- By: Hoor Babar
- Institute of Management Sciences, Peshawar
The dairy industry in Pakistan, despite being one of the largest in the world, remains vastly underappreciated and underdeveloped. With a livestock population of over 190 million, Pakistan ranks among the top producers of milk globally, yet the sector does not receive the attention it merits from policymakers and stakeholders.
This lack of focus has resulted in a myriad of challenges, stunting the industry’s potential to contribute significantly to the national economy.
Dairy farming in Pakistan is predominantly small-scale, with the majority of farmers owning fewer than five animals. These smallholders often lack access to modern farming techniques, quality feed, and veterinary services, which hampers productivity and milk quality. The traditional practices they follow result in lower milk yields compared to international standards. Furthermore, the absence of cold chain infrastructure exacerbates the issue, as a significant portion of milk produced is wasted due to spoilage. The economic contribution of the dairy sector is substantial, accounting for about 11% of the GDP from agriculture. However, its potential is far greater.
Pakistan’s milk production capacity, if optimized, could not only meet domestic demand but also turn the country into a major exporter of dairy products. Unfortunately, the lack of investment in this sector means that it continues to operate below its capacity. The government’s agricultural policies have historically favored crop production, particularly wheat and sugarcane, leaving the dairy industry to fend for itself.
One of the critical issues facing the dairy industry is the fragmented nature of the supply chain. Farmers often sell their milk to middlemen at low prices, who then transport it to urban centers. This system not only reduces the profitability for farmers but also affects the quality and price of milk for consumers. To address this, there needs to be a concerted effort to streamline the supply chain, ensuring fair prices for farmers and better quality control mechanisms. Moreover, there is a dire need for educational and training programs to equip dairy farmers with modern farming practices. Introducing high-yield cattle breeds, improving feed quality, and providing regular veterinary care can significantly enhance milk production. Initiatives like these require support from both the government and private sector to foster a sustainable and productive dairy industry.
The role of the private sector cannot be understated. Companies involved in dairy processing and distribution have the resources to invest in infrastructure and technology. By forming partnerships with small-scale farmers, these companies can create a more efficient and reliable supply chain. Corporate social responsibility programs can also play a part in educating farmers and improving farming practices. In addition, consumer awareness is crucial. Promoting the nutritional benefits of dairy products can increase demand and drive investment in the sector. The media and educational institutions can play a significant role in this regard, fostering a culture that values and supports local dairy products.
The dairy industry in Pakistan holds immense potential that remains largely untapped. By addressing the structural issues within the sector, investing in infrastructure and education, and fostering public-private partnerships, Pakistan can transform its dairy industry into a robust economic pillar. It is high time that the significance of this industry is recognized and given the attention it deserves, not just for the benefit of the farmers but for the nation’s economic prosperity.