Dairy

Small and Medium Enterprise Development Authority

GOVERNMENT OF PAKISTAN

Dairy
Dairy sector is a major component of the Livestock Sector. In Pakistan, due to the absence of specialisation, dairy sector has to be viewed in the overall perspective of the livestock sector. Milk production is the least commercialised enterprise in the agricultural economy but even then it is the single largest commodity from the agricultural sector with value of around 160 billion rupees per annum. Pakistan is the seventh largest producer of milk but even then we have to import powder milk to meet our domestic needs. Milk collection and distribution for the urban areas, although commercially organised, is almost

entirely handled by the informal sector. Organised collection, processing and marketing of milk represent hardly two percent of the total demand of the urban milk market. The milk production and distribution system suffers from many anomalies, which have diverse negative impacts on the economy in general, continue the rural poverty, national health hazards and other environmental issues. All the problems of the sector are translated into our low dairy productivity levels, as shown below: The above table clearly shows that we have to go a long way to meet the international productivity levels. In the year 1997, we produced only 21 billion litres of milk with 18 million animals while North America produced 86 million litres of milk with only 17 million animals. The productivity levels of Western Europe are even higher. Punjab Government has approved in principle, the establishment of Punjab Dairy Authority (PDA) on SMEDA's recommendation to revitalise the dairy sector. This authority is expected to bring about the necessary changes in dairy policies and laws.

SMEDA is helping introduce commercial dairy farms in the country alongwith establishment of related projects, such as pasteurisation units. The financial viability of dairy farms has been analysed in detail. The capital investment required and the operational cost figures have been based on the present market prices. A list of such projects is as under: 1. 2. Commercial Dairy Farm 25-Animals (Mix of Cows and Buffaloes). 3. Commercial Dairy Farm 50-Animals (Mix of Cows and Buffaloes). 4. Milk Collection, Distribution and Marketing. 5. Mini Dairy Plant (Pasteurisation unit). 6. Milk centres. 7. Private Veterinary Service.