**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.

## **2.6 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) [2] as presented in **Figure 2**. Annual milk production from 2006 to 2016 is presented in **Figure 3**, which shows that it 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.

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

### **Figure 2.**

*Annual saleable milk production from various milk production systems in Pakistan in 2016, based on [6, 7] and the data provided by the sector.* 

### **Figure 3.**

*Total milk production in the country and consumption by humans from 2006 to 2016. Source: Economic survey of Pakistan (2016–2017).* 
