Pakistan's Dairy Industry: A Comprehensive Overview

Pakistan stands as the third-largest milk-producing nation worldwide, a testament to the vital role its dairy industry plays in the country's agrarian economy. This significant sector contributes markedly to the national GDP and offers substantial employment opportunities across the nation.

Milk Production and Processing

With an estimated dairy cattle population of 49.6 million, Pakistan's annual milk production reaches approximately 42 million metric tons. Despite this considerable production volume, only about 5% of the milk, equating to roughly 2.1 million metric tons, is subjected to formal processing. The processed milk is primarily distributed to urban populations through well-structured networks.

Cheese, Milk Powder, and Whey Production

Annually, Pakistan produces around 10,000 metric tons of cheese. Additionally, the country manufactures approximately 160,000 metric tons of milk powder and 20,000 metric tons of whey. These products cater to the demand for dairy items with longer shelf lives and more diversification.

Key Dairy Enterprises

Major enterprises such as Engro Foods, Nestlé Pakistan, and Haleeb Foods are pivotal in ensuring the availability of dairy products across the nation. Notable dairy farms like JK Dairy Farms and Nishat Dairy (Pvt) Ltd. significantly contribute to the supply of milk for processing and retailing purposes.

Exports and Imports

Pakistan exports about 40,000 metric tons of dairy products annually, reaching neighboring regions and the Middle East. To meet domestic demand, the country imports approximately 50,000 metric tons of value-added dairy products, including cheese and flavored milk.

Significant Dairy Market Events

Recent developments in the dairy industry include a collaboration with Italy to enhance dairy processing technologies, supported by Federal Minister for National Food Security and Research, Rana Tanveer Hussain. In 2024, imports from Belarus increased threefold, indicating strengthened trade relations. Discussions have been held with Federal Minister Ahsan Iqbal by the Pakistan Dairy Association concerning the 18% general sales tax on packaged milk. Moreover, the Competition Appellate Tribunal upheld an antitrust decision against major dairy farmer associations in Karachi related to milk price collusion.

Global Impact

Pakistan significantly contributes to global milk production growth, with volumes increasing by about 3% in 2024. This growth is part of the overall 3% increase in Asia's milk production. Similar to India, Pakistan's reported dairy production volumes are often overstated due to the substantial informal sector, which poses measurement challenges. The country has been a major buyer of Iranian dairy products, boosting demand for Iran's dairy exports.

Challenges

The industry encounters challenges such as considerable milk price hikes driven by rising production and transportation costs. In Hyderabad, milk production has decreased to between 400,000 and 500,000 liters per day, from a previous level of around 700,000 liters, leading to the closure of many smaller dairies. Pakistan and the United States have agreed to enhance agricultural collaboration focusing on hybrid and disease-resistant crops, local vaccine production, and livestock breed improvement. The relocation of dairy farms is approved by the Chief Minister of Balochistan, Mir Sarfraz Bugti, to enhance public health and improve the province's livestock and dairy development. The Punjab Food Authority's crackdown on food adulteration in Lahore led to the sealing of a restaurant and two dairy shops, with 84,000 liters of milk inspected, resulting in fines and the disposal of adulterated products.

The Harichand cattle farm in Pakistan's Charsadda district is under official investigation due to significant administrative and operational discrepancies.

Modified: 2026/02/01