MILK PRODUCTION AND CONSUMPTION PROFILE
Milk is a major part of food consumption and plays a prominent role in the Pakistani diet. As a food group,
all milk (both milk and milk equivalents) is second only to cereals in level of per capita consumption. By
weight, all milk makes up nearly one third of all food consumed.
The milk is consumed as fresh, boiled, powdered and processed milk, and as yogurt, ghee, lassi, butter,
cheese, ice cream, sweetmeats, and in other confectioneries. About half of the total milk produced is
consumed as fresh or boiled milk; about one fourth as ghee; and one sixth as yogurt or curd. The average
consumer, according to a Household Income and Expenditure Survey conducted by the Federal Bureau of
Statistics (1998) and recently substantiated by Younis, (2003), spends on the average one fourth of his food
budget on milk and/or milk products indicating that even with this low average national income levels, the
consumers can go for spending if product diversification is suitably introduce matching their needs. This is
a healthy indicator and the industry can benefit from this national attitude. Rapid urbanization and rising
per capita incomes levels are yet other parameters projecting increase in demand for fresh milk and milk
products in the cities.
Table-1: Milk production and per-capita availability
1998-99
1999-00
2000-01
2001-02
2002-03
Human Population
(million)
136.69
139.76
142.86
145.96
149.03
Total Milk Production
(000 tones)
24876
25566
26284
27031
27811
Per Capita Availability
(liter/annum)
148.0
148.8
149.6
150.8
151.96*
Total Availability
(000 tones)
20230
20796.3
21372
22011
22626.5*
Total Losses (untapped)
(000 tones)
4646
4769.7
4912
5020
5164.5
Loss (%)
18.70
18.65
18.69
18.57
18.57
*Estimated value/by calculation
Source: Economic Survey of Pakistan (2002-2003)
A comparative account of market share as enjoyed by various products in current marketing
channels is depicted in table 2. The main sale outlet remains to be the Gowalas (open milk) which cater to
the 90% need of both rural and urban market. This also projects the probable area in the current marketing
system having potential for improvement in the quality of milk supplies.