DAIRY FARMING AND

LIVESTOCK

 GROUP MEMBERS
 SYED ASHAR ALI
SP07BB-0156
 ANAS ZIA
SP07-BB-0027
Introduction
 Pakistan Dairy Development Company (PDDC
or, as it is commonly known, “Dairy Pakistan”)
has been established to drive the development
of the Pakistan dairy sector.

 Its vision to turn Pakistan dairy manufacturing

in world’s top five countries.
Continue………
 Dairy Pakistan is chartered to coordinate,
manage and facilitate initiatives leading to the
development of the dairy sector in the
country.
 Dairy Pakistan established under Section 42 of
the Companies Ordinance, 1984 and was
incorporated as Pakistan Dairy Development
Company on the 9th September 2005.
 establishment of Dairy Pakistan was a result of
recommendations made by the Dairy SWOG
(Strategic Working Group).
Cont……
 Dairy Pakistan has been established under the
guidance of the Ministry of Industries,
Production and Special Initiatives.

 The first public action of Dairy Pakistan took

place when advertisements seeking
applications for its Model Farm and Cooling
Tank Programs were placed in May, 2006
Increasing Milk prices
 Recently milk prices have gone up from Rs.38
per liter to Rs 42, showing a 25 percent
increase. Moreover, meat prices have also risen
to about 25 percent in the last six months.
 The only way to control prices is to develop the
dairy industry on scientific lines.
 The country is spending some $40 million
annually on the import of formula milk,which is
the highest amount spent by any country in the
world on this particular commodity.
Livestock
 LIVESTOCK is an important sector of
agriculture in Pakistan.

 Livestock accounts for 46.8 percent of

agricultural value added and about 11 percent
of the GDP. .

 Its net foreign exchange earnings, in 2001-02,

were Its 51.5 billion, which was 12.3 percent
of the overall export earnings of the country.
Cont…..
 Net foreign exchange earnings from livestock
products and by products like meat, skins,
hides etc were more than Rs. 53 billion in
2003-04.

 The LIVESTOCK, include cattle, buffaloes,

sheep, goats, camels.

 The combined population of cattle, buffalo,

sheep and goat increased from 113 million,
1998-99, to 125 million, 2002-03, depicting a
total increase.
Cont….
 In the year 2002-03, the domestic live stock
population was estimated at 23.3 million
cattle, 24.8 million buffalo, 24.6 million sheep
and 52.8 million goats.

 Milk is the largest commodity from the

livestock sector accounting for 51 percent of
the total value of the sector

 The farm gate value of milk is estimated to be

more than Rs. 390 billion.
COMPARISON OF THE
CATTLE POPULATION IN
1996&2006 LIVE STOCK
CATTLE 1996 2006 %VARIATION

TOTAL 20424458 29558812 (+)44.7

BULLOCKS 3669885 4146859 (+) 13.0
COWS 10020935 15156583 (+) 51.2
N I- MILK COWS 6326144 8720361 (+) 37.8

YOUNG STOCK 6733642 10255372 (+) 52.3

MALE 3568181 5374016 (+) 50.6

FEMALE 3165461 4881356 (+) 54.2
COMPARISON OF THE
BUFFALOES POPULATION
IN 1996&2006 LIVE STOCK
BUFFALOES 1996 2006 % variation

TOTAL 20272873 27334985 (+) 34.8

MALE 360855 609956 (+) 69.0

BUFFALOES
FEMALE 12211116 15562548 (+) 27.4
BUFFALOES
n I milk buffaloes 7809518 10222233 (+) 30.9

Young stock 7700894 11162485 (+) 45.0

Male 3286239 4705721 (+) 43.2

Female 4414655 6456764 (+) 46.3

LIVESTOCK POPULATION
(MILLION NOs)
Fiscal year BUFFALOE CATTLE GOATS SHEEP POULTRY
S
1990-91 17.8 17.7 37 26.6 146.9

1991-92 18.3 17.7 38.7 27.4 156.2

1992-93 18.7 17.8 40.2 27.7 182.6

1993-94 19.2 17.8 42 28.3 250

1994-95 19.7 17.8 43.8 29.1 318.8

1995-96 20.3 20.4 41.2 23.5 350

1996-97 20.8 20.8 42.6 23.7 382

1997-98 21.4 21.2 44.2 23.8 276

1998-99 22 21.6 45.8 23.9 278

FY BUFFAL- CATTLE GOATS SHEEP POULTRY
OES

1999-00 22.7 22 47.4 24.1 282

2000-01 23.3 22.4 49.1 24.2 292.4

2001-02 24 22.8 50.9 24.4 330

2002-03 24.8 23.3 52.8 24.6 346.1

2003-04 2505 23.8 54.7 24.7 352.6

2004-05 26.3 24.2 56.7 24.9 366

2005-06 27.3 29.6 53.8 26.5 441

2006-07 28.2 30.7 55.2 26.8 447

2007-08 29 31.8 56.7 27.1 N.A

Export of Livestock
 The recent increase in meat prices is attributed to the
export of live animals or meat to the Middle East and
Afghanistan.

 When animals used to be imported or smuggled from

Afghanistan into Pakistan but after 9/11 the situation
suddenly took a 'U' turn. In Afghanistan, the war has
seriously affected the LIVESTOCK sector.

 Thus Pakistan started exporting instead of importing

LIVESTOCK from Afghanistan.
Cont….
 The exports of LIVESTOCK - cow, buffalo,
sheep and goat - are finding their way to the
Gulf States, Iran and Afghanistan where there
is a shortage of good quality meat and,
therefore, it commands a high price.

 Traditionally, Europe is the biggest exporter of

meat and meat by-products and LIVESTOCK.

 Technically, meat from South Asia has a

superior quality.
Cont…
 According to official figures, the export of
LIVESTOCK, during 2001-02, registered an
abnormal growth of 51 percent to a value of
Rs 221 million as compared to 2000-01, when
exports of meat stood at Rs 146 million.

 The estimated export of these four categories

of LIVESTOCK is estimated to be more than Rs
275 million during the fiscal year of 2002-03.
 Distribution of Live Stock
(figure in Millions)
Cattle Buffalo Sheep Goat camel

Pakistan 24.2 26.3 24.9 56.7 0.8

province
Punjab 43.2% 60.8% 24.3% 37.1% 18.6%

Sindh 28.9% 31.8% 18.2% 23.8% 29.7%

NWFP 21.5% 6.3% 13.3% 17.5% 8.3%

Balochistan 6.4% 1.1% 44.2% 21.6% 43.4%

According to the SBP
 The State Bank of Pakistan expects fresh milk
production to increase by 15.9% to 2010,
although consumption growth will outstrip this
at 17.4% to 2012, as slightly more affluent
consumers continue to demand dairy products
more regularly.
White Revolution
 The White Revolution is at hand! Traditionally
symbolized as the "Doodh Darya" meaning the
"river of milk.

 . Its Envision the dairy sector to serve as an

“engine of economic growth” for the
country and to take the responsibility to
“drive the development the socio-
economic landscape of rural Pakistan”.
Production and Economic benefit

 Its Estimated 33.6 Billions Liters of annual

milk production from 50 million animals
managed by approximately 8 million farming
households.

 Pakistan is the 4th largest milk producing

country in the world.
Cont….
 It is an untapped market, expected to grow an
additional 3 billion liters in the next few years
at a growth rate faster than most sectors.

 The annual milk production of 33.6 billion

liters in Pakistan is shared between a 71.1%
share for the rural economy and a much
smaller urban share of 29%. Only 3% of the
total production of milk is processed and
marketed through formal channels.
Cont….
 The contribution of the formal sector
processed milk to real GDP in Pakistan is
0.43% in 2004-05.

 Presently 97% of raw milk produced in the

rural economy is not linked to the market
mechanism because of a number of reasons.
Target of White revolution
 The White Revolution is targeted to
achieve an annual production of 40
billion liters of milk by 2015.

 It aims to create an additional 3 million

jobs in the formal economy and provide
an estimated 350 million rupees per day
in cash flow to farmers in the sector.
Dairy Vision till 2015
 The formal sector to be 40% of the total dairy
industry.

 Low cost but good quality pasteurized milk to

be available in cities and towns Pakistan’s
dairy industry meets the needs of consumers,
thus minimizing imports.

 Dairying will have lifted millions of farmers

above subsistence levels of activity.
Cont….
 Dairying will be practiced across Pakistan, in a
manner that contributes to balanced regional
development.
 An integrated rural support economy will be in
place, with contractors supplying support
services.
 Large farms and milk colonies will be
generating part of their own energy needs
through biogas.
 The linkage between the dairy industry and
micro-finance providers will enhance the living
standards of millions of smallholder farmers.
Cont…
 An industry with a greater proportion of milk
handled by the formal sector, and with
consumers more aware of product quality
standards, will be attractive to foreign
investors.
Proposed Projects
 2440 model farms will be established, to
introduce enhanced farm management and to
demonstrate commercially viable dairy farms
with best farm practices.
 6330 cooling tanks (Milk Chillers) will be
provided under a 100% soft loan scheme.
 2100 mobile milk collection units will be
provided under the rural entrepreneurship
program.
 A Farm Management and Dairying Research
Institute will be established .
Cont….
 Projected analysis reveals that if only 5% of
15,000,000 farmers increase their yield by
50% (to 6.3 kg) the total milk supply will
increase by 1,575,000 kg per day.

 Farmer Technical Training Program will be

initiated as a vocational training program and
will be implemented in two phases.
Cont…
 In Phase-I a capacity building model for
planning and developing master trainers will
be applied and a process of model dairy farms
will be established.
 Phase-II basic Vocational training for farm
management and animal health care will be
provided to approx 288,000 farmers and
10,000 dairy technicians.
 Farm Input Stores for farmers: In order to
ensure availability of balanced nutrition for 1.5
million animals, a total of 690 bulk farm input
stores will be established resulting in
improving milk yield per animal.
Projects Cont…...
 Livestock Housing: This project will focus on
the development of standard designs for
livestock housing.
 Biogas project will be planned and initiated to
provide both low cost energy and a reduction
in pollution in areas with dairy concentration.
 Indigenous Breeds: Modern breeding methods
and research will be focused.
 The Value of Buffalo Milk: Needs to be
reviewed and comparative initiatives be taken
in relation to value of cow milk.
Information Campaign (For
Consumers, Farmers and Industry)
 On quality of milk, animal health care, basic
farm management, information related to
breeds and market linkages will be undertaken
by Dairy Pakistan.

 The information campaign will educate the

consumers on health risks of unhygienic loose
milk
Structure of Dairy farming
Pakistan
 Dairy Farming has always been considered as
a by-product of cropping in Pakistan; it is not
an independent activity as in Europe and other
countries with developed industries.
 The vast majority (about 70%) of dairy
farmers in Pakistan are smallholding farmers.
 In Pakistan, a two-tiered action plan is
required: to develop systems, which provide
profitability for the smallholder and maintain
quality through the supply chain, while
assisting the development of larger scale
commercial farms.
Milk Collection and Distribution
System
 Most of the milk produced in the farms is
consumed at the household level.

 The milk supply and marketing chain involves

different players.

 The small-scale milk collectors collect an

amount of 200-400 kg milk per day from
different farms.
Conti…
 Medium scale milk collectors collect
400-800 kg milk per day.

 Collectors group may carry out door to

door milk delivery and marketing in
some nearby urban markets using
different means of transportation.
EIGHT MAJOR DAIRIES
The eight major dairies of the country include:

 Nestle
 Nirala
 Halla
 Noon
 Millac
 Dairy Bell
 Dairy Crest
 Premier
Contribution of UHT Milk
 UHT stands for” Ultra Heat Treatment” also called
long life milk. UHT treatment is normally in the
range of 135 to150 °C in combination with the
appropriate holding times necessary to achieve
commercial sterility.

 The contribution of UHT processed milk to real

GDP in Pakistan has gradually increased from
only 0.117% in 1994-95 to 0.201% in 2001-02.
Adulteration and Hygiene
Issues
 Adulteration of milk is one of the most serious
issues that the dairy sector of Pakistan is
facing today.
 Due to the numbers of smallholding farmers,
milk handling processes in the traditional
system are extremely unhygienic.
 Insufficient enforcement of standards,
resulting in poor quality products
 In order to keep milk temporarily“fresh”,
middlemen commonly add ice to the milk,
which results in dilution of milk solids by up to
30%.
Diversified and Accessible dairy
Micro Financing
 Lending for small farmer program is needed
through micro-finance and SME financial
institutions primarily Khushali Bank, Punjab
Bank,SME Bank, KASB Bank and others.

 There is an overall increase in bank loans

being provided for the Dairy Sector.
EMPLOYMENT AND
POTENTIAL
Value Chain Current formal Jobs formalized from
sector jobs Informal to formal by
2015

Dairy Farming 500,000 3,050,000

Model Procurement 20,000 56,500

Dairy Processing 15000 30000

Transportation 1500 12600*
Sales & Distribution 9500 80000*

Allied Industries 2400 16000

Total Employment 548900 3,245,100

Medium for packaging Milk
 In Pakistan two mediums are generally used
for packaging milk:

1. Ultra Heat Treatment (UHT).

2. Spray Drying of Milk

Pasteurization
 The terms Pasteurization, ', Pasteurized refer
to the Process of heating every particle of milk
or milk products to at least 63°C.

 Holding it at such temperature continuously

for at least 30 minutes or heating it to at least
72°C holding it at such temperatures for at
least 15 seconds (for continuous flow
pasteurization) .
Milk Terms & definitions
 Cow’s MILK: 3.5% of milk fat & 8.5% of milk solids other than
milk fat.

 Buffalo’s M ILK :5.0% of milk fat & 9% of milk solids other than
milk fat.

 Goat’s MILK:3.5% of milk fat & 8.0% of milk solids other than
milk fat.

 Sheep’s MILK:6.0% of milk fat & 9.0% of milk solids other than
milk fat.
Cont….
 Camel’s MILK 3.0% of milk fat naturally
homogenized and 10.0% of milk solids other
than milk fat.

 Standardized MILK:It means milk,

standardized to contain not less than 12.4% of
milk solids, including not less than 3.5% of
milk fat.
Types of Milk
 Skimmed MILK / Low fat milk:Milk which after the
extraction of milk fat by mechanical or other
process contains such fat in quantity less than
3%. & 9%of milk solids other than milk fat.

 Condensed MILK :The fluid product resulting

from the removal of a considerable portion of
water from full cream milk(milk fat 9% and Milk
solids including fat 31.0% )
Con….
 Condensed MILK (Sweetened):The product obtained
from halal milch animals or from standardized milk by
the partial removal of water & after addition of sugar.
(Milk fat 9.0% , Total solids 31% , Milk protein in SNF
34%, Titratable acidity 0.3%, Bacterial count/ gm 500,
Coliform negative).
Cont….
 Dried MILK / MILK Powder:Milk concentrated
to the form of powder or solid by the removal
of water( Milk fat 26%, Moisture 4%,
Titratable acidity1%, Milk solids 95%,
Solubility index 98.0%, Bacterial count / gm
not more than 50,000, Salmonella Absent in
25 gm)
 Dried skimmed MILK / Non- fat dry
MILK
Fat Less than 3%

moisture 4%

Titrtaable acidity 1%

Milk solids 96.0%

Solubility index 85% incase of roller

dried 98.0% in case of
spray dried
Bacterial Count / gm not more than 50,000

Salmonella Absence in 25 gm
Flavored MILK
 A product obtained by the addition of syrup or flavor
made from wholesome ingredients.

 Cream / Balai 40% of milk fat.

 Flavored Cream10% of milk fat.

 Butter:It is a fatty product derived exclusively from

milk and / or products obtained from milk (Milk fat
min. 80%, Moisture max. 16%, Milk solids max 2.0%)
 DESI GHEE
Milk fat Min 99.6%

Moisture not more than 0.5%

FFA (asoleic acid) than 2.0% without anti-

oxidant,0.4 % with anti-
oxidant)

BR value at 40°C 40.0 to 43.5

Polenske value not more than 2.8

Richert value not less than 26.

Baudouins test negative

Cont…
 Cheese:A substance known as cheese and
made exclusively from milk or cream(Milk fat
not less than 40.0% (by weight of dried
cheese)).

 Cottage cheese:more than 80%moisture.

 Yougurt: Milk fat not less than 3.5% , Milk

solids not less than 9.0%.
Major problems
 Availability of Raw milk to the plants.

 Cost of milk production.

 Quality of Milk supplied to plants.

 Lack of Technical knowhow and practical experience

in Dairy Sciences.

 Poor infrastructure in rural areas.

Cont….
 Lack of pasteurization law and strict
implementation mechanism of milk food safety
standards.

 Lack of a cold chain to protect milk quality.

 Lack of knowledge about optimal feed.

Recommendations to Improve the
Situation
 Setting up Cooperative Milk Collection Centres.

 Dairy Training Facilities.

 Improvement of Dairy Cattle.

 Support Prices of Dairy Items.

 Need to Develop Packaging Industry.

 Reorganization of Livestock Department.