With Pakistan ranked 11th in high food security index, the government needs to step up its efforts to ensure growth in farming sector, which employs roughly 40 percent of the total population. There are many areas within the agriculture sector that are highly untapped; among them is the dairy commodity that accounts for 25 percent of total farming output and about 5 percent of the GDP.
The country is ranked as the 3rd largest milk producer in the world, but surprisingly, it has no ranking in the dairy export market. The main reason for low growth in tradable milk products is low ratio of milk delivered, which is around 19 percent. Likewise, only 9 percent of the milk is processed and converted into tradable form.
Following actions should be considered by the policymakers of upcoming dairy development framework. Facilitate dairy farmers with access to milk collection and chilling centers and modernise milk processing units. This would increase milk preservation, as a lot of it goes to waste, and help female dairy workers - a huge majority in the industry - who own just a small herd of cattle.
Educate farmers about live stock health management, provide training regarding animal feed and food hygiene practices, to help increase milk yield per cattle, which is very low in Pakistan. One New Zealand dairy animal produces as much milk as three dairy animals in Pakistan, while one American cow produces as much milk as seven cows in Pakistan, due to good management practices and appropriate animal feed.
Study and adapt the dairy model of New Zealand - the largest milk exporter which has achieved high competitive advantage in producing dry milk. This can help Pakistan tap the potential of exporting raw milk export, growing at the rate of 20 percent per annum, according to formal estimates. On a related note, streamline value chain, to reduce both cost of production and the cost of distribution to make Pakistani dairy goods more competitive in international market.
Finally, increase spending on research and reap the lucrative returns on agricultural investment which can go as high as 57 to 65 percent, according to USAID. Given that Pakistan's expenditure on agriculture research is 30 percent lower than Bangladesh, India and Sri Lanka, according to an estimate, there is surely plenty of room to invest in the sector. Focusing on dairy will not just help the country diversify exports but also help lower unemployment. According to a USAID study, 3 percent growth in dairy output can create about 0.9 million new jobs.
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