Sino-Pak dairy cooperation to result in industrial upgrade
“We have learnt that Pakistan is the most important exporter and producer of dairy products in South Asia,” Bright Dairy and Food Company Limited Overseas Business Manager Li Yunjie told China Economic Net.
“I think Pakistan’s high-quality dairy products will be of great strategic significance to us and we are willing to explore more the Pakistani dairy industry to see if we have the opportunity to be part of it.”
From 2011 to 2020, China’s dairy imports rose at a compound annual growth rate of 12.3% and the demand is still expanding.
Diversified demand for high-quality dairy products in China provides a new development direction for Pakistan’s dairy industry.
More than milk powder and liquid milk, high value-added dairy products such as whey, cheese, butter and cream are also in high demand in the Chinese market.
“Based on our statistics and analysis, cheese and cream are expected to have the fastest growth in China,” Yunjie said.
Currently, China’s dairy imports mainly come from New Zealand (40.44%), the Netherlands (17.15%) and Australia (7.38%).
In a recently published China Dairy Industry Report, more cooperation in dairy industry among countries along the Belt and Road route is encouraged.
It is learnt that Chinese enterprises welcome Pakistani dairy products in the Chinese market. In this way, Chinese consumers’ demand for high-quality dairy products will be satisfied.
Meanwhile, Pakistan’s economic development, industrial upgrade and industrial chain extension can be expected in the process.
Animal husbandry is one of the pillar industries in Pakistan. Specifically Balochistan, where Gwadar Port under the China-Pakistan Economic Corridor (CPEC) is located, has unique advantages of breeding beef cattle and dairy cows.
Animal husbandry occupies 47% of Balochistan’s gross agricultural output. With over 93% of the land for grazing and six eco-agriculture districts, livestock breeding, dairy processing and animal byproduct processing can be well developed there.
There is a potential for investment in organic meat processing and exports, modern livestock breeding base, fur product processing, camel meat and milk processing and sausage.
At present, the construction of epidemic-free areas at Gwadar Port is progressing in an orderly way.
If the industrial chain of China can be extended to Pakistan, it is expected to achieve a win-win outcome for the dairy industry of both countries. Chinese investors and Pakistani dairy producers cannot afford to miss this opportunity.
THE ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET
Published in The Express Tribune, March 25th, 2022.
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