Milk producers, particularly in the largest milk-consuming urban centres in Karachi increase their prices off and on without any justification. In a short span of time of 1-2 years, milk prices have gone up from Rs20 per liter to Rs 25 (a 25 per cent increase) much against the wishes of the city government.
In such a situation, the only way to control milk prices is to develop dairy industry on proper lines which in itself is not working satisfactorily because of various constraints. Milk processing plants are eligible for various incentives announced from time to time.
These include duty-free imports of machinery and equipment and low cost loans from banks. Producers are also allowed duty-free import of semen and embryo transplants of exotic breeds.
Milk-processing on modern lines was started in early 1960s. Between 1969s and mid 1970,23 pasteurisation and sterlization plants were established largely by private investors. These were located around Karachi, Lahore and Islamabad. Besides fresh milk, these plants recombined skim milk powder and butter oil, received under the FAO (World Food Programme).
These first generation plants could not prove successful and had to be closed down except the one in Lahore. Their failure was primarily due to poor acceptance of recombined milk and the short shelf life of pasteurized milk.
Other factors responsible for their failure were a number of operating problems, including scarcity of qualified technologists, inadequate supply of fresh milk and poor management of these plants.
What are called the second generation dairy plants were those which were meant for the production of ultra high temperature (UHT) treated milk, the first of which was set up on 1977.
The UHT treatment involves heating milk at 130-150 degrees centigrade for two to three seconds. This process also known as "flash pasteurization" gives a high bactericidal effect to the milk and when packed aseptically, has a self life of several months sans refrigeration.
The second plant of this kind was established at Shaikupura. The UHT treated milk gained more popularity when in aseptic packages manufactured by a private company styled as Tetra Pack Pakistan Ltd. Consequently more and more UHT Plants continued to be set up which surpassed the effective demand. In the UHT manufacturing process the raw milk first decreamed or diluted with water and then it is heated to 130-150 degrees centrigrade.
Processed milk by regulation is standardized at 3.5 per cent butterfat and 8.9 per cent solids not fat (SNF), fresh milk usually contains more than 3.5 per cent SNF. It enables the UHT manufacturers to bring the processed milk at the regulated standard by decreaming, selling price of raw milk.
The milk producers of the Landhi Cattle Colony (considered to be the largest in the country) seems to be at liberty to increase the milk prices as and when they wish irrespective of the cost of production.
A few years ago the Sindh Bureau of Supply and Prices had done a useful exercise of estimating the milk production cost of Landhi milk. According to this study, the cost during the year 1995 was scientifically worked out to be Rs.11.28 per litre as against the ruling sale price at that time of Rs 17.25 per litre. It was duly considered in a meeting at the Karachi Commissioner's level, but the Landhi Milk producers continued to sell the milk at Rs17.25 per litre.
Something viable should be done by the relevant authorities so that quality of raw milk at reasonable prices may be available to the consumers who per force use this milk which is cheaper than the processed milk, although not that hygienic.