Pakistan Dairy Industry – Struggles and Opportunities
The current situation
Pakistan is one of the leading raw milk producers in the world. The nation is the fourth-highest milk producer. According to the Pakistan Dairy Association, “Over 10 million farming families are producing +59 billion liters of milk annually (Economy survey of Pakistan) with 11.30% share in GDP”. Yet, despite significant quantities of milk produced, the dairy sector is dominated by smallholders. Overall, farming can be described as peri-urban and market-oriented. Following the report from 2018, rural area milk production takes 91% of total production. The herd of milk-producing animals ranks at 63 million. As a conclusion from the above data, Pakistani milk is one of the least commercialized products, and a vast majority of it is sold unprocessed through informal marketing chains.
The current challenges that Pakistan’s dairy sector is facing are connected to the industrialization of the milk chains. Due to increasing income and raising social awareness on food safety, the sector has to be able to answer for boosting consumer’s expectations. Such goals can be fulfilled by top-down actions by authorities and sector representatives. One of the bodies answering the mentioned challenges was established back in 1985, Pakistan Dairy Association (PDA). Association aims to develop the sector by providing data and knowledge referring to trade, manufacturing, and the processing of milk.
The Pakistani government implements Sustainable Development Goals which will enable the country to join the league of upper-middle-class countries by 2030. The following initiatives will support the dairy industry and allow it to get up to international standards.