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Milk Supplies in Pakistan: Issues and Challenges Facing the Dairy Economy

Conference Paper · February 2016

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About 80% to total milk production takes place in rural areas. use of non-recommended utensils and containers for milk handling. The demand for milk is expected to increase in future due to various underlying factors. fragile production base. So much so. insufficient or non-availability of cooling/chilling facilities in view of highly ambient temperature and use of non-recommended additives & preservatives used for enhancing its shelf to cover the lag between production and consumption timings generating health hazards on consumer side. transport. cane sugar. till now four rounds have been made to establish a sound milk processing setup in the country. quality assurance. Pakistan is 3rd largest milk producer on the globe by producing its 42. produced by millions of dispersed small sized producers in Pakistan. To correct the system. 15% in per-urban and 5% under urban settings. the backbone of milk marketing system in Pakistan. like preferring installation of milk powder making plants in rural areas not touched by any milk marketing agency and also extending milk processing industries to Sindh province. Pakistan Agricultural Research Council. The current milk production and marketing system is facing a number of serious challenges like. Provision of health-safe. The cooperative milk marketing with due chilling facilities for subsistence farmers. milking by hand. Unfortunately. long distance between production and consumption points. majority of our consumers are price conscious and prefer buying raw loose milk.).Milk Supplies in Pakistan: Issues and Challenges Facing the Dairy Economy Umar Farooq Member (Social Sciences). Nearly 40% of total milk production is marketed through formal and informal channels (i. glucose. The latest Punjab Pure Food Rules is relatively more comprehensive than the previous acts. etc. strengthening consumer societies and establishment of “Dairy Development Authority” are needed to formulate food safety standards & implementing strict regulatory measures for ensuring the quality. ordinance and regulations. the existing laws seems became obsolete and need to be revised. non-cleaning of animals before milking. adulterants like formalin. its collection in small qualities from milk producers. but the number of processing units remained between 20 and 30 and it is confined to Punjab only. containers used and virtually no chilling. various recommendations are put forward. The lack of quality checks is the most neglected aspect of the whole system.4 million tons during 2014-15. financial insecurity.e. . On the other hand. Commercial dairy farming is slowly creeping in Punjab province. Islamabad Abstract Milk is an important highly perishable product of livestock farming. untrained manpower and seasonality. Among these the quality concerns are most serious because the entire value chain starting from production till its consumption is suffered from: poor sanitations of livestock sheds. hygienic milk to the consumers is currently a big challenge for the policy makers and development practitioners. direct selling to consumers and through milkmen). benzoic acid and alkalinity were also found in well reputed brands of UHT milk sold in Pakistan. making marketing of loose milk. All these collectively results in unorganized and inefficient marketing system. On milk processing side. due to inflation and high poverty levels. Pakistani consumers spend 26% of the food budget on milk and its products. poor infrastructure (roads.

whereas Rs. Furthermore. The adults. food streets. Livestock products also notably contribute in exports. During last 25 years milk production increased at the rate of 4. 2010). Despite the clear importance of the dairy sub-sector. vi) transport. milk marketing aspects are covered in section-3. v) farm yard manure and services for crop production. general developments in the country (e. as well as children are involved in animal husbandry. the issues and challenges related to milk production. it has failed to attract due attention from the policy makers and development practitioners. Despite the laissez faire type approach from the government for the development of livestock sector. as meat and its products worth Rs. fuel and food for the household. from livelihood perspective. Introduction Milk is universally recognized as complete diet to the presence of essential components like proteins. Livestock farming is an integral part of the rural economy of Pakistan1 as this is the only sector which provides almost regular income and readily cashable asset to farming families.8 percent while the productivity per animal head has improved in cattle but declined in buffaloes. milk fasts. 2015a). 2015c).1. The task of reaching various urban and rural markets is challenging for the dairy farmers.1 billion (Government of Pakistan. ii) increased urbanization and/or rising absolute urban population. On consumption side. ii) buffer stock when crop faming and other activities fail. better quality milk and meat shops in urban centres. minerals and vitamins.11. iv) insurance and collateral for loans. More than 8 million families in the country are directly engaged in livestock farming (Agriculture Census Organization. The future demand for dairy products is expected to rise rapidly due to reasons like: i) the faster growth in population. 1 In rural setting. iv) the income elasticity of demand for milk and meats is also greater than one. it has been growing at an impressive rate. section-4 deals with milk quality concerns with special emphasis on hygiene and contaminations. . proliferation of restaurants and food vendors) are also expected to generate additional demand for livestock products including milk. iii) means of savings as accumulating assets. implying more than proportionate increase in demand for dairy products and meats than the rate of rise in income. It is also an important component of Pakistan’s agriculture sector2 by contributing to 56. marketing and processing are discussed in section-6. More importantly. 2 The total size of livestock economy of Pakistan is Rs. and.674 billion were exported. 2015b). etc. This paper is organized as follows: section-2 describes the supply and demand perspectives. better livelihood opportunities in livestock farming. and finally summary and suggestions conclude the paper. 2015a). the change in consumption patterns induced by globalization.76% to the national GDP (Government of Pakistan. etc. section-5 is devoted to milk processing. lactose.3609. therefore.23. this sector has never experienced negative growth rate in the history. livestock farming serve a number of purposes: i) cash income from sale of live animals and their products.3% its total agricultural value added and 11. This implies that increase in animal population rather than milk productivity per animal head is prime source of growth of milk production in the country.g.78 billion worth of milk and milk based products were imported by Pakistan in 2013-14 (Government of Pakistan. iii) the animal based products are required for fulfilling the protein and calcium requirements of the population on health ground. vi) social status in terms of herd size and quality of breeds kept. 26% of food budget in Pakistan is spent on milk and its products (Government of Pakistan. generation sizeable employment. Pakistan is the third largest milk producer in the world following India at number one and the USA at number two (Figure 1).

5% of buffalo.3% and 34. In rural setting.e. 51. 1 million camel and 932 million poultry (Government of Pakistan. and country imports around 11.1% of goats and 38.2% of cattle. domestic consumption. They collectively own 52. average milk production in cattle and buffalo falls at 6. and milk loss due to poor handling and management (because of poor knowledge and skills of the farmers’ and low technology adoption) is estimated at around 6 million tons (Wynn et al. and sheep as 0.5%. In buffaloes..1% of total buffalo population in the country. However.9 animal heads. In Pakistan.4 million goats.2 million cattle. 46. Our national livestock herd constitutes.1% of sheep population kept under rural setting. when compared with livestock farming in irrigated areas. rain fed. About livestock farming in different production systems. The stall-fed livestock farming is mainly practiced in the irrigated areas of Pakistan where some proportion of the farm area is allocated to fodder crops and crop remains/straws/dry-stalks are fed to the animals with green fodder (Sharif et al. goats and sheep farming is quite prominent. camels at 2.2. 35. respectively. 41.7% and 24. . around 10% to 15% of milk is lost during transportation and storage due to lack of proper processing facilities (Mascon Associates Ltd. it is interesting to note that Pakistan is a “milk surplus” country in a “milk deficient” region. By farm sizes. followed by cattle at 34.6 million buffaloes. 2003). In this system. marketing and value chain.0%. 2015a). 2012).8% of total farming households’ population in the country. even out seasonal supply balance.1 percent.1%. Our total national milk production is 42.. Dairy Economy of Pakistan Production or Supply side: Quality and Quantity Concerns Pakistan has considerably large livestock population. the collection and marketing systems.2 litres and 8. Three major reasons underlying these shortages include in situ consumption of produced milk in subsistence households and within village. general classifications of production systems available in the literature include: i) grazing and stall-fed systems4. 68. saline affected and desert areas of Pakistan. marginal and small sized farming constitute 64. iii) rural market oriented 3 In cattle. 2006).45 million tons (Government of Pakistan. goats at 2. in large ruminants herd sizes up to 10 animals in cattle and buffalo constitute 67. 2015a). 2011). In other words. Its composition by animal species shows that buffalos provide 61 percent of the total milk produced.78 billion rupees worth of milk and milk products. particularly of livestock farming.8%. well adapted to local environmental conditions. 29. dairy farming is mainly practiced by the private sector in both the rural and urban settings. According to the livestock census (2006). On the other hand. 2006). ii) rural subsistence (i. the marginal (up to 4 animals) and small sized (5 to 10 animals) herds constitute 36. per capita availability of animals fall at nearly 0. it is mainly taking place in integrated crop-livestock setting by small farming households and landless families who also rear livestock (Table 1). given the nature of geographic spread of the production systems..5% of total cattle population in the country.2 litres/day. the accuracy of the data cannot be expected to be high (Zia et al. Although no estimates about the animal population associated with different production systems is available.4 million sheep. Nearly 30% of total cattle and about 37% of total buffalo population forms milk production base of the country (Government of Pakistan. respectively3 (Table 2). This implies that crop-livestock farming is highly integrated in Pakistan and small sized farming (both in terms of agricultural land and livestock herd sizes) constitutes the back bone of the agricultural economy of Pakistan.0% and 32.. milk production for own consumption of the household).5% and 70. 4 The grazing based livestock farming is the peculiarity of the mountainous. the marginal (up to 4 animals) and small sized (5 to 10 animals) herds constitute 35.

Comparing it with national milk production as 41. In desert ecologies. transhumant and sedentary types. Another classification available in the literature pertains to milk production locations. it came out that over-supplies of more than 18 million tons is available in the country. UHT milk. In 2013-14.1 million tons of milk worth Rs. and. The informal dairy products 5 consumed in Pakistan include boiled milk. cream.e. lassi. peri-urban and rural setting (Figure 2). having herds up to 20 milking animals). maize and cotton along with their byproducts produced in the country. and transforming it into Liquid Milk Equivalent in Pakistan. rubbery and rubbery milk..51 billion was produced and its total value is almost equivalent to the total value of wheat. which is either fed to the animals or lost due to mismanagement.Consumption Patterns Considering consumers’ tastes and preferences. 15% in the per-urban and 5% in the urban settings. condensed milk.e. 80% was produced in the rural areas. those settled at the outskirts of the cities and/or cattle colonies.(i. ice cream. Due to higher buffalo and cattle population in Punjab and Sindh provinces. v) peri-urban commercial farm (i. it revealed that about 23 million tons of milk is formally consumed in Pakistan.1 million tons. Using per capita monthly consumption of milk and milk products data from Household Income and Expenditure Survey (2013-14) in urban and rural settings. (2007) about 40 percent of the milk produced in transport-infrastructure approached area is marketed in both formal and informal manners. 3. qulfi. butter. 5 These products are not usually packed attractively in food grade quality packing materials. the milk processing and marketing systems are relatively better established in these provinces. khoya. About 90% of the total milk entering into the milk marketing channels is collected by the milkmen from subsistence farmers (Sharif et al. small sized herders keeping 5 to 20 milking animals). Milk Marketing The dairy sector of Pakistan plays a significant role in the national economy. By locations of production. . iv) rural commercial farms having more than 20 animals. 2003). This also implies that conversion of this milk into powder milk can generate about 1 million ton of dry milk – also can save huge amounts of foreign exchange spent on import of adults and infants milk powder and the whey powder. i. However. formal dairy products produced and consumed in the country are pasteurized milk. yoghurt. consumers generally like using fresh liquid milk.e. According to Sharif et al. Rather the plastic bags and containers are used for parceling these products to the consumers. As far as commercial dairying is concerned. and milk based sweets and confectionary items. Demand Side . ice- cream. (2003). cheese and milk powder. 41. ras malai. but still deep rural areas and not approached by the existing milk marketing system. urban. butter. the animal production systems available are classified as nomadic. yoghurt. according to Sharif et al.1766. there are more than 100 commercial dairy farms and more than 350 progressive dairy farmers are engaged in this business in the country and almost all are located in Punjab.

washing utensils and cleaning the udder before milking. iv) animals suffering from different diseases. Fresh milk from healthy animals is practically free from bacteria and it must be protected against contamination as soon as it leaves the udder of the animal. ii) use of contaminated drinking water for the animals.. 2003). They have established milk collection centers in the villages where milk is purchased from producers primarily on the basis of fat contents. etc. 2003). milk shops.a highly perishable food item – is produced and consumed by billions of people on the globe. Medium-sized or Pucca dodhi deals with transporting milk to the cities by using various transport means. and tea stalls constitute the main infrastructure of milk marketing. vegetables. A typical dodhi owns few metallic containers/cans/canisters or empty plastic drums of imported chemicals. Similarly the market types like primary or secondary milk markets are also not applicable. due attention must be paid to hygienic condition at every stage till it reaches in the hands of ultimate consumers (Sharif et al. The usual concept of markets does not apply as such in case of milk because no milk market exists like food grains. cloth or livestock markets. All these collectively results in inefficient marketing system. traditional halwai. Milk Quality – Hygiene. transport. Moreover. The small sized farmers. Now Nestle and other big companies have started milk collection and distribution activities using insulated vans/trucks and their collection ranges also vary. milk must be chilled at below 4oC immediately after milking. Contamination and Adulteration Milk . . milking machines are not used. Milk gets easily contaminated if not properly handled. financial insecurity. The milkman6 or dodhi is the main intermediary linking peri-urban and rural milk producers with the urban consumers. In Pakistan its production has been taking place in small quantities by dispersed producers whereas its marketing is relatively more concentrated in urban areas. iii) unhygienic conditions of the animal sheds. poor infrastructure (roads. In other words.. The main sources of contamination are: i) milking is done by hand. milk processors. containers used. collecting 40 to 70 maunds of milk per day (Raja. The shelf life of the milk depends on bacterial population initially present in it and the temperature at which it is stored. 4. vendors etc. it must be stored at below 4oC. Except in a few modern large farms. A typical milk vendor or halwai shop uses iron made pans and pots for boiling milk. etc. Milk is extracted from the animal at about 38oC and is readily subject to contamination by a variety of micro-organisms capable of spoiling it. sweets and bakers. fruits. milkmen. Katcha dodhi is responsible for collecting milk (up to 100 liters/day) from villagers/farmers by personally visiting their farm or houses. The amount of milk daily traded by the milkmen vary between 50 and 150 liters. Large dodhies (contractors) purchase mostly from medium sized dodhies. The milk marketing system is facing very serious challenges in areas like fragile production base. etc. untrained manpower and seasonality. Adulterations practiced to cover the time lag between production and consumption timings further generate health hazards on consumer side. which they either sold as raw to the consumers at their doorsteps. as well as some aluminum made utensils and big serving bowls (Sharif et al. 2006). If milk is to be kept for any length of time without heat treatment. injuries and their 6 The milkmen are classified as kacha dodhi and pucca dodhi. milk shops. 2003). quality assurance. bathing animals. This milk is then pasteurized and sold in loose form through milk shops having refrigerator (Athar and Raja 2002). His quantity varies from 400 to 800 liters/ day..). usually after suckling by the calf. These challenges are quite serious as far as the overall development of dairy industry in Pakistan is concerned (Zia.

9 According to Indian National Survey on Milk Adulteration (2011). vi) contamination of milk due to dairy farms’ proximity to pollutant industries (leather. 2007). Unfortunately.. long distances between the production and consumption places. Gilani. Dairy Umang and Nurpur for the presence of various chemical adulterants (like. 2008. cane sugar. they confine to checking it in terms of its physical look (i. salicylic acid. 2007).. These problems not only deny due nutrition to the consumers.. chemical industry etc.). 20129. taste and formation of thick layer of top or malai at cooling after boiling (Sharif et al. Dairy Queen. Faraz et al. 20137. 2005. viii) flies at production places are also potent source of contamination for transmitting diseases like typhoid.com). the quality of the milk is hardly maintained at consumer level (Memon. pulverized soap. detergents. borax. paratyphoid. thickness. insufficient or non-availability of milk cooling/chilling systems and high ambient temperature are the main quality related problems in milk production and marketing. Milk processing in Pakistan started in the mid-fifties but it got a boost as a part of development of the manufacturing sector in the country. small quantity of marketable surpluses sold to milkmen. 70% sample collected by Food Safety and Standards Authority India (FSSAI) across the country did not confirm standards. and. . Milk Pack. Haleeb. Javaid et al.unclean bodies. The same milk quality problems are also reported in India (CSE-India. and spore-forming aerobes. they wrote like “Thus the milk marketed at these places could not be considered as “Milk” in its real sense as it was only white milky watery fluid instead of wholesome milk”. There is also a high incidence of thermoduric bacteria (Agrihunt. formalin. skim milk powder. salt. 20148). Several studies conducted to determine the quality of milk available to the consumers clearly show that from milk production to retailing. The predominant types of micro flora present in the milk available to the urban consumers are coliforms.. vii) exposure of milk to dust and flies in both the rural and urban areas. The containers and utensils used during milk handling are the prime source of these bacterial infestations.. due to unorganized and un-regularized marketing system.e. dysentery and food poisoning. glucose. milk processing. 2009. Under prevalent conditions. Milk Processing To meet the demand of the growing population and increased urbanization. Misra. Everyday. the quality becomes so low that it fails to meet the relevant legal standards. color. generally.. lactic streptococci. smell). the required care is not observed in milk handling. Good milk. benzoic acid. Unhygienic conditions under which the animals are milked. starch. glucose. the processing of milk for a higher shelf life is important. Adulterants like formalin. 8 They tested chemical composition of 8 tetra pack milk samples. Zia et al. particularly for the children and the elderly largely due to different chemical contaminations (Sharif et al. v) dairy farm workers suffering from diseases like diarrhea and typhoid. 5. somewhere 7 In conclusion section. 2003. 2012). ammonium sulphate. alkalinity and benzoic acid were present in all samples while salt test was positive only for Olper milk. they can create serious health problems. poor transportation. On consumers’ side. As far as the use of various malpractices during milk storage and marketing is concerned. Ullah et al. boric acid and alkalinity) in Southern Punjab. the adulteration starts after the milk leaves the dairy farms and rises rapidly until it reaches the ultimate consumers. namely Olpers. micrococci. Awan et al. ix) the containers used in transportation are also unhygienic. 2000. cane sugar. though more than 75 percent of urban consumers are aware about the relatively better quality of pasteurized and UHT milk and the types of adulterations and chemicals used by market intermediaries.

duty free import of machinery and equipment. at milk production sites use of waste water for cleaning sheds. milk powders and ice cream. Jhang and Kasur. The UHT milk received successful introduction in this period when Tetra Pack Pakistan Limited started producing aseptic packaging material for the UHT milk. milk processing is also subject to emission of pollutants in various forms like liquid waste (waste water from washing and cleaning operations). there is little understanding or awareness in Pakistan about dairy-related environmental damages (Zia et al. Faisalabad. The success of Packages Limited in Ultra-High Temperature (UHT) milk (Milk Pack). soil pollution and noise. Among these Swiss Dairy giant. a typical dairy unit generates 6 to 30 cubic-meter of waste water for every cubic-meter of milk processed (ETPI. Several UHT plants were set up in eighties while many others were sanctioned leading to growth in cities.e. However. Okara. 2007). Unfortunately. Nestle Pakistan has come into this sector in a big way. Most of these plants were closed due to various reasons ranging from technical non-feasibility to very expensive availability of packing material. 2005. solid waste (paper and board for packaging) air emissions (burning of waste. It is worth mentioning here that almost entire dairy processing sector is confined to Punjab province only. Bahawalnagar. UHT milk. animal bathing and cleaning utensils along with emission of greenhouse gases all add to environmental pollution. All these districts have more than one million buffalo & cattle heads and contain about 35 percent of rural large ruminants farming (Government of Pakistan. On the other hand. Weak acceptance of recombined milk by the consumers and its short shelf life was another causal factor.. 2012). It is worth mentioning here that during 1990s. On the other hand. In the sixties the private sector established 23 milk pasteurization and sterilization plants around three big cities. due to lack of technical expertise and financial issues. hydrogen per oxide and milk powder dust). the research and development undertaken by the milk processing and packaging industries has lowered the costs of milk processing. the price differences between UHT treated and dodhies supplied milk has reduced to 20% to 30%. Sharif et al. Sargodha. and availability of domestic and foreign currency financing. These plants relied on supplies of skimmed milk powder imported with the support of World Food program.e. UHT cream. As a result as many as 20 plants were established between 1983 and 1987. The generation of wastewater is the largest pollutant. i. 25 milk processing industries are engaged in the production of pasteurized milk. . most of the plants were again closed down. Karachi and Lahore. Continued and lengthy load-shedding also escalated the demand for the UHT milk. and improved per capita income. On the other hand. Presently. the per litre price of UHT milk was twice higher than the loose milk supplied by the milkmen or dodhies. its daily milk processing capacity ranges from 2 to 3 million litres. Rahim Yar Khan. 2011). 2000).. in 1977 also attracted new players into the field. recombined and pasteurized before being sold to the consumers. Milk processing industry got another boost in 2000s when the demand for milk in the urban centres increased rapidly due to rising urbanization.between sixties and seventies. implying difficult to compete with dodhies in milk marketing and little acceptance from consumers (Niazi and Farooq. But very few processing plants are located in most buffalo+cattle populated districts like Muzaffargarh. i. There was a renewed interest in the milk processing industry in the late seventies and eighties when policy support was provided by the government in the form of exemptions in income tax.

due to increase in inflation and poverty levels. Similarly. carbohydrates or protein contents of the diluted milk. which diminishes foamy appearance and whitening of milk or calcium thioglycolate/potassium thioglycolate/calcium salts of thioglycolic acid or urea for whitening of milk. . hence generating enough room for carrying milk from rural and deep rural areas (Jalil et al. v) lack of reliable dairy sector by production systems and regions etc. vii) lack of due policy support on most of the imported equipment for storage and processing. carbonates. antibiotics. pesticides. materials like vegetable oil. (2005) while carrying a preliminary assessment of the state of Pakistan diary. Moreover.making loose milk marketing dominant in the milk marketing system. skimmed milk powder. there is no test at any stage along the informal marketing chain. high inputs cost. high mortality rate. guar meal. According to Tariq (2001). peri-urban and rural areas well connected to respective urban centers through good roads and better means of transport. hydrogen per oxide. 11 Urea. presently Pakistan’s dairy industry is facing a number of problems like extensive commercial dairy farming. hair removing powder. white cement. Ali and Saifullah (2006) revealed that the milk production is labour intensive and prone to large number of biological. etc. its impact on the dairy economy and identified areas where detailed research is needed. detergent powder. majority of the consumers in Pakistan are price conscious and prefer buying raw loose milk compared to processed milk --. Villages falling at remote locations are deprived of availing milk marketing opportunities. In other words.6. lack of quality checks is the most neglected aspect of the whole system. 10 Whey powder. flour. or even the most lethal chemical formalin are added to increase the storage period of milk. etc. addition of water and ice increases milk volume. 2009). According to Fakhar et al. whey powder are added to it which also extend the solids contents in the milk. maize flour. explored the dairy sector potential in marketing. caustic soda. ice. thickening agents like starch. iv) non-regulation of inputs prices and no control over inflation vis-à-vis control over milk prices by the local governments. use of detergents add the cosmetic nature of the milk. or giving milk a genuine look (Walker et al. 2004).. On the issues and challenges side. On the other hand. Milkmen or dodhies is the main intermediary exploiting the milk producers by offering low prices and obtaining high profits by various malpractices (extracting milk cream. caustic soda. Milk Production. water chestnut (singhara) flour.Issues and Challenges Figure 2 characterizes milk production and marketing issues in urban. They highlighted important aspects related to Pakistan’s dairy sector. scarcity of resources and inadequate marketing system. iii) lack of coordination among smallholder dairy farmers in milk marketing. oil. dirty water. Similarly. feed shortage. sodium bicarbonate. ii) widespread adulteration due to the absence of an integrated cold chain. sugarcane or urea are added to compensate the fat. mixing of adulterants10 and chemical contaminations11) into it. It is clear that milk collection and marketing system is limited to urban. Chemicals like hydrogen per oxide. penicillin. technical and socioeconomic constraints like poor genetic potentials. Marketing and Processing --. vi) lack of export competitiveness of Pakistani dairy products. On the other hand. peri-urban and rural settings. Burki et al. bicarbonates. To counter it. lack of financial and infrastructure facilities especially to livestock farmers in deep rural areas. (2006).. formalin. lack of dairy related education. FAO (2011) recognizes seven issues of Pakistan’s dairy sector as: i) low animal productivity due to lack of proper livestock management practices and inaccessibility to support services. chalk powder. the milk produced in the urban and peri-urban settings is insufficient to meet the total urban demand..

The milk marketing system is facing very serious challenges in areas like fragile production base. containers used. poor infrastructure (roads. till now four rounds (in mid-1950s. milking by hand. ordinance and regulations. On production side. making marketing of loose milk. lack of quality checks is the most neglected aspect of the whole system. benzoic acid and alkalinity were found in 8 well reputed brands of UHT milk sold in Pakistan. long distance between production and consumption places. 15% in the per-urban and 5% in the urban settings. However. despite that. In all these rounds. due to inflation and high poverty levels. late 1970s and 2000s) have been made to establish a sound milk processing setup in the country. due to various underlying factors. Turning the legal framework. All these collectively results in unorganized and inefficient marketing system.78 billion during 2013-14.4 million tons of milk is produced by dispersed producers. 80% was produced in the rural areas.7. lack of dairy related education. transport. lack of financial and infrastructure facilities especially to livestock farmers in deep rural areas. Commercial dairy farming is slowly creeping in. the number of industries established remained between 20 and 30 and it confined to the Punjab province only. The latest Punjab Pure Food Rules is relatively more comprehensive than the previous acts. Adulterations practiced to cover the time lag between production and consumption timings further generate health hazards on consumer side. . quality assurance. Pakistan imported milk and its products worth Rs. In Pakistan. mostly in small quantities. Pakistan is 3rd largest milk producer in the world. use of non-recommended utensils and containers for its handling. presently Pakistan’s dairy industry is facing a number of problems like extensive commercial dairy farming. the milk produced in the urban and peri-urban settings is insufficient to meet the total urban demand. but it is confined to mixed cropping system of Punjab. poor transport facilities. hence providing enough room for carrying milk from rural areas. rather than addressing the nutrition of the consumers. not bathing animals before milking. there is no test at any stage along the informal marketing chain. majority of our consumers are price conscious and prefer buying raw loose milk. Therefore. the dairy sector has failed to attract the attention of the policy makers and development practitioners. additives & preservatives used for enhancing its shelf life are main quality related problems in the milk production and marketing systems of Pakistan. On the other hand.11. highly ambient temperature. the backbone of milk marketing system in Pakistan. Moreover. the existing laws seems became obsolete and need to be revised. its collection in small qualities. Nearly 40% of the milk produced in the country is marketed through formal and informal channels. untrained manpower and seasonality. financial insecurity. insufficient or non- availability of milk cooling/chilling systems. the unhygienic conditions of livestock sheds. Turning to milk processing. About 90% of the total milk entering into the milk marketing channels is collected by the milkmen from subsistence farmers. the demand for milk and its products is likely to increase in future. 42. 26% of food budget is spent on milk and its products produced by modern and traditional/informal sectors. Summary and Suggestions Livestock farming is an integral part of the rural economy of Pakistan. On the issues and challenges side. On consumption side. On domestic front.). 1960s. glucose. In other words. cane sugar. Considering the quality of milk and its products available to the consumers. All these problems collectively generate health related concerns. etc. adulterants like formalin. So much so.

” Working Paper No. A. .. Pakistan Journal of Pharmaceutical Sciences. “A Study on Chemical Composition and Detection of Chemical Adulteration in Tetra Pack Milk Samples Commercially Available in Multan”.  There is also a need to establish “Dairy Development Authority” by making the progressive dairy farmers. Bari. Lahore University of Management Sciences. 2006. “Milk Production. Iqbal and F. Ather.  Strict regulatory frameworks need to be formulated and implemented along with fast processing of adulterations related cases at the courts. Awan. http://agrihunt. The small farmers should be educated to employ every possible care for hygienic milk production and its handling.  There is a need to extend the establishment of milk processing industries to Sindh province as nearly one-fourth of the total cattle as well as buffalo population is present in the province. Iqbal. Lahore.A. “The State of Pakistan’s Dairy Sector: An Assessment.. and Rafaqat H. M. Iqbal. Islamabad. “Milk Production and Marketing”. Khan and F. 2002.. Preservation and Processing in Pakistan”. January 2014. M. Moreover.. It is suggested to encourage installing milk powder producing industries in deep rural areas. The Dawn [Electronic version] retrieved in January 2006. A. marketing and processing levels. 27(1). Burki.  Cooperative milk marketing may also be promoted in rural areas by extending chilling facilities to such cooperatives. the electronic and print media should be effectively used for discouraging the use of non-recommended utensils and containers for milk handling. I. for the entire dairy value chain. processors and government stakeholders as its board members. 8. 183-186.A. National Agricultural Research Center. M. there is also a need to strengthen urban consumer societies and establishing such societies in rural areas. A. 2005.  Along with enforcing food safety standards in line with international standards at milk producing. R. 05-34. References Agrihunt. “Milk Production and Procurement in Pakistan”.com/articles/food-industry/milk-production-a-procurement-in-pakistan/ Ali and Saifullah. Ali. Centre for Management and Economic Research. Collection. 2014. the following suggestions are hereby put forward:  The milk products production patterns of current milk processing industries shows that majority of them also produce milk powder along with producing UHT milk. Raja. Animal Sciences Institute. Naseer. H. Suggestions and Recommendations Considerable opportunities are present for the investment in dairy farming and dairy processing related industrialization in the country. For providing health safe milk and its products to every consumers.com (undated).

Government of Pakistan. Chemical Composition and Hygienic Status of Milk Supplied to Various Canteens of Educational Institutes and Public Places in Faisalabad”. Jalil.I. Pakistan. “Pre-feasibility study for Dairy Processing Plant”. Pakistan. Pakistan Bureau of Statistics. M. “Analysis of Milk Production System in Peri-Urban Areas of Lahore (Pakistan): A Case Study”. Government of Pakistan. 2009. 72. pp. Economic Wing. 27-31. Khaskeli. A. Pakistan Dairy Development Company. 29(1). Sindh Agriculture University. 2012. Environmental report of dairy sector. “Adulterated Milk is What Indians are Drinking”. 2006.htm].B. Fakhar H. M. Thesis. Bhutto. Rehman. Economic Advisor’s Wing. “Detection of Adulteration. 2015b. Tandojam. Government of Pakistan. M. Planning and Development Division. M. “Physical and Chemical Quality of Market Milk Sold at Tandojam. FAO Corporate Document Repository [http://www. Rehman.. J. 2006. Islamabad.M. S.pk/lahore/01-Jul-2008/Milk-provided-to-City-unfit-for-humans] Accessed on 24-03-2016. May 2015. Walker. M..Sc. 2008. 2015c. Pakistan Veterinary Journal. Mustafa.H. Government of Pakistan. Statistics Division.. Study Commissioned by Employment and Research Section.com. [http://cseindia. “Milk Provided to City is Unfit for Health”. Akhtar. “Most Indians Drinking Adulterated Milk. Pakistan Economic and Social Review. Gilani.A. “Agricultural Statistics of Pakistan”. 2009. 47(2): 229-242. “Smallholder Dairy Development: Lessons Learned in Asia”. Mascon Associates (Pvt. India). Lahore. Islamabad. Gadahi. The White Revolution-Doodh Darya”.org/content/adulterated-milk-what-indians-are-drinking] Accessed on 24-03-2016.org. “Household Income and Expenditure Survey.org/docrep/011/i0588e/i0588e07. Law and G. Javaid. S.gov. 2009. 23(1-Supplement): 119-124. [www. F. Daily The Nation. “Pakistan Economic Survey 2014-15”. Agriculture Census Organization.CSE-India (Centre for Science and Environment. “Agricultural Census 2010”.. Government of Pakistan. “Physico-chemical and Hygienic Quality of Milk Supplied to the Canteens of Various Hospitals in Hyderabad City”. 2012. H. Gulberg-III. Lateef. 2013. Pakistan”. Finds FSSAI Survey”.) Ltd.in/news/most-indians-drinking-adulterated-milk- finds-fssai-survey—35646] Accessed on 24-03-2016].S. Islamabad.fao.finance. M. Down to Earth Magazine [http://www.B. S. P.. 2015a. 2013-14”. Kumbher and A. [http:/www.nation. Faraz. Government of Pakistan. Misra. 2000. Ministry of National Food Security and Research. Panhwar. Government of Pakistan. Sial and S. ETPI. Islamabad. Yaqoob and S. The Journal of Animal and Plant Sciences. 2000. Statistics Division. I. Islamabad. A.H.H.pk] Government of Pakistan. H.downtoearth. Hussain. M. Sindh. Gurumangat Road.. Government of Pakistan. July 2008. March 2015. FAO. 2012. Environmental Technology Programme for Industry. Memon. . Finance Division.

S. Tariq. Rehman. “Dairy Development in Pakistan”. Islamabad.I. Ahmad. Harris. M. Umm-e.. M. Q. “Action Plan for Livestock Marketing Systems of Pakistan”. “The Effect of Severity of Mastitis on Protein and Fat Contents of Buffalo Milk”. Akmal. “Pakistan smallholder dairy production and marketing”. and U. Hashmi and U. Islamabad. [http://www. Zia. Agriculture and Livestock (Livestock Wing). Social Sciences Institute of PARC at National Agricultural Research Center.P. Doyle 2006. T. U. Pakistan Veterinary Journal. 2001. “Effect of Nutrition and Management on the Production and Composition of Milk and Protein”. Australian Journal of Agriculture. Farooq.Niazi. 2007. M. 25(1): 1-4. 2011. Australian Center for International Agricultural Research. R. 2003.T.A. “Report on dairy mission to Pakistan”. Malik and M. 2004. Wynn. TCP/PAK/3004. Malik.A. Sharif. Mahmood and M. G. Sharif. R.. 2006. Zia. Ashraf (Eds. Shah. Sutton and P. B. Muhammad and S. Study Commissioned by Food and Agriculture Organization of the United Nations to the Social Sciences Institute. Pakistan”. Moss. August 2006. Umm-e. G. N. Australia.) “Socioeconomic Research Studies 2003-04: Federal . T. R. Walker. Doyle. “Estimation of Demand for Milk in Pakistan”. 2011. “Analysis of Milk Marketing Chain.. “Assessment of Market Demand and Consumer Preferences for Dairy Products in Pakistan”. Pakistan.H. National Agriculture Center. 2005. “A Close Look at Dairy Patterns”. W. Food and Agriculture Organization of the United Nations.com/2001/11/05/ebr13. in Ajula. W. ..dawn. Bilal.. K. 109 – 118. National Agriculture Center. Islamabad. P. Ali. Farooq. Farooq and H. Ullah. 55: 1009-1028. U. Islamabad.M.. Pakistan..R. F.SSI”. html] Assessed in February. Clem. Study Commissioned by Food and Agriculture Organization of the United Nations to the Social Sciences Institute.R.. FAO Pakistan Consultancy Report. Zia-ur-Rehman. N. Dunshea and P. M. Ministry of Food. Raja. 2003. D. 2005. M.

Figure – 1: Top Five Milk Producing Countries of the World 140 120 100 Million Tons 80 60 40 20 0 India USA Pakistan China Russian Fed.0 40. Source: www.0 40 15.0 60 20.0 0 0.0 % share in total milk production 100 Milk Production (Billion tons) 35.com/top-milk-producing-countries-of-world Figure – 2: Trends in Total Milk Production and it Composition by Species in Pakistan 120 45.0 25.0 20 5.0 10.veterinaryhub.0 80 30.0 1971-72 1973-74 1975-76 1977-78 1979-80 1981-82 1983-84 1985-86 1987-88 1989-90 1991-92 1993-94 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 Years Camel Goats Sheep Buffaloes Cattle Total Milk .

some sold in Mainly self-consumed. Issues and Challenges Med. some sold in Dairying village.centers-cons. therefore. fodder & land costs Severe Hygiene & Disease size. Farm-dodies-coll. exploited by dodies. consum. centers) & localized processing plants can improve situation. functions & road access Medium producer prices Easy access to services Medium feed costs High animal replacement cost Poor roads and transport infrastructure and Moderate hygiene & Disease long distances. Marketing Channels. functions & road access Low animal replacement cost Manure Disposal!! Challenges Low Disease Challenges Serious Quality-Adulteration No Quality-Adulteration Issues Issues Peri-Urban Mainly self-consumed. competitive procurement system (coll. remaining to dodhies village. Chilling facilities at farm level.high marketing costs Easy access to services Low producer prices Higher feed costs Difficult access to services Higher animal replacement cost Rural commercial farms vary in Low feed. Low marketing costs High transport.-to-large production units Mostly small production units Good milk yield per animal Low milk yield per animal Major proportion sold out Major proportion self-consumed farm-dodies-shop/halwai/cons. Source: Developed by the author in the light of literature review carried out for this study. Farmers not organized and have low bargaining Adulteration Issues power.-to-large production units Dairying Good milk yield per animal Major proportion sold out farm-dodies/collect-center- urban shop/halwai. remaining to dodhies Mainly supplied to Mainly supplied to urban markets urban markets Urban Markets / Cattle Colonies Peri-Urban Med. Rural commercial farms vary in Medium marketing costs size. cooling. Manure Disposal!! Challenge Moderate Quality. process High producer prices costs --. . Figure 2: Milk Production.

13 1722835 6.7 19.16 1127537 4.7 3.79 1957995 7.8 Total Population 8264515 52910399 24114435 23468169 45738230 15025647 Source: Agriculture Census of Pakistan.9 4292147 15.64 16-20 animals 1237386 4.8 21.8 151-200 animals 1163153 2.0 Medium (12.2 3.6 31.9 101-150 animals 2039666 3.1 Small (5 to 12.6 0.92 351animals and more 3342757 6.06 3198506 12. 2010. View publication stats .0 1-75 animals 2864065 5.61 5-6 animals 4555836 15.4 Landlord (>50 acres) 1.9 76-100 animals 1680117 3.08 11-15 animals 2594914 8.2 1330597 4.1 21.5 7.5 to 25 acres) 6.8 17.7 1-5 animals 11970291 22.5 2.05 2098018 7.6 1902328 6.09 4083541 15.8 1081067 3.33 2287475 8.27 1955099 7.3 2.80 Source: Livestock Census of Pakistan.1 5769695 21. . .91 3870360 14. Table 2: Livestock composition by species in Pakistan Herd sizes Cattle % Buffalo % Herd sizes Goats % Sheep % All Pakistan 29558815 27707048 ALL PAKISTAN 53752533 26487737 1-2 animals 4405026 14. . .1 764382 2.8 Livestock holders .2 5.2 42.7 7.9 38.6 3.8 19.26 50 and more 3708188 12. 3.8 2734047 10.7 Non-agricultural HH .6 31-50 animals 4870032 9.9 6-30 animals 8646574 16.4 4364217 15.8 28.5 17.42 7-10 animals 5063009 17.1 6-15 animals 15537625 28.50 21-30 animals 1132350 3.6 6. Table 1: Crop-Livestock Integration in Farming of Pakistan Farm HH Farm Area Cattle Buffaloes Goats Sheep Marginal (upto 5 acres) 64.1 5095652 18.4 29.22 4186371 15.5 acres) 24.38 3-4 animals 5938712 20. 34.6 28.4 7.6 3.9 17. 2006.4 7.2 32.6 12.39 31-50 animals 923394 3.6 21.9 201-350 animals 1638253 3.3 Large (25 – 50 acres) 2.