Dairy Farming in Pakistan: Scope and Feasibility

Dairy farming in Pakistan is an occupation mainly held by the private sector at various scales, both in urban and rural areas. This sector is generally characterized as fragmented and subsistence. More than 20 dairy plant units in Pakistan; their main products include pasteurized milk and UHT (Ultra High temperature) milk.

dairy farm

If we talk about generally, there are more than six thousand dairy farms in Punjab, Pakistan. And other dairy farms have 10 to 500 high-yielding cow breeds in Pakistan. According to a 2019 survey, milk and milk-related products in Pakistan are approximately 46.99 million metric tons of milk on average.

Other than this, Pakistan is the 4th largest country in dairy production. Averagely 80% of milk is produced at a small scale in rural areas, 15% is produced in peri-urban and almost 5% in urban areas. Thus, dairy farming is one of the leading businesses in Pakistan.

If we talk about the significant value of dairy farming in Pakistan, dairy farms added approximately 55% in the agriculture sector and almost 11.5% of the National GDP recorded in 2010-2011. It also consists of more than 8.5% of the exports values of Pakistan trading.

Scope Of Dairy Farming:

The dairy industry in Pakistan is one of the rising industries; as I have mentioned earlier, almost 55% of dairy farms are added in the agriculture sector.

Thus you can assume the scope and value of dairy production. According to dairy production, Pakistan is the 4th largest country, but if we work correctly in this field, our youngster’s study or work in other areas, such as engineer, doctor, etc.

The role of dairy farming can be judged by the fact that more than 35 million people in Pakistan are engaged in dairy production, having 2-3 buffaloes/cattle, 6-10 sheep/goats, and having more than 20-25% of income from it. Thus you can also start a dairy business from one or two animals and then gradually increase them within the rate of profit.

dairy farm

Feeds For Dairy Farming:

Dairy farming is an occupation that fulfills the need for milk production. Thus, for producing the maximum amount of milk, animals also need to have a proper and best feed to become healthy and produce the maximum quantity of milk.

The most common healthy feeds used for milk animals includes these feeds:

  • More than 50% of cattle feed into the grass for milk production. The grass is easy to access and reasonable feed for animals.
  • Pasture grass, fodders, and silage are also important feeds for milk-producing animals and are required to meet the daily caloric requirements of animals.
  • Dry forages and high-quality Alfalfa Hay are also suitable for animals.
  • We can have these feeds by grazing, using feeding equipment, or a combination of both.

Export Value Of Dairy Products:

According to the research, Pakistan is ranked in the Top 5 largest dairy-producing countries.

The export value of dairy production in Pakistan, such as milk, has approximately reached $30 billion, while the export value of a fiscal year in 2020 was up to $680 million.

So, Pakistan has set its name on the list of dairy product trades. Other than this, according to the research of the United Nations COMTRADE database,

Pakistan exports of dairy products, such as milk, honey, eggs, and other edible products to Saudi Arabia, were $US 13.86 Million during 2020, an excellent export value in international charts.

Feasibility Of Dairy Farming:

Dairy farming in Pakistan is a hot topic, and different people like to proceed with this business but fail. One of the most valid reasons for the failure in the dairy farming sector is the lack of proper management and information.

The dairy farm is a long-term project and requires proper management and skills to proceed with this business. If we talk about the feasibility and investment report, small-scale dairy businesses usually can start from Rupees, 10-20 lacs, and proceed up to 1-10 crores in large-scale business.

The feasibility report of a small dairy farm having 35 cattle can be. 415-420 liters of milk produced by 35 cattle in a day, while the average price of one liter is 60 rupees. Thus total income per day is almost 24960-25500, while the total expenditure cost per day is nearly 13000-14000. Hence the net profit of practically 11500 per day or 345000 per month is a huge deal.

Government Subsidies/Grants For Dairy Farming:

As we know, Dairy farming is one of the leading sectors in Pakistan. Thus, the government also contributes to this and has produced different schemes, plans, and projects for dairy farming.

The government of Pakistan passes different kinds of loans and subsidies; here, we will discuss some of them:

Dairy Development In Pakistan:

There are various plans for grants and loans of dairy farming, livestock at different levels,

According to a scheme, there is a 25% outlay as a back-ended subsidy for livestock in Pakistan.

Banks:

Different governmental banks provide different grants for small-medium dairy farms. Such as NADRA, Bank Of Punjab, and other national sectors. There are various applications and eligibility criteria for having these grants.

Dairy and Meat Finance By MCB Pakistan:

The plan is aimed to improve dairy and meat production in Pakistan. Thus different forms of grants are generated to establish the dairy farms. Farmers can have other loans plans for purchasing different animals and other equipment for dairy farm production.

Dairy And Livestock Finance By HBL Pakistan:

Cash loans in this project are given to deserving farmers under specific terms and conditions for purchasing animals, the workplace, and other things such as feeds, etc., for dairy farms.

Government Subsidies:

The government also offers 40% off machinery for boosting and promoting the livestock business in Pakistan. This helps farmers to purchase machinery at a low cost and help to increase their dairy production.

Agriculture Schemes, NBP Pakistan:

The national bank of Pakistan also generates different subsidies in agriculture sectors, such as for poultry farms, crops, livestock, and dairy productions.

Nestle, DRDF Dairy Projects:

Through its support to the Dairy and Rural Development Foundation, Nestle Pakistan supports and guides the rural dairy farmers and provides different small and long-term loans for proceeding with their business.

Nestle Loans:

More than 30 million collateral-free loans have been distributed to more than 150 dairy farmers who supply milk to Nestle Pakistan. Nestle Pakistan trains more than 38000 farmers for the dairy farm production business through different training sessions and meetings in different villages of Pakistan reported in 2017.

Challenges For Dairy Farming:

There are different challenges and problems which take place in the dairy industry of Pakistan.

The most important thing to consider is the lack of proper information.

Dairy farming or the dairy industry is a broad field, having tremendous scope, but unfortunately, the scope of dairy farming at the educational level is little or up to zero.

Students in Pakistan consider dairy production as zero level business and consider it a farmer’s job.

But the reality is totally opposite, and dairy farming is one of the leading occupations that can give you 100% profit at a certain time.

Here I am going to list down some of the specific problems of dairy farming in Pakistan:

  • Poor Availability Of Nutrients:

Healthy nutrients are one of the essential components to increase milk production values. Thus lack of proper nutrients can be a cause, but most of the time, people used to import the nutrients for their cattle.

  • Health Issues Of Animals:

Similarly, humans, animals also have health problems, so lack of proper veterinary facilities can cause the life of animals in danger. These health issues can cause severe effects on milk production.

  • Issues Of Peri-urban Dairy Colonies:

Urbanization itself has many problems; thus, the creation of dairy farms in peri-urban colonies can cause different issues.

  • Lack Of Value Addition Facilities:

Value additions are significant for maintaining and producing high-profit rates and help set profitability at a maximum level of dairy production.

  • Potential Threats Of Livestock Breeds:

Potential Threats to livestock include such as environmental degradation, climate change, diseases and pests of animals.

  • Institutional Constraint:

It means legal and other restrictions and administrative procedures and market transactions. These can also create different problems for starting dairy productions.

  • Marketing Related issues:

As I have mentioned before, there is no proper marketing of dairy production at the educational level, which is also the main problem for dairy production.

  • Lack Of Proper Knowledge:

Most people start dairy production without proper knowledge, and it creates a significant loss at a large scale. Thus adequate knowledge for the dairy farm business is essential to start it at a considerable level.

  • Poor Management Plans:

Inadequate management plans to start dairy production are also an issue.

The dairy farm is a long-term occupation or requires proper management plans and strategies.

How To Start Dairy Farming Business In Pakistan:

Before starting the dairy farms business in Pakistan, you must know about this field correctly. For this purpose, you can survey different leading or small dairy farmhouses.

For starting this business, you need to know about the breeds you will proceed with for milk production. Thus you should know about the top milk breeds nationally or internationally so that you can maximize milk-production quantity.

There is a list of some things you really need to consider before starting a dairy farmhouse business.

So, let’s discuss them briefly.

  • Major Equipment:

Equipment such as machinery, water tubs, feeders, and other cleaning tools are first needed.

You should have proper equipment before starting the business so that you should not have any problems.

  • Animals:

More than ten animals at the start of business are enough, but make sure to have healthy breeds and the most efficient breeds for milk production. After starting the farmhouse with ten animals, you can add animals gradually after profitability.

  • Shed:

A proper shed with proper infrastructure is required for keeping animals.

There are different styles and designs of sheds according to the number of animals you have. Fans and other vital things to set the proper temperature are also required to place in sheds.

  • Land:

The land of almost 30-50 canals would be required to start dairy farms, including sheds, proper water arrangement, the proper place for feed, and the area to dump.

  • Employees:

On average, one employee is enough for almost ten animals. So you can hire employees according to the number of animals you have. Employees should be trained enough to look after animals and can adequately feed them at the appropriate time.

  • Marketing:

As I have discussed before, marketing is also an essential tool to notify while starting a dairy farm business. Your land should be near the market, and different buyers should know about your farmhouse to purchase milk from you.

  • Food:

Specific and proper food for animals is also important to have. Healthy nutritional food is required for the maximum quantity of milk production. Food includes grass, alfalfa, hay, and other nutrient seeds for animals.

  • Freshwater:

Freshwater availability is an important thing for animals. They need more than 500 liters of animals per day. And may need water anytime. So you should have a proper arrangement of 24 hours water availability.

Conclusion:

Dairy farms are one of the top business fields of 2020.

As I have discussed in this article, there are different things to notify while starting a dairy farm business.

According to the milk production Pakistan produces annually, there is a need to promote this business so that Pakistan Can become the number one country globally for the production of dairy products.

We are currently at top 4th position, and export value is pretty good, but we need to increase this business sector gradually.

All the essential points to consider about dairy farming in Pakistan have been discussed in this article. Thus you can take it as a detailed, informative guide, and before reading it thoroughly, you can definitely own your dairy farming business.

All you need is to understand the problems and challenges while starting this business so that it cannot create any future situation, or you can easily lead your dairy farming business for long terms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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