Pakistan's Dairy Market Overview

Pakistan ranks as the third-largest milk-producing country globally, playing a crucial role in both its economy and the global supply of milk. The dairy industry is integral to the country's agricultural activities and provides employment to millions.

Milk Production and Processing

With a dairy cattle population of approximately 49.6 million head, Pakistan generates over 42 million metric tons of milk annually. Despite this vast production, only about 5%, estimated at 2.1 million metric tons, is formally processed. This processed milk primarily caters to urban areas through organized distribution channels.

Cheese, Milk Powder, and Whey Production

Pakistan's cheese production is relatively low, around 10,000 metric tons per year. However, the production of milk powder and whey is significantly larger, with about 160,000 metric tons of milk powder and 20,000 metric tons of whey produced annually. These products are in greater demand due to their longer shelf life and widespread use.

Key Dairy Plants and Farms

Notable dairy processing enterprises include Engro Foods, Nestlé Pakistan, and Haleeb Foods, which are central to the distribution of dairy products nationwide. Prominent dairy farms such as JK Dairy Farms and Nishat Dairy (Pvt) Ltd. are essential in supplying milk for processing and commercialization.

Exports and Imports

Pakistan exports approximately 40,000 metric tons of dairy products annually, primarily to neighboring countries and the Middle East. The nation imports roughly 50,000 metric tons of value-added dairy products, including cheese and flavored milk, each year.

Significant Dairy Market Events

Efforts are underway to collaborate with Italy to leverage advanced dairy processing technologies and expertise, aiming to enhance product quality and production efficiency. These initiatives, supported by the Federal Minister for National Food Security and Research, Rana Tanveer Hussain, include joint ventures and knowledge exchange programs to strengthen Pakistan's dairy industry.

In 2024, Belarusian dairy exports to Pakistan increased threefold, marking significant growth in agricultural trade between the two nations. Additionally, the implementation of an 18% general sales tax (GST) on packaged milk has become a major concern for the country's dairy sector.

Sources: Pakistan Bureau of Statistics, Food and Agriculture Organization (FAO), Local news reports

Modified: 2025/03/23

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