ISLAMABAD: Local production of powdered milk in Pakistan is non-significant and there is a need for more focus and investment to increase its production to discourage reliance on imports.
Federal Minister of National Food Security and Research Syed Fakhar Imam said this on Monday during a meeting with a delegation that led by Ambassador of Netherlands Wouter Plomp called on him.
The delegation comprised global leadership of Frieslandcampina NV, which is the largest dairy company in the Netherlands. It also owns 51% of Engro Foods Limited.
The delegation included CEO of Frieslandcampina NV Hein Schumacher, President of Frieslandcampina NV Roel van Neerbos and Managing Director of Frieslandcampina Engro Pakistan Ltd Ali Ahmed Khan.
Imam said that during the last two years, a total of 88 million tonnes of powdered milk was imported by the private sector, worth $160 million. He said that around 6-10 percent of total gross milk production of the country is being processed in the country which is inadequate.
He said that one of the main reasons for low production of processed milk dairy products is the imported costly packaging material. Local production of packaging material will improve and enhance the affordability and consumption of processed dairy milk products in Pakistan.
The locally produced packaging material will be less expensive as compared to the imported material. Moreover, locally manufactured packaging material can also be exported in the regional and international markets, he added.
Imam said that Pakistan’s estimated annual gross milk production was 63.7 million tonnes during 2020-21. He said that the contribution of milk in the national economy can be gauged by the fact that the annual value of fresh milk exceeds the combined annual value of four major cash crops like wheat, rice, maize and sugarcane. Around 6-10 percent of total gross milk production is being processed by 30 milk/dairy processing plants including Engro Foods Limited.
Hein Schumacher said that the dairy sector can play a critical role in eliminating malnutrition. He said that the dairy sector in Pakistan has huge potential for foreign direct investment by companies like Frieslandcampina NV. He informed the minister that Pakistan–Netherlands Dairy Development Centre will be developed to help the public sector and the private sector in enhancing the productivity of the dairy sector of Pakistan.
Hein said that Frieslandcampina NV is keen to leverage its extensive dairy experience spread over 150 years to collaborate with the government of Pakistan for taking the dairy sector forward.
Separately, the same delegation called on Federal Minister for Science and Technology Senator Shibli Faraz. The focus of the meeting was to highlight the role of the dairy sector in the economy of Pakistan and opportunities for foreign direct investment for the country.
The ambassador thoroughly explained the extensive experience of the Netherlands in dairy and livestock. Moreover, he explained how this experience of 150 years could be utilised by Pakistan for the development of the dairy sector.
Shibli Faraz said, “We want the benefits of technology to reach common man and improve their quality of life. So, we are interested in an extensive dairy development programme to benefit our people and farmers.”
