Federal government is likely to tighten the screw on local milk processing industry which allegedly is selling low priced whiteners instead of fresh packed milk, well informed sources in Ministry of National Food Security and Research told this correspondent.
Pakistan Dairy Association (PDA), a platform of local and multinational milk processing and marketing companies has formally declared selling imported milk powder as Ultra Heat Treated (UHT) packed milk instead of fresh milk.
According to sources, PDA admitted indulging in practice of selling milk powder as packaged milk in a letter written by its Chairman to Federal Secretary Ministry of National Food Security & Research. Faisal Imran Hussain Malik, Chairman, PDA claimed that locally produced milk is not suffice to meet their demand as its supply is affected during the lean season, drought, floods, diseases etc. He added that member companies hardly use fresh milk as it is not only very costly but also of poor quality.
In response, Punjab government expressed astonishment on the admission of PDA, in a letter written to PDA Chairman. Punjab also showed concern over dairy farmers' abject condition, saying dairy farming has become a loss making business for them.
Faisal Imran Hussain Malik insisted that PDA member companies are not responsible for the adverse impact on dairy farmers. "The claim that the increase in import of milk powder has negative impact on the dairy farmers is incorrect. The sole purpose of importing these powders is that the milk production in Pakistan cannot suffice the needs of dairy processing companies. The fluctuation in the availability of milk caused by factors such as lean season, drought floods, diseases etc cause reduction in the volume of milk and processing companies then have to import the milk powders to fulfill their production requirements. If the local supply of milk is adequate, the import of these powders would decline significantly. In sharp contrast to the neighbour country, India, which is a net exporter of milk, Pakistan faces shortage of milk supply and this is a reason why processing companies have to import expensive milk powders to compensate for the less volume collected through dairy farms," he said in his letter written on May 18, 2015.
PDA Chairman claimed that imported skimmed milk powder is far better than locally produced fresh and powdered milk.
"It is a fact that the milk available in the local market is of lower quality and adulterated milk is supplied by most of the milk suppliers. This is the reason why imported milk powders are consumed by processing companies," he added.
Most of the dairy farmers in Pakistan are inefficient as evident from the comparison with India and are selling milk at higher rates and claiming that they are in loss," Malik said.
Pakistan Dairy Association (PDA) also threatened to increase milk price if duty is increased on import of skimmed milk and whey powders despite the fact that processors are importing milk powder at one of the lowest rates. "Increasing the duties would not increase the milk yield in Pakistan and would rather inflate the cost of the input for dairy processing industries. To offset that increase processing companies will be forced to either reduce the price of milk procurement or increase the price of final product. This would lead to food inflation that will go against the goals of sitting government," he observed.
"PDA rejects local milk on pretext of being sub-standard and of poor quality, on the other hand PDA Chairman threatened increasing food inflation in case levy is increased on import of milk powder; and arguing that to offset increase in import duty on milk powder, processing companies will be forced to either reduce the price of milk procurement or increase the price of final product. This would lead to food inflation that will go against the goals of sitting government," he said.
While responding to the PDA letter, the Punjab government's Secretary Livestock & Dairy Development Punjab stated that Pakistan Dairy Association disclosed shocking revelations in its letter, which was addressed to federal Secretary Ministry of National Food Security and Research.
The milk packing industries, as per claim and public perception, are engaged in self-collection of fresh milk and pack the same for consumption of the general public, he said adding against this claim the letter of PDA reveals that the packed milk is not the outcome of fresh milk. In the same context, he maintained, the locally produced milk as described by PDA as of poor quality.
Secretary Livestock said that the confusion prevailed when the PDA referred that these milk processing companies were basically for the betterment of the dairy industry ie the poor dairy farmer. This claim appears to be contradictory when we confess and confirm that fresh milk was not accordingly being procured, he said.
As per the figures of Economic Survey of Pakistan and claims of different agencies, Secretary Livestock said only four per cent of milk produced annually could be processed. Contrary to the stance, Pakistan Dairy Association (PDA) points out that Pakistan has a shortage of milk and cannot suffice its own requirements of milk and the same has been made base for import of the whey powder and the milk powder in the country.
Secretary Livestock & Dairy Development Punjab termed the admission and revelation of Pakistan Dairy Association (PDA) a very fresh stance, saying that it however contradicts the very claim of the milk processing industry that it has, in fact, supported the poor farmers by the timely procurement of fresh milk. The ambiguity created needs a thorough probe, he observed.
He asked the PDA member companies to submit details about the quantity of fresh milk along with the source from where fresh milk is being purchased /supplied to each unit compared with the production and sale of the units.
He also asked them to provide district-wise data of the milkmen and collection points of fresh milk being procured by the processing and market industry; and small and large dairy farmers from whom the milk is being procured along with the rates. He asked PDA to submit data relating to quantity of fresh milk procured, processed and packed by each unit.
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