The livestock has been subsistence sector dominated by small shier needs of milk, food security and daily cash income and is a source of employment generation for rural folk. Livestock sector in Pakistan contributes 55% to agricultural value added and 11.5 percent to GDP (Economic Survey 2011-12). Pakistan is the fifth largest milk producing country in the world however, some of the major problems being faced by livestock owners is limited marketing venues, lack of value addition and high spoilage. Improper milk handling and lack of cooling facility leads to spoilage of milk and increased losses.
The traditional milk collection system often places the quality of milk at riskas unhygienic practices are used which may include adding ice or often unsafe preservatives, which reduces profitability to farmers and is a health hazard to consumers. In order to overcome the constraints, ASF supported dairy farmers/milk collectors/processors throughout Pakistan by providing them matching grant support for provision of milk chillers (500/250 liters capacity).
The case in focus is of Muhammad Azram, 53 years old retired official from Village MoglaDhokSattar Shah, Talgang, Chakwal, associated with Dairy Farming since 2000. He used to daily purchase 1000 liters for PRs.38 per liter at farm gate from 144 Dairy farmers (mostly female) and collect milk from villages at 8-10 kilometer radius through 3 milk collectors, who were paid collection and transportation charges of Rs.3 per liter, while cost of chilling including salaries etc. was PRs.1.5 per liter. The entire stored milk was supplied to M/S Cheese and Dairy Factory, Rawalpindi at the rate of Rs.44 per liter at supplier’s farm gate. He was earning a net profit of PRs 1.5 per liter or his monthly income from sale of 30000 liters of milk per month was PRs. 45,000.
On receiving another milk chiller of 500 liters capacity from the project, Mr. Azram engaged 29 additional dairy farmers making the total 173 farmers (100 females and 73 males) and a milk collector for supply and collection/transportation of milk respectively, while his daily milk sales has increased from 1000 to 1500 liters, which resulted in over 33% increased profit from business.
This intervention has resulted in creation of a fulltime job for collection, processing and marketing of 500 liters additional milk per day with negligible milk wastages. Mr. Azramnow earns an additional income of PRs.22500 per month from milk chiller provided by the project. He has also engaged an expert, who regularly monitors quality of milk. He also advances interest free loans to small farmers registered with him and adjust it from their monthly invoice. This intervention has resulted in involvement of females in milking at the household level.
ASF supported provision of 33 milk chillers to dairy farmers/ retailers through matching grant for storage of milk. This increased their profitability and gave them a chance to sell milk at better rates. As per grantees prior to provision of milk chillers they had to sell milk immediately to prevent milk from deteriorating. However, since they have been provided with milk chillers they are able to store milk and sell it at better rates. The grantees of milk chillers are highly satisfied with this technological innovation and have mentioned increase in profitability due to these milk chillers.
I am very thankful to ASF for providing me grant support for purchase of Milk Chiller, which resulted in increased profit from my business
Said Muhammad Azram