SMEDA has developed a new Research Report on "Cheese: Value Added Dairy Product - Prospects for Pakistan"
Pakistan ranks among top five milk producing countries globally. Dairy and livestock sector consists of approximately 80 million heads of cows and buffaloes and 100 million heads of sheep and goats, producing 53 million tons of milk besides producing other products such as meat, skins etc. Livestock sector contributes almost 58.6% of the value added products in agriculture and 11.6% to the GDP which depicts high growth in agriculture is expected to be led by the dairy and livestock sector. Within the livestock sector, milk is the most important commodity with demand growing at 10-15% annually, yet production increasing by only 3–4% per annum. Due to the milk supply gap of 3.5 billion litres in 2015-16, value added products such as cheese, butter and powdered milk are being imported to meet rapidly rising domestic demand.
Despite the fact that Pakistan’s ranking is amongst the highest in the region and the world, the country has not been able to make efficient use of resources to fill up its demand and supply gap for dairy value added products, hence the focus is on import of these products rather than exporting to the world market. Some of the main reasons for the gap are efficiency losses in production, lack of awareness in farmers and producers communities for increasing milk yield, limited integration within the dairy value and supply chain, policy issues and resource constraints to implement initiatives at macro level.
Development of the integrated dairy sector to produce value added products such as butter, whey, yogurt, cheese etc., compliant with international food safety standards is important to enhance trade opportunities for Pakistan in the global market for export. Similarly, by exploiting the potential and producing value added products within country may reduce import of these products from the world.
This study aims to highlight supply and trade related information in different categories of cheese only. An assessment of Pakistan’s cheese production and trade structure has been conducted in consultation with the stakeholders in the public and private sectors to evaluate the performance of the sector, applicability and relevance of the existing situation to foster growth and obtain viable investment options that can be recommended to emerging as well as existing entrepreneurs and relevant institutions for inclusion in their vision and agenda.
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