Partnership for better quality, health and economy
by Shahid Siddiqi, Nestlé Milkpak

Pasteurised milk is still a rarity in Pakistan. The comparatively high levels of bacteria, which can be found in unpasteurised milk, can be a health hazard for both young and old.

Since its establishment in Pakistan, Nestlé Milkpak has been involved in many community partnership initiatives; one of the most successful is the inception of milk collection centres, which have revolutionised the collection and storage of milk in the Punjab region of Pakistan. This partnership initiative has benefited local farmers, who get a better and more constant price for their milk, and Nestlé, which gets better quality milk.

The Punjab covers an area of 72,000 km2 and produces 75% of Pakistan's milk. Before the milk collection initiative, Punjabi farmers sold their milk to dodhis, middlemen who were in a position to control prices. This meant that farmers had no guaranteed income - the dodhis were under no obligation to take the milk the farmers produced and did not pay a consistent price for the milk. Dependent on seasonal variations in milk production, a single source for sale of their milk and irregular income, farmers always remained at a disadvantage. This system brought down quality, which was good neither for local people nor for large buyers of milk such as Nestlé Milkpak. The milk would often be contaminated by bacteria in transit to the distant urban areas - the absence of cooling tanks, prolonged collection times and the addition of lumps of ice from unsafe water, all contributed to the problem.

The partnership has focused not only on increased milk production, but also livestock development to improve milk quality and quantity. Improved food safety was also an objective, as pasteurised milk is still a rarity in Pakistan. The comparatively high levels of bacteria that can be found in unpasteurised milk can be a health hazard for both young and old. All parties are thus keen to ensure high quality milk is available and the milk collection initiative was set up to do just that.

Milk Collection in the Punjab

Nestlé thus devised a new system of milk collection in conjunction with local farmers and communities. In the Punjab region, over 2,400 new Village Milk Centers (VMCs) have been established. Farmers bring milk to the centres each morning and evening, where the VMC agent records their contribution, no matter how much or how little that may be. The milk is also tested for its fat and bacteria content.

The partnership has focused not only on increased milk production, but also livestock development to improve milk quality and quantity. Improved food safety was also an objective, as pasteurised milk is still a rarity in Pakistan.

From this point the milk is taken by lorry to one of the 500 'Chillers' that have been installed in the region, where the milk is cooled to maintain the quality and prevent bacteria growth. If it has taken longer than three hours for the milk to arrive at the chillers, then it is not accepted for reasons of hygiene quality. From the chillers a fleet of 70 tankers take the milk to the Nestlé Milkpak factories where it is used in food production.

All these processes have helped to ensure that milk quality in Pakistan has greatly increased in the three years that the VMCs have been in operation. The average fat content in milk has risen from 4.7% to 6%, solid non-fats have increased by 2% to 8% and the total plate count of bacteria has fallen significantly.

Partnership with Farmers

The cornerstone of Nestlé Milkpak's programme is the strategic partnership with farmers. The farmers are paid a set rate for their milk, which gives them greater security and consistency of income. The prices are set every season so that the farmers know how much they will receive depending on the quality and volume of the milk they bring to the centres. In the Punjab, over 120,000 farmers contribute 165 million litres a year to the VMCs and benefit from a regular weekly income. Nestlé Milkpak paid over 2 billion rupees in 1999 for milk they have received form the VMCs, which has meant a better return for farmers in the rural economy as well as a guaranteed supply of good quality milk for Nestlé.

The milk collection initiative has also led to other benefits for the farmers of the Punjab. Farmers did not have access to modern animal husbandry, fodder cultivation and dairy practices. This restricted the development of the rural economy. Resulting from the partnership between Nestlé and farmers, new progressive dairy farming techniques have led to an increased efficiency in farming and helped to improve the welfare of livestock.

The Extension Service

Nestlé Milkpak helped to establish an Extension Service, staffed by qualified veterinary surgeons. They have provided free consultation on diagnosis and treatment, undertaken vaccination at cost and held lectures on measures to enhance the quality and quantity of milk. Last year 130,000 animals were vaccinated to prevent the spread of HS disease during the rainy season, 80,000 were treated for routine diseases and a de-worming campaign treated 85,000 livestock.

The Extension Service has played a key role in encouraging farmers to establish a co-operative programme to improve the breeding quality of livestock. So far, the results, using artificial insemination and other methods, have been successful and more farmers are joining the scheme.

Animal nutrition had been another area suffering from under-development. Now, farmers are given advice on how to use cotton seed cake and molasses as feeding supplements. Independently it would be difficult for farmers to buy these products, however Nestlé Milkpak imports high yield seeds, cuttings of fodder crops and bulk quantities of sugar and sell them to farmers at cost. The Extension Service is helping to educate and encourage farmers to utilise waste corn to make silage.

Conclusion

Thus the partnership between Nestlé and the dairy farmers in the Punjab region has produced positive results as hoped. There has been a significant improvement in both quality and quantity of milk, generating growth of the economy and therefore raising the standard of living of Pakistani dairy farmers.