Pakistan’s livestock sector is facing a challenge that deserves serious attention. According to a recent policy paper issued by the University of Veterinary and Animal Sciences (UVAS), Lahore, the import of dry milk has doubled over the last three to four years.

The policy paper argues that the growing use of imported dry milk in packaged milk, bakery products, and other dairy products, along with the increasing sale of milk-like products under the names of dairy liquid and tea whitener, is reducing both the demand and value of locally produced fresh milk. As a result, Pakistan’s dairy farmers are suffering. The major reasons identified are the low international price of dry milk and the comparatively low import duties imposed locally.

کمپنیاں ڈیری فارمرز کو کیسے تباہ کرتی ہیں؟ پاکستان کے ڈیری سیکٹر پر کارپوریٹ حملے کی تفصیلات

Livestock Has Never Been a True Priority

The livestock sector has rarely been treated as a government priority. It may surprise many people that despite the remarkable work carried out in Punjab’s livestock sector during the last three years, the sector still does not enjoy the policy priority it deserves.

As a consequence, the voices of the real stakeholders often remain unheard, while those whose interests may not align with the long-term development of the sector continue to influence policymaking and protect their own interests.

The Backbone of Pakistan’s Dairy Economy

Pakistan’s dairy industry is built upon millions of livestock farmers.

These include small household farmers owning just two or three animals, as well as traditional commercial farmers maintaining herds of thirty or forty animals. Together, they form the backbone of Pakistan’s food security.

Whenever the future of Pakistan’s dairy sector is discussed, one report deserves special attention—the dairy sector study by Professor Abid Burki of the Lahore University of Management Sciences (LUMS).

According to Professor Burki, sustainable development of Pakistan’s dairy sector depends upon protecting and supporting both small livestock owners and traditional commercial dairy farmers.

A Vision That Never Materialized

The original vision was promising. It was expected that large investors would purchase milk from small farmers, process it into packaged milk and dairy products, and create a reliable marketing chain. Milk drying plants were also established to process locally produced milk. Unfortunately, this vision did not materialize as intended. Instead, imports of dry milk continued to increase year after year.

Supporting local dairy farmers requires ensuring that they receive fair prices for their milk. However, fair prices are only possible when locally produced milk retains its market value.

When millions of tons of inexpensive imported milk powder are mixed with water and marketed as quality dairy products, the value of fresh local milk inevitably declines. In such circumstances, both small livestock farmers and even corporate dairy farms struggle to compete.

کھلا دودھ اور قید دماغ، ویٹرنری یونیورسٹی کا سروے ۔۔ مضامین نو، ڈاکٹر محمد جاسر آفتاب

A Growing Nutritional Concern

International organizations continue to report alarming levels of child malnutrition in Pakistan.

Milk and dairy products are among the most important components of children’s diets. Therefore, the quality of these products is directly linked to public health.

Unfortunately, many dairy products, including ice cream and similar products, are manufactured after removing natural milk fat and protein and replacing them with vegetable fats and other non-dairy ingredients.

At the same time, dairy liquids and tea whiteners are increasingly replacing real milk, particularly in economically disadvantaged communities.

If dairy farmers continue to lose market value and genuine fresh milk is not promoted, these nutritional challenges are likely to become even more serious.

Recommendations from the UVAS Policy Paper

The policy paper issued by the University of Veterinary and Animal Sciences has presented several recommendations to strengthen Pakistan’s dairy sector.

These recommendations include:

• Increasing customs and regulatory duties on imported dry milk from 45 percent to 100 percent.
• Ensuring that imported dairy products comply with veterinary and public health standards.
• Restoring zero-rated sales tax status for milk and milk products.
• Treating the livestock sector on the same footing as the agriculture sector and extending similar incentives and facilities.
• Reducing or abolishing duties and taxes on dairy sector inputs such as livestock feed and dairy machinery.
• Allowing milk and meat prices to be determined according to the principles of demand and supply instead of administrative price controls.
• Launching a nationwide public awareness campaign to educate consumers about the difference between genuine and imitation dairy products.
• Developing a comprehensive long-term dairy policy in consultation with all stakeholders.

Similar Recommendations from Stakeholders

A few days ago, similar proposals were presented to the Federal Government by the Punjab Livestock Department, the Karachi Dairy Farmers Association, and other stakeholders.

While some groups recommended increasing import duties on dry milk by 150 percent, others demanded a complete ban on dry milk imports.

A Call for Stronger Protection of Local Dairy

If Pakistan genuinely wishes to ensure the quality of milk and dairy products, stronger measures will be required.

One proposal is to impose a complete ban on the import of dry milk and require milk packaging and dairy manufacturing companies to procure milk directly from locally raised dairy animals before processing and marketing their products.

To make such a system transparent, every dairy company should be required to disclose:

• The quantity of milk it has processed.
• The source from which that milk was obtained.

Only through such production audits can genuine, high-quality milk be ensured for consumers.

Otherwise, the continued dominance of imitation dairy products may become the unfortunate reality for future generations.