Pakistan's Dairy Market Overview

Pakistan is one of the largest milk-producing countries in the world, ranking third globally. The dairy sector is integral to the country's agricultural landscape, providing significant employment opportunities to millions and contributing to the economy.

Milk Production and Processing

The country is home to approximately 49.6 million head of dairy cattle, enabling the production of over 42 million metric tons of milk annually. However, only about 5% of this milk, roughly 2.1 million metric tons, is processed formally. This processed milk largely caters to the urban population through structured distribution networks.

Cheese, Milk Powder, and Whey Production

Pakistan's annual cheese production stands at about 10,000 metric tons. The nation produces approximately 160,000 metric tons of milk powder and 20,000 metric tons of whey annually. Milk powder and whey are favored for their longer shelf life and versatility in different applications.

Key Dairy Plants and Farms

Leading dairy processing companies in Pakistan include Engro Foods, Nestlé Pakistan, and Haleeb Foods. These companies are pivotal in distributing dairy products nationwide. Key dairy farms such as JK Dairy Farms and Nishat Dairy (Pvt) Ltd. serve as essential suppliers of milk for processing and commercialization.

Exports and Imports

Pakistan exports around 40,000 metric tons of dairy products to markets in neighboring regions and the Middle East annually. Simultaneously, the country imports about 50,000 metric tons of value-added dairy products, including cheese and flavored milk, every year.

Significant Dairy Market Events

Notable recent developments include collaborations with Italy to integrate advanced dairy processing technologies and expertise, enhancing product quality and efficiency. These initiatives are supported by the Federal Minister for National Food Security and Research, Rana Tanveer Hussain, involving joint ventures and knowledge exchange to strengthen Pakistan's dairy sector.

In 2024, there was a threefold surge in Belarusian dairy exports to Pakistan, marking a significant increase in agricultural trade between the two countries. Furthermore, the introduction of an 18% general sales tax (GST) on packaged milk represents a major challenge for the nation’s dairy sector.

Andrey Dvoychenkov, General Manager for the Arabian Peninsula & Pakistan at NielsenIQ (UAE), shared insights at the Dairy Olympics, reflecting the continuous dynamic and international collaboration in Pakistan's dairy industry.

Sources: Pakistan Bureau of Statistics, Food and Agriculture Organization (FAO), Local news reports. Additional insights from Andrey Dvoychenkov, Managing Director of NielsenIQ for the Arabian Peninsula and Pakistan.

Modified: 2025/04/10

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