Enhancing dairy sector export competitiveness - International Trade ...

ENHANCING DAIRY SECTOR EXPORT COMPETITIVENESS IN PAKISTANNo specific trade policy initiatives were contained in the framework. However it may be noted that Pakistanfaces huge competition from other dairy exporting countries due to provision of heavy subsidies to theirfarmers and Pakistan’s inability to comply with international SPS standards for its dairy products in majorparts of the world.Institutional Setup in the Public SectorDairy development is mainly concentrated in the public sector including government ministries andattached departments, universities and public sector companies. Valuable contribution has also beenextended by the private sector for the development of the dairy sector in Pakistan.Until 2008, the dairy development initiative was managed by the Ministry of Food, Agriculture andLivestock (MINFAL) at the federal level. However, a separate ministry under the title “Ministry of Livestockand Dairy Development” has been formed which is mainly responsible for preparing and implementingnational policy planning, coordination with attached specialized departments in all provinces. The ministryis headed by a Federal Minister (an elected representative) while the provincial departments are headedby a Provincial Secretary and assisted by a Director General.The Ministry of Industries and Production (MoIP) has also supported the dairy sector by managing keyprojects in the dairy sector. One of these initiatives includes the setting up of PDDC. The University ofVeterinary and Animal Sciences (UVAS) is the only vocational institute which is dedicated to educationabout the animals and research and training. Amongst the departments providing indirect support to thedairy development initiative, Pakistan Standards and Quality Control Authority (PSQCA) is responsible toregulate food safety standards including those for dairy and dairy products.Under the Companies Ordinance 1984 several public sector companies have been formed to contribute tothe development of the dairy sector. These were formed through financial support from the governmentand donor agencies. These include PDDC formed in 2006, LDDB formed in 2007, and nine ruraldevelopment programs.The main objectives of the PDDC include improving dairy research facilities, training and capacity buildingof dairy farmers, veterinary training, improvement of the cold chain system, promotion of healthypasteurized milk, developing model dairy commercial farms, improving breed management, facilitatingcredit financing to dairy farmers, and linking rural farmers with the markets at the national level.The objectives of the LDDB include improvement of extension services to dairy farmers, training ofextension services personnel, enhancing the research capabilities in priority areas of the dairy sector andenhancing national, provincial and donor linkages.The federal and provincial governments play a significant role in the development of dairy sector throughpolicy formulation and implementation and provision of support services including veterinary care andtraining through a nationwide coverage. However, the public sector fails to deliver the required results dueto financial and human resources constraints. Further, due to lack of coordination between relatedagencies and heavy reliance on donor funding that is usually provided to target short term achievementsrather than long term development initiatives the public sector has not been able to perform satisfactorily.On the contrary, although the private sector has a well-managed value chain but yet it has paid littleattention to make available to the consumers very affordable dairy products by bringing investment in lowcosttechnologies. That is why the consumers largely rely on basic dairy products including farm fresh milk.54