Key constraint addressed through this partnership was limited availability of quality inputs in the dairy sector all across Pakistan and is more prevalent in areas and villages which are located further away from main production. Majority of the farmers rely on traditional green fodder which is good in nutritional value but is available only in certain seasons. Besides green fodder, majority of the farmers feed cotton seed cake to their animals due to non-availability of formulated feed. As a result of feeding cotton seed cake farmers end up spending more money on animal feed since it is costlier than other options like formulated feed. Also, Cotton seed cake and left-over bread pieces results in increased level of aflatoxins in milk which are detrimental for human health.
Moreover, farmers in Pakistan are mostly unaware about the benefits of adopting best animal husbandry practices and providing quality feed to their cattle. The Government extension service is limited in reach and is mostly availed by large farmers. Same is the case of extension service run by other milk companies and input companies, they reach out to farmers but only in the limited area around their core areas of operation.
Fauji Foods Limited came into being as a merger between Noon Pakistan Limited and Fauji Foundation in August 2016 and has comparatively strong footing in processed dairy business and majority of its revenue comes from sale of milk and processed milk products. Capitalizing on its rich legacy and a strong brand equity, the new management is keen on growing the company’s market share in all three segments i.e. dairy, juices and processed cheese. For its dairy business, the company’s vision is to be the market leader however in order to do so it needs to strengthen its milk collection network for sourcing quality fresh milk to meet the growing demand.
MDF will support Fauji Foods in Establishing milk collection network comprising of milk collection units in 20 different villages of district Liyyah and Muzzafargarh. The aim is to establishextension service for farmers in and around 2 districts and providing farmers access to inputs by appointing an entreprenuer who will serve the farmers in these 20 villages in order to procure and supply quality inputs.