Dairy farming sector of Pakistan

According to Pakistan Dairy Association, the country is producing more than 47 billion liters of milk per year, yet people face shortage. Corporate farming is on the rising its business basically due to increasing urbanization and disposable income where people opt for packed milk, that is equal to 4-5% of the total milk produced in the country.

Growing corporate dairy farming sector of Pakistan is the focus of different countries, as the demand for milk rises despite the country being one of the biggest producers of the commodity itself. Like other countries, Netherlands, that claims to have the best milk-producing cows in the world, is focusing on potential local investors and dairy farmers for export of cattle.

It is reality that Pakistan is the third largest producer of milk even with a higher demand for it and at the same time we are the second largest dairy-product exporter in the world. As Pakistan is a lucrative market for any cattle-exporting country, everyone is looking to grab the opportunity, which was previously enjoyed by Australia. The Netherlands, known for its quality, intensity and a highly sustainable agribusiness, is more interested in providing a complete package to Pakistan as the competition in coming years is likely to get tough.

Some experts think that it is not just a matter of selling cows, as this would limit the potential. Apart from exporting cattle, investors are also interested in providing complete solutions of modern dairy farming to Pakistani farmers with training in order to make sure that the cattle gives its best production. This shortage is now likely to benefit the corporate farmers as other countries too will enter and create a competition where imported cattle prices might reduce and preference would be given to those cattle which is most efficient in milk production.

Dutch cows with a life of five years and 10 months, produce around 30,000 kilogrammes of milk in their productive life of three to four years. However, Netherlands is now planning for investing in increasing the life of the cattle. If they manage to increase the animal’s life by one or two years, it would result in revenue uplift. It is understood that producing 50 kg per day would not be very special, it could easily be done.”

Netherlands, at this stage in time, is not planning to do any model farming in Pakistan as their role is to facilitate Dutch companies and corporate farmers. It would be private-to-private sector and Dutch companies will help in terms of first line information and link Pakistani farmers with Dutch companies and institutes for match making,” he said.