Letter to the President Musharraf

SARHAD DAIRY FARMER’S ASSOCIATION,PESHAWAR

Dear Mr.President,
Salams.
We are sending you this mail as a last resource. Very briefly I will show you the real problems hampering the dairy sector in Pakistan.
About half of the dairy farms in Peshawar have been closed and the existing farmers are constantly decreasing the number of their animals.This is the situation in other big cities as well where commercial dairy is being practiced.
We the Dairy farmers of Peshawar are facing great losses since last 5 years.Your interest in the Dairy sector is known to everyone.But the problem is your advisors do not know the ground realities of this neglected sector.
In the last 5 years,the INPUTS involved to “Manufacture” a single glass of milk have increased by more then 300 % and there is no Govt control to check it while our OUTPUT ie;milk is controlled by the old British Laws! and there is only 20 % increase in milk price (the lowest among all the consumable items).
There were about 12 items (pulses,bread,flour,eggs,poultry,sweets,fruits,vegetables,meat,milk etc)under the food Law whose prices were controlled by the DC.Most of the items have been removed from this list and different associations or the market forces define their price.But milk and meat is still trapped in this list.We have contacted different departments and officials but there answer is that ONLY President Musharaf can pull milk from it ! Some say it’s a ‘political’ issue others say it’s a ‘sensitive’ issue.
If we study the past,Meat and Milk prices were always ‘same’ and when tetra pack was started in Pakistan, its price was less then the fresh milk.But Tetra pack kept on increasing its price while there is govt control on fresh milk.It is interesting to note that tetra pack (UHT milk already on decline in developed countries due to its high temperature treatment of milk thus destroying milk proteins) consists only 3.5% fat while the fresh buffalo milk has more then 7 % fat.These multinational companies buy this
7 % fat milk,extract half of the cream from it and then sell milk containing 3.5% fat @Rs 44/kg.If we add this extra 3.5% back in it,the calculations show that they are selling milk @ Rs 88 /kg thus making huge profits while the actual farmer is getting nothing!And why this 3.5% milk pack,because FAO does not consider any liquid ‘milk’ with less then 3.5% fat!These companies buy fresh milk from farmers according to fat content but are not bound to sell it on fat basis to the consumers.
If we look at our neighbour India we are amazed to see the progress they are making in the field of Dairy and Livestock.They are exporting Milk related products and its Beef export to 32 countries is growing at a rate of 53% while we claiming to be the 5th largest nation in milk production are still importing milk and even the beef from India and no one can get a single glass of pure milk from market.
In India there is minimum price tag attached to milk below which it can not be sold and upper limit is open while we have upper limit closed.
We are not even meeting our countries requirements then how could we be able to export when in 2017 our population will be double?
After WTO’s regulation our textile will fail and only in agriculture will be our survival. The steps taken in dairy development by you show that you are a man of vision,but in making policies advice of the actual stakeholder should be taken.
On your initiative,Pakistan Dairy Company and Livestock Board have been formed.There is also Agri support fund,Business support fund,and many other departments working to uplift the dairy.They are funding softwares,computers,foreign consultancy but not a single goat for a poor farmer!
In Dairy Pakistan Company there is not a single representative from NWFP.Also there is not a single ‘poor’ farmer in its policy making panel.The representatives of the multinational companies target to get milk at cheapest price and sell at maximum price.
Many farmers took loans from Banks when the interest rate was in single digit.This promoted business but after trapping them the banks are continuously raising the markups and we are witnessed to many farms closing down due to it.
As far as there is govt control on milk prices,no effort will be fruitful.All the farmers of Pakistan have this single problem which is hampering the dairy sector of Pakistan.So it is requested that govt control on milk prices should be removed.If the production cost of milk is more then Rs 30/kg then how could milk be sold at lower rates set by the govt? the answer is to add water in it !
Our view is that there should be no control on the milk price and let the market forces decide the end price.There will be competition among milk sellers to sell quality milk on minimum price and this is the only way in Pakistan when consumers will get pure milk and white revolution could come.

Regards,

Kamran Khan
Gen Sec:Sarhad Dairy Farmer’s Association.
Peshawar.
Ka_khan@yahoo.com


CC To:Federal Minister for Agri and Livestock
CC To:CEO Pakistan Dairy Company
CC To:Associated Press of Pakistan
CC To:Weekly Veterinary News & Views
CC To:Karachi Dairy Farmer's Association