Dairy Pakistan Stu

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 BUFFALOES

360855

609956

(+) 69.0

FEMALE BUFFALOES

12211116

15562548

(+) 27.4

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 S

GOATS

SHEEP

POULTRY

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

24.2

26.3

24.9

56.7

0.8

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%

1.1%

44.2%

21.6%

43.4%

Pakistan province

Balochistan 6.4%

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 socioeconomic 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 sector jobs

Jobs formalized from 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 Salmonella

not more than 50,000 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 antioxidant,0.4 % with antioxidant)

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.