Sino-Pak cooperation on dairy industry will bring industrial upgrading to Pakistan, says a report published by China Economic Net (CEN) on Thursday.
According to the report, Chinese enterprises welcome Pakistani dairy products in the Chinese market. In this way, Chinese consumers’ demands for high-quality dairy products will be satisfied. Meanwhile, Pakistan’s economic development, industrial upgrading and industrial chain extension can be expected in the process.
“We’ve learned that Pakistan is the most important exporter and producer of dairy products in South Asia. I think Pakistan’s high-quality dairy products will be of great strategic significance to us. We are willing to explore more about Pakistani dairy industry to see if we have the opportunity to be part of it,” Li Yunjie, Overseas Business Manager, Bright Dairy & Food Co., Ltd. told CEN.
From 2011 to 2020, China’s dairy imports rose at a compound annual growth of 12.3%, and the demand is still expanding. Diversified demands for high-quality dairy products in China also provide 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,” Li Yunjie said.
Currently, China’s dairy imports mainly come from New Zealand (40.44%), the Netherlands (17.15%) and Australia (7.38%). In the recently published China Dairy Industry Report, more cooperation on dairy industry among countries along the Belt and Road route is encouraged. It may be mentioned that animal husbandry is one of the pillar industries in Pakistan. Specifically, Balochistan, where Gwadar Port under China-Pakistan Economic Corridor (CPEC) is located in, is with 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 by-product processing can be well developed there. There’s 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 area in Gwadar Port is progressing in an orderly way. If the industrial chain of China can be extended to Pakistan, it is expected to achieve win-win outcomes for the dairy industry of both countries. Chinese investors and Pakistani dairy producers can’t afford to miss this opportunity.
