Livestock Pakistan

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  • Topic: Milk, Dairy farming, Cattle
  • Pages : 6 (771 words )
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  • Published : February 28, 2013
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Pakistan Dairy Challenges & Opportunities

Shamsuddin A. Shaikh

agenda
Challenges

Strategies

Opportunities

Pakistan Dairy Challenges
Quantity, Quality, Price

Demand/ Supply Gap S l G

• Demand continues to outpace supply • Actual production estimated to be between 20-22 bio Vs 36 bio reported. • Non-commercialized scattered farming NOT geared to achieving fast growth. No where in the world this has worked

Pakistan Dairy Challenges
Quantity, Quality, Price

Poor milk quality

Avg. TPC count in Pakistan +3 mio/ml vs. 50,000 in Middle East which is also requirement for export UHT milk shelf life 3 months (Pakistan) vs. 9 months (Middle East)

Role of middle man vis-à-vis adulteration Poor quality is major hurdle for export opportunity Processed milk goes through a number of checks versus gwala milk. Above is due to scattered farming and demand much higher then supply

Pakistan Dairy Challenges
Quantity, Quality, Price

Impact on Price

Lower avails Vs demand, creating price war Current SMP prices of US $ 2500 C&F Khi reflects milk prices cheaper than what is available in Pakistan Highly volatile local market – only savior in shape of i h f import d t t duty. Collection in Pakistan much more expensive than other countries. Lower avails versus a number of buyers.

Pakistan Dairy Challenges
Way Forward

3 pronged approach

Supply side
Infrastructure support

Quality approach
Yield improvement

Economies of Scale
Public/Private participation

Pakistan Dairy Challenges
Supply Side
Barriers
Absence of infrastructure & utilities support in milk shed areas Increased culling trend to erode herd base Dairy still part of informal sector

Recommendations

Prioritize milk shed areas for investment • Utilities access/support • T b welling programmes Tube lli • Electrification • Security issues Encourage dairy breeding farms g y g Set & enforce financing dairy targets/incentives • Role of financial institutions/ micro-financing

Pakistan Dairy Challenges
Yield / Quality Improvement

Barriers

Genetic Deterioration Poor breeding practices resulting in low yield animal Absence of genetic p g pool records Lack of focus on imported cattle breeds

Recommendations

Establish Independent Agency Funded by Govt.; operated by Industry Govt ; Establish targets & benchmarks Establish bull pool among elite ‘progressive’ farmers Herd Registration establishing ideal type Availability of Bulls nationwide through ‘bull stations’ for AI & Rental Encourage import of cattle through subsidy

Pakistan Dairy Challenges
Yield / Quality Improvements

Barriers

Milk Price
Varying milk procurement standard Adulteration & lack of recognition of premium for hygiene Ad l i l k f ii f i f h i

Recommendations

Govt. to establish regulatory framework for milk procurement standard; policed by industry Clear & consistent pricing structure Quality parameters policed by authorities at farm gate

Industry to enforce hygiene p y yg premium

Pakistan Dairy Challenges
Yield / Quality Improvements

Barriers

Animal Health
Poor standard of vaccines & medicines Prohibitive cost of import Lack of cold chain handling & administration

Recommendations

Tax free incentive to rural operating businesses i.e. crop i insecticide companies f l i id i for local production of l d i f vaccines & medicine • Import substitution benefits

Medicines efficacy regulation regulatory regulation, testing/policing

Pakistan Dairy Challenges
Economies of Scale
Barriers

Low presence of Private Sector Dairy Farming

Recommendations R d ti

Give dairy “agricultural industry” t t Gi d i “ i lt l i d t ” status Establish Govt. incentives/policies supporting dairy farming for private sector Provide incentives to rural based businesses to diversify • Crop management companies

- crop insecticide/ pharma companies - seed companies fodder production vaccines/medicines

Arrange financing...
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