Daily Times

KARACHI: There is sheer possibility for Pakistan to earn over $30 billion from exports of the dairy products on more than one count, sector people remarked.

Pakistan has an edge over Brazil to export its milk in the international market at a much lower price. Iran, China, Malaysia, The Philippines, Sri Lanka, Bangladesh, Indonesia and India are budding destinations where the country’s produce can make powerful inroads, they opined.

The milk produced in Pakistan is considered to be one of the best in the international market. More than 6 billion people use milk and milk products worldwide and production stands around 864 million tonnes.

The leaders witnessed an increase in production during 2016-2017 is United States, China, Pakistan and Brazil.

A number of foreign company manufacturers or on terms of joint ventures with local stakeholders are functioning in Pakistani.

There is also a need that government authorities should provide taxation and other incentives for exports besides the environment for milk production and processing should also be conducive.

Being the third largest producer of milk in the world, Pakistan’s dairy industry produces more than 46 million tonnes of milk annually in both loose as well as Ultra Heat Treated (UHT) form, pasteurized, powdered and condensed milk, butter, yogurt, cheese, cream and butter oil.

In the country, with the growing consumption of milk, new dairy plants are being installed through joint ventures with non-government organizations. More than 45 milk processing units are producing packed milk.

This sector accounts for nearly more than 11 percent of the gross domestic products. In recent years, net foreign exchange earnings from the livestock sector was nearly Rs 52 billion, which accounted for 11.8 percent of the overall export earnings.

There is a need to formulate livestock farming on the latest technology as more than 60 percent is not being doing so on a scientifically level.

The need of the hour is to put in place concrete policies for enhancing competitiveness and export potential in livestock and dairy products, and to provide benefits to the industry that will encourage growth.

The processed milk prices are continuing to go up and similarly, the price of fresh milk is also on rise.

It is said that monthly household expenditure on milk is nearly 23 percent, far more than on flour that stands 13.

Thus price hike has an adverse effect on exports as production companies come under distress to offer competitive pricing to buyers abroad.

Efforts at the government level should also be accelerated by making better policies in order to bring the diary sector in line with the dairy sector of Australia and New Zealand.

Extension support to the local industry by implementing exporter and investor-friendly policies, initiatives are imperative at a government level.

In the United States, Canada and United Kingdom milk has remained a subsidized consumers’ commodity but in Pakistan absence of this facility is one of the reason for higher consumer prices of all sort of milk.

However, despite growth and being one of the world’s largest producers of milk Pakistan is still a net importer of dairy products.

Members of the Pakistan Dairy Association said that with the right support, Pakistan can be an exporter of milk and dairy products, and a major player in the global dairy industry.

Only more than 8 percent of milk currently sold is packaged and with an overall rise in inflation undue taxation on produce from farm to production industry should be rationalised or withdrawn.

Domestic and foreign investment in dairy farms and the dairy processing sector in Pakistan amount to more than $870 million over the last five years.

There are 9 million people associated with the dairy industry in Pakistan and working together with the private sector, the government can play an important role in enabling dairy industry to reach its maximum potential.