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geographically dispersed farms. Milk supply chains involve various marketing intermediaries, ranging from milk collectors known locally as dodhis1 who dominate traditional marketing channels, to large commercial dairy processing firms that procure milk through modern marketing channels, and sell packaged UHT-treated milk and other milk products produced in their own plants.
The milk marketing system in Pakistan is unregulated. There are significant differences in terms of adherence to food safety standards and milk quality (e.g., fat content) collection through traditional versus modern marketing channels. In the case of the former, unrefrigerated milk may sometimes be moved over considerably long distances and during hot weather. It is not packaged at any stage of the supply chain and is of highly variable quality.2 Moreover, to prevent it from spoiling during transportation, traditional market intermediaries may add to it various chemicals or ice made from water which is unfit for human consumption.
On the other hand, the commercial dairy firms that operate in modern marketing channels have typically established cool chains with chillers located in their procurement areas. Moreover, the milk quality, including fat content, is tested at each stage during transportation to ensure adherence to food safety standards. The prices that farmers receive for fresh milk sold to commercial dairy firms are based on measured milk fat content.3 However, not all commercial firms procure milk directly from the farmers. Firms with inadequate supply chain infrastructure have chillers in the area but not an elaborate network of village milk collection (VMC) centers. These firms allow traditional dodhis to collect milk from nearby villages and deliver it to their chillers.
From a food safety perspective, it is highly desirable that the bulk of Pakistani milk production moves through supply chains managed by modern marketing channels to ensure food safety and quality standards.
1 Milk vendors who collect milk from farm to farm, and supply it to consumers in nearby towns or sell it to milk shops or merchants who transport the produce to cities farther away. 2 Some studies have found that milk quality, measured in terms of fat content, depends on the enduse. Milk meant for making khoya, a buttery substance used to make traditional sweetmeats, had the highest fat content while the milk sold to urban teashops had the lowest fat content (Riaz, 2008). These changes occur within the milk supply chain, especially when milk reaches a milk shop or creamery, but not necessarily at the farmers’ end. Nevertheless, farmers can influence milk fat content through choice of nutrition regime for their livestock. 3 Milk procurement centers operated by commercial dairy firms are equipped with portable devices for measuring the milk’s fat content. The firm offers one base price—usually for milk with a 6 percent fat content, which is typical of buffalo milk in Pakistan—which is adjusted upward or downward depending on the fat content of the milk sold by each individual farmer.