Milk Collection & Dairy
Development
May 2011
Milk Statistics - Pakistan
50 mio Animals
26 mio Buffalo
24 mio Cows
14 mio Farming Families
31 Billion Litres of Milk annually
(4th Largest producing country)
Good to know:
•
•
•
NCE/FI/DMAIC Training
3-2
190 K farmers bring milk to Nestle
192 million $ paid to Nestle farmers,
1000 $ / year per family, (Av. 7ltr/day)
Area covered: 3 times bigger than Switzerland
MCDD Headcount 2011:
Permanent Employee: 455
Contractual Employee: 543
Milk Supply Agent: 2378
146,000 square km
07 Zones
40 Main Centers.
2633 Chilling Centers.
3080 VMC,s
3120 Tons/day transport
Cap.
~190,000 Milk Suppliers.
NCE/FI/DMAIC Training
3-3
Volume Evolution
1998
in million kg / year
From direct Ice
addition
to
modern cooling
2011
NCE/FI/DMAIC Training
3-4
Fresh Milk Quality Checks
At Field Level: Village, Chiller, Main Center; Rapid screening tests
Organolaptic
APT
COB
pH
Acidity
MBRT
Fat
Density
Total Solid
Protein
Sodium
Sugar
Starch
Glucose
Sorbitol
Ref. Index
Urea
Yoghurt
CO3/HCO3
Formalin
Am. Sulphate
Physicochemical
Test
Adulteration
Test
Factory Level: Comprehensive testing; Tanker wise & region wise
Antibiotics
Added powder
Melamine
26
Tests!
NCE/FI/DMAIC Training
3-5
Aflatoxin M 1
TPC
in addition
to above
Fresh Milk Growth not matching Demand
Pakistan Milk Production1 31 bio. liters
Supply
Growing @
2-4%
Rural
19 bio liters
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
30%
70%
Urban
8.2 bio liters
5.00
1.00
1.20
Processed & Packaged
Sweets & Khoya
Demand
Growing @
10-15%
1.00
Gowalla Milk
88% Loose Milk + Sweets
Nestlé represents 50% of the processed milk
market with ~500mio litres of fresh milk collection
1 Total milk production ~31 bio liters with 27 bio liters available for human consumption
NCE/FI/DMAIC Training
Unprocessed Milk
Shops
3-6
STIMULATE
MILK
GROWTH!
5 Pillars
Dairy
Strategy
Nestlé Strategy for
Dairy Development
Public Policy
with Govt. +
Stake Holders
Industry
Associations
White Paper
Tax Incentives
Nestlé funded
Development
Initiatives
Traditional
Source
Management
Commercial
Farmer
Strategy
Encourage
Industrial
Dairy Farms
Agri-services
UNDP project
VET programs
Demo farm
Satellite Industries
Increase DIRECT
Sources like
Village milk
collection
Best small farmers
Focused support
to increase yield
500-1000 cows
Purpose built
Professional run
CSV Embedded in our Business Model ensuring Farmer & Rural development
NCE/FI/DMAIC Training
3-7
Two thirds of milk will be sourced directly from
farmer by 2016
2006
Mini Supplier
16%
3%
Dodhies
61%
7%
2016
0%
8%
2010
6%
4%
25%
45 %
9%
7%
22%
27%
18%
8%
18%
3%
11%
2%
0%
Mega Farms
• Mini Supplier / Strategic Supplier roles will be eliminated in
the long run
• Village Milk Collection role to be increased
NCE/FI/DMAIC Training
3-8
Task
Force
2007
Actual
Thank You
Good food, Good life