Milk: What Pakistan thinks?
Pakistan is the fourth
largest producer of milk with volumes cumulated across
formal and informal sectors. At present, the rate of
urbanization in Pakistan is on the rise and lifestyles are
also changing accordingly. However, according to market
sources when it comes to milk consumption, most Pakistanis
still prefer loose milk which is available largely through
the informal sector of the dairy industry.
According to a latest Gallup
Pakistan and Business Recorder Research survey, most
Pakistanis prefer pasteurized milk compared to other
options. Before sharing the findings further, let’s just
first looks at the current milk availability in Pakistan.
Based on some sources, Pakistan is the fourth largest
producer of milk with volumes cumulated across formal and
informal sectors.
At present, the rate of
urbanization in Pakistan is on the rise and lifestyles are
also changing accordingly.
However, according to market
sources when it comes to milk consumption, most Pakistanis
still prefer loose milk which is available largely through
the informal sector of the dairy industry.
With that said, things are
changing. Health conscious customers worry about the hygiene
of loose milk and general perception is that the level of
adulteration has increased quite significantly over the
years.
Those days are long gone when
only water was added to the milk, which was quite easy for
the consumer to find out.
These days, adulteration is
done by adding Urea, cooking oil and the list goes on. These
issues have forced many to opt for processed milk.
Still, processed milk is still at its fledgling stage,
although it is quickly growing. The market share of this
type of milk has increased by 5-7 percent compared to mere
2-3 percent, a decade back.
In Pakistan, Ultra High
Temperature (UHT) treated milk rules the processed milk
market, however, pasteurized milk is quickly catching up.
The higher demand for UHT
milk has also brought significant investment to the dairy
sector in the recent years although at the same time its
mind blowing that as the formal sector become active, the
prices of milk are also on the rise.
Now, let’s look at the
findings of the Gallup Pakistan’s (GP) survey in detail
which was based on question formulated by BR Research.
According to the results of
the nationally representative poll of 1,887 households, 42
percent of Pakistanis prefer pasteurized milk. 35 percent
have a preference for loose milk; while 18 percent said they
like UHT-packaged milk and five percent showed no
preference. T
hese poll findings have a
confidence level of 95 percent with error margin of under
five percent.
Consumer preference for pasteurized milk shows that
Pakistanis have a clear idea that pasteurized milk has
better nutritional value than UHT.
It is also the preferred
choice of milk in developed countries. So, why is
pasteurization not being promoted in Pakistan as an
alternative to UHT milk?
UHT milk, which has a shelve life of 6-9 months and does not
need chilling during the supply process can easily be scaled
up to the whole country with one or two plants.
Pasteurized milk has a
relatively short shelve life of three to five days, and
needs refrigeration during transportation and storage.
The requisite investment makes it a comparatively lofty
alternative. On the other hand, the country lacks chilled
distribution network which also creates distribution issues.
The second problem is that
both retailers and consumers need to chill the milk before
use and due to the energy crisis, and high load shedding,
wastage is quite high.
Nestlé Pakistan, which is a giant in the local milk market,
states that it is monitoring developments in this area. The
company has run pilot projects and contends that it has the
capability to produce and distribute pasteurized milk.
However, it is quite evident that there is a strong
correlation between better and cheaper power supply and
demand for pasteurized milk.
Experts assert that once
Pakistan can overcome its energy crisis, the demand for
pasteurized milk will increase quite significantly in the
country.
March, 2014
By:
BR Research
Source:
Business Recorder