A publication of Pakistan Dairy Development Company
Dairy Pakistan Township, Kot Lakhpat Lahore, Pakistan, Telephone: + 92 42 55142 145 Fax :(042) 5781909
Nestlé Pakistan Ltd.
& Tetra Pak Ltd.
The White Revolution- Dhoodh Darya
June 2006 By
Huma Fakhar et el, Market @ccess Promotion – Asia
Fakhar Law International
Chief Executive Officer Pakistan Dairy Development Company State Cement Corporation Building, Township Kot Lakhpat, Lahore - Pakistan E-mail: firstname.lastname@example.org Web Site: www.dairypakistan.com Phone: 042-6132368, 042-8434971 Mobile: 0334-4228774
1 Acknowledgements The authors of this White Paper wish to thank all the associated organizations, and their staff, for their many and varied contributions. Firstly, however, it is necessary to thank the Minister of Industries, Production and Special Initiatives, The Honorable Jahangir Tareen, without whose drive, energy and vision, Pakistan Dairy Development Company would not exist. We would like to acknowledge in particular the support of Mr. Roland Decorvet, Managing Director of Nestle Pakistan Ltd and Mr. Pär Söderlund, Managing Director of Tetra Pak Pakistan Ltd for sponsoring the study. Our thanks also to Mr. S. Fakhar Ahmed of Nestle Pakistan Ltd for being a key member of the team responsible for this White Paper. Special thanks to the following for all their support & Contribution J E Austin Members of the Dairy Strategic Working Group Ministry of Food, Agriculture and Livestock Team members form Nestle Pakistan Ltd Small and Medium Enterprises Development Authority (SMEDA) Tetra Pak (Pakistan) Ltd USAID Individuals not associated with any of the above organizations but who deserve acknowledgement include Messrs. Tony Christianson and Suleman Ghani. Many others have also contributed advice and feedback; our thanks go them.
Geoff Walker Chief Executive Officer
TABLE OF CONTENTS Para No. Description EXECUTIVE SUMARY CHAPTER-1 1.0 1.1 1.2 CHAPTER-2 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 Introducing Dairy Pakistan - A Pathway to Progress Dairy Pakistan Governance and Management (Brief) Farm Management and Dairying Research Institute Overview of Pakistan’s Milk Economy- Present Scenario Milk Production Structure of Dairy Farming in Pakistan (Comparative to other countries) Smallholding Farms Economies of Scale and Mechanized Farms Milk Collection and Distribution system Processed Milk Industry (Business Environment and Constraints) Processors and Consumers Adulteration and Hygiene Issues Seasonality Milk Pricing & Profitability in a Competitive World External Influences
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CHAPTER-3 3.0 White Revolution (Dhoodh Darya) 3.1 Specific Targets of the White Revolution 3.2 Modus Operandi to Unlock the Potential – The Eight-point Strategic Agenda of the White Revolution. 3.2.1 The most important point of the Strategic Agenda of the White Revolution will be the successful implementation of the Dairy Development Projects. 3.2.2 Creating Rural Entrepreneurs 3.2.3 Developing the Value Added Market – innovation in health, pleasure and presentation 3.2.4 Organizing the informal sector into documented formal economy and to formalize the role of the middlemen 3.2.5 Propagating quality and implementation of pasteurization laws: 3.2.6 Mapping Increased Supply Pockets and special incentives for NWFP and AJK 3.2.7 Attracting foreign investments and joint ventures and encouraging Existing Processors to increase investment in the sector 3.2.8 Dairy Pakistan - creating a monitoring and implementation Mechanism for the White Revolution 3.3 White Revolution (Dhoodh Darya) promises to empower rural Pakistan CHAPTER-4 4.0 Strategy in Action – Strategic Initiatives by Dairy Pakistan 4.1 Small Holder Dairy Project 4.2 Dairy...