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Sunday, February 21, 2010

SWOT analysis of Milk Industry in Pakistan

Strengths:

ü Pakistan dairy industry is the World’s fifth largest industry

ü Pakistan Dairy Industry is Cheaper than Austrai, America and other developed countries.

ü Farmers are engaged in agriculture and dairy at the same time.

ü By-product of Agriculture is used in Dairy

ü By-product of dairy is used in agriculture.

Weaknesses:

ü Poor profitability for farmers.

ü Lack of contact for farmers to the market mechanism.

ü Poor dairy infrastructure in rural areas.

ü Lack of education among the farmers is making it difficult to change farm and dairy management systems.

ü Lack of knowledge about optimal feed.

ü Lack of a cold chain to protect milk quality.

ü Lack of access to well trained support service staff such as

ü Veterinarians.

ü Despite the huge volume of milk produced in Pakistan, processors find it hard to procure sufficient milk to meet future consumer demand.

ü Increasing demand for imported products.

ü The product range offered to consumers is not well developed.

ü Production of milk falls to 55% of peak production at its lowest point in mid-June.

ü The demand increases 60% during June compared to December when the milk supply is ample.

Opportunities:

ü There is an opportunity for companies to introduce value-added products like shrikhand, ice creams,paneer, khoya, flavored milk, dairy sweets, etc.

ü There is a phenomenal scope for innovations in product development, packaging and presentation.

Threats:

ü Very low quality milk is provided by the milkmen to dairy farms which is a very big threat for the entire market.

ü The shortage of milk providing animals is also a threat for entire milk industry.

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