Pakistan dairy sector expecting $1.5 billion foreign investment: PDA chief

December 11, 2019: Pakistan, the world’s third-largest milk producer, is expecting $1.5 billion in mainly foreign direct investment (FDI) in its dairy sector as the country ramps up marketing efforts for pasteurized milk, the chairman of the Pakistan Dairy Association (PDA) said.

Pakistan produces more than 59 billion liters of milk annually, according to the Economic Survey of Pakistan.

“The share of processed milk in the country is only 5 percent at present which shows huge investment potential, especially in the processing and supply chain.

In the last five years, the industry has attracted a $1 billion investment. With even 1% growth, we are looking at least $1.5 billion FDI that we can bring into Pakistan,” the chairman of PDA Sadiq Monnoo said in an interview with Arab News.

“Due to a lack of cold supply chain in the country every year, 11 to 12 billion liters of milk goes wasted that can be preserved with supply chain management,” Monnoo said.

At present, Monnoo said, two Turkish companies were in the process of bringing operations to Pakistan.

“A Turkish company is coming to Pakistan while another has signed a memorandum of understanding with a Punjab based dairy farm,” he said.

SÜTAS, the Turkish dairy giant signed an agreement with Pakistani multinational conglomerate, to start their dairy business in Pakistan in October 2018.

The PDA chief also stressed on better marketing Pakistan’s dairy sector potential to Gulf countries.

Still, milk processors hope that an ongoing focus on the marketing of pasteurized milk will create more opportunities and shares for processed milk, and revenue for the government.

“Legislations for pasteurizing milk are being stressed while food authorities in Punjab and Sindh are active against adulterated milk sellers. In the coming days, selling loose milk will be difficult,” Monnoo said.

APP