Dairy in Pakistan
PISDAC: Dairy Pakistan
USAID
JAA used value chain and SWOT analyses as well as best practice study tours of competitive dairy sectors worldwide as the basis for Pakistan’s first sector strategy to raise value chain productivity and bring higher incomes to farmers. JAA developed a strategic plan based on the sector participants’ common objectives and opportunities, driven by the diagnostic work. The strategy provided a roadmap for the sector to achieve large increases in production, value added, marketed milk, and productivity. The strategy incorporated initiatives to raise value chain productivity, improve marketing, develop new products, improve quality of products and processes, invest in workforce development, and strengthen industry organization and supporting institutions.
The sector strategy determined that reducing import duties on items like packaging would have significant impacts on Pakistan’s competitiveness. Following public private dialogues facilitated by JAA, this policy change was ratified and Dairy Pakistan, a public private partnership, began importing small dairy chillers that improved the productivity and quality of milk from scattered rural farms. This productivity gain catalyzed investment throughout the value chain and fundamental shifts in Pakistani consumer preferences.
JAA brought together public and private sector actors in Pakistan’s dairy sector to achieve policy reforms and committed these actors to investing financial resources in Dairy Pakistan. Ultimately, the project resulted in an estimated USD 63 million in new investment, at least 2,150 new jobs, roughly 2000 new small business, and a 25 percent increase in producer productivity, ultimately resulting in 400,000 additional liters of milk per day moving through a newly established cold chain.