Price Increase in Dairy Inputs

Dear Readers,
Here I have tried to figure out the real problems faced by the Dairy Industry in Pakistan.The Prices of the Animals and the “Inputs” used to “manufacture” milk has increased by more than 150%.The milk was sold in year 2000 around Rs 20/kg and with the Increase with more than 150 % in year,the milk price should be around Rs 50/kg !But its price has not kept pace with the prices of other inputs used in Dairy that’s why the Dairy is on decline in Pakistan now.
In the same way,the daily food items in a house have increased in price by more then 100 %.While Fresh Milk again has lost the pace and the average increase is only around 10%.



Price Increase in Basic Inputs in Dairy Farm as compared to Milk


Year 2005 Year 2008 Increase

1)Animal Prices 30,000 75000 250%

2)Cotton Seed Cake 500/50kg 1000 100%

3)Wheat Bran 270/50kg 650 140%

4)Maize Cake 370/50kg 1100 200%

5)Fresh Milk 22/kg 30 40%

6)Wheat Straw 120/50 kg 240 100%


Apart from these Basic Ingredients,there has been increase in the rates of

Electricity,Gas,water,Labor,Medicines,Fertilizers,seeds and fuel.




Comparison Between Different Commodities and Milk in Last 3 Years


Year 2005 Year2008 Increase
1)Flour Rs10/kg Rs27/kg 300 %

2)Meat Rs60/kg Rs150/kg 150%

3)Sugar Rs16/kg Rs33/kg 115%

4)Tetra pack Milk Rs22/liter Rs56/liter 155 %
(with 3.5%milk fat)

5)Fresh Farm Milk Rs22/liter Rs30/liter 40 %
(with 6-7%milk fat)

6)Diesel/Oil Rs 22/liter Rs 88/liter 300%


Note: This Report was prepared 2 years back and needs updating)