakistan that accounts for roughly 75% of all milk produced in thecountry.CORPORTAE DAIRY FARMING IN PAKISTAN-IS THERE A FUTURE?By: M. AfzalMilk production in Pakistan is dominated by smallholders. More than 8.5 million familiesraise cattle and buffaloes and a vast majority (>83%) have less than 6 animals (all ages) perhousehold. Many of these smallholders are subsistence farmers and thus do not proactivelyseek to improve the productivity of their animals. Economic pressures and shrinking commongrazing areas are forcing these subsistence smallholders into market oriented smallholders inrural areas where there is a market for milk. Demand of dairy industry for raw milk isincreasing @ 20% annually. This demand however, cannot be met by just emphasizingimproved milk production from the smallholder dairy farmers. With increased internationalprices and demand for milk and dairy products, many big investors have started planninginvestment in dairy farming in the country.The State of Pakistan’s Dairy Sector: An AssessmentBy: ABID A. BURKI, MUSHTAQ A. KHAN, and FAISAL BARI*The macroeconomic importance of the dairy sector for Pakistan‟s economy, in general, andfor the rural economy, in particular, cannot be overemphasised. While the contribution ofagriculture to Pakistan‟s gross domestic product (GDP) is declining over time, it still standsat 23 percent. Of that, the livestock sector contributes 49 percent of the value addition in theagriculture sector, and about 11.4 percent to Pakistan‟s GDP, which is higher than thecontribution made by the entire crops sector (10.9 percent) of the country. Net foreignexchange earnings from livestock were to the tune of Rs 53 billion in 2000-01, which is about12 percent ofthe export earning for that year.ConclusionAfter observing all the issues regarding the dairy industry of Pakistan, it can beconcluded that the dairy industry possesses potential of growth and is very important
  54. 54. Dairy Industry In Pakistan: A Scenario 53from economic perspective. The major problem with dairy farming in Pakistan is thelow milk yields of Pakistani cattle and buffaloes. This low production potential ofPakistani animals is mainly attributable to a few clearly identifiable issues such aslack of a systematic national breed improvement program, lack of availability of goodquality fodder and nutrients and poor farm management practices.On average a dairy animal in Pakistan yields 6-8 times less milk than a dairy animal ofthe developed world; approximately 8 Pakistani milk producing animals are equal to 1animal of the developed world. So Pakistan needs to have a coordinated and integratedstrategy/approach beginning from enhancing per animal productivity, going straight tomilk procedures/procurement and minimize the wastage.REFERENCEShttp://www.finance.gov.pk/survey_0809.htmlGovernment of Pakistan. (2010-11). Economic Survey of Pakistan 2010-11.Retrieved May 4, 2012, fromhttp://www.finance.gov.pk/survey/chapter_11/Overview%20of%20the%20Economy.pdfIshtiaq, H. (2010, January 4). Rising milk supply and demandgap.Dawn news. Retrieved May 4, 2012, fromhttp://archives.dawn.com/archives/25715Pakissan.(n.d.).Dairy industry in Pakistan.Retrieved May 4, 2012, fromhttp://www.pakissan.com/english/allabout/livestock/dairy/dairy.industries.in.pakistan.shtmlPakistan Dairy Industry – Overview. (2009). Retrieved October 10, 2012, fromJassarFarms.com:http://www.jassarfarms.com/english/?page_id=63PDDC. (2006, June).Thewhite revolution "dhoodhdarya".Retrieved May 4, 2012, fromhttp://www.pddc.com.pk/DairyPakistan-Publication.pdfSMEDA. (2005,November 23). A brief on dairy sector.Retrieved May 4, 2012, fromhttp://www.smeda.org/sector-development/dairy-sector-brief.htmlAgriculture Statistics, 1999-2000. Govt. of Pakistan, Ministry of Food Agriculture and