Enhancing dairy sector export competitiveness - International Trade ...

ENHANCING DAIRY SECTOR EXPORT COMPETITIVENESS IN PAKISTANpositive and speedy impact on the revision of foods laws and regulations in the provinces aswell.ii.The issue of traceability is central to the provision of safe and hygienic dairy products not onlyin the international markets but also for the safety of domestic consumers. The Dairy Hubswould provide a convenient opportunity to the government in launching an action planincluding; registration of all animals within the defined region, information on feed provision,insemination 122 and vaccination, and disease occurrence amongst the herd population. Thedata should be gathered electronically and saved at the remote server in the hub headquartersand should be made accessible via internet for regular updates. Upon receipt of theinformation, the animals may be tagged accordingly. 123iii. Setting up disease-free zones 124 within the hubs is a realistic approach by restricting themovement of animals from one hub to another and thereby containing the occurrence of anydisease. The principle of regular testing and culling of infected animals must be encouragedamongst farmers in the hubs to safeguard precious livelihoods.iv.In the short to medium term, awareness amongst domestic consumers regarding traceability ofdairy products to strengthen bio-security in the country 125 should also be addressed throughemploying media and social opinion leaders primarily. The subsequent demand for safe andtraceable dairy and other food products would create an environment of regulation in thecountry which would put pressure on the local producers to follow the principle of “One StepForward, One Step Back Linkages”. Through this concept, the exact supplier of anycontaminated/unsafe dairy products and its subsequent consumer would be easily identifiedand the risks contained. This can be achieved through compulsion of required documentationof the food chain by domestic dairy processors and also through presentation of suchinformation as and when required. 126 In the medium to long run, the Ministry of Commerceshould lobby the establishment and existence of disease-free zones within the country in theinternational markets; once the same have been declared through self-assessment by thegovernment in the proposed hubs. Bilateral agreements and concessions should then beeffectively negotiated with regions like the EU to allow importation of Pakistani livestock (otherthan animal casings) and dairy products. 127International Marketing of Dairy ProductsDomestic marketing serves as a key element of international marketing. A strong domestic base acts asbasis of generating international trading activity. Unfortunately in Pakistan, almost 95% of milk distributionis done through the informal marketing and distribution channels that affect the quality of milk supplied tothe consumers. There is no appropriate monitoring and evaluation mechanism which could correct thissituation. The same is reflected when it comes to internalization of dairy and dairy products. A weakdomestic regulatory regime does in no way facilitate the dairy sector to become internationally compliantdue to weak compliant base.Measures AdoptedAs mentioned earlier, the trade policy currently in force does not contain any specific initiatives for the milkand dairy sector from trade perspective. The PDDC and LDDB are primarily involved in the developmentprograms focusing on the domestic marketing of milk and dairy products rather than on their international122 Exotic viruses can be transmitted through cross-breeding with imported animals (Pakistan Agricultural Research Council, PARC)123 University of Animal and Veterinary Sciences (UVAS)124 Livestock and dairy imports into high-end market like the EU are only allowed through countries declared as disease-free zones.(Punjab Livestock and Dairy Development Board, PLDDB); Department of Commerce, Industries and Investment, Government ofPakistan125 Punjab Livestock and Dairy Development Board (PLDDB)126 Under the EU’s General Food Law, 2002, traceability is made compulsory for all food and feed businesses. “It requires that all foodand feed operators implement special traceability systems. They must be able to identify where their products have come from andwhere they are going and to rapidly provide this information to the competent authorities.” Documentation requirements includenames and addresses of suppliers, and customers in each incidence, nature of the product and the exact date of delivery..127 Dairy and livestock producers and processors79