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Pakistan's Dairy Industry Overview

Pakistan is a powerhouse in dairy production, ranking as the third-largest milk-producing nation globally. The dairy industry is a crucial part of Pakistan's agricultural landscape, providing countless employment opportunities and contributing significantly to the nation's economic fabric.

Milk Production and Processing

With approximately 49.6 million dairy cattle, Pakistan produces an impressive 42 million metric tons of milk annually. Despite this substantial production, only about 5%, roughly 2.1 million metric tons, is processed through formal channels, targeted primarily at urban centers through organized distribution networks.

Cheese, Milk Powder, and Whey Production

Annually, Pakistan produces around 10,000 metric tons of cheese. Additionally, the country generates about 160,000 metric tons of milk powder and 20,000 metric tons of whey, products that are preferred for their longer shelf life and versatile applications in various food products.

Key Dairy Plants and Farms

Prominent enterprises in the dairy processing sector include Engro Foods, Nestlé Pakistan, and Haleeb Foods, which are instrumental in ensuring the widespread distribution of dairy products across the nation. Major dairy farms like JK Dairy Farms and Nishat Dairy (Pvt) Ltd. are vital in supplying milk for processing and commercialization.

Exports and Imports

Pakistan exports approximately 40,000 metric tons of dairy products annually to neighboring regions and the Middle East. Concurrently, the country imports around 50,000 metric tons of value-added dairy products, including cheese and flavored milk.

Significant Dairy Market Events

In recent events, Pakistan has collaborated with Italy to introduce cutting-edge dairy processing technologies, aiming to improve product quality and processing efficiency. These initiatives, led by Federal Minister for National Food Security and Research, Rana Tanveer Hussain, focus on joint ventures and knowledge sharing to enhance the country's dairy capabilities. In 2024, there was a notable threefold increase in dairy imports from Belarus, indicating strengthened agricultural trade ties between the two nations. However, the introduction of an 18% general sales tax (GST) on packaged milk presents substantial challenges for the domestic market.

At the Dairy Olympics, Andrey Dvoychenkov, General Manager for the Arabian Peninsula & Pakistan at NielsenIQ (UAE), emphasized the dynamic growth and international cooperation within Pakistan's dairy sector. Additionally, a high-level Pakistan Dairy Association delegation met with Federal Minister Ahsan Iqbal to discuss the implications of the new sales tax on packaged milk and the urgent need for industry reforms.

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

Modified: 2025/04/30


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