Dairy Ind

DAIRY INDUSTRY IN PAKISTAN
A SCENARIO
Prepared By:
MUHAMMAD ASJAD KHURAM
1652-411036
EMBA Final Year
Preston University Lahore
TABLE OF CONTENTS
Acknowledgment
04
Preface
05
Executive Summary
06
Introduction
07
History
08
Milk Production System in Pakistan
09
Pakistan Dairy Farming
12
Processing Of Milk
13
Milk Consumption
15
Main Feature of Dairy Sector in Pakistan
17
Population of Bufallo and Cattle
17
Dairy Breeds and Breedings
18
Feeds and Feedings
22
Usage Of Treated Straws
25
Animal Health
25
Dairy Production System
26
1: Grazing System
26
2: Mixed Farming System
27
3: Peri Urban Dairy Colonies
27
Global Milk Production
29
Milk Consumption Pattern
30
Milk Marketing
32
Milk Production and Procurement
35
Milk Procurement Types
36
MPS
38
Dairy Industry In Pakistan: A Scenario
Crucial Factors and Steps
39
Strength
39
Weaknesses
39
Oppertunities
40
Milk Production
40
Future Prospectus
42
Consulting and Planning
44
PLDDB
48
Pakistan Dairy Association
48
Future Strategy
49
Key Success Factors
50
Summary of Articles
51
Conclusion
53
References
53
Submitted To:
Sir Yasir Hassan
Dairy Industry in Pakistan: A Scenario

Submiited By:
Muhammad Asjad Khuram
1652-411036
ACKNOWLEDGEMENT
ALL PRAISES AND THANKS FOR THE GOD, THE SOURCES OF ALL
KNOWLEDGE AND WISDOME ENDOWED, WHO BESTOWED US WITH, A
POTENTIAL AND ABILITY TO CONTRIBUTE A DROP MATERIAL TO
THEEXISTING OCEAN OF KNOWLEDGER.
THANKS ARE ALSO DUE TO OUR TEACHER SIR YASSAR HASSAN FOR
PROVIDING NECESSARY LITERATURE AND OTHER MATERIAL, WHICH
HAS BEEN EXTENDIVLEY RELIED UPON, FOR CARRYING OUR THIS
STUDY AND PREPARATION OF THIS PROJECT.
MAY ALMIGHTY BLESS ALL OF THEM, WHICH PARTICIPATED ME IN
THIS EFFORT.
MUHAMMAD ASJAD KHURAM
PREFACE
Pakistan Dairy industry is one of the most essential sectors in the country GDP
contributions and it is the spine of Pakistan economy. Capital structure is very
important for the firm particularly Dairy Industry sector. Because it has an impact on
long term corporate profits, firms valuation and capital budgeting decisions.
Dairy Industry is influenced by many factors like size, growth, profitability and
specific industry also plays its role in economic growth. Dairy Industry is the most
important segment of Pakistan which contributes main part in countrys exports.
Performance of this segment has a powerful influence on state economy. Study
initiates the major determinants of Dairy Industry and their different aspects. It
determines the impact of Milk Production on profitability of Dairy industries in
Pakistan.
Executive Summary
The 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 also
serves as a store of wealth; provide draught power, and organic fertilizer for crop
production as well as means of transport.
Milk provides relatively quick returns for small-scale livestock keepers. It is a
balanced nutritious food and is a key element in household food security.
Smallholders produce the vast majority of milk in developing countries where demand
is expected to increase by 25% by 2025. Dairy imports to developing countries have
increased in value by 43% between 1998 and 2001. Informal market traders handle
over 80% of milk consumed in developing countries. Two thirds of total world milk is
produced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EU
member states. Developing countries produced one third of total world milk
production in 2000 (216 million metric tones) and it is increasing. Various animals
including buffalos, cows, sheep and goats produce milk. Total world milk production
is dominated by cows 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. Its
importance could be judged from the fact that in terms of market value, its
contribution 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 total
milk produced by the rural families flows out to urban consumers and processing
industries. In urban areas milk is available to common consumers in two ways: loose /
unprocessed milk and packed/ processed milk.
Introduction
The 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 also
serves as a store of wealth, provide draught power, and organic fertilizer for crop
production as well as means of transport.
Milk provides relatively quick returns for small-scale livestock keepers. It is a
balanced nutritious food and is a key element in household food security.
Smallholders produce the vast majority of milk in developing countries where demand
is expected to increase by 25% by 2025. Dairy imports to developing countries have
increased in value by 43% between 1998 and 2001. Informal market traders handle
over 80% of milk consumed in developing countries. Two thirds of total world milk is
produced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EU
member states. Developing countries produced one third of total world milk
production in 2000 (216 million metric tones) and it is increasing. Various animals
including buffalos, cows, sheep and goats produce milk. Total world milk production
is dominated by cows 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. Its
importance could be judged from the fact that in terms of market value, its
contribution 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 total
milk produced by the rural families flows out to urban consumers and processing
industries. 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 the
agriculture sector, and almost 11 percent to GDP, which is higher than the
contribution made by the crop sector (47.4% in agriculture and 10.3% in GDP). The
role of livestock sector in the rural economy is very crucial as 30-35 million rural
population of the country is engaged in this sector for its livelihood. Within the
livestock sector, milk is the largest and the single most important commodity.
Pakistan also has an industrial production capacity of approximately 47.5 million liters
per year of ice cream.
Pakistan's dairy industry is plagued by a number of problems which include lack of
commercial 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 and
uneducated population. Although Pakistan was ranked fourth among the five leading
milk producing countries in the world, with an estimated 24 million animals having
produced closely to 28 million tons of milk in year 2003 and over 31 million tons
during 2005-06 as the 5th largest producer of milk in the world, its yield per animal is
only one-fifth of that of Western Europe.
Government, after ignoring the dairy sector has taken cognizance if the importance of
the dairy sector and embarked upon a number of initiatives to boost the dairy sector.
Under the new programmes, Pakistan government has created National Dairy
Development 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 were
exported from Pakistan. Pakistan imports dry/powered milk from Eastern Europe, and
Centrally Independent States (CIS).
In Pakistan only 3-4% of the total milk is processed and marketed through formal
channels whereas the remaining 97% of the milk reaches end users for immediate
consumption 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 Desi ghee and butter. Processing plants have also
introduced a number of dairy products like yogurt, drinking yogurt, flavored milk,
cream, butter, ghee, cheese, ice cream etc. The quantities sold however are small
except for yogurt & butter. Industrial processing units in addition to the traditional
traders of sweetmeats, milk, yogurt, ghee and other dairy products have been set-up.
Most of processing capacity is concentrated near larger markets and away from
potential sources of milk. More than 53 modern milk processing facilities were
established before 1974. By 1974 less than half were operating and after the
introduction of the first UHT, long-life milk plant came into operation.
Milk Production System in Pakistan

The average farm gate price of milk is Rs 10 per liter. It varies from Rs 8 to Rs 16 per
liter. Variation of farm gate price is not linked to the quality of the milk. It is rather
determined by two factors. One is the financial arrangement between the buyer and
seller. The second factor is the geographical location. In areas where livestock rearing
is difficult due to very hot weather or scarcity of fodder like in Rawalpindi, farmers
get 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 farmers
from other areas of Punjab. Currently, there are no policies to regulate milk prices at
the farm level. The middlemen, contractors, Gawalas (local milk collection,
transportation, and distribution people) processors, processed unpacked milk, loose
milk, and processed milk are the segments of the dairy value chain. The processed
packed 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 urban
consumers and processing industries. More than half of the milk collected by urban
traders and processing industries comes from small herd families. The family's
decision to sell milk and the amount to sell is clearly poverty driven. Small farmers
sell milk only because they have no other source of cash income. Milk in urban areas
is 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 urban
retailer. The price of milk increases by one rupee per liter at every stage of sale. The
'Dodhees (Gawalas) generally have undocumented contracts with farmers for regular
milk supply. They pay farmers an average price of Rs. 10.74 per kg. Some 'dodhees'
have milk storage and chilling system and transport system. Transportation generally
costs 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 to
consumers. Consumers pay between Rs.18 to Rs.28 per liter depending on the fat
content of the unprocessed milk.
Farmers are forced to sell milk for cash income. But the market forces operating in a
totally unregulated environment are exploiting the poor farmers by offering low prices
for their produce. There is also no restriction on the quantity of milk that a company
can 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 along
with the other food items. Legislative and regulatory measures that affect the milk
market in Pakistan are dictated primarily by the salient features of laws that govern the
milk industry.
The dairy industry of Pakistan is constrained due to a number of factors that include
low genetic potential of animals, animal health, improper feeding and housing for
animals, transportation and quality of milk. Lack of commercial dairy farms is also a
limiting factor the dairy sector in Pakistan. The current process of collecting milk
from a large number of subsistence farmers is time-consuming, costly and prone to
adulteration.
Agriculture sector with its integral component of livestock (animal agriculture) is
regarded as most vital part of the national economy since the emergence of Pakistan.
10
Agriculture not only contributed importantly to the national GDP of Pakistan during
last five decades but also the provision of employment and food to rapidly growing
nation remains important obligations of this sector. In the changing scenario of
economy of Pakistan and other developing nations, agriculture is still the largest
sector. In Pakistan, agriculture contributes slightly above 25% to GDP, employs
around 44% of work force, is the main source of foreign exchange earnings and
provides linkages through which it can stimulate growth in other sectors (Economic
Survey of Pakistan, 1999-2000). Livestock is the most important sub sector of
agriculture in Pakistan that accounts for nearly 37% of agriculture value added and
about 9% of the GDP. The net foreign exchange earnings were about 35 billion rupees
in 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 in
Pakistan due to the fact that 30-35 million rural population is engaged in livestock
keeping (Economic Survey, 1999- 2000). Milk plays a tremendous role in building a
healthy society and can be used as vehicle for rural development, employment and
slowing down the migration of the rural population. Pakistan stands 7th position
among the top ten worlds milk producing countries. Milk and milk products provide
nearly one third of worlds intake of animal protein (FAO, 1998). This is not true for
Pakistan where milk provides more than half of the 17.4 g of animal protein available
for each person daily and so traditional diets assign a balancing role to milk
(Anonymous, 1996). However, per capita availability of milk is far less than the
recommended levels (0.5 liter per person per day) of World Health Organization.
About 80 thousand tones of dry milk was imported in Pakistan during the last year to
meet local demands of milk (Agriculture Statistics, 1999-2000). The total milk yield
in Pakistan is 26.4 million tones and entire dairy processing industry was using only
about 15% of it (Hemani & Khan, 1997). The importance of milk as a cash crop is
always neglected in the past. While comparing the value of milk with other cash
crops, it was mentioned that milk had a value about 60% higher as compared to both
wheat and cotton together. The land of Pakistan is benefited with both irrigated plains
through mighty Indus river with its tributaries and desert areas like Cholistan and
11
Tharparker. Pakistan is expended from costal range areas in the south to the alpine
pastures in the north and has variability in topography, rainfall, humidity, temperature,
plant and animal species, social and cultural heritage. So dairy development is not
only needed to meet the growing demands of animal protein but for socioeconomic
reasons as dairy animals provide regular cash income, economic utilization of family
labor, create social security and supply growing markets.
Milk production is an extremely labor intensive occupation, however, in many
countries of the world including Pakistan, it is the most productive way of converting
crop residues and agro industrial wastes into valuable food. But due to biological and
technical constrains like shortage of feed, high mortality rate, poor genetic potential
etc; socio economic constraints like high input cost, scarcity of sources, inadequate
marketing systems, commercial feed industry and policy constraints render this sector
undeveloped and truly in a miserable condition. The main objective of this article is to
review the potentials, problems and solutions pertaining to dairying in Pakistan.
Being major player in national economy livestock sector has been selected as an
economy engine for poverty alleviation from Pakistan. According to economic survey
of 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 and
landless families in the rural areas and 35-40 million rural populations are dependent on
this.
Pakistan Dairy Farming:

In Pakistan livestock includes cattle, buffalo, sheep, goat, camels, horses, asses and
mules. Milk, meat, wool, hair, bones, fat, blood eggs, hides and skins are the main
livestock products among which milk and meat are taken as major products. Besides
this, these animals are used for draught purposes.
Pakistan is fourth largest milk producing country in the world. Milk is produced by
buffalo, 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 focused
and discussed. These dairy animals are also used as draught and beef animals. When a
12
dairy animal has spent her productive life and becomes uneconomical for milk
production then she is used as a beef animal. Male calves of dairy animals and dairy
bulls when no further required for breeding purposes are also utilized for beef purposes.
Buffalos found in Pakistan make up 47% of Pakistan's major dairy animal's population
providing more than about61% of the total milk produced in the country. Buffalo breeds
found in Pakistan are Nili Ravi, Kundi and Aza Kheli. Nili Ravi is considered best
buffalo breed in world and known as Black Gold of Pakistan. Cattle constitute about
53% of the national population of major dairy animals in Pakistan and contribute the
share of almost 34.9% to the total milk production in country. The cattle breeds found
in the country are Sahiwal, Cholistani, Red Sndhi, Achai, Bhagnari, Dajal, Dhanni,
Gibrali, Kankraj, Lohani, Rojhan, and Thari. Out of these, Sahiwal, Cholistani, and Red
Sindhi are main dairy breeds and well known internationally due to their distinct
characteristics. Other than well-defined cattle breeds, there are a large number of
nondescript cattle breeds and crossbred cattle.
Processing of Milk:
In Pakistan, modern milk processing in the dairy sector started in early 1960s, and by
mid-1970s 23 milk pasteurization and sterilization plants were set up. With one
exception, all of them are closed due to low consumer acceptance, the short shelf-life
of the product and lack of trained manpower. The first UHT plant was set up in
Pakistan in 1977. The success of this plant attracted many other investors also and
during 1983-87, 20 new plants were set up. In the current situation, UHT capacity in
the dairy industry is more than the demand for the product. Existing plants are
operating below capacity and growth in demand is not likely to keep pace with the
demand for relatively high-priced UHT milk.
Goat is considered as `poor man's cow'. Some rural and urban people keep goats and
sheep and use their milk for domestic consumption. The same is true about certain
nomads who raise camels and use their milk to meet family needs. Some camel men
when in peri urban situation sell milk in urban areas. Certain breeds of camels in
Pakistan have the potential to be called as dairy animals, but being slow breeders they
13
remained ignored since long.

More than 96% of the milk produced in Pakistan comes from cattle and buffalo. The
rest of it is collectively produced by sheep, goat and camel which, most of the time, is
not sold as such, rather mixed with buffalo and cow milk. Estimated national livestock
Population and milk production of 2011-12 based on National Livestock Census 2006 is
given below:
Population
Milk Production
(Million)
(Million Tons)
Cattle
36.9
16.741
Buffalo
32.7
29.565
Sheep
28.4
0.037
Goat
63.1
0.779
Camel
1.0
0.829
Total
162.1
47.951
Species
Current Estimated Province Wise Livestock Population is given below:
(Millions)
Province Cattle Buffalo Sheep Goat Camel
Punjab
18.1
21.2
6.8
23.3 0.22
KPK
7.4
2.3
3.7
11.3 0.07
Sindh
8.5
8.8
4.3
14.5 0.30
Balochistan
2.9
0.3
13.6 13.9 0.41
14
Milk Consumption:
Milk is favorite food in Pakistan and is consumed as fresh, boiled, powdered and in
processed form as yogurt, ghee, lassi, butter, cheese, ice cream, sweets and in other
confectioneries. The interesting thing regarding the dairy sector of Pakistan is that
although we are fourth largest milk producing country in the world but still this
production falls short to meet national demand. As a result milk is to be imported to
fulfill this demand. Human milk consumption in Pakistan for year 2011-12 is given
below:
Human Milk
Species
Consumption
(Million Tons)
Cattle
13.393
Buffalo
23.652
Sheep
0.037
Goat
0.779
Camel
0.829
Total
38.690
Let's have a look on different production systems of Pakistan. Till late eighties, more
than 60% of buffaloes and some cows were maintained under the system of Rural
Subsistence Production System. In this system on an average there were 3 to 4 dairy
animals with one or two adult females. Almost 50 to 60% of the feed requirements of
these animals were fulfilled from grazing along with wheat straw and some green
fodder. th of milk produced was sold out and remaining was utilized for domestic
use. This system still exists in some areas of Pakistan.
With the time being Rural Subsistence Production System changed into Rural MarketOriented Smallholder Production System. Under this system, on an average there were
5 to 7 animals per herd, inclusive of cow; 3 to 4 adult lactating animals, one or two
15
heifers, and one or two male calves, but most often no bull. Feeding requirement of
lactating 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. This
system was practiced by those smallholders who have access to nearby livestock
markets.
In 1980s, dairy sector in Pakistan moved towards commercial side and development
of rural commercial dairy farms started. A typical rural dairy farm running on
commercial basis consisted of about 30 animals of which 70% were females,
including some cows. Approximately 40% of these adult females were in milk during
most of the year. Fodder crops provided 50% and straws about 35% of the feed
requirements and concentrates made the rest of it. More than 90% of the milk
produced at the farm was sold.
With growing demand for milk in urban areas rural commercial dairy farming moved
toward peri-urban areas. In peri-urban areas there are large and small dairy herds
consisting of 20-50 animals with nearly 90% of adult females in production. Male
calves are disposed off within first two weeks of birth. These animals are fed chopped
green fodder and wheat straw and concentrate mixture with target to sell almost total
milk produced.
Due to enhanced rate of urbanization over the last 2 to 3 decades, large peri-urban
commercial dairy farming is going towards urban commercial farming. Targets of
these farms are to get maximum milk production with economical and quality feeding
and good management. Animals on these farms are fed good quality green fodder or
silage along with concentrate mixture. Dairy animals maintained at these farms are
considered elite animals, hence their yields per lactation are considerably higher than
those of animals maintained under other production systems. Milk produced on these
farms is either sold out in processed/fresh form through outlets or departmental stores
or supplied to dairy companies.
During last ten years major changes has been occurred in dairy sector of Pakistan and
due to these change this sector is on the way to become an industry. A large number of
16
modern dairy farms have been established in different areas. Most of these dairy farms
have exotic animals and number of these animals is in hundreds and even in
thousands. Dairy farms with more than 3000 animals also exist and with 5000 animals
are in plan. Such farms have adopted most modern manage mental and feeding
practices and well trained man power. Milk produced on these farms is either sold out
in processed/fresh form through outlets or departmental stores etc. or supplied to dairy
companies.
Main features of dairy sector in Pakistan.

Dairy industry in Pakistan has similar characteristics, like other developing Asian
nations, which include small herd, poor genetic potential of animals for milk, low
quality feeds, high risks of epidemics, improper marketing channels, lack of technical
man power for dairy industry, high environmental stresses, reproductive failure and
high udder abnormalities, orthodox management practices, poor extension services
and lack of commercial rations. Despite of all above problems, dairy animals, mainly
buffalo and cattle are producing 26.4 million tons of milk in Pakistan (Agriculture
Statistics, 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 available
for each Pakistani daily. But Pakistan still has to import dry milk and other milk
products e.g. butter, cheese, yogurt, cream, whey etc. every year to fulfill the ever
increasing demands for milk and milk products. During year 1999-2000 Pakistan
expended about 1213.5 million rupees of valuable foreign exchange to import the milk
and milk products (Agricultural Statistics, 1999-2000). The increasing demands for
dairy products are attributed to high population growth rate and rapid urbanization.
Population of buffalo and cattle.
Species
2009-10
2010-11
2011-12
Cattle
34.3
35.6
36.9
Buffalo
30.8
31.7
32.7
Sheep
27.8
28.1
28.4
Goat
59.9
61.5
63.1
Camel
17
Pakistan 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 to
2001 in Pakistan. Population trends indicate that their number is likely to further
increase in future (Khan, 1998) Punjab, Sindh, NWFP and Balochistan provinces
contribute 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 present
in irrigated areas and along riversides of the country. About 60% of the total buffalo
stock is, female buffalo stock, of above three years of age. It is estimated that about
8.7 million heads of buffalo are in milk, remaining either in dry stage or not yet
calved. About 0.42 million buffalo bulls are available either for breeding or for work
purposes.
According to Economic Survey (1999-2000) of Pakistan about 22.4 million heads of
cattle are available in the country. Data about cattle population in Pakistan from 1996
to 2001 indicated about 9.36% increase cattle population as shown in Fig. 1. It was
estimated that around 10.4 and 4.1 million heads of mature cows and bulls are present
in Pakistan. However, cattle population data from 1986-1996 suggest a negative
growth for bull population. This may be supported by the fact of increased
mechanization in agriculture sector or it may be due to the preference for artificial
insemination in cattle by the farmers. However, second factor seemed to be ineffective
because data in 1996 livestock censes indicated a positive growth trend for cattle
breeding 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 contributors
to 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 total
buffalo population belongs to Nili Ravi and Kundi breeds, respectively. Other
buffaloes belong to either their crosses or some other breeds of the region. Khan
(1998) reported that milk yield in Nili Ravi buffaloes ranged from 1835 to 2543 kg
per lactation.
18
Fig. 1. Population trend of buffalo and cattle from 1990 to 2001
Ahmad (1999) reported that production recording on civil and military dairy farms in
an organized manner was undertaken in 1920. Under field condition, the first milk
recording was undertaken in 1979. Progeny testing of buffalo bull was started in 1980.
In 1996, Pakistan government approved a technical document entitled production of
breeding bulls in Pakistan for implementation. The production of breeding sires is a
multiple step process that requires simultaneous action on production recording and
identification of Elite cows, identification of male bull calves and their raising up to
performance testing, raising of donor bulls at semen production units, artificial
insemination and progeny testing of donor bulls. As follow up, various actions were
initiated during 1996-1999 for implementation of the above steps. In spite of
prolonged efforts, the proposed and planned actions have failed to achieve required
objectives. Khan (1998) reported that breeding values for milk yield averaged 9.3 and
32.2 kg in Nili Ravi buffaloes and bulls, respectively. Variation in the breeding values
of tested bulls was lower than expected. He reported that genetic trend in buffaloes
was negative but sire used in the recent years was better than those in the past. The
negative trend in the buffalo population merely depicts lack of effectiveness of the
selection procedures employed in the past. Selection based on the physical condition
of the bull, or the type in general, and dams performance failed to bring any genetic
improvement in the past. He stated that policy of choosing on the basis of genetic
worth is likely to be a step in right direction. However extensive studies are required
in refining the procedures of data collection and evaluation. He suggested that with
millions of small buffalo farmers, sustainable development of buffalo requires
19
national and international programs. Payne and Wilson (1999) described that Sahiwal,
Red Sindhi and Tharparker (a dual purpose cattle) breeds of cattle are important cattle
milch breeds of Pakistan. Sahiwal is a large, heavily built, long deep rather flashy
animal. The coat color varies, but reddish dun is common. Red Sindhi is medium to
small 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 subtropical
and semiarid environment. It is considered one of the best breeds of subtropics. It has
been 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 south
west of Sindh province. This is an arid area where rainfall averages 200 mm per
annum and during drought years cattle have had to be removed to surrounding areas
where they have crossbred with Kankrej and Red Sindhi. They are strongly built,
medium size animals with comparatively short, straight limbs and good feet. The coat
color is white to gray with gray strip along top line. This is one of the best dual
purpose, milk and work, breeds found in Pakistani subcontinent. It has been
documented that age of first calving in Sahiwal and Red Sindhi varies between 30 and
43 months. Milk production in Sahiwal ranges from 1200 to 3100 liters with
maximum record of 5500 liters in a lactation (Nagarcenkar, 1983). Length of lactation
in 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 have
been crossed with jersey to provide the foundation stock for the milch breed known as
Jamaica Hope. In Australia, the Sahiwal has been used in the development of two new
dairy breeds, the Australian Milking Zebu and Australian Friesian Sahiwal. In both
Australia and New Zealand a new export trade has been developed that of crossbred
(Sahiwal European milking breeds) dairy heifers to Southeast Asia (Nagarcenkar,
1983). Payne and Wilson (1999) reported that unless crossbred animals were managed
in closely controlled environment, it is very doubtful whether crossbred dairy cattle
should be used under tropical conditions. Ahmad (1990) reported that crossbreeding
of local cattle with Bos taurs was started in 1900 on military dairy farms and by 1937
sufficient information and data had emerged and published. He further reported that
20
for a long time after independence, the introduction of cross breedingin the country
remained controversial. However, it has been well documented that indigenous cattle
have been adapted to the local conditions through natural selection over generations.
In view of the impressive results obtained from selection in many temperate dairy
breeds, there should be considerable scope for improving indigenous cattle. The
variability, in terms of the coefficient of variation is generally higher in Zebu than in
temperate cattle so there is possible scope of improving milk production in Sahiwal
and Red Sindhi cattle through application of modern animal selection techniques.
In modern dairy cattle breeding programs in temperate countries, 60-70% of genetic
progress 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 to
zero over the period studied, but substantial deterioration in the performance caused
by environmental factors was observed. It was concluded that selection against milk
production and poor reproduction in cows was desirable, but feeding and body
condition call for greater attention if reproductive performance is to be improved. He
reported that alternative selection strategies showed that the expected annual genetic
gain by selection for 305-day milk production might be in the range of 0.7 to 1.1% of
the mean. The number of pure Sahiwal breeding and crossbred cows was ranging from
9000 to 10500 and 100,000, respectively in Pakistan (Pyne & Hodges, 1997).
Although the Sahiwal is the premier dairy breed among the zebus, the pure bred
population has been decreasing. By virtue of its unique characteristics the Sahiwal
represents a genetic resource, which is of the utmost importance. Dahlin suggested
that in the long run it was likely that best course of action to maintain and to conserve
the breed, was to keep it commercially viable. He reported that a much quicker
improvement, measured in kg per animal, could be achieved with Sahiwal. By using
better methods for genetic evaluation and modern reproductive techniques, genetic
gain can be increased considerably.
Feeds and feeding.

Feeding and nutrition have repeatedly been highlighted as the major constraint in
21
animal production (ILRI, 1995) and also sub regionally in South East Asia (Devendra
et al., 1997) and South Asia (Devendra et al., 2000). The significance of improved
nutrition in dairy production is therefore a major consideration. The report of working
group on milk (1999) indicated that the feed/fodder deficit was variously estimated at
15-30% of the total animal requirement in terms of total digestible nutrient. However,
the shortage will be probably larger in terms of digestible protein and energy. Sarwar
et al. (2001) explained that in Pakistan dairy animals are raised under 3 different
managerial feeding circumstances.
In irrigated rural areas (Punjab & Sindh provinces) in the form of small herds where
buffaloes 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 are
kept on naturally grown grasses, shrubs and tree leaves. The major constraint in the
development of dairy sector in Pakistan is poor availability of nutrients in quality and
quantity for dairy animals. In Pakistan nutritional requirements of dairy animals
mainly met through fodder crops, shrubs, grasses and agro industrial wastes. It has
been reported that livestock are getting 51, 38, 3, 6 and 2% of their required nutrients
from green fodder/ crop residues, grazing/vacant lands, post harvest grazing, cereal by
products and oilcakes/meals, respectively (Hanjra et al., 1995). In advance countries
where dairy animals are fed liberal grains forage still contribute about 75% of the
nutrients but when grains are not available like in Pakistan, 95% nutrients are obtained
through forages (Bula et al., 1977)
It was reported by the working group on milk (1999) that the shortage of feed and
fodder in the country affected the production potential of dairy animals. The situation
is further aggravated by the continuous increase in the number of dairy animals.
Fodder yields have not significantly increased and low productivity per acre has
further worsened its availability. It has been reported that Livestock are getting only
75% of the required amount of total digestible nutrient (TDN) and there is also
shortage of digestible crude protein (CP) up to 60% (Akram, 1990). Improvement in
22
quantity and quality of feeds could bring improvement of livestock production up to

50% from exiting genetic pool of animals (Hasnain, 1983). The nutrient reservoir like
rangelands are subjected to deterioration and still no proper attempt has
been made to sustain and improve their productivity. Livestock farmers hesitate to use
agro-industrial byproducts or non-conventional feed resources to improve livestock
feeding because they are unaware of the usefulness of such materials and so strictly
adhered to their traditional feeding patterns. Area under fodder production is
decreasing @ of 2% after each decade (Gill, 1998). According to Fig. 2, June-July and
October-November are fodder scarcity periods in our region.
Livestock policies in Pakistan are supportive to the horizontal expansion of livestock
rather 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 and
TDN, respectively, annually in Pakistan. However, the respective availability of these
nutrients is only 6.7 and 69.00 million tones, which indicate a deficiency of 38.10 and
24.02% of CP and TDN, respectively, per year (Sarwar et al., 2001). Thus the existing
available feed resources can only fulfill the maintenance requirements of animals.
There is an immediate need to explore the available feed resources and to suggest
remedies to minimize the gap between nutrients availability and nutrients
requirements of animals (Sarwar et al., 2001).
The gap between requirement and availability of nutrients could be minimized
through 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 range
management and improvement policies like artificial reseeding, introduction of exotic
species, water conservation methods and community organization could bring
improvement in the supply of quality biomass in sufficient quantity. Urea and poultry
litter as a source of NPN could help a lot to minimize the gap between protein
availability and protein requirements of ruminants if proper coupling of nutrients at
feed, digestive and cellular level is achieved. Agro industrial byproducts and nonconventional feed resources could be used for feeding of livestock if farmers are
23
trained to do so. Situation may be further improved if year round fodder

Fig. 2. Seasonal availability of fodder in Pakistan
system and fodder conservation techniques are introduced in livestock feeding

systems. Establishment of cattle feed industry is required to provide dairy mixes to the
farmers at cheaper rates.
Usage of treated straws.

Methods to improve the quality of straws have not gained popularity among the
animal owners because the scientists contributed so little to increasing animal outputs
in developing countries. There seems to be a number of reasons but among the
strongest influences have been
1)
The lack of opportunity for farmers to communicate their priorities for animal
improvement to scientists and have the appropriate research undertaken,
2)
The preoccupation of scientists with accurately describing the nutritional

constraints under controlled conditions rather than to work on problems of
farmers as they pertain to the field conditions,
3)
The largely unrecognized or ignored differences in nutrient requirements of

livestock in the tropics as compared with temperate countries,
4)
An inability of many scientists to translate their research results into

appropriate developments and apply them to farming systems,
5)
Logistic problems in taking the technology to the massive number of farmers in

the developing countries who in general own only 1-5 animals,
24
6)
gender considerations - often information is not given to the real managers of

livestock on a farm,
7)
An unwillingness of farmers, who are risk averse to take up new technologies
unless the rewards are large and/or immediate and

8)
Lack of market access, often aide programs push technology on to farmers

rather than pull them into a production area by creation of markets. There appears
to be an increasing ground swell for change and acceptance of innovation by
farmers in many developing countries who are presently experiencing a substantial
increase in demand for animal products, particularly in Asia, as the population
expands and standard of living improves. The increase in demand for animal
products is likely to be much higher than for plants in the less-well developed
countries over the next 20-50 years (i.e. 3.6% as compared with 2.4% per annum
for crops) There are other influences which have seen a change in attitude,
particularly the need to consider environmental pollution in development projects
and in particular the value of curbing greenhouse gas emissions into the
atmosphere from agriculture.
Animal health.
The importance of maintaining animals health does not need to be expressed. This is
the basic requirement, but despite the widespread veterinary hospitals and
dispensaries, the prophylactic measures are not reaching down to farmers. Regular
vaccinations program against foot and mouth disease, which affects the production
severely and not only seasonally but has a lasting effect, and the prevailing
bacterial/viral diseases, which cause mortality, should be effectively launched. In
addition, heavy worm burden and arthropod borne diseases inflict high production
losses in dairy animals. Among helminthes, Fasciola hepatica invades dairy
population, and nematodes cause severe parasitic gastro-enteritis leading to low
production. The parasitic problems further multiply due to poor management and
unawareness of the farmers about the common control measures.
25
Dairy production system.

Dairy production in Pakistan competes with crop farming and under traditional
agriculture farming; preference always goes to crop production because of high grain
demand for human population. Existing livestock production systems in Asia have
been well documented by various investigators such as that by Devendra et al. (1997).
Pakistan has similar dairy production systems like other developing nations in the
region with little difference. Under Pakistani conditions dairy animals are kept under
different production set ups including
1) Grazing systems
2) Mixed farming system and
3) Peri-urban dairy colonies
(Devendra et al., 1997; Devendra, 2001). Now this third category of dairy production
is becoming important to supply fresh milk for urban population.
Grazing system.
This system is especially important for small ruminant (goat and sheep) and to lesser
extent to the dairy animals (buffalo) in Pakistan. In this system, animals depend on
grazing in open grasslands or lands not suitable for cropping. Pakistan has 63% of its
area as rangelands that supports most of the cattle population in Balochistan, Sindh
and to lesser extent in Punjab province. Alpine pastures of northern high lands are
vital for yak, which is the only milk source in northern areas. However buffaloes in
Punjab 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 likely
to deteriorate in future due to rising demands for food by high population growth rate
in Pakistan.
26
Mixed farming system.
The ownership of 2-15 animals, in which milk production is major component of farm
income, is the main characteristic of this system. This system is prevalent in Pakistan
in which fodders, crop residues, agro industrial by products and weeds in cropland
after harvest are used as animal feed. The much advance farm of mixed system is
smallholder dairying, which with additional input like mixed concentrate feeding and
slightly better managemental practices are going to make its place in Pakistan.
Devendra (2001) reported that among the avenues of food production of animal
origin, smallholder dairy production systems are potentially important. They are
Characterized by their rapid expansion, strong market orientation in rural areas and
the many opportunities for increasing the current level of production. Some of the
milk produced is used for home consumption, but most of it is sold directly by the
farmer or to middleman. It is evident from the figures in livestock censes (1996) that
this 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 the
total buffalo population is dependent on both stall feeding and grazing that is the main
characteristic feature of mixed farming system. About 57.4% of buffalo and cattle
population 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 enabled
intensification 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 livestock
from metropolitan cities to avoid pollution problems. As a result of this campaign, a
large number of buffaloes and cattle colonies have erupted in the periphery areas of
big cities like Lahore, Karachi and Faisalabad to meet the urban demand for fresh
milk. The aim of confining milk production to rural areas is to reduce pollution and
traffic load, mass migration to urban areas, to curtail genetic degradation of dairy
stock and provision of employment opportunities in the rural areas. This system is
27
more advanced and mature when compared to other systems. It is formed from a
natural aggregation and concentration of small dairy holder units.
The peri urban dairy colonies enable the farmer to improve their competitive edge in
open market economies. Devendra (2001) reported that Landhi cattle colony in
Karachi had about 220,000 animals in a 5 km radius. Pregnant animals are purchased
from rural areas, and they are completely stall-fed on cereal straws, green fodders and
concentrates. After calving, female calves are sold except for a small number, which
are kept as replacements for breeding while male calves are fattened for four months
and slaughtered. At the end of lactation, dry animals are also sold out which are
consequently slaughtered. Indiscriminate growth of these colonies in the absence of
any regulatory and policy interventions has given birth to a serious situation, which is
further complicated by poor hygiene, health hazards such as contaminated ground
water, ever increasing unused manure. All this has adverse impact on the
environment. Under this system of dairying stall feeding is preferably practiced,
fodder crops, agro industrial wastes and concentrate dairy mix are importantly
contribute to the daily nutrient requirements of dairy animals. According to livestock
censes (1996) about 31.99 and 48.71% of total cattle and buffalo population,
respectively, is being wholly dependent on stall-feeding. In peri urban dairy 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 and transportation facilities, proper
manure disposal and availability of artificial insemination facilities are needed to be
solved (personnel communication). As peri urban dairy colonies have large number of
animals in specific areas so it is viable and feasible to develop these setups in to a
modern dairy enterprise with relatively more ease.
28
GLOBAL MILK PRODUCTION

INDIA
92 billion lit / annual

USA
78 //
Pakistan
48 //
RUSSIA
GERMANY
33 //
29 //
The dairy buffalo is the major contributor to the milk production by accounting for
roughly 75% of all milk produced in Pakistan. Cattle account for the remaining
production with small share coming from goat, camel and sheep. The Nili Ravi is
most popular breed of buffalo and is liked due to its high productivity standards in
terms of high fat %age and milk production. Dairy cattle farms are less popular in
Pakistan due to consumers demand for buffalo milk and preference of buffalo by
farmers because of its abilities to effectively utilize poor quality fibrous feeds and
withstands high environmental temperature. However, Sahiwal, red Sindhi, Cholistani
and Tharparker breeds of cattle are considered worthy for milk production in areas of
Punjab and Sindh province as previously mentioned. Crossbred cattle (Bos taurs and
Bos indicus crosses) are also becoming considerable contributor to total milk
production in the country. However, unplanned crossbreeding practices in
combination with poor feeding and managemental conditions rendered the crossbred
cattle as poor performer in Pakistan. Pakistan economic analysis network project
(1989) reported that a cow annually produced 2530, 1840, 860 and 450 kg under
progressive dairy farming, peri urban, irrigated and arid (barani) dairy production
systems, respectively. However, in contrast to this it was estimated that under
commercial, peri urban, rural market oriented and rural subsistence setups buffalo
annually produced 2510, 2460, 2060, and 1200 kg milk, respectively. It was also
established that commercial and peri urban dairying could only able to market their
product (milk).
29
The calving season of buffaloes is concentrated during the autumn and start of winter
months so they reach their peak milk production after two months from November to
February. The abundant legume fodder available at that time resulted in high milk
production. But during summer season milk production of buffaloes drops rapidly due
to low feed availability, high environmental temperature and late lactation. This is not
true for dairy cows, which are more productive during summer, however, as noted
earlier, most milk produced in Pakistan is from dairy buffalos. During the summer
when demand for milk is high and supply is low, adding water and ice to fresh milk
fills the gap. This excessive milk production during winter and less milk production
during summer month causes many problems in milk marketing. Currently 26.6
million 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 total
household expenditures on food items (Economic Survey,
1999-2000). As food group milk and its products are second only to cereals in terms
of per capita consumption and by weight milk makes up about one third of the food
consumed by each Pakistani. About 55% of the total milk produced in the country is
30
consumed as fresh and remaining is used in the form of processed milk, as yogurt,
lassi (butter milk),
Fig. 3. Milk production trend in Pakistan
butter, cheese, ice cream, sweat meals and other confectioneries (Agricultural
Statistics, 1999). Out of the total milk produced in the country about 25% is consumed
in urban areas and about 70% in rural areas (Hemani & Khan, 1997). An about 80
thousand tone of dry milk was imported in Pakistan during last year to meet local
demand of milk. According to Agricultural Statistics (1999-2000) per capita
availability of milk is 82.4 kg /annum which is increasing at the rate of 2.44% annual
(Fig. 4).
31
Milk marketing.
Milk is a highly perishable commodity so prompt collection from producer and its
quick transportation to consumer is prerequisites to market it properly without any
change. The prerequisite of successful production of high quality dairy products is that
the raw milk must be of good quality. Efficient cleaning of equipment dealing with
milk handling is of paramount importance. All possible efforts must be made to
preserve its quality during storage and transportation. The basic method to preserve a
high milk quality is cooling or activation of naturally occurring Lacto peroxidase
system in milk. In Pakistan, the landless dairy owners in remote areas either use milk
for their own consumption or sell out surplus milk, as a supplementary income source
to meet their daily monetary needs.
Fig. 4. Per capita availability of milk in Pakistan
32
The general backwardness of dairy production and marketing can be judged from the
fact that although the value of milk produced (26.2 million tones) is second only to
wheat crop, the commercial herds comprise only 0.5% while 54.4% comprise rural
subsistence herds with out any proper market out let with only 33.5% as having rural
market orientations and 11.5% as peri urban herds that provide milk to urban areas
(Anjum et al., 1989). At present condition is almost similar with smaller increase in
peri urban milk production and marketing system. This indicates that more than half
of the milk produced in rural areas has no access to market. This resulted in an annual
import of about 1.4 million tons of dry milk and milk products that costs about rupees
1213 million of valuable foreign exchange (Agricultural Statistics, 1999-2000). In
terms of volume, it is estimated that out of the total production of 26.2 million tone
milk about 50% (13.1 million tons) only is marketed; 35% is used by the producer
themselves either at home or converted to ghee or other milk products and 15 % is
used for calf feeding or wasted. Marketing channels for milk are largely determined
by the location and nature of the producer. The farmers usually sell their milk to first
stage collector katcha dodhis who are the backbone of our present day milk
collection system. Katcha dodhis collect the small marketable surpluses of fluid milk
from several small producers and transport it either direct to consumers or to milk
shops or to the milk collection centers. The transportation facilities used in this system
are poor and Katcha Dodhis usually own a bicycle to transport milk. They usually
carry about 100 liters of milk in each trip. To ensure the milk supply around the year
they advance some money to the producer. Pacca dodhi (second stage milk collector)
have better transportation facilities so they are able to collect the milk from more
remote areas and in large quantities. Pacca dodhis usually own a horse driven cart or
van and usually carry about 1000 liters daily in two trips. Pacca dodhis supply their
milk to collection center or milk shops, usually after decreaming. Peri urban milk
producers usually sell their product directly to consumers, milk shops and to larger
establishments through contracts. The adulteration and decreaming of milk are
common practices of all milk collectors. The milk marketing channels are given in
Fig. 5. If the pacca dodhis sell milk to decreamer or hire his services, the milk is
33
separated into cream and skim milk. The skim milk is mixed with other whole milk
and sold to urban milk shops. Anjum et al. (1989)reported that this multi-layer
marketing system appears to buffer the producer from the price and purchase signals
given by the consumer. The producer appears not to receive a premium for summer
milk or for milk with higher milk fat content except for that paid by the milk
collection centers that are operated by processors. Also the producer is not known to
receive a premium or penalty for solids not fat. However, the apparatus and
procedures used by the collection centers are not reliable to estimate milk fat%
accurately. It is suggested that digital fat measuring instruments should be used on
milk collection centers. The investment of public and private sector in dairy industry
is scarce. The financial institutions do not have a pleasant experience with the milk
processing industry. During 70s and 80s huge loans were sanctioned by banks
(particularly Agriculture Development Bank) and about 23 milk processing plants for
pasteurizing and sterilizing were imported in the country to establish milk processing
industry on modern lines. The milk products and byproducts produced in the country
are pasteurized milk, UHT milk, milk powder, cream, butter, ghee, yogurt and cheese.
However, no consolidated information is available to assess the production of above
cited products. Report of working group on milk in Punjab (1999) showed that a large
number of milk plants are not in operation. The possible reasons of failure of these
milk plants may be unskilled and inexperienced management, high level capitalization
due to kick backs at the time of setting up, resulting in misuse of funds, conventional
purchasing system, high price of processed milk, low demand of processed milk, high
production cost and the over build UHT milk processing capacity to suit the needs of
consumers. Anjum et al. (1989) reported that after all experimentations a new set up
of Milk 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
production and sale of UHT milk. However, at present Tetra Pack Pakistan Ltd. is the
only domestic plant producing aseptic packaging material for UHT milk. This
monopoly position and its implications for cost and quality of material are of major
concern to the present day and future UHT milk manufacturing industry in the
34
country. Anjum, et al. (1989) further reported that on overall bases, UHT is an
inherently expensive process. If all the various taxes and regulations were removed
then it would still remain as a relatively high priced product beyond the purchasing
capacity of most consumers. Under 1987 market conditions, UHT milk was nearly
40% higher priced than raw milk (Anjum et al., 1989) whereas at present it almost
costs double than the price of raw milk. To promote the consumption of hygienic milk
among a large segment of population, Pakistan will have to look towards alternative
technologies, particularly pasteurization as previously reported by Anjum et al. (1989)
and in report of working group on milk in Punjab (1999). As reported previously that
the experience with pasteurization plants in 1970s was not successful, a large part of
the failure was probably due to the public sector orientation with emphasis on
recombined milk, poor management and inadequate marketing. Conditions for
marketing of pasteurizing milk are now favorable because the marketing infrastructure
has improved. Pasteurized milk, because of its low processing and packaging costs,
could compete more effectively with unprocessed milk and the future development of
the dairy industry may lie in this direction.
MILK PRODUCTION AND PROCUREMENT

Pakistan has one of the highest per capita milk and dairy products consumption rates
in Asia (150-200 liters per year) and is the fourth largest milk producing country in
the world with approximately 29-32 billion liters annual milk production. Higher milk
yield is indeed a notable aspect of the milk sector. According to an expert, yield per
animal has gone up from 700 liters per year to 1,200 liters in the last six to seven
years. This is significant in more than one way and opens the door of success wide for
the 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, the
farmers which are the key players were still facing constraints, inherent because of
their small size, can not reach consumers or industry directly. They have little
influence, therefore, on the price or quality of their milk. It has been estimated that
over 90 percent milk is produced by a large number of small holders or landless
35
farmers in the remote rural areas.

Milk producers foremost problem is marketing the milk, a highly perishable item.
The Punjabs Department of Dairy Development and Livestock is collaborating with
the Idara Kisan (IK), a non-profit organization active in the procurement and
marketing 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 to
industrys growth is the non-availability of milk in the right quantities and of good
quality, especially in the lean production months of May to August when milk
consumption is also the highest. To formulate appropriate strategies for development
of the sector and identifying suitable strategic initiatives for the implementation of the
same, 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 by
the Dairy SWOG at an early stage. The importance of a sector-level management
company was further realized after study of benchmarked countries with respect to
sector management. Successful models of entities working in other countries like
Dairy Australia in Australia, Dairy Insight in New Zealand and National Dairy
Development Board of India were studied, particularly. The concept of Dairy
Pakistan 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. The
procurement process starts on the farm, where producers are advised, quality is
monitored and raw milk is collected daily from various Farmers/progressive farmers
by mini-suppliers and village milk collection centers countrywide and transported to
factories in the most cost-effective manner. Raw milk quality is the cornerstone of
excellent dairy products. Milk Procurement guards this quality with an eagle eye and
ensures that company?s production needs are met. Through teamwork within the
36
supply chain, procurement teams of companies ensure that raw milk losses are kept to
the absolute minimum.
Milk procurement is basically of two types :

1. Suppliers collection
2. Self-collection
Supplier Milk collection system :In this case supplier brings milk with their own
sources at factory. The milk is scrutinized by quality assurance department of dairy as
per their standards. If milk pass all the quality test then this milk is received otherwise
the milk is rejected.
Mini/Hilux contractor :In this type of milk collection local supplier of area, collects
milk with their own resources and bring this milk to companies sub center. If milk is
according to company?s standard that milk is received otherwise rejected. All types of
collected milk are brought to sub centers, where it is chilled (by chiller or by ice) and
transported to Main center either through 1.7, 5 or 9 tons of tankers depending upon
the 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 company
facilities. The VMC agent get commission from company on per litter collected milk.
After collection VMC agent either himself approach the near by center of company
for handing over of collected milk or company vehicle collect milk from that VMC
agent as per written agreement. Very good quality milk is collected through the
VMCs.. 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 sub
center or MCC.
Bulk milk transport:

Milk procurement teams of companies ensures that milk is collected and transported
to factories daily. Milk cooled on the farm or cooling centre may be transported in
bulk tankers. Bulk tankers are insulated, so the milk will remain cold until it reaches
37
the plant (provided the transport is fast, i.e. short distance or good roads enabling milk
to 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 representative
sample of whole milk tanker and analyses it for various parameters as per standards of
company. If milk found as per quality norms of company the tanker is weighed and
production department staff receive the milk for further processing otherwise the sub
standards raw milk tanker is rejected.
Milk Procurement System (MPS) :

The primary function of any Milk Procurement System (MPS) is to expedite dairy
milk producers payroll process. This is accomplished using a complex system that
documents the pickup, testing, delivery of milk, and issues payment to producers of
milk and those responsible for its transport. In addition to tracing the movement of
milk as it is picked up, tested, and transported to the plant, the Milk Procurement
System issues checks and records financial information for producers, haulers, and
vendors. MPS facilitates the dairy?s milk producer payroll process from beginning to
end.
Role of MPD of any Company in Milk Procurement :
Milk procurement department of any company provides a value-added service to all
their milk producers, ensuring that milk of the correct quality is produced and that
sufficient raw milk is always available to satisfy companys needs, through the use of
strategies, processes, projects, systems and policy. Procurement teams of companies
manage a number of Milk Procurement responsibilities including :Ensuring that the
producers are paid promptly and accurately. Purchasing raw milk from producers and
transporting it to factories effectively and efficiently. Successful clean milk route
development in various new identified areas. Installation of bulk coolers in the area.
Milk yield improved. Hygiene practices improvement at all levels of milk production
and procurement Reduction of Bacterial Count of milk. Advanced training to drivers
in the handling of mass milk in case of emergencies. Trainings to field staff for
handling of sample and client.
38
CRUCIAL FACTORS & STEPS

Dairy 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 of
dairy animals during their various phases of life to get wholesome milk. Before
making the decision, whether to invest in the dairy and livestock farming or not, one
should carefully analyze the associated risk factors. A SWOT analysis can help in
analyzing these factors, which can play important role in making the decision.
Strengths
o Concentrated production.
o Favorable breeding backgrounds.
o Relatively cheap farmland.
o High domestic consumption
o Good milk quality.
o Major source of food, i.e. Milk& Meat
o Ample human resource employment sector.
o Low cost living standard.
o Full family involvement, Devoted & Hardworking Sector.
Weaknesses
o 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.
Opportunities
o 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.
39
o Cooperatives can play a big role for development in dairy sector like India.
Threats
o 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 to
profit ratio.
o Increasing level of poverty.
Milk Production
The buffalo and the cow and to a very limited extent the goat are the main milch
animals in the Indo-Pak sub-continent. The buffalo contributes some 64 percent, the
cow 33 percent and the goat 3 per cent of the total milk produced in Indo-Pak. There
are several well recognized breeds of cows and buffaloes in the region such as Red
Sindhi, Gir, Tharparkar, and Sahiwal among the cows, and Murrah and Neeli Ravi
among the buffaloes, are outstanding breeds. The milk of the buffalo is comparatively
richer in fat content than that of the cow. Because of the lack of scientific animal
husbandry and nutritional practices, the yield of the milch animals in Pakistan has
been rather low compared to that of the dairy cow (especially) in the advanced dairy
countries. In order to increase milk production we must have to :
Upgrade our animals Better feeding practices and
Well organized veterinary services, including artificial insemination.
The population of the cross-bred cows and the upgraded buffaloes is expected to
increase the milk production significantly.
Milking Conditions and Hygiene

Most of the milk in Pakistan is produced in the villages by farmers with small land
holdings and also by landless agricultural laborers. Although an increasing portion of
the milk produced is collected by the Supplier and other organized dairies, a
significant portion of the milk is still being converted into traditional dairy products
due to lack of refrigeration and transportation facilities. Conditions under which milk
40
is produced in the villages are far from satisfactory, mainly because of the economic
backwardness of the producers. The milk animals are housed in a part of the living
space 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 modern
large farms, milking machines are not used. Because of the distances between the
producing and consuming points, milk is unavoidably held at ambient temperatures
for a significantly long time leading to high microbial growth. The high ambient
temperatures in the region for the major part of the year support rapid microbial
growth.
The predominant types of micro flora in milk received in dairies are coliforms,
micrococci, lactic streptococci, spore-forming aerobes and corynebacteria, the
majority of these being contaminants from milk utensils. There is also a high
incidence of thermoduric bacteria.
41
Future Prospectus
Pakistan is the world's highest milk producer and all set to become the world's largest
food factory. In celebration, Pakistani Dairy sector is now ready to invite NRIs and
Foreign investors to find this country a place for the mammoth investment projects.
Be it investors, researchers, entrepreneurs, or the merely curious Pakistani Dairy
sector has something for everyone.
Milk production is relatively efficient way of converting vegetable material into
animal food. Dairy cows buffaloes goats and sheep can eat fodder and crop by
products which are not eaten by humans. Yet the loss of nutrients energy and
equipment required in milk handling inevitably make milk comparatively expensive
food. Also if dairying is to play its part in rural development policies , the price to
milk producers has to be remunerative. In a situation of increased international prices,
low availabilities of food aid and foreign exchange constraints, large scale
subsidization of milk conception will be difficult in the majority of developing
countries.
Hence in the foreseeable future, in most of developing countries milk and milk
products will not play the same roll in nutrition as in the affluent societies of
developed countries. Effective demand will come mainly from middle and high
income consumers in urban areas.
There are ways to mitigate the effects of unequal distribution of incomes. In Cuba
where 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 reduced
price. Cheap milk and milk products are made available to certain other vulnerable
groups, by milk products outside the rationing system are sold price which is well
above the cost level. Until recently, most fresh milk in the big cities of China was a
reserved for infants and hospitals, but with the increase in supply, rationing has been
relaxed.
42
In other countries dairy industries have attempted to reach lower income consumers
by variation of compositional quality or packaging and distribution methods or
blending milk in vegetable ingredients in formula foods for vulnerable groups. For
instance, pricing of products rich in butter fat or in more luxury packaging above cost
level so as to enable sales of high protein milk products at a some what a reduced
price has been widely practiced in developing countries. This policies need to be
brought in Pakistani Dairy scenario.
Objectives
Facilitate 71% landless/small holding farmers Genetic improvement of non descript
cattle herd for higher productivity & poverty alleviation.
Accelerated promotion of livestock in the corporate sector for exploiting the
consumer market potentials Promotion of producers owned/controlled co-operative
organizations & mediums of dairy farm in Establishment of State of the Art SPUs
Preservation & genetic up-gradation of local breeds to compete international
standards/market Facilitation & adoption of modern technologies for developing high
pedigree pure bred and cross bred cattle herd
Providing professional services of Consultation, Assistance & Advice in all fields
associated with Livestock Arrange training programs, seminars and courses Facilitate
progressive farmers in establishing modern livestock farms Undertake Joint Ventures
with any persons, firms, companies, institutions, corporations, entities, entrepreneurs
local or foreign engaged in livestock Promote Concept of Silage & Hay for yielding
higher growth through better Nutrition Resource Management Mission
Exploit the potentials of Livestock sector as an Economy Engine for the poverty
alleviation / employability & transforming into a viable industry through Public
Private Partnership
Vision To make Punjab a Livestock hub for meeting the indigenous demand and
compete the international market Milking Systems
A modern dairy business makes it possible to produce high quality milk profitably. At
43
the 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 breeder's requirements.
Milking System type and size are the result of designing activities carried out by
Milkline's Technical Department to the pursuit of offering solutions ensuring farming
systems that are fast and comfortable for all type of animal, while also smooth and
safe for operators at the same time.
Consulting & Planning

Consulting
During the development stage of your dairy farm business, you need to consider
important factors such as: Animal health and reproduction, Herd and system
management, Milking routine, Efficiency, Future expandability. DairyCare Pakistan
technical expert will help you identify and define your needs and then guide you
through the selection of the various blocks that will meet your dairy farm
requirements and budget.
Dairy Designing
During the planning stage, your DairyCare Pakistan expert will consider the whole
dairy facility. Well-designed systems around your farm improve the animals'
environment, while equipment that functions smoothly also facilitates and helps the
farmer. This whole planning process is supported by the knowledge, tools and
resources made available through the Milkline Team in Italy. With a international
team of professionals experienced in dairy design and planning, DairyCare Pakistan
brings a wealth of knowledge and expertise to you. Using precision technology
Milkline keeps its international team up to date with the latest dairy design
information and tools, regardless of their location. This all means that when you talk
to a DairyCare Pakistan expert you are not only benefiting from their knowledge and
experience but that of a international team. An example of the DairyCare Pakistan
Team services is in the planning of cow traffic. Smooth cow traffic with quick
44
management in and out of the parlour reduces the cycle time and raises the efficiency
of the installation, independent of the choice of milking system type. Efficient cow
traffic and management minimizes the time to change groups and increases the
throughput of the parlour. The holding pens and gate systems help smooth animal
friendly flow into the parlour.
Milking parlour positioning
Milk pick up, feed delivery
Milking parlour selection
Reduction of working hours
Milking ease
Cattle-friendly housing
Group sizes of animals
Optimal cow traffic
Cow comfort
Dairy Farm Integration
Parlour Layout
Only a well laid out milking parlour assures a high milk yield, guarantees the health of the
cattle and pays for itself by efficiency. Parlours designed for cow comfort and smooth cow
flow 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 match
every component in the system exactly to ensure that the whole system will meet your
requirements. If your system smoothly and efficiently extracts the milk from the cow but
your cooling system cannot handle the load then you only have half a system! Only with well
designed and matched systems can you minimise the total cost of ownership.
Installation
DairyCare Pakistan places a lot of value in offering you the benefit of its knowledge
and making sure you are 100% satisfied with the end product. This is especially
important during installation, farmer training and starts up of the system.
DairyCare Pakistan will help plan the installation around your schedule in order to
keep time and financial costs at minimum possible levels without compromising
quality. Trained and experienced professionals from DairyCare Pakistan will use their
expertise to install your system to meet the very high Milkline quality standards.
45
After 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 the
process from the very start.
All Milkline milking systems and components are manufactured in Italy and meet
strict Conformit Europenne standards.
Dairy animals with high genetic potential for milk production always remain the
corner stone of dairy production strategy in any country of the world. Pakistan owns a
quite a number of breeds having the characteristics of high milk production and are
well adapted to the local environmental conditions. The genetic potential for milk
production in indigenous cattle and buffalo could be
improved by selective breeding.
Feeding management .
Superior fodders germplasm should be identified and propagated in the field. Hybrid
seeds either imported or endogenously produced should be distributed among the
farmers. With the seed provision a complete package of agronomic practices should
be 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. Better
Milk marketing channels

feeding of livestock could be achieved if vertical expansion of livestock production is
followed. Ensiling and hay making systems should be devised and extended to the
farmers according to local livestock production system. Different rations should be
formulated to achieve synchrony of nutrient utilization in animals. Feeding should be
aimed keeping in view the physiological stage of the animals rather than feeding
animals haphazardly.
46
Coordinating 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 each
others results and also avoid any duplication of work. The rural small holders should
be trained in the skills of efficient dairy production. Specially designed literature and
audio 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 and
necessary assistance in running their day-to-day activities. There is no price
motivation for the milk producers. Most of the milk is produced on subsistence basis
rather than commercial basis. It needs to be organized on a commercial basis.
Disease control.
Proper vaccination against different diseased to maximum dairy stock should be
carried out. Manufacturing of different vaccines in quantities to meet demand of
livestock population is essential. All viral vaccines being prepared by conventional
methods should be shifted to tissue culture technology. Control of internal and
external parasites through efficient and adequate drenching and dipping operations
especially in crossbred is needed to avoid morbidity and mortality. Expansion and
modernization of diagnostic facilities at least at district level can be helpful. Education
of farmers regarding, mastitis, vaccination, and metabolic nutritional and reproductive
problems 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 they
could able to use optimum level of farm inputs. To attract, motivate and encourage
private sector to invest in the livestock sector, facilities like tax holidays/ rebates and
duty free import of necessary machinery pertaining to dairy should be provided.
47
PLDDB
Punjab Livestock & Dairy Development Board (PLDDB) has been established on the
direction of Chief Minister Punjab with the aim to promote, develop, facilitate,
improve and expand livestock industry, sector, farming, business and infrastructure in
Punjab for accelerating investment therein and maximizing the potentials of the sector,
using most modern technology and as a tool for poverty alleviation and economic
growth of Punjab.
Punjab Livestock & Dairy Development Board is a not for profit company,
established under Section 42 of Companies Ordinance 1984. The Board of Directors
comprises of representatives from the private as well as public sector. Three major
wings of board i.e. Farm Production & Planning, Nutrition Resource Management and
Field Service & Capacity Building have set their priorities in the field of reproduction
& breeding services through skill development, empowerment of women from rural
Punjab as extension workers, establishment of semen production units, promotion of
silage and hay for higher milk production, provision of unadulterated milk to
consumers through milk dispensers at an affordable price in Lahore and establishment
of model dairy farms. The board also encourages and facilitates the private sector to
enter into joint venture with the board for the development of Livestock sector.
Punjab Livestock & Dairy Development Board aims at developing milk and meat
industry by interventions at every tier i.e. production, processing and marketing,
complying with all requites of national/international quality standards for human
consumption.
Pakistan Dairy Association.

To comply with all the requirements of the Trade Organization Ordinance 2006 read
with Trade Organization rules 2007 as amended from time to time, and directives
issued, there under.
To collaborate with R & D Organizations, bodies in private and public sector & NGO
48
at national, regional or global level for the socio-economic improvement of rural

masses through uplift of live, took sector from family subsistence to economically
viable production and awareness.
To co-operate with other charitable trusts, societies, associations, institutions or
companies formed for all or any of these objects and statutory authorities operating for
similar purposes and to exchange information and advice with them.
To provide opportunities for the dissemination and exchange of knowledge and ideas
gained from experiments and experience through meetings, conferences, seminars and
for collaboration between persons and/or institutions interested in research & planning
and those in production, processing and marketing.
To take such actions as are considered necessary to raise the status or to promote the
efficiency of the Association.
To carry out all such other lawful functions as may be incidental or conducive to the
attainment of the above aims and objects.
Future Strategy
There is an urgent need for launching a comprehensive policy for breed improvement
of 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 the
livestock sector.
Reinforce quality production of local vaccines and ensure proper vaccination of
livestock in rural areas. Quality controls to be enforced on raw/loose milk. The aims
and objectives for which the Association was formed are:-
To diffuse among the members information effecting their trade, commerce and
industry 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 objects
of the Association.
49
Key Success Factors/Practical Tips for Success

Commercial dairy farmers depend on land, labor and animals as the major resources.
The thrust in modern dairy farming is on the increased use of capital and management.
Successful dairy farming harnesses all available resources into productive and
profitable unit. Dairy farming is highly complex as it includes breeding, management,
feeding, housing, disease control and hygienic production of milk on farm. The
judicial use of means and resources to achieve clearly defined goals is the key success
factor in modern dairy farming i.e. the art of maximization and optimal utilization of
resources and means
for maximizing productivity and profits.
The low yielder animals are uneconomical to keep, hence these should be culled. The
over all genetic improvement of all the dairy animals is necessary for improved milk
production. It involves milking records at equal intervals, selection of bull from high
producing mothers, progeny testing of breeding bull and then making extensive use of
these bulls by well-organized Artificial Insemination (AI) program.
Feeding dairy animals on nutritious and high yielding hybrid varieties of forages can
be adopted. The surplus forage should be preserved as silage or hay. Other farm
management practices include feeding for growth, lactation, pregnancy or
maintenance, hygienic milk production, comfortable and ventilated barns, spraying/
wallowing of animals in summer, timely detection of heated, mating, with selected
bull or AI service. If animals are bred within the 60-90 days of calving provided with
clean surroundings, drinking water and feed according to the requirements, the over
all 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 also
improve the over all performance of dairy herd. Hygienic milk production depends
upon healthy animals, clean surroundings, clean hands of milkman and clean utensils.
Pakistan has one of the highest per capita milk and dairy products consumption rates
in Asia (150-200 liters per year) and is the fourth largest milk producing country in
50
the world with approximately 29-32 billion liters annual milk production. Higher milk
yield is indeed a notable aspect of the milk sector. According to an expert, yield per
animal has gone up from 700 liters per year to 1,200 liters in the last six to seven
years. Below system introduce for maximum results
Milk Production and Procurement in Pakistan

Milk Production
Milking Conditions and Hygiene
Histroy of Dairy Industries in Pakistan
Present Dairy Processing Plant
Milk Procurement Department (MPD)
Milk Procurement Types
Milk Procurement System (MPS)
Role OF MPD of Any Compay in Milk Procurement
Quality Systems in Milk Procurement
Milking Season in Pakistan
Quality Norems (Generalized) for Raw Milk Reception During Different Seasons
Test Performed at Various Levels
References
Summary of Articles
LIVESTOCK RESOURCES OF PAKISTAN: PRESENT STATUS AND FUTURE
TRENDS
By: M. Afzal* and A.N. Naqvi
Pakistan is endowed with diverse livestock genetic resources. In fact it is postulated that one
of the centres of animal domestication lay in this part of the world. Pakistan has a large
livestock population, well adapted to the local environmental conditions. Current population
of farm animals in Pakistan consist of 23.34 million buffaloes, 22.42 million cattle, 24.24
million sheep, 49.14 million goats and 0.77 million camels. Pakistani buffaloes are riverine
type and belong to two breeds i.e. Nili-Ravi and Kundi. Nili-Ravi is the best dairy buffalo
breed 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 the
population is generally classified as non-descript. Cattle breeds of Pakistan are Sahiwal, Red
Sindhi, Cholistani, Dhanni, Tharparker, Bhagnari, Djal, Lohani, Rojhan and
Kankrej. There are 30 local breeds of sheep in the country. Important sheep breeds are
Bucchi, 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.
51
Dairy Industry in Pakistan:

By: SARWAR, M., M.A. KHAN, MAHR-UN-NISA AND ZAFAR IQBAL
Milk and its products provide nearly one third of worlds intake of animal protein (FAO,
1998). Milk and milk products represent 27% of total household expenditures on food items
in Pakistan. Per capita availability of milk in Pakistan is 82.4 kg per annum. About 80
thousand tons of dry milk, worth rupees 1213.5 million, was imported to Pakistan during
1999-2000 to meet local demands of milk. Small herd, poor genetic potential of animals for
milk, low quality feeds, high risks of epidemics, improper marketing channels, lack of
technical man power for dairy industry, high environmental stress, reproductive failure and
high udder abnormalities, lack of commercial rations, orthodox management practices and
poor extension services are the major constraints of dairy sector in Pakistan. The buffalo is
the main dairy animal in Pakistan that accounts for roughly 75% of all milk produced in the
country.
CORPORTAE DAIRY FARMING IN PAKISTAN-IS THERE A FUTURE?

By: M. Afzal
Milk production in Pakistan is dominated by smallholders. More than 8.5 million families
raise cattle and buffaloes and a vast majority (>83%) have less than 6 animals (all ages) per
household. Many of these smallholders are subsistence farmers and thus do not proactively
seek to improve the productivity of their animals. Economic pressures and shrinking common
grazing areas are forcing these subsistence smallholders into market oriented smallholders in
rural areas where there is a market for milk. Demand of dairy industry for raw milk is
increasing @ 20% annually. This demand however, cannot be met by just emphasizing
improved milk production from the smallholder dairy farmers. With increased international
prices and demand for milk and dairy products, many big investors have started planning
investment in dairy farming in the country.
The State of Pakistans Dairy Sector: An Assessment

By: ABID A. BURKI, MUSHTAQ A. KHAN, and FAISAL BARI*
The macroeconomic importance of the dairy sector for Pakistans economy, in general, and
for the rural economy, in particular, cannot be overemphasised. While the contribution of
agriculture to Pakistans gross domestic product (GDP) is declining over time, it still stands
at 23 percent. Of that, the livestock sector contributes 49 percent of the value addition in the
agriculture sector, and about 11.4 percent to Pakistans GDP, which is higher than the
contribution made by the entire crops sector (10.9 percent) of the country. Net foreign
exchange earnings from livestock were to the tune of Rs 53 billion in 2000-01, which is about
12 percent of the export earning for that year.
Conclusion
After observing all the issues regarding the dairy industry of Pakistan, it can be
concluded that the dairy industry possesses potential of growth and is very important
52
from economic perspective. The major problem with dairy farming in Pakistan is the
low milk yields of Pakistani cattle and buffaloes. This low production potential of
Pakistani animals is mainly attributable to a few clearly identifiable issues such as
lack of a systematic national breed improvement program, lack of availability of good
quality 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 of
the developed world; approximately 8 Pakistani milk producing animals are equal to 1
animal of the developed world. So Pakistan needs to have a coordinated and integrated
strategy/approach beginning from enhancing per animal productivity, going straight to
milk procedures/procurement and minimize the wastage.
REFERENCES
http://www.finance.gov.pk/survey_0809.html Government of Pakistan. (201011). Economic Survey of Pakistan 2010-11. Retrieved May 4, 2012, from
http://www.finance.gov.pk/survey/chapter_11/Overview%20of%20the%20Eco
nomy.pdf Ishtiaq, H. (2010, January 4). Rising milk supply and demand gap.
Dawn news. Retrieved May 4, 2012, from
http://archives.dawn.com/archives/25715
Pakissan.(n.d.).Dairy industry in Pakistan.
Retrieved May 4, 2012, from
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kistan.shtml
Pakistan Dairy Industry Overview. (2009). Retrieved October 10, 2012, from
JassarFarms.com:
http://www.jassarfarms.com/english/?page_id=63 PDDC. (2006, June). The
white revolution "dhoodh darya". Retrieved May 4, 2012, from
http://www.pddc.com.pk/DairyPakistan-Publication.pdf SMEDA. (2005,
November 23). A brief on dairy sector. Retrieved May 4, 2012, from
http://www.smeda.org/sector-development/dairy-sector-brief.html
Agriculture Statistics, 1999-2000. Govt. of Pakistan, Ministry of Food Agriculture and

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Cooperatives, Food and Agriculture Division, Islamabad, Pakistan.

Ahmad, M., 1999. Livestock breeding programmes in Punjab. Proc. Regional
conference on successful and sustainable livestock organizations. October, 26-29,
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Anjum, M.S., K. Lodi, A.A. Raza, F. Walters and S. Krause, 1989. Pakistans dairy
industry: issues and policy alternatives. The economic analysis network project/
USAID/ 394-0491-C- 00- 5035. Islamabad, Pakistan.
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14: 10413 Economic Survey, 1999-2000. Govt. of Pakistan, finance division,
economic advisor wing, Islamabad.
FAO, 1998. Production yearbook Food and Agri. Organization, Rome,
Italy.
Devendara, C., 2000. Strategies for improved feed utilization and ruminant production
systems in the Asian regions. Asian Aust. J. Anim. Sci., 13: 518.
Devendara, C., 1997. Crop residues for feeding animals in Asia. Technology
assessment and adaptation. In: crop residues in sustainable crop/livestock farming
systems. Common wealth agriculture bureau, Walling Ford, Oxford, UK. Dahlin, A.,
1998. Genetic studies on sahiwal cattle in Pakistan. Doctoral thesis, Swedish
university of agriculture sciences, Uppsala, Sweden.
Gill, R.A., 1998. Dairy and beef production in Pakistan: a keynote address. Workshop
on dairy/ beef production LPRI, Bahadurnagar Okara, Pakistan.
Hanjra, S.H., J. B. David and M.J. Akhtar, 1995. Fodder production. FAO,
pak/88/072. Small dairy holder dairy development in Punjab,
Pakistan.
Hasnain, H., 1983. Feed- The key to more food in Pakistan. Proc. FAOPARC
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55

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DAIRY INDUSTRY IN PAKISTAN

Preston University Lahore

Milk Production System in Pakistan

Pakistan Dairy Farming

Main Feature of Dairy Sector in Pakistan

Population of Bufallo and Cattle

Dairy Breeds and Breedings

Feeds and Feedings

Usage Of Treated Straws

Dairy Production System

2: Mixed Farming System

3: Peri Urban Dairy Colonies

Global Milk Production

Milk Consumption Pattern

Milk Production and Procurement

Milk Procurement Types

Dairy Industry In Pakistan: A Scenario

Crucial Factors and Steps

Consulting and Planning

Pakistan Dairy Association

Key Success Factors

Dairy Industry In Pakistan: A Scenario

Dairy Industry in Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

MUHAMMAD ASJAD KHURAM

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

Milk Production System in Pakistan

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

Pakistan Dairy Farming:

Dairy Industry In Pakistan: A Scenario

remained ignored since long.

Current Estimated Province Wise Livestock Population is given below:

13.6 13.9 0.41

Dairy Industry In Pakistan: A Scenario

Main features of dairy sector in Pakistan.

Dairy Industry In Pakistan: A Scenario

Dairy breeds and breeding.

Dairy Industry In Pakistan: A Scenario

Fig. 1. Population trend of buffalo and cattle from 1990 to 2001

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

Feeds and feeding.

Dairy Industry In Pakistan: A Scenario

Dairy Industry In Pakistan: A Scenario

quantity and quality of feeds could bring improvement of livestock production up to

Dairy Industry In Pakistan: A Scenario

trained to do so. Situation may be further improved if year round fodder

system and fodder conservation techniques are introduced in livestock feeding

Usage of treated straws.

The preoccupation of scientists with accurately describing the nutritional

The largely unrecognized or ignored differences in nutrient requirements of

An inability of many scientists to translate their research results into

Logistic problems in taking the technology to the massive number of farmers in

Dairy Industry In Pakistan: A Scenario

gender considerations - often information is not given to the real managers of

An unwillingness of farmers, who are risk averse to take up new technologies

unless the rewards are large and/or immediate and

Lack of market access, often aide programs push technology on to farmers

Dairy Industry In Pakistan: A Scenario