Dairy sector facing the challenge of unsustainable productivity

Pakistan has a place in the list of world’s top five milk-producing countries. Livestock is one of the funnelling sub-sectors of agriculture, involving more than 30- 35 million people earning more than 40% of their income. Milk is the major and the single largest precious product of the sector. Milk production is predominantly led by the dairy animal population rather than milk yield.

Small dairy farmers, milkmen, processing companies, and consumers constitute the dairy sector. It faces numerous challenges; economically impacting all the stakeholders. However, the real challenge is unsustainable productivity, which must be addressed through appropriate policies and incentives to revitalise the dairy sector.

In 2023, more than 750 million(m) individuals enmeshed in dairy farming globally. The global milk production was 966 million tonnes(mt). The share of cow, and buffalo milk was 82%, and 14%, respectively while the combined share of goat, sheep and camel milk was only 4% in it. The major milk-producing countries like India produced 214mt of milk, the USA 103mt, and Pakistan 70mt. Global dairy products exports were valued at US$66 billion (bn). The EU exported cheese and butter worth US$ 22bn. New Zealand exported whole milk powder (WMP), butter and cheese worth US$26bn while the US exported cheese, skim milk powder (SMP) and whey powder worth US$ 10bn. Fresh cow milk, priced at US$855 per tonne, was far below the value-added dairy item prices ranging between US$4,000 and US$7,000 per tonne.

By 2032, global milk production is expected to be 1,039mt. India, the USA and Pakistan would contribute 250mt, 115mt and 86mt of milk, respectively. The global per capita consumption of processed and fresh dairy products will be 16kg and is expected to be the highest at 50kg per person in Pakistan. Around 30% and 7% of the global milk production will be processed and traded, respectively. The EU, New Zealand, and the USA will endure the quintessential exporters of processed dairy products jointly accounting for 65% of cheese, 70% of WMP, 70% of butter, and 80% of SMP by 2032.

In Pakistan, the livestock sector has become a cornerstone of agriculture,........

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