Dairy farming Litrature review

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

1

Global Milk Production 29

Milk Consumption Pattern

30

Milk Marketing 32

Milk Production and Procurement

35

Milk Procurement Types 36

MPS 38

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

Dairy Industry In Pakistan: A Scenario

2

Conclusion

53

References 53


3

Submitted To:Sir Yasir Hassan

Dairy Industry In Pakistan: A ScenarioSubmiited By: Muhammad Asjad Khuram 1652-411036

251659264


Dairy Industry in Pakistan: A Scenario

4

ACKNOWLEDGEMENT

ALL PRAISES AND THANKS FOR THE GOD, THE SOURCES OF ALLKNOWLEDGE AND WISDOME ENDOWED, WHO BESTOWED US WITH, APOTENTIAL AND ABILITY TO CONTRIBUTE A DROP MATERIAL TOTHEEXISTING OCEAN OF KNOWLEDGER.

THANKS ARE ALSO DUE TO OUR TEACHER SIR YASSAR HASSAN FORPROVIDING NECESSARY LITERATURE AND OTHER MATERIAL, WHICHHAS BEEN EXTENDIVLEY RELIED UPON, FOR CARRYING OUR THISSTUDY AND PREPARATION OF THIS PROJECT.

MAY ALMIGHTY BLESS ALL OF THEM, WHICH PARTICIPATED ME INTHIS EFFORT.

MUHAMMAD ASJAD KHURAM


5

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, firm’s 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 country’s 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.


6

Executive SummaryThe 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


7

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 cow’s

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


8

and packed/ processed milk.

IntroductionThe 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


9

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 cow’s

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


10

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.


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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


12

introduction of the first UHT, long-life milk plant came

into operation.

Milk Production System in PakistanThe 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


13

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


14

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. 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


15

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 world’s milk producing countries. Milk and milk

products provide nearly one third of world’s intake of

animal protein (FAO, 1998). This is not true for Pakistan

where milk provides more than half of the 17.4 g of


16

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 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


17

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:


18

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

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


19

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


20

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 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:

SpeciesPopulation

(Million)

Milk

Production

(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


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Current Estimated Province Wise Livestock Population isgiven below:

(Millions)

Provinc

e

Cattl

e

Buffa

lo

Shee

pGoat

Came

l

Punjab 18.1 21.2 6.8 23.30.22

KPK 7.4 2.3 3.7 11.30.07

Sindh 8.5 8.8 4.3 14.50.30

Balochi

stan2.9 0.3 13.6 13.90.41

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.


22

Human milk consumption in Pakistan for year 2011-12 is

given below:

Species

Human Milk

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. ¼th 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 Market-Oriented Smallholder Production


23

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 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


24

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 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


25

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).


26

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 2011-12Cattle 34.3 35.6 36.9Buffalo 30.8 31.7 32.7Sheep 27.8 28.1 28.4Goat 59.9 61.5 63.1Camel 1 1 1

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.


27

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 thecountry. Buffaloes are the main dairy animals in Pakistan(Khan, 1998). According to Livestock Censes (1996) about33 and 20.8% of the total buffalo population belongs toNili Ravi and Kundi breeds, respectively. Other buffaloesbelong to either their crosses or some other breeds ofthe region. Khan (1998) reported that milk yield in NiliRavi buffaloes ranged from 1835 to 2543 kg per lactation.


28

Fig. 1. Population trend of buffalo and cattle from1990 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


29

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 dam’s 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 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


30

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


31

Milking Zebu and Australian Friesian Sahiwal. In both

Australia and New Zealand a new export trade has been

developed that of crossbred (Sahiwal х 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 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.


32

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


33

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 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


34

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%


35

(Akram, 1990). Improvement in 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


36

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 non-conventional feed resources could be

used for feeding of livestock if farmers are trained to

do so. Situation may be further improved if year round

fodder

Fig. 2. Seasonal availability offodder in Pakistan


37

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,


38

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,

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


39

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 animal’s 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


40

multiply due to poor management and unawareness of the

farmers about the common control measures.

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


41

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.

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


42

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.


43

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 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


44

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.


45

GLOBAL MILK PRODUCTION

INDIA 92 billion lit / annual

USA 78 //

Pakistan 48 //

RUSSIA 33 //

GERMANY 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


46

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).


47

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


48

produced in the country is 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).


49

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


50

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 capitaavailability of milk in Pakistan

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-


51

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


52

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 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 70’s and 80’s huge loans were sanctioned

by banks (particularly Agriculture Development Bank) and

about 23 milk processing plants for pasteurizing and


53

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


54

manufacturing industry in the 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.


55

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 farmers in the remote rural

areas.

Milk producer’s foremost problem is marketing the milk, a

highly perishable item. The Punjab’s Department of Dairy

Development and Livestock is collaborating with the Idara

Kisan (IK), a non-profit organization active in the


56

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 industry’s 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:


57

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 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. Supplier’s 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


58

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


59

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 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 producer’s 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


60

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

company’s 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.

CRUCIAL FACTORS & STEPS

Dairy production is all-inclusive activity, related to

animal care, reproduction, feeding, and management. It is


61

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.

Strengthso 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.


62

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.

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


63

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


64

still being converted into traditional dairy products due

to lack of refrigeration and transportation facilities.

Conditions under which milk 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.


65

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


66

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.


67

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


68

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 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


69

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 DesigningDuring 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


70

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 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 positioningMilk pick up, feed deliveryMilking parlour selectionReduction of working hoursMilking easeCattle-friendly housingGroup sizes of animalsOptimal cow trafficCow comfort


71

Dairy Farm Integration

Parlour Layout

Only a well laid out milking parlour assures a high milkyield, guarantees the health of the cattle and pays for itselfby efficiency. Parlours designed for cow comfort and smoothcow flow not only reduce the stress on the cows but also theoperators as well.

From the milking cluster to the cooling system, your DairyCarePakistan expert will match every component in the systemexactly to ensure that the whole system will meet yourrequirements. If your system smoothly and efficiently extractsthe milk from the cow but your cooling system cannot handlethe load then you only have half a system! Only with welldesigned and matched systems can you minimise the total costof ownership.

Installation

DairyCare Pakistan places a lot of value in offering youthe benefit of its knowledge and making sure you are 100%satisfied with the end product. This is especiallyimportant during installation, farmer training and startsup of the system.

DairyCare Pakistan will help plan the installation aroundyour schedule in order to keep time and financial costsat minimum possible levels without compromising quality.Trained and experienced professionals from DairyCarePakistan will use their expertise to install your systemto meet the very high Milkline quality standards.


72

After installation, the technical expert will train youwith your new milking system. Quality assurance is aboutsetting a system so that a quality outcome is guaranteed.This is why we place so much value on helping youunderstand the system and the process from the verystart.

All Milkline milking systems and components aremanufactured in Italy and meet strict ConformitéEuropéenne standards.

Dairy animals with high genetic potential for milkproduction always remain the corner stone of dairyproduction strategy in any country of the world. Pakistanowns a quite a number of breeds having thecharacteristics of high milk production and are welladapted to the local environmental conditions. Thegenetic potential for milk production in indigenouscattle and buffalo could beimproved 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


73

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.

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 other’s 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


74

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


75

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.

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


76

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 at national, regional or

global level for the socio-economic improvement of rural

masses through uplift of live, took sector from family


77

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 beincidental or conducive to the attainment of the aboveaims 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.


78

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.

Key Success Factors/Practical Tipsfor SuccessCommercial 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


79

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


80

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

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


81

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 FUTURETRENDSBy: M. Afzal* and A.N. NaqviPakistan is endowed with diverse livestock genetic resources.In fact it is postulated that one of the centres of animaldomestication lay in this part of the world. Pakistan has alarge livestock population, well adapted to the localenvironmental conditions. Current population of farm animalsin Pakistan consist of 23.34 million buffaloes, 22.42 millioncattle, 24.24 million sheep, 49.14 million goats and 0.77million camels. Pakistani buffaloes are riverine type andbelong to two breeds i.e. Nili-Ravi and Kundi. Nili-Ravi isthe best dairy buffalo breed of the world. There are tendistinct breeds of cattle found in Pakistan. However,these breeds probably only make up 30 percent of thepopulation and the rest of the population is generallyclassified as non-descript. Cattle breeds of Pakistan areSahiwal, Red Sindhi, Cholistani, Dhanni, Tharparker, Bhagnari,Djal, Lohani, Rojhan andKankrej. There are 30 local breeds of sheep in the country.Important sheep breeds are Bucchi, Lohi, Thalli and Salt Rangein Punjab; Bumbi, Kachhi and Kooka in Sindh; Balkhi, Damaniand Kaghani in NWFP and Baluchi, Bibrik, Harnai and Rakhsaniin Balochistan.


82

Dairy Industry in Pakistan: By: SARWAR, M., M.A. KHAN, MAHR-UN-NISA AND ZAFAR IQBALMilk and its products provide nearly one third of world’sintake of animal protein (FAO, 1998). Milk and milk productsrepresent 27% of total household expenditures on food items inPakistan. Per capita availability of milk in Pakistan is 82.4kg per annum. About 80 thousand tons of dry milk, worth rupees1213.5 million, was imported to Pakistan during 1999-2000 tomeet local demands of milk. Small herd, poor genetic potentialof animals for milk, low quality feeds, high risks ofepidemics, improper marketing channels, lack of technical manpower for dairy industry, high environmental stress,reproductive failure and high udder abnormalities, lack ofcommercial rations, orthodox management practices and poorextension services are the major constraints of dairy sectorin Pakistan. The buffalo is the main dairy animal in Pakistanthat accounts for roughly 75% of all milk produced in thecountry.

CORPORTAE DAIRY FARMING IN PAKISTAN-IS THERE A FUTURE?By: M. Afzal Milk production in Pakistan is dominated by smallholders. Morethan 8.5 million families raise cattle and buffaloes and avast majority (>83%) have less than 6 animals (all ages) perhousehold. Many of these smallholders are subsistence farmersand thus do not proactively seek to improve the productivityof their animals. Economic pressures and shrinking commongrazing areas are forcing these subsistence smallholders intomarket oriented smallholders in rural areas where there is amarket for milk. Demand of dairy industry for raw milk isincreasing @ 20% annually. This demand however, cannot be metby just emphasizing improved milk production from thesmallholder dairy farmers. With increased international pricesand demand for milk and dairy products, many big investorshave started planning investment in dairy farming in thecountry.


83

The State of Pakistan’s Dairy Sector: An AssessmentBy: ABID A. BURKI, MUSHTAQ A. KHAN, and FAISAL BARI*

The macroeconomic importance of the dairy sector forPakistan’s economy, in general, and for the rural economy, inparticular, cannot be overemphasised. While the contributionof agriculture to Pakistan’s gross domestic product (GDP) isdeclining over time, it still stands at 23 percent. Of that,the livestock sector contributes 49 percent of the valueaddition in the agriculture sector, and about 11.4 percent toPakistan’s GDP, which is higher than the contribution made bythe entire crops sector (10.9 percent) of the country. Netforeign exchange earnings from livestock were to the tune ofRs 53 billion in 2000-01, which is about 12 percent of theexport 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 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;


84

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.

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http://archives.dawn.com/archives/25715 Pakissan.(n.d.).Dairy industry in Pakistan.Retrieved May 4, 2012, from

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http://www.pddc.com.pk/DairyPakistan-Publication.pdfSMEDA. (2005, November 23). A brief on dairy sector.Retrieved May 4, 2012, fromhttp://www.smeda.org/sector-development/dairy-sector-brief.html

Agriculture Statistics, 1999-2000. Govt. of Pakistan,Ministry of Food Agriculture and Cooperatives, Food andAgriculture Division, Islamabad, Pakistan.

Ahmad, M., 1999. Livestock breeding programmes in Punjab.Proc. Regional conference on successful and sustainablelivestock organizations. October, 26-29, Lahore,Pakistan.

Anjum, M.S., K. Lodi, A.A. Raza, F. Walters and S.Krause, 1989. Pakistan’s dairy industry: issues andpolicy alternatives. The economic analysis networkproject/ USAID/ 394-0491-C- 00- 5035. Islamabad,Pakistan.

Devendara, C., 2001. Small dairy production systems indeveloping countries: characteristics, potential andopportunities for improvement. Asian-aust. J. Anim. Sci., 14:104–13 Economic Survey, 1999-2000. Govt. of Pakistan,finance division,economic advisor wing, Islamabad.

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Devendara, C., 2000. Strategies for improved feedutilization and ruminant production systems in the Asianregions. Asian Aust. J. Anim. Sci., 13: 51–8.


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