Milk Production in Pakistan

MILK PRODUCTION IN PAKISTAN

Milk production and processing is the most important component in livestock sector in Pakistan. The value of milk alone exceeds the combined value of wheat, rice, maize and sugarcane. The milk in Pakistan is predominantly produced under four different production system namely Rural Subsistence Smallholdings, Rural Market Oriented Small–holdings, Rural Commercial Farms and Peri urban/ Urban Dairying. The overall animal herd is thinly spread across thousand of square kilometers with and average of 3-5 animal per house hold and more than 40 million people in the rural area are engaged in livestock raising. Out of total milk produced, 97 % is marketed in informal sector (loose milk consumed in the villages and/or sold in the cities through”Gawallaws” is unhygienic conditions and without any quality standards). Since more than 90% of milk is produced by small holders, its collection and processing faces a major challenge. The dairy sector operates mostly in the informal way and needs and consistent assistance to organize itself to be able to contribute better in the national economy.
Pakistan is endowed with a large livestock population well adapted to the local environmental conditions. According to livestock census (2006), food animals consist of 27.33 million buffaloes, 29.56 million cattle, 53.75 million goats, 26.49 million sheep and 0.9 millions camels. Dairy animals are cattle (Red  Sindhi, Sahiwal , Cholistani and crossbred) and buffalo and cattle is low due to non availability  of superior germplasm, limited feed resources and inefficient disease control. Demand for milk and dairy products is increasing at a high pace due to population growth, urbanization and increase in per capital income.
The performance of an animal is a result of contribution of genetic and environmental factors and their interactions. The environmental contribution is formed by feeding, better health services and climatic influences. However, the impact of these efforts reverts back when these inputs are discontinued. Contrarily genetic contribution is permanent in nature and passes generation after generation. There are many ways for the genetic improvement of milk production is selection of genetically superior males through progeny testing program as it is well known fact that ‘bull is half the herd’. In the progeny testing program semen of candidate bulls is used for inseminating the animals. The female calves, thus born, are raised and their first lactation milk production is recorded at farmer’s doorstep for ten months. Milk production data thus generated is analyzed using specialized computer software to compute the breeding values. Based on this analysis, the bulls having daughters with higher mil production breeding values are declared as positive proven bulls. The semen of such bull is extensively used through AI network for disseminating the genetic improvement in general population on mass scale. In this way, one is sure that  proven bull’s daughter’s milk production will be higher as compared to their dams’ milk production in general population on mass scale. In this way, one is sure that proven bull’s daughters’ milk production will be higher as compared to their dams mill production in general and thus genetic improvement of animals is the real service to poor farmers for poverty alleviation on sustainable basis.

 

Buffaloes

Buffaloes are the major milk producing animals in Pakistan, representing about 48 percent of the total dairy herd and

providing 62 percent of total milk production (Government of Pakistan, 2008). The three principal breeds are Nili, found

mostly in Punjab province, and Ravi and Kundi, found mostly in Sindh.

Due to indiscriminate breeding, most of the herd is “non-descript”. Little is done to research or maintain the purity

of buffalo breeds. The government has undertaken buffalo breeding projects at livestock research centres, but farmers

are largely excluded from the results of this research, thereby limiting its benefits. Recently, there has been interest in

improving understanding of the complex issues involved in buffalo reproduction.

Cattle

The cattle population is slightly larger than that of buffaloes, but cows produce on average only about 55 percent of

the yield of buffaloes. All Pakistan’s indigenous cattle are Zebu (humped type, Bos indicus). There are 15 recognized

breeds in the country, of which Red Sindhi and Sahiwal are well known internationally as tropical dairy cattle breeds.

Cattle have traditionally been bred to produce bullocks for ploughing and on-farm operations.

A sizable population of cattle cross-breeds have recently emerged, and now represent 13 percent of Pakistan’s total

cattle population. Pure breeds account for 43 percent, and non-descript for 44 percent (Khan et al., 2008). Breeding

policy allows the cross-breeding of non-descript cattle with Holstein, Friesian and Jersey breeds, with the desired level

of exotic inheritance being between 50 and 75 percent.

The productivity of dairy cattle cross-breeds is far higher than that of local non-descript or pure breeds, with longer lactation periods, higher milk production per lactation, and shorter calving intervals. These advantages make cross-bred cattle highly preferred for intensive and semi-intensive dairy farming systems. An average quality cross-bred animal costs almost 40 percent more than an average buffalo. Semen for cross-breeding programmes is imported from countries such as the United States of America, Germany and Australia by private sector firms

Being major player in the national economy, livestock sector is an economic engine for poverty alleviation in Pakistan. According to the economic survey of Pakistan 2017-18, its contribution to agriculture value added is approximately 58.9% and to national GDP is 11.1%.

Livestock of Pakistan include cattle, buffalo, sheep, goat, camels, horses, asses and mules and they produce milk, meat, wool, hair, bones, fat, blood eggs, hides and skins among which milk and meat are the major products. Besides production, these animals are also used for draught purposes. Milk is produced by buffalo, cattle, sheep, goat and camel but being major contributor in milk production, cattle and buffalo are considered as major dairy animals.

Buffalos found in Pakistan make up 47% of Pakistan's major dairy animal's population providing more than about 61% of the total milk produced in the country. Buffalo breeds found in Pakistan are Nili Ravi, Kundi and Aza Kheli. Nili Ravi is considered the best buffalo breed in world and known as Black Gold of Pakistan. Cattle constitute about 53% of the national population of major dairy animals in Pakistan and contribute the share of almost 35% to the total milk production in country. The cattle breeds found in the country are Sahiwal, Cholistani, Red Sndhi, Achai, Bhagnari, Dajal, Dhanni, Gibrali, Kankraj, Lohani, Rojhan, and Thari. Out of these, Sahiwal, Cholistani, and Red Sindhi are main dairy breeds and well known internationally due to their distinct characteristics. Other than well-defined cattle breeds, there are a large number of nondescript and crossbred cattle in this country.

Over few years, the importance of crossbred animals has been increased due to start of the development in dairy sector on commercial lines. The crossbred animals are mostly preferred for commercial dairy farms due to their higher production. Mostly cross of local cows (like Sahiwal and Cholistani) with imported cows (like Holstein Friesian and Jersey) is demanded by such farms. Besides our local and crossbred animals, imported animals are also the part of dairy cow family of Pakistan. Corporate Dairy Farms prefer dairy animals from other countries and run their farms on most modern lines with international expertise. These animals are imported form Australia, America and Sweden. The breeds of these imported animals are Holstein Friesian, Jersey and Freisian Jersey Cross.   

Sheep and goats are reared in rural areas but their main purpose is mutton production. The milk produced from these small ruminants is used domestically. Camel is the animal of nomads who raise this animal to sell on Eid ul Adha. The milk produced by camel is used to meet the family needs. Some nomads also sell camel milk in urban areas and its demand is increasing day by day due to medicinal value. If we work on camel breeds, we can find camel as a good dairy animal.

Most of the milk produced in Pakistan comes from cattle and buffalo. The rest of it is collectively produced by sheep, goat and camel which, most of the time, is not sold as such, rather consumed domestically or mixed with buffalo and cow milk.

Estimated current National livestock Population based on National Livestock Census 2006 and Economic Survey of Milk is favourite food in Pakistan and is consumed as fresh, boiled, powdered and in processed form like yogurt, ghee, lassi, butter, cheese, ice cream, sweets and in other confectioneries. The interesting thing regarding the dairy sector of Pakistan is that although it is third largest milk producing country in the world but still its production falls short to meet the national demand. It is not possible to say that Pakistan is deficient in Milk Production. Pakistan is sufficient in milk production but issue is with supply chain as milk is produced in sufficient volume is few pockets of country but its demand is nationwide. So to fulfill the national demand of milk the need is to manage its supply chain to ensure its availability through out the country.

Let's have a look on different production systems of Pakistan. Till late eighties, more than 60% of buffaloes and some cows were maintained under the system of Rural Subsistence Production System. In this system on an average there were 3 to 4 dairy animals with one or two adult females. Almost 50 to 60% of the feed requirements of these animals were fulfilled from grazing along with wheat straw and some green fodder. ¼th of milk produced was sold out and remaining was utilized for domestic use. This system still exists in some areas of Pakistan.

With the time being Rural Subsistence Production System changed into Rural Market-Oriented Smallholder Production System. Under this system, on an average there were 5 to 7 animals per herd, inclusive of cow; 3 to 4 adult lactating animals, one or two heifers, and one or two male calves, but most often no bull. Feeding requirement of lactating animals were fulfilled from fodder along with wheat straw and seed cake. More than 70% of milk produced was sold either directly or through middlemen. This system was practiced by those smallholders who have access to nearby livestock markets. 

In 1980s, dairy sector in Pakistan moved towards commercial side and development of rural commercial dairy farms started. A typical rural dairy farm running on commercial basis consisted of about 30 animals of which 70% were females, including some cows. Approximately 40% of these adult females were in milk during most of the year. Fodder crops provided 50% and straws about 35% of the feed requirements and concentrates made the rest of it. More than 90% of the milk produced at the farm was sold. 

With growing demand for milk in urban areas rural commercial dairy farming moved toward peri-urban areas. In peri-urban areas there are large and small dairy herds consisting of 20-50 animals with nearly 90% of adult females in production. Male calves are disposed off within first two weeks of birth. These animals are fed chopped green fodder and wheat straw and concentrate mixture with target to sell almost total milk produced.   

Over the last 2 to 3 decades, large peri-urban commercial dairy farming has also emerged. Targets of these farms are to get maximum milk production with economical and quality feeding and good management. Animals on these farms are fed good quality green fodder or silage along with concentrate mixture. Dairy animals maintained at these farms are considered elite animals; hence their yields per lactation are considerably higher than those of animals maintained under other production systems. Milk produced on these farms is either sold out in processed/fresh form through outlets or departmental stores or supplied to dairy companies.

During last ten years major changes has been occurred in dairy sector of Pakistan. A large number of modern dairy farms established in different areas. Most of these dairy farms have exotic animals and number of these animals is in hundreds and even in thousands. Dairy farms with more than 3000 animals also exist and with 5000 animals are in plan. Such farms have adopted most modern managemental and feeding practices and well trained man power. Milk produced on these farms is either sold out in processed/fresh form through outlets/ departmental stores/house supply etc. or supplied to dairy companies.

Pakistan is considered among the leading raw milk producing countries. Unlike the production systems in the developed countries, milk production systems in Pakistan represent smallholding with subsistence- or market-oriented-level farming followed by peri-urban or commercial-level farming. Historically, dairy sector has been owned and managed by the private sector. During the past two decades, new initiatives have been taken because of the active involvement of corporate private sector. These efforts have resulted in improvements like enlargement of herds and import of high-quality milk germ plasm, the productivity per animal, milk collection, processing and marketing, the supply of dairy inputs (machinery, equipment, feeds, semen, and elite dairy animals), and farmers knowledge, and skills on modern management practices. Conclusively, the dairy sector is performing at some sustainable level to meet the food requirements of the growing population and helping save a handful of foreign exchange. Yet, challenges like local replacements of high genetic potential dairy animals, health hazards of β-casein proteins, antibiotics and aflatoxins, and uneconomical operational costs facing the dairy industry in the near future need to be addressed. The main objective of this chapter is to identify the current trends in dairy industry of Pakistan and describe those factors, which can influence the sustainability and profitability of dairying in the near future.

MILK PRODUCTION SYSTEMS: 

GENERAL CHARACTERISTICS

Unlike the production systems in the developed countries like United States of America, milk production systems in Pakistan have similar characteristics to the most developing countries of subcontinent; smallholders with subsistence- or market-oriented-level farming keeping the major share followed by peri-urban or commercial-level farming. Dairy farming in Pakistan is practiced mainly by the private sector on various scales, in both urban and rural settings. However, the sector is generally characterized as fragmented and subsistence. With the exception of some peri-urban units, most dairy farming is practiced in mixed crop-livestock systems.

Classically, dairy production systems in Pakistan fall into five main systems of milk production based on location, herd size, and level of management. These are smallholder subsistence, smallholder market-oriented, rural commercial, peri-urban, and large peri-urban.

2.1 Smallholder subsistence production system

Smallholders produce milk to meet family requirements at minimal cost and have limited access to substantial milk market. The average subsistence unit consists of about three buffaloes, with at least two in milking. Average milk yields per animal are 3 L/day. The main inputs into these households’ dairy production are often noncash resources, such as family-owned land and labor. Some 70% of smallholder milk producers fall into this category. Most of the milk produced is utilized as fluid for fulfilling the family needs, and the rest is converted into butter and ghee. This system implies the use of household labor and therefore high labor-intensive occupation. Almost 50–60% of the feed requirements of these animals are fulfilled from grazing along with wheat straw and some green fodder. No purchased concentrates are offered. The proportional contribution of this system is declining and is replaced by smallholder market-oriented production system.

2.2 Smallholder market-oriented production system

As presented earlier, rural subsistence production system is changing into rural market-oriented smallholder production system with passage of years. This system is identified by its typical number of animal holdings and surplus milk production than the family requirements. There are usually 5–7 animals per household, both cows and buffaloes. Of these, there are usually 3–4 adult lactating animals along with one or two heifers and one or two male calves. Breeding bulls are normally absent. Feeding requirements of lactating animals are fulfilled from fodder along with wheat straw and seed cake. More than 70% of milk produced is sold either directly to retail shops or through intermediaries. This system is practiced by those smallholders who have access to nearby livestock markets, and they are encouraged to produce in excess of family requirements.

 

2.3 Rural commercial production system

In 2006, dairy sector in Pakistan moved toward commercial side and this encouraged some progressive farmers to invest in milk production. A typical rural commercial dairy farm running on commercial basis consists of about 30 animals of which 70% are females, including some cows. Approximately 40% of these adult females are in milk during most of the year. Fodder crops provided 50% and straws about 35% of the feed requirements and concentrates made the rest of it. More than 90% of the milk produced at the farm is sold. Average milk yields per animal are 10 L/day. Potential channels for the marketing of milk in this system have changed from traditional system to selling to the commercial milk collection companies. This system presents the second largest source of milk collection by commercial dairy companies after large peri-urban commercial farming.

2.4 Peri-urban production system

Peri-urban production occurs in commercial-scale units located on the peripheries of major urban centers. With growing demand for milk in urban areas, rural commercial dairy farming moved toward peri-urban areas. These maintain herd sizes ranging from 20 to 200 (small) and from 200 to 2000 (large) head, and averaging 50 animals; 90% buffaloes and 10 % cows with nearly 90% of adult females in production. These units employ family and hired labor, the latter being paid at local urban rates. Milk is delivered to the market twice a day. Major overheads in this system include hired labor costs, animal shelter, veterinary care, feed, water and electricity bills, and milk transport. Milk is usually sold through direct sale to retail shops in the city after decreaming with the target to sell almost total produced milk. Male calves are disposed off within first 2 weeks of birth. These animals are fed chopped green fodder and wheat straw and concentrate mixture with target to sell almost total milk produced. The current number of dairy farms falling into this category accounts for 200 units situated across the country.

2.5 Large peri-urban commercial dairy farming (key farms, mega farms, corporate farms, etc.)

A rapid increase in urbanization during the last two to three decades has encouraged shifting of peri-urban dairy farming to large peri-urban commercial dairy farming (corporate farming). The owners of these farms aim at getting maximum milk production with economical and quality feeding and good management. These farms are categorized as high inputs-high outputs production systems with no limits on provision of feeding (good quality green fodder or silage along with concentrate mixture) as well as other inputs (medicine, machinery, mechanization, etc.). Dairy animals maintained at these farms are considered elite animals from pure Holstein Friesian and crosses of Holstein Friesian and Jersey breeds; and their yields per day are considerably higher (25 L/day) than those maintained under other production systems. These farms are usually coupled with small-level milk processing (chilling, pasteurization, and packaging), and finished product is disposed of through outlets or departmental stores or supplied to dairy companies (chilled, unprocessed). These modern dairy farms represent less than 1% of total dairy animals and milk production in the country; however, peri-urban (Sections 2.4) and large peri-urban collectively make about 1% of the total. These farms are mostly located in the cultivated areas of the country especially central Punjab province (14) and Sindh (1) (data provided by the sector). The average number of exotic animals kept at these farms is between 2000 and 5000, and the farms with more than 5000 animals also exist. The farms produce large quantities of fluid milk ranging from 0.02 to 0.1 million L/day.

Trends In Production Systems

During the last 10 years, significant changes have occurred in dairy sector of Pakistan, and due to these changes, this sector is on the way to become an industry. A large number of modern dairy farms have been established in different areas. Such farms have adopted most modern management and feeding practices and well-trained man power. Milk produced on these farms is either sold out in processed/fresh form through outlets/departmental stores, etc. or supplied to dairy companies (data provided by the sector).

2.7 Trends in annual milk production and consumption

Approximately, 91% of milk is produced in rural areas, with peri-urban areas accounting for 19% now compared to previous corresponding figures of 80% (rural areas), 15% (peri-urban), and 5% (urban areas) as presente. Annual milk production from 2006 to 2016 is increased by an average of 3.21% per year, or by an average of 1520 million L/year. Annual milk consumption increased at the same rate to that of milk production or by an average of 1216 million L/year. The extra volumes are a result of increased herd size, and cannot be attributed to enhanced animal productivity, which has remained constant.

 

Livestock has been the subsistence sector dominated by small holders to meet the needs of milk, food security and daily cash income. It is central to the livelihood of the rural poor and can play an important role in poverty alleviation in Pakistan.

Livestock the largest contributor to Pakistan's agriculture (55.4%) added 11.9 % to the national GDP during 2012-13 (GoP, 2013). According to the estimates made by FAOSTAT (2011) Pakistan is the 4th largest milk producing country in the world with 35.49 billion liters of milk, averaging 4.9% of the total world milk production. More than eight million farming households in Pakistan were involved in livestock farming. The herds spread over thousands of square kilometers with an average of 2 - 5 animals per household (Pakistan Dairy Development Company, 2006). The milk sector in Pakistan economy can be used as a vehicle for rural development (Sarwar et al., 2002), as milk sector with a huge potential is mainly based in the rural sector of Pakistan (Hassan, 2011).

Khyber Pakhtunkhwa, has 5.97 million cattle, 1.93 million buffaloes, 3.36 million sheep and 9.6 million goats, having 1.87 million cattle and 0.81 million buffaloes in milk (Table 1). Simi-larly 0.6 million sheep and 5.5 million goats were female with above one year of age. Of the total 1.93 million milch cows, reported byThe livestock farmers' of Khyber Pakhtunkhwa purchased animals either from fellow farmers or Livestock markets/mandi. The farmers select the animals depending on visuals and milk production. Different factors like breed of the animal, age, calving number, lactation length, dry period, climate condition of the area effect the milk production of the dairy animals. It is necessary for dairy farming that the animal brought to the farm should be healthy and free from diseases. The animal can be assessed by leaving the collection of first time milk, and the average of the next three times milk can give the best idea for milking productivity of the animal.

Nili Ravi (Black Gold) a buffalo dairy breed, was very common in Khyber Pakhtunkhwa followed by Kundi breed however, Azi-Khel breed was found in Swat valley. In Khyber Pakhtunkhwa, the farmers got milk twice a day from the lactating buffaloes.