Dairy farmers propose fat-based milk pricing formula

KARACHI: Dairy farmers have proposed a system of wholesale and retail pricing of milk based on the ratio of its fat content, which offers a lasting solution to price-related issues faced by consumers as well as sellers, an industry official said on Thursday.

“In the current but outdated system, the price of standard and substandard milk is same, which actually brings losses to farmers producing high quality milk, and on the other allows substandard milk producers to exploit the consumers,” said Harris Ali Mithani, head of the Dairy, Agriculture, and Livestock Farmers Association (DALFA) in a statement.

“Farmers have agreed on the proposal to sell milk in terms of fat ratio and comprehensive recommendations for the implementation of this proposal will be submitted with the Sindh government and the city administration soon, so that the farmers can have some relief.”

Mithani suggested to the city administration that in terms of current cost, 5 percent fat milk could be sold at Rs3,840/maund (40kg), out of which 3.150kg cream could be obtained, 5.5 percent fat milk at Rs4,224/maund, from which 3.465kg cream could be extracted.

“Similarly milk with 6 percent fat can be sold at Rs4,608/maund, out of which 3.780kg cream can be drawn, while milk with 6.5 percent fat be sold at Rs4,992/maund and it can give 4.095kg cream,” he added.

Mithani said dairy farmers were ready to sell buffalo milk having 5 percent fat and cow's milk with 3.5 percent fat as per Sindh Food Authority standards and provincial laws so that farmers could offset their rising cost of doing business.

He said by fixing the price of milk as per fat ratio the consumer could get fresh and healthy milk at the price of Rs100-120/liter.

“If the suggested formula of ‘rate as per fat’ is implemented there will be no need for continuous increase in the price of milk,” he added.

Mithani said despite being the world's fourth largest milk producer, the growing problem of malnutrition among young children in Pakistan was a national tragedy.

“Due to rising inflation in Pakistan and the rapidly declining purchasing power of the people, it is becoming more and more difficult for the poor and low-income class to get a blessing like milk,” he said.

“Unfortunately, despite being self-sufficient in milk production, the rate of stunting due to malnutrition in children under five in Pakistan is 38 percent, while in Sindh it is 50 percent.”

Concluding his statement he said DALFA was solely working to alleviate problems faced by farmers in Pakistan's agriculture, livestock and dairy sectors, also with a focus on bringing products within the reach of inflation-hit masses.