CURRENT SITUATION OF DAIRY PROCESSING INDUSTRY AND FUTURE CONCERN IN PAKISTAN Pakistan is 5th largest milk producing country.

Its annual milk production is 35.16 million tons during the period of 2008-2009 98% of its production is used as raw milk and only 2% is processed of the 98%, 50% consumed as yoghurt (dahi). Mostly milk is produced in rural areas and consumed in urban areas. Pakistan have 151 litres per year per capita consumption in which is highest among south Asian countries. Though its high production Pakistan has to import dried milk and milk products for its urban consumers. The government of Pakistan is taking deep interest in dairy development programme. There are nine processing unit which are; y y y y y y y y y Haleeb milk industry Nestle Pakistan Millac Foods Limited Noon milk industry Nirala Dairy Limited Dairy Crest Foods Prime Dairy milk Idara-e-Kissan Premier Dairy industry

Production of milk is increased from 700 litres to 1200 litres from last six years. Livestock has great part in national economy. Ninety percent milk is produce in remote areas by

landless and small holders. 70% milk is processed by Haleeb and nestle Pakistan. In Punjab idare kisan has been established to enhance the milk production. Milk production unit and their producing ability is given below.

Milk processing procedure y y y y y y y y Milk Collection Contractors Milk Collection Centres in Village Milk Transportation Milk processing unit Marketing of Processed Milk Marketing of Powder Milk Existing Milk Processing Plants

Milk Collection Milk is produce in rural areas. There are small farmer in villages having 3 to 4 cows or buffaloes. After collection they sell it to contractors or middle man. Contractors Contractors purchase milk from the farmers and they carry it to the collection centre. They earn a valuable amount from this business.

Milk Collection Centres in Village Collection centre collect the milk from all contractors. These centres provide great facility to the local people. Milk Transportation After collection the next step is transportation. This is the most critical point because during transportation milk could be destroyed due to mishandling. Approximately 30,000 litre milk is destroyed due to mishandling. For safe transportation chillers should be used. Milk processing unit There are two processing sector. Informal Sector Raw Milk Milk Fat based Products

Fermented Milk Products Concentrated Milk Products Milk based sweetened products Frozen Dairy Products 18 6 Billi lit ilk/ Formal Sector UHT Milk Non Dairy Products 18.6 Billion liters milk/ annum & Spray Dried Dairy Products Dairy based Cereal Products Fermented milk Products Milk Fat based Products Concentrated Milk Products Frozen Dairy Products 1.1 Billion liters milk/ annum 18.4 billion liters has a potential of transformation and value addition for the ultimate benefit of consumer in terms of Health & Safety and immediate routes are: Pasteurized Milk Cheese There are nine processing units in Pakistan. They have different criteria for processing. Haleeb dairy industry stars work from 1984. First processing plant is established in bhai pheru. This industry producing different brands. 1. Haleeb Butter 2. Haleeb Yoghurt 3. Haleeb cream

4. 5. 6. 7. 8. 9.

Haleeb Labban (drinking yoghurt) Haleeb Asli Desi Ghee Haleeb Funday Juice Drink Haleeb Skimz Haleeb N rish Cream powder Milk Haleeb Good Day Pure Juices

Engro food start processing of milk from 2006. Their product name is olper. The packaging of milk was started in Pakistan in1981 by Milk pack which is pioneer tetra pack milk of Pakistan. The Haleeb introduced milk pack in 1986. When 1n 2006, Pakistan milk market was growing at 20% rate. These two brands were dominating the marketing. But Olper s got its position through biggest media campaign. Noon Pakistan Limited It was enter in milk market as public company in September 26, 1956. It is processing selling tone milk. The office of company is in Lahore and plant is in Bhalwal, Sargodha. Current situation of dairy processing industry Processing of milk is start from last decade. Mostly processing unit are established near the big cities. These units are located near the Lahore. The livestock and dairy development board set 300 milk chilling units in 500 villages for poor farmers.

Marketing of Processed Milk They only liquid processed milk available is ultra heat treated (UHT), by eight domestic processing plants. The marketing chain is not established much milk is supplied to regional distributors by trucks which then provide to whole seller and so on. Powder Milk marketing Beside the 4th largest milk producing country Pakistan has to import milk powder. Marketing of Dairy Products y y y y y y y y Yoghurt (Natural and Flavoured) Drinking Yoghurt Sweetened Flavoured Milk UHT and pasteurized cream Butter Ghee Cheese Ice cream

Constraints Milking season There are three seasons in Pakistan. Flush season start from first January to fifteen April. Maximum milk production. Lean season start from sixteenth April to thirty July. Minimum milk production.

Semi flush season start from first august to thirty one December. Although the quality of milk is good obtain from farmers but there are no facilities to preserve it at village level. Milk marketing Milk marketing is divided into three categorized.  Rural marketing Mostly milk produced in rural areas is consumed by natives. Directly sale to neighbourhood.  Urban marketing 15% of total collected milk. Milk produced in urban and peri urban areas. Middle man has very little role in urban marketing. Farmers are identified on basis of herd size. Small holders contain ten to fifty dairy animals and large holders contain up to five hundred animals. Consumer purchase milk directly from milk farmers. And milk directly supply to milk shop. Seasonality Season has great effect on production and consumption of milk. Milk consumption is low in winter and high in summer. More milk production during availability if green fodder. Finance services Small holder has no finance services in time of emergency, diseases and mortality.

Exploitation of market Small holder mostly depends on middle man that gives them low price so they do not receive a marketed milk price. Future of processing industry Milk quality will be improve by adopting hygienic measures. Reduce the milk wastage by establishing milk chilling centres. Enhance the processing capability. Government also play important role in the development of livestock. They allow duty free import and export.