Punjab churns out Rs1bn plan to modernise dairy farms

October 20, 2026 (MLN): The Punjab government plans to invest Rs1bn in a two-year dairy mechanisation project that will subsidise modern machinery for 6,400 farmers across all 41 districts,

The aim of which is to cut milk spoilage, raise productivity and strengthen the province’s dairy supply chain.

Under the proposed scheme, the government will bear 60% of the eligible machinery cost and farmers the remaining 40%, with the subsidy capped at Rs500,000 per beneficiary.

Punjab Livestock Department Director General (Production) Dr Muhammad Naeem Kanwar told Wealth Pakistan that Rs461mn has been allocated for the project in the current fiscal year, while the rest is earmarked for subsidy disbursement in 2027-28, APP reported.

He said the initiative targets milk losses caused by inefficient handling, inadequate refrigeration and gaps in cold-chain infrastructure, while reducing reliance on manual labour and modernising dairy farming practices.

Dr Kanwar said the scheme covers 11 categories of machinery and equipment for milk production, handling, processing, storage and farm management.

These include single- and double-cluster milking machines, bucket milking systems, 50-litre milk-cooling cans, milk chillers, heating tanks for yoghurt production, butter churners, semi-automatic packing machines, weighing scales, 13-tonne total mixed ration feed wagons and mechanical cattle crushes.

The project also envisages training and technical assistance to help farmers and relevant personnel use the equipment effectively.

Punjab accounts for about 74% of Pakistan’s total milk production, making better storage, processing and transportation key to reducing waste and raising farmers’ incomes.

The latest agricultural census puts the province’s livestock population at 104.2mn animals, including 31.31mn goats, 29.56mn buffaloes and 26.97mn cattle. Punjab contributes 62% to agricultural GDP and 14.04% to national GDP.

District-wise, Faisalabad has the highest projected allocation at up to 335 beneficiaries over the two years, followed by Rahim Yar Khan, Bahawalnagar, Sargodha and Okara.

Murree has the smallest allocation, while Lahore’s stands at up to 138 beneficiaries.

Under the proposed mechanism, farmers will apply at the tehsil level and, after scrutiny, eligible applicants will be picked through electronic balloting at the district level.

Consultants will also be engaged to finalise machinery specifications, prequalify suppliers, inspect equipment and build the technical capacity of stakeholders involved in implementation.

Dr Kanwar said dairy farming remains a major source of food, employment and income for rural households, particularly small farmers who rely on regular milk sales.

He said most livestock in Punjab is owned by small, resource-constrained farmers, and the project is expected to help make them more economically empowered.

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