**6. Improvements**

Since last reviews in 2002 [1], 2011 [2], 2013 [20] and 2015 [21], various changes have been brought about in various subsectors of the dairy industry in Pakistan. Only significant improvements are being identified here and a summary is presented as Annexure 2.

 Realizing the positive impact that development funding can have on raw milk production, the private sector has recently started to implement projects aiming at organizing farmers for milk collection and marketing, while providing them with information and access to market channels resulting in enhanced productivity. These projects, started under public-private partnership, reach large number of beneficiaries, and show relatively quick results. The rapidly increasing demand and high margins are additional driving forces behind private sector investments.

### **6.1 Enlargement of herds and import of high-quality milk germ plasm**

To date, various companies are supplying elite class pedigreed dairy animals and high-quality semen imported from various countries including the United States of America, Australia, Germany, and the Netherlands. A total of about 0.058 million heads exotic dairy cattle have been imported during the last two decades and are being maintained at large peri-urban commercial dairy farms. These companies supply 3–7 months pregnant heifers with a farm gate price range of 2500–4700 US\$ per imported animal (based on the data provided by the sector). The animals are usually ensured against any accidental injuries or death during the transportation and afterward. The semen doses from elite class pedigreed bulls are also available with a price range of 40–80 US\$/dose.

## **6.2 Focus on improving the productivity per animal rather than improving their number**

While looking at the statistical data for the last 10 years (2006–2016) or even before, it is clear that policy focus was mainly put on increasing the number of

*Current Standing and Future Challenges of Dairying in Pakistan: A Status Update DOI: http://dx.doi.org/10.5772/intechopen.83494* 

 animals per year rather than on increasing the productivity per animal (**Figure 4**). This indicates that any improvements in raw milk production are mainly caused by increase in number of animals every year. As presented previously, the indigenous dairy animals are characterized as poor producers with low daily milk yields (4.78 vs. 6.0 L), lactation yields (1195 vs. 1800 L), and less days in milk (250 vs. 300) [8, 11]. With the introduction of crossbreeding, daily milk, and lactation yields are far better now (12 and 3600 L, respectively) with compromised milk fat content (6 vs. 3.6% for buffaloes and crossbred cattle, respectively) under rural commercial and peri-urban dairy farming. This provides some evidence that there has been improved productivity per animal; however, crossbred cattle represent a small proportion of total population [7, 12].

## **6.3 Improvements in milk collection, processing, and marketing**

 In the past 10 years (2006–2016), the private sector dairy organizations namely Engro Foods Ltd./Frieslandcampina & Nestle Pakistan Ltd. played a vital role in milk collection and marketing. They mainly aimed at getting high-quality, safe, and secure milk. To ensure this, they have installed milk chillers at village level so that milk can be preserved safely on immediate basis after collection from individual farmers and maintained a cold supply chain, thus, providing with means for securing quality and wholesomeness of the product and successful marketing at the doorsteps of the farmers. According to a recent update, Nestle Pakistan Ltd. has installed about 2100, Engro Foods Ltd. installed 1250, whereas Nurpur installed 300 chillers with about 500 chillers installed by other dairy companies. **Figure 7**  shows trends in milk collection by private dairy sector (both traditional and commercial) in two base years of 2006 and 2016.

Similarly, there has been a significant increase in the processing capacity of various dairies during this period of 10 years (2006–2016). **Figure 8** shows that the total processing capacity for pasteurized and ultrahigh-treated fluid milk and milk products from all dairy processing was estimated to be 32 million L/year in 2006 [2], which reached to a corresponding value of 2326 million L/year in 2016. Some recent figures indicate that a total of about 15 dairy processing plants are functional in the

**Figure 7.** 

*Milk collection by traditional and commercial methods in two base years (2006 inner circle and 2016 outer circle). Based on data provided by the sector.* 

### **Figure 8.**

*Milk processing (fluid milk and dairy products) by large dairies in two base years (2006 and 2016), based on [2] and the data provided by the sector.* 

 country with varying capacity for product volume and assortment. Three big dairy companies, e.g., Nestle Pakistan Ltd., Engro Foods Ltd., and Nurpur Ltd. occupying the first, second, and third position, are processing about 1168, 584, and 237 million L/year, respectively. In addition to the fluid milk collected from inside the country, a large amount of dry milk is also imported. The large differences between collection and processing of fluid milk by dairies are explained through the import of dry milk, which had an estimated amount of 284 million L/year during 2016–2017. The dry milk is used after reconstitution for various purposes, during flush and lean periods.

### **6.4 Improvements in the supply of dairy inputs**

As the trend from traditional to commercial dairy farming is gaining fame and acceptance among the farmers and corporate stake holders, the demand for dairy inputs is on an increase on daily or monthly basis. These inputs range from seed stock dairy animals, modern dairy housing fixtures and equipment, commercial feeds including concentrate, silage and hay to medicine, vaccines, and semen. A significant number of multinational and local companies to supply dairy inputs has emerged in the recent past and continues to grow in the future. These firms are mostly located in Lahore or Karachi, and the surrounding of these cities are known as the hubs for peri-urban and large peri-urban dairy farming.

### *6.4.1 Establishment of commercial feed units and silage making*

 Little is known about the actual number of commercial feed units supplying concentrate, hay, or silage in 2006, as there number was so small to be included in the counting. Importantly, Ghazi Brothers and ICI, Pakistan are considered as two main companies who started their sale operations of animals inputs of medicine and supplements as early as 2000s. Then, the era came when more players started their business for supplying complete range of animal farming inputs. These companies were either sister companies of some most famous brands or were off-shoots of some international groups (Bovitech®). The animal inputs of feeding (commercial concentrate, bailed hay and silage, vitamin and mineral premixes, and growth promoters), treatment (de-wormers, vaccines, and medicines), and reproductive management are examples of year-round supplies by these companies (based on data provided by the sector).
