LAHORE: Fifteen years after the Food and Agriculture Organisation (FAO) published its seminal 2010 report on dairy farming across 56 developing countries -- including Pakistan -- its core finding remains relevant: smallholder, ‘low-tech’ dairy farms offer unmatched potential for alleviating rural poverty.
Today, Pakistan ranks among the top five milk-producing nations globally, with annual production exceeding 65 million tonnes. Yet this volume comes not from industrial-scale operations, but from 15 million smallholder dairy households, each owning on average ~ 2 cows or buffaloes. These small-scale farmers -- mostly based in rural areas -- are the unsung backbone of Pakistan’s dairy economy.
The 2010 FAO report underscored a key insight: the cost of milk production on small farms in developing nations is significantly lower than on large, high-tech farms in industrialised economies. This remains true in 2025, perhaps even more so, as global feed prices continue to rise sharply.
Industrial farms in developed countries, often managing herds of over 100 cows, rely heavily on expensive compound feeds and grain-based diets to maximise yields. In contrast, Pakistan’s smallholder farmers use agricultural by-products such as wheat and rice straw, maize stalks and sugarcane tops -- substantially reducing input costs.
Beyond economic efficiency, these systems reinforce circular rural economies. Farm waste is reused, women play a central role in livestock care, and dairy earnings sustain millions of rural households, making the model socially and economically inclusive.
Global feed prices have surged over the past decade due to climate shocks, rising land costs, and competition from biofuel crops. Yet smallholder farms, which require less feed per litre of milk, are more resilient to these shocks than their industrial counterparts.
Still, these farms are not without challenges. As prices rise, even basic inputs such as fodder, oilseed cakes, and veterinary care strain already tight household budgets. Affordable access to feed, livestock extension services, and veterinary support is now more essential than ever.
Despite their proven potential, smallholder dairy farmers continue to receive limited policy attention. Access to formal milk collection networks, credit, cold chain infrastructure and modern animal healthcare remains patchy. Nearly half of Pakistan’s milk is lost or spoiled due to poor storage and transport facilities.
Milk yields also lag behind global benchmarks -- Pakistani cows produce on average just 3-4 litres per day, compared to over 20 litres in industrialised systems. With better animal care, balanced nutrition, and disease management, these yields could easily be doubled, boosting farmer incomes and national milk supply.
The FAO’s conclusion from 2010 is more relevant than ever: smallholder dairy farms can be powerful vehicles for rural economic development. With targeted support -- including farmer training, decentralised milk processing, and subsidies for feed and healthcare -- these operations could become viable micro-enterprises across Pakistan’s countryside.
Moreover, as climate change reshapes agriculture, smallholder dairy systems -- rooted in local feed sources, family labour and mixed farming -- are more adaptive and sustainable than resource-intensive mega-farms.
In an age where industrial dairy ventures dominate headlines, Pakistan must not overlook its real strength: millions of modest yet resilient dairy farmers who feed the nation. With the right support, these smallholders can become the foundation of national food security and rural prosperity -- just as the FAO predicted 15 years ago.
