INP-WealthPk

Pakistan’s dairy sector faces several challenges to growth

May 20, 2024

Arooj Zulfiqar

Pakistan's dairy sector requires a conducive environment to boost exports, enhance economic stability, and secure the livelihoods of millions of farmers, M Mansoor, former director general Livestock and Dairy Development Department, Punjab, told WealthPK. According to him, despite its significant contributions to the economy, the dairy sector faces several challenges that hinder its growth potential and competitiveness in the international markets. “Lack of infrastructure is one such challenge. Insufficient cold storage and processing facilities result in losses and compromise product quality, impacting the export opportunities. Additionally, many farmers lack access to the modern technology for efficient herd management, milk production, and quality control, which affects productivity and profitability. “Moreover, inconsistent adherence to the quality standards and certification requirements hinder market entry and acceptance of Pakistani dairy products in the global markets,” he explained.

He said recognizing these challenges, there is a need to focus on key areas to unlock growth opportunities and enhance competitiveness in the global market. Investments in dairy processing facilities and cold chain infrastructure are crucial for ensuring quality standards and extending the shelf life of dairy products. Efforts are required to modernize the existing facilities and establish new processing units equipped with advanced technologies for efficient production and storage. He added, “Integration of technology, including data analytics, IoT (Internet of Things), and AI is revolutionizing the dairy farming practices all over the world. Smart solutions for herd management, milk quality monitoring, and feed optimization will also enhance productivity and profitability for the dairy farmers in Pakistan.” Mansoor said, “Exploring new markets and diversifying product offerings can mitigate the risks associated with market fluctuations and increase export opportunities.

Targeted marketing strategies, product differentiation, and branding efforts can position our dairy products as premium offerings in the international markets.” In this regard, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb recently held a meeting with the Pakistan Dairy Association (PDA) led by CEO of Fauji Foods Ltd Usman Zaheer, at the Finance Division. Addressing the delegation, Aurangzeb emphasized the crucial role the dairy industry plays in boosting the agricultural GDP and driving economic development. He highlighted the government's dedication to creating a supportive environment for business growth, especially in the dairy sector, which offers promising export opportunities. The finance minister urged the dairy industry executives to seize the moment and initiate projects that would benefit both large-scale producers and small-scale farmers.

Credit: INP-WealthPk