Buffalo Milk Production Cost crossed Rs. 300 per Liter, DCFA issued a report
Dairy & Cattle Farmers Association Pakistan (DCFA Pakistan) has issued the cost of buffalo milk production. According to this report, buffalo milk production cost has now exceeded PKR 300 per liter.
Overview of Buffalo Milk Production Cost
The report reveals that the total daily buffalo milk production cost has reached PKR 2,406, while the average milk production is 8 liters per day.
Cost per liter = 2406 ÷ 8 = PKR 300.75
This cost is significantly higher than the officially controlled milk prices, putting farmers under financial pressure.
Allied Dairy – Supporting Buffalo Farming in Pakistan; offering buffalo milk; products
Capital Investment & Depreciation
- Purchase cost of buffalo (including transport, labor, fees): PKR 580,000
- Resale value after 270 days: PKR 290,000
- Mortality cost (4%): PKR 23,200
- Total depreciation: PKR 313,200
- Daily depreciation: PKR 1,160
Depreciation alone accounts for nearly 48% of total daily cost. It indicates the value of animal and its productive lifespan.
Feeding Costs
- Compound feed: PKR 720
- Wheat straw: PKR 256
- Green fodder: PKR 72
- Total feeding cost: PKR 1,048 per day
Feeding contributes around 43% of total cost. Any fluctuation in feed prices directly impacts milk production cost.
Livestock Associations, Dairy associations, Poultry associations and Veterinary Associations
Management & Operational Buffalo Milk Production Cost
- Labor & supervision: PKR 85
- Electricity & fuel: PKR 20
- Water: PKR 30
- Medicines: PKR 25
- Farm rent: PKR 30
- Miscellaneous: PKR 8
- Total: ~PKR 198 per day
Although relatively smaller (about 8% of total cost), these expenses are rising steadily and may become more significant over time.
Economic Implications of Buffalo Milk Production Cost
- Shrinking Profit Margins – Farmers are operating at a loss, with production cost exceeding PKR 300 per liter and controlled market prices below this level.
- Feed Inflation Pressure – The increased prices of feed, fodder, and straw are the primary factors of increased production costs.
- Productivity Challenge – If milk yield per buffalo increases from 8 liters to 10–12 liters, the cost per liter can be significantly reduced. This highlights the importance of genetics, nutrition, and herd management.
Islamabad Fresh Milk Association; IFMA
Dairy Sector Under Stress and Demands
The DCFA has expressed serious concern over the situation, stating that:
- Dairy farming is becoming economically unsustainable
- Farmers are being forced to sell milk at artificially low prices
- Continued pressure could lead to a severe milk shortage in the country
DCFA Pakistan has demanded to align milk prices with the actual milk production cost or deregulate it. Otherwise, the government should support the farmers and offer a subsidy.
