Pakistan’s Dairy Sector and the Role of Milk Collection Centers - Policy Brief - June 2024

Pakistan’s livestock sector is integral to its economy, contributing significantly to the agricultural GDP, and rural employment. However, the dairy subsector faces persistent challenges, including fragmented supply chains, inadequate infrastructure, and high milk losses during transit, reaching up to 15 percent annually. These challenges exacerbate the demand-supply gap in milk production, necessitating urgent interventions.

Policy interventions should prioritize formalizing milk collection systems, promoting dairy cooperatives, enforcing safety regulations, and educating consumers about milk quality. Investing in milk collection centers holds promise but faces obstacles such as high operational costs and limited financing. Addressing these challenges requires improving access to financing and tackling operational hurdles.

Encouraging the formation of dairy cooperatives, inspired by successful models like Amul in India, can empower farmers and reduce milk wastages. Regulatory reforms, including enforcing pasteurization laws and deregulating milk prices, can streamline the dairy industry, ensuring fair returns for farmers and safe dairy products for consumers.

A collaborative approach involving all stakeholders is crucial to formulate and implement a comprehensive dairy strategy in Pakistan. Prioritizing initiatives such as implementing pasteurization laws, improving milk quality, and supporting the establishment of collection centers and cooperatives can drive sustainable growth in the dairy sector and contribute to overall economic development. Leveraging export opportunities and strategic partnerships can further enhance Pakistan’s position as a competitive player in the global dairy market