Senior Vice Chairman of the Businessmen Panel of FPCCI Mian Zahid Hussain and Presidential Candidate of BMP-PBG alliance Abdul Rahim Janoo have asked the government to streamline the dairy sector so that it can play more effective role in the economy.
Even with huge potential the dairy sector remains stuck in problems, operating mostly in informal sector with very little incentive to grow on commercial lines, they said.
They said that Pakistan is the world's third largest milk producer with over 54 billion liters of production but only 3 to 5 percent of the output is marketed through proper channels.
The remaining milk is provided to local consumers catering for their needs but with no assurance that the milk is safe to use or not, they added. They said that around 10 million families are linked to the milk business but only 0.1 percent farmers have herd of more than 50 animals per farm. The dairy sector contributes more than the crop sector but policymakers have always remained concerned about the later ignoring the growing daily sector, they said.
The interest of investors has misplaced resulting in neglect able investment in dairy farms due to issues linked to the authorities. Price of fresh milk is higher than the powdered milk and its production cannot keep pace with demand therefore government is encouraging import of powdered milk, they added.
The global demand for dairy products is set to rise by 36 percent by 2024 owing to a growing population, urbanisation and increase in purchasing power of middle class. This demand, mostly in emerging and developing countries is unlikely to be met by locally produced milk, the business leaders further added.
Abdul Rahim Janoo, while talking to the leaders/members of the Pakistan Dairy Association, assured them that after winning the FPCCI Election, he will work for the betterment of Pakistan Dairy Association and resolve their issues on priority basis.