Scribd
Upload
107 views2 pages

Document PDF

This document discusses packaged milk consumption in urban Pakistan. It notes that while Pakistan is the 4th largest milk producer globally, 97% of milk produced is loose/unpackaged milk sold through informal channels. Only 3% is packaged milk produced by companies. The summary discusses some of the pros and cons of loose vs packaged milk in Pakistan, including health hazards from loose milk due to lack of refrigeration and potential for contamination in distribution. It also outlines the existing milk supply chain model and structure of the packaged milk industry in Pakistan.

Uploaded by

Adnan Aziz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
107 views2 pages

Document PDF

This document discusses packaged milk consumption in urban Pakistan. It notes that while Pakistan is the 4th largest milk producer globally, 97% of milk produced is loose/unpackaged milk sold through informal channels. Only 3% is packaged milk produced by companies. The summary discusses some of the pros and cons of loose vs packaged milk in Pakistan, including health hazards from loose milk due to lack of refrigeration and potential for contamination in distribution. It also outlines the existing milk supply chain model and structure of the packaged milk industry in Pakistan.

Uploaded by

Adnan Aziz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter 79

Reason and Trends for Using Packaged Milk in


Pakistan — Study of Urban Pakistani
Consumers

Asif Kamran and Syed Muhammad Ahsan Rizvi

Abstract Milk is one of the basic commodities and important in one’s day-to-day
life. Pakistan with current estimates is the 4th largest milk producing countries in
the world with 33 billion annual productions. Out of the total milk produced, 97%
is in the informal sector like loose milk which is then sold in both rural and urban
markets. On the contrary, 3% of the total milk produced is catered by packaged milk
producing companies and dominated by leading packaged milk brands like, Nestle
MilkPak and Olpers by Engro Foods. Since Milk industry is still dominated by loose
milk which constitutes 97% of annual milk production, there are pros and cons as-
sociated with the same. The major concern is the health hazard issue linked with
the loose milk production till it is delivered to its customers. The process followed
by farmers is quite traditional where no measures are taken to improve the current
milk production system with regard to un-packaged milk. Our research relates to
mixed method approach which has been used as part of the research methodology.
Qualitative and Quantitative data will be collected through various research instru-
ments like, survey, focus groups and in-depth interviews with the selected sample
size. Results will be analyzed by SPSS tool by using various test types like, descrip-
tive statistics, correlation and Chi Square test. To strengthen the research, case study
method will be used as well to identify key players in the market and their strategies
to promote the packaged milk brand in Pakistan.
Keywords Ultra High Temperature (UHT) · Compound Annual Growth Rate
(CAGR) · Liquid Dairy Product (LDP) · Ready to Drink (RTD) · Engro Foods
Limited (EFL) · Milk Production · Descriptive Statistics · Quantitative data · Health
Hazard

A. Kamran (B) · S. Rizvi


School of Management and Economics, University of Electronic Science and Technology of China,
Chengdu 610054, P. R. China
Management Science Department, Bahria University, Karachi 75260, Pakistan
e-mail: [email protected]

J. Xu et al. (eds.), Proceedings of the Sixth International Conference on Management 909


Science and Engineering Management, Lecture Notes in Electrical Engineering 185,
DOI: 10.1007/978-1-4471-4600-1_79, Ó Springer-Verlag London 2013
910 A. Kamran and S. Rizvi

79.1 Introduction

Pakistan is the one of the largest milk producing country in the world and has a huge
potential to grow and contribute to the economy as far as dairy milk is concerned.
The annual production is 33 billion liters of milk, which is worth Rs 177 billion.
Interestingly, 97% of this production is concentrated in what is known as the
informal sector. This means that the milk is produced by animals in the villages,
and consumed both in the village and the cities. This is also called “open milk” or
“fresh milk”. There is no branding or formal packaging here. But at the same time,
there are also no preservatives involve, hence the term “fresh milk or unpackaged
milk” readily available from numerous milk retail outlets across the country [2].
(1) Shortfall in Milk Supply
There are no formal means of milk storage and refrigeration so it can be trans-
ported to the urban areas. Since milk is a highly perishable commodity and if not
provide with the stated facilities, will result into complete wastages and contamina-
tion. Combine this factor with the warm climate of Pakistan, the problem becomes
apparent [3].
Milk has a shelf life of only four hours, if it is not properly refrigerated. This at
least does explain the atrocious statistic of seven billion liters of milk that is actually
documented to be wasted each year because of a lack of facilities.
(2) Poor Distribution Channel
Distribution is another major problem. Since this milk is “open” and not pack-
aged properly, it is tempered to a great extent. Firstly, it is exposed and hence, any
amount of water can be added to it by the milk vendor which eventually reduces the
quality of milk. Also, there is no guarantee that the water being added to is clean
and free of contamination.
(3) Health Hazards
There is various health hazards associated with the fresh milk like, Ice slabs,
caustic soda and sometimes formalin is also added to the milk to preserve it, which
again poses health hazards and does not go in favor of consumers.
(4) The Existing Supply Chain Model
The stated diagram is the existing retail channel followed by Milk Producing
companies, every segment has been clearly identified so that, the delivery channel
can be maintained and milk brands can be reached to its consumers more effectively.
(5) Milk Industry
There’s a strong heritage (trust and affordability) of fresh milk (88% of the mar-
ket). All-purpose UHT milk is the largest segment of processed milk and has been
built largely on undifferentiated benefits.
“Aggressive entrance of Olpers Milk brought emotion and aspiration to the cat-
egory” [4]. Nestle MilkPak, the market leader, has started to build differentiation
based on its Iron fortification. A number of Small pasteurized players like NurPur
Milk, Candia, and Good Milk are emerging in urban centers.
(6) UHT Industry of Pakistan
UHT Industry in Pakistan is highly commoditized built in undifferentiated ra-
tional benefits. The entrance of new players has made the competitive environment

You might also like