Pakistan’s agrarian economy rests on a powerful yet underleveraged pillar: its dairy sector. With an annual milk production exceeding 42 million metric tons, Pakistan ranks among the top three milk-producing nations globally. Livestock remains the mainstay for more than eight million rural households, contributing nearly fourteen percent to national GDP and offering a primary livelihood source across Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan. Yet this sector, abundant in scale and heritage, continues to underperform in global trade. Among the most promising avenues for growth is the production and export of desi ghee-a product that aligns with cultural pride, rising global demand for traditional and natural foods, and Pakistan’s competitive advantages in dairy. If tapped strategically, desi ghee can become a multi-hundred-million-dollar export segment while simultaneously uplifting rural incomes and formalizing the dairy value chain.
Desi ghee holds deep cultural, culinary, and medicinal value across South Asia and increasingly in global markets. Unlike conventional butter, ghee is shelf-stable, lactose-free, and rich in vitamins A, D, E, and K-attributes sought after by health-conscious consumers globally. The global ghee and butter oil market is projected to surpass USD 10 billion by 2025, with strong demand growth in North America, Europe, GCC countries, and Southeast Asia. In the United States alone, organic and grass-fed ghee imports have surged over the past five years, driven by the popularity of ketogenic, paleo, and Ayurvedic diets. European and Gulf consumers are similarly embracing desi ghee, attracted to its authenticity, taste, and nutritional profile. As a predominantly grass-fed dairy country with indigenous high-butterfat breeds such as Sahiwal cattle and Kundhi buffalo, Pakistan is uniquely positioned to serve this demand. In fact, by 2025, Pakistan is expected to produce over 500,000 metric tons of ghee, making it the world’s second-largest ghee producer. Yet the country’s share in global branded ghee exports remains negligible-an opportunity ripe for strategic capture.
Building a strong branded presence for Pakistani desi ghee globally can elevate the country’s food exports to new heights
Current export performance provides a glimpse of potential. Between September 2023 and August 2024, Pakistan exported 406 shipments of ghee to 27 countries, including high-value markets such as the United States, Australia, Hong Kong, and various GCC nations. The average export price stood at $5,158 per ton in 2024, up from the prior year. Projections indicate that ghee exports could surpass $100 million by 2025. However, with global demand and premium markets expanding, this figure could realistically be multiplied severalfold within the next five years-if structural bottlenecks in Pakistan’s dairy sector are addressed.
The core challenge lies in the highly informal nature of Pakistan’s dairy economy. Over 90 percent of milk flows through unregulated, fragmented channels where quality assurance, hygiene standards, and value addition are absent. Smallholder farmers with one to five animals dominate milk production but face systemic disadvantages: poor veterinary services, high disease prevalence (including mastitis and foot-and-mouth disease), low-yield genetics, limited access to high-quality feed, and lack of cold chain infrastructure. As a result, average milk yields per animal remain below international benchmarks, and post-harvest losses range from 15 to 20 percent annually. The informal middleman (arthi) system further extracts disproportionate margins from farmers while providing little to no support for improving farm productivity or milk quality. In this environment, producing premium-grade ghee that meets international certifications remains a challenge for most market players.
Breaking this vicious cycle requires the widespread adoption of modern, integrated approaches to dairy value chain management. Across several regions, innovative private-sector models have begun to emerge-offering livestock owners bundled services that address both upstream and downstream gaps. These models typically combine veterinary services, access to quality feed, breed improvement programs, and training in milk hygiene and handling. Crucially, they also integrate chilled milk collection networks and certified processing facilities, enabling traceability and product quality that meets the expectations of global buyers. By formalizing relationships with farmers and offering transparent, premium-based milk pricing, such models align farmer incentives with quality outcomes and foster long-term sustainability.
Policy support for scaling these integrated ecosystems is urgently needed. International experience shows that cluster-based dairy development-combining public extension services with private investment-can yield transformative results. In India, for example, the Amul model of cooperative dairying has helped millions of smallholder farmers become reliable suppliers of high-quality dairy products for both domestic and export markets. Pakistan’s dairy sector could benefit from adopting similar principles, adapted to local contexts and market dynamics.
The global market opportunity is significant. Demand for organic, grass-fed, and traditionally produced ghee is growing at double-digit rates in key import markets. Pakistan’s indigenous breeds naturally produce high-butterfat milk that is ideal for premium ghee production. The country’s proximity to the Gulf, Central Asia, and ASEAN markets provides a logistical edge. Furthermore, with growing international attention to sustainable and low-carbon food systems, Pakistan can position its grass-fed ghee as a climate-smart product, especially if supply chains adopt transparent and certified sustainable practices.
To fully capture this opportunity, several strategic actions are required. First, investment in rural cold chain infrastructure and certified processing facilities must be accelerated. Second, veterinary services and breed improvement programs should be expanded through public-private partnerships. Third, certification support for organic, grass-fed, and geographical indication (GI) labeling of Pakistani desi ghee should be prioritized-enabling access to premium market segments and enhancing brand identity. Fourth, financial incentives such as export financing, tax rebates for value-added dairy processors, and targeted grants for quality improvement can catalyze private sector investment.
Moreover, efforts to promote Pakistani desi ghee in global markets should go beyond transactional trade. A concerted branding strategy is needed to position it as a heritage product-akin to Italy’s Parmigiano Reggiano or France’s AOC cheeses. Such branding, supported by quality assurance and traceability, can command significant price premiums and build long-term customer loyalty in discerning export markets.
Beyond export revenue, the formalization of ghee production offers critical socio-economic benefits. It can uplift incomes for millions of smallholder farmers, create rural employment across veterinary services, milk collection, processing, packaging, and logistics, and drive investment in rural infrastructure. By reducing reliance on imported edible oils and promoting domestic value addition, it can also improve Pakistan’s trade balance. Finally, building a strong branded presence for Pakistani desi ghee globally can elevate the country’s food exports to new heights and diversify its export portfolio beyond traditional commodities.
Desi ghee represents a strategic opportunity for Pakistan to leverage its dairy strengths, align with global market trends, and drive inclusive economic growth. The pathway is clear: formalize the dairy value chain, invest in integrated processing ecosystems, empower livestock owners through fair value sharing, and aggressively position Pakistani desi ghee in global markets. With visionary policy support and coordinated action across public and private stakeholders, Pakistan can transform desi ghee from an underutilized heritage product into a global export champion.
The writer is a financial expert and can be reached at jawadsaleem.1982@ gmail.com. He tweets @JawadSaleem1982