The Packaged Milk Industry Marketing Essay
Introduction
According to Dairy Index 2012, Pakistan is the third largest milk producing and consuming country in the world with 64 percent of the country’s population classified as “Deeper in the Pyramid’ (DIP), which represents 60 percent of LDP consumption. The livestock sector alone contributes 11% of the country’s GDP, with an estimated 42 billion litres of milk produced per annum. The total revenue from these dairy products is estimated as US$ 26 billion per annum.
As per the Economic Survey of Pakistan 2009, Pakistan has a herd size of around 63 million animals, which is the 3rd largest in the world. About 35 million people are involved in dairy farming, deriving more than 40% of their total income from livestock. For these farmers, dairy animals provide milk for domestic consumption as well as meagre income through the sale of milk. In rural Pakistani culture livestock is a storer of wealth. It is viewed as important social capital and offers insurance to the owner in times of financial distress.
Pakistan lacks the essential infrastructure that is needed for safe storage and transportation of farm produce. According to the Livestock and Dairy Development Board, 20 percent of the current milk production is lost due to poor infrastructure. Poor research facilities, technological backwardness and lack of processing facilities have resulted in generating fewer jobs and adding virtually no value to its agriculture produce. Of all the milk produced in the country, only 3 percent is processed. Rest of it is consumed as fresh milk which is not treated and is mostly supplied by gawala’s. These Gawala’s account for around 80-85% of total milk supply in the country. Due to this informal sector most of the milk in Pakistan is of low quality and is untreated. The handling of milk is miserable and no precautions are taken.