China keen to explore Pakistan’s dairy sector for mutual benefits

LAHORE: Cooperation between China and Pakistan on dairy industry and multifarious demands for high-quality dairy products in China would provide a contemporary path of development for Pakistan’s domestic dairy sector.

Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) President Wang Zihai on Tuesday said the Chinese learned that Pakistan was the most important exporter and producer of dairy products in South Asia. Chinese technologies were low-priced, he said that “if we adopt the techniques and technology used by China, Pakistan can advance in this industry”.

Pakistan is among the world’s top five largest milk producers, with over 60 million tonnes of milk production each year. Such ventures and exports could definitely add value to Pakistan’s economy.

“We are willing to explore more about Pakistani dairy industry to see if we have the opportunity to be part of it. From 2011 to 2022, China’s dairy imports rose at a compound annual growth of 12.3 percent, and the demand is still expanding. Milk powder, liquid milk, high value-added dairy products such as whey, cheese, butter and cream are also in high demand in the Chinese market,” Zihai added.

PCJCCI Senior Vice President Ehsan Choudhry said that currently China’s dairy imports mainly come from New Zealand (40.44 percent), the Netherlands (17.15 percent) and Australia (7.38 percent). “Our government should support this industry to boost export and domestic production, especially to control the adulteration of loose milk.”

He further added that the local farmers were facing many problems, such as a lack of education, latest storage facilities, transfer of milk, and cold storage, and to get rid of these, the government should come forward to train and educate farmers about modern technology.

In this way, demand from Chinese consumers for high-quality dairy products would be satisfied. Meanwhile, Pakistan’s economic development, industrial upgrading and industrial chain extension can be expected in the process.

PCJCCI Vice President Sarfaraz Butt said that animal husbandry was one of the pillar industries in Pakistan, “specifically, Balochistan, where Gwadar Port under China-Pakistan Economic Corridor (CPEC) is located”.

Balochistan has the unique advantages of breeding beef cattle and dairy cows. He added that the construction of epidemic-free area in Gwadar Port was progressing in an orderly way.

“If the industrial chain of China can be extended to Pakistan, it is expected to achieve win-win outcomes for the dairy industry of both countries,” Butt added.

It should be noted that Pakistan’s domestic daily sector remains marred by low productivity and weak supply chain.

The dairy sector’s trouble and toil in keeping pace with milk demand would likely continue in 2022-23, thanks to government’s failure in creating an enabling environment based on innovative cost-cutting initiatives.