By Raza Khan ISLAMABAD, Nov 08 (INP-WealthPK) Pakistan is the fourth largest milk producer in the world meeting its domestic demand despite a host of issues facing its dairy sector. According to the Economic Survey of Pakistan 2020-2021, the gross milk production in the last fiscal year was 63,684 metric tonnes (63 billion litres approximately), while the domestic consumption during the said period was 51,340 metric tonnes (51 billion litres). According to the statistics, due to the lack of processing and chilling facilities, 20 percent of milk goes to waste out of which 15 percent becomes unfit for human consumption due to faulty transportation. The country wastes over 12 billion litres of milk annually. Although this sector has made considerable improvement during the last two decades, the full potential of this sector is yet to be exploited. Another serious issue is that despite being the fourth largest milk producer in the world, Pakistan still imports a few dairy products to meet its domestic demand, spending a huge amount of hard-earned money. Experts believe that the dairy sector has a huge investment potential and the country can earn billions of dollars by encouraging investments and switching from traditional to commercial farming. According to the Pakistan Dairy Association (PDA), one of the biggest challenges facing this industry is the low yield of animals. The available milk is unsafe and of low quality and thus contributes to stunted growth and malnutrition of children costing Pakistan billions of rupees in terms of health and nutrition. Recounting the major problems facing the dairy sector, PDA says the lack of availability of quality milk is due to unplanned and unregulated urbanisation and a reduced number of good animals. Furthermore, the organised dairy sector also lacks a level playing field, as 90% to 95% milk is sold without processing or quality testing, while only 5% to 10% milk is processed and packaged after quality control. PDA suggests that the prime agenda of the government should be to recognise dairy farming as a full-scale industry and offer loans to small farmers through the banking system. Moreover, as packaged milk is regulated and quality assured, awareness campaigns must be carried out for safe and healthy packaged milk. Commercial farming should also be encouraged by providing subsidies, reducing duties, utilities and providing support in the import of vaccines, semen and equipment. In his letter to the prime minister, Chief Executive PDA Dr Shehzad Amin said countries such as Turkey, China, New Zealand and India were an example where governments had invested in the dairy sector bringing astonishing results. “To boost dairy sector development as well as attract foreign direct investment (FDI), the government should grant a 10-year tax break to the dairy processing industry, support and reduce the input cost of farmers and milk processors,” said Dr Shehzad Amin in the letter. Furthermore, the public sector must take the initiative of replacing the low yield animals with more efficient animals. This would ensure an increase in milk production with a lower cost of business as well lesser requirement of space and feed for such animals. The Economic Survey of Pakistan (2020-21) mentions that the government is providing concession on the import of dairy processing machinery and equipment to encourage and promote the establishment of value addition in the country. The government is also focusing on the import of high yielding dairy cattle breeds of Holstein-Friesian and Jersey to enhance milk production besides provision of semen and embryos of high yielding animals for genetic improvement of indigenous low producing animals. The private sector needs to benefit from the concession offered by the government. According to a study conducted by the Lahore University of Management Sciences in collaboration with Tetra Pak Pakistan, more than 40 million people are engaged in raising livestock deriving 30 to 40% of their income. The dairy sector can be a goldmine for Pakistan if its real potential is fully explored with a special focus on the markets, which have a demand and supply gap of milk and other dairy products.