Effectivness of dairy farming

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EFFECTIVENESS OF DAIRY FARMING

IN AGRICULTURE SECTER

Introduction

Dairy farming is a class ofagricultural, or an animal husbandry, enterprise, for long-term

production ofmilk, usually from dairy cows but also from goats, sheep and camels, which

may be either processed on-site or transported to a dairy factory for processing and

eventual retail sale.

Most dairy farms sell the male calves born by their cows, usually for veal production, or

breeding depending on quality of the bull calf, rather than raising non-milk-producing

stock many dairy farms also grow their own feed, typically including corn, and hay. This is

fed directly to the cows, or is stored as silage for use during the winter season.Dairy farming has been part of agriculture for thousands of years. Historically it has been

one part of small, diverse farms. In the last century or so larger farms doing only dairy

production has emerged. Large scale dairy farming is only viable where either a large

amount of milk is required for production of more durable dairy products such as cheese,

butter, etc. or there is a substantial market of people with cash to buy milk, but no cows of

their own

Abstract

It is possible to maintain higher milk production by injecting cows with growth hormones

known as recombinant BST or rBST, but this is controversial due to its effects on animal

and possibly human health. The European Union, Japan, Australia, New Zealand and

Canada have banned its use due to these concerns.

In the US however, no such prohibition exists, and approximately 17.2% of dairy cows are

treated in this way. The U.S. Food and Drug Administration states that no "significant

difference" has been found between milk from treated and non-treated cows but based on

consumer concerns several milk purchasers and resellers have elected not to purchase milk

produced with rBST.

Animal welfare

The practice of dairy production in a factory farm environment has been criticized by

animal rights activists. Some of the ethical complaints regarding dairy production cited

include how often the dairy cattle must remain pregnant, the separation of calves from

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their mothers, how dairy cattle are housed and environmental concerns regarding dairy

production.

The production of milk requires that the cow be in lactation, which is a result of the cow

having given birth to a calf. The cycle of insemination, pregnancy, parturition, and

lactation, followed by a "dry" period of about two months of forty-five to fifty days, beforecalving which allows udder tissue to regenerate. A dry period that falls outside this time

frames can result in decreased milk production in subsequent lactation. Dairy operations

therefore include both the production of milk and the production of calves. Bull calves are

either castrated and raised as steers for beef production or veal.

An important part of the dairy industry is the removal of the calves off the mothers milk

after the three days of needed colostrums ,allowing for the collection of the milk produced.

In order for this to take place, the calves are fed milk replacer, a substitute for the whole

milk produced by the cow. Milk replacer is generally a powder, which comes in large bags,

and is added to precise amounts of water, and then fed to the calf via bucket or bottle.

Milk replacers are classified by three categories: protein source, protein/fat (energy) levels,

and medication or additives (e.g. vitamins and minerals). Proteins for the milk replacer

come from different sources; the more favorable and more expensive all milk protein (e.g.

whey protein- a bi product of the cheese industry) and alternative proteins including soy,

animal plasma and wheat gluten. The ideal levels for fat and protein in milk replacer are

10-28% and 18-30%, respectively. The higher the energy levels (fat and protein), the less

starter feed (feed which is given to young animals) the animal will consume. Weaning can

take place when a calf is consuming at least two pounds of starter feed a day and has been

on starter for at least three weeks. Milk replacer has climbed in cost US$1520 a bag inrecent years, so early weaning is economically crucial to effective calf management.

Because of the danger of infection to humans, it is important to maintain the health of

milk-producing cattle. Common ailments affecting dairy cows include infectious disease

(e.g. mastitis, endometritis and digital dermatitis), metabolic disease (e.g. milk fever and

ketosis) and injuries caused by their environment (e.g. hoof and hock lesions).

Lameness is commonly considered one of the most significant animal welfare issues for

dairy cattle, and is best defined as any abnormality that causes an animal to change its gait.

It can be caused by a number of sources, including infections of the hoof tissue (e.g. fungalinfections that cause dermatitis) and physical damage causing bruising or lesions (e.g.

ulcers or hemorrhage of the hoof). Housing and management features common in modern

dairy farms (such as concrete barn floors, limited access to pasture and suboptimal bed-

stall design) have been identified as contributing risk factors to infections and injuries.

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There is a great deal of variation in the pattern of dairy production worldwide. Many

countries which are large producers consume most of this internally, while others (in

particular New Zealand), export a large percentage of their production. Internal

consumption is often in the form of liquid milk, while the bulk of international trade is in

processed dairy products such as milk powder.

Most milk-consuming countries have a local dairy farming industry, and most producing

countries maintain significant tariffs to protect domestic producers from foreign

competition but, the largest dairy exporting country, does not apply any subsidies to dairy

production.

The milking of cows was traditionally a labor-intensive operation and still is in less

developed countries. Small farms need several people to milk and care for only a few dozen

cows, though for many farms these employees have traditionally been the children of the

farm family, giving rise to the term "family farm".

Advances in technology have mostly led to the radical redefinition of "family farms" in

industrialized countries such as Australia, New Zealand, and the United States. With farms

of hundreds of cows producing large volumes of milk, the larger and more efficient dairy

farms are more able to weather severe changes in milk price and operate profitably, while

"traditional" very small farms generally do not have the equity or cash flow to do so. The

common public perception of large corporate farms supplanting smaller ones is generally a

misconception, as many small family farms expand to take advantage of economies of scale,

and incorporate the business to limit the legal liabilities of the owners and simplify such

things as tax management.

Before large scale mechanization arrived in the 1950s, keeping a dozen milk cows for the

sale of milk was profitable. Now most dairies must have more than one hundred cows being

milked at a time in order to be profitable, with other cows and heifers waiting to be

"freshened" to join the milking herd . In New Zealand the average herd size, for the

2009/2010 season, is 376 cows.

Worldwide, the largest milk producer is the European Union with its present 27 member

countries, with more than 153,000,000 metric tons (151,000,000 long tons; 169,000,000

short tons) in 2009 (more than 95% cow milk). By country, the largest producer is

India(more than 55% buffalo milk), the largest cow milk exporter is New Zealand,and thelargest importer is China.

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World total milk production in 2009 statistics(including cow/buffalo/goat/sheep/camel milk)

Rank Country Production (106

kg/y)

World 696,554

1 India 110,040

2 United States 85,859

3 China 40,553

4 Pakistan 34,362

5 Russia 32,562

6 Germany 28,691

7 Brazil 27,716

8 France 24,218

9 New Zealand 15,217

10 United Kingdom 13,237

11 Italy 12,836

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12 Turkey 12,542

13 Poland 12,467

14 Ukraine 11,610

15 Netherlands 11,469

16 Mexico 10,931

17 Argentina 10,500

18 Australia 9,388

19 Canada 8,213

20 Japan 7,909

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European total milk production in 2009

statistics(including cow/goat/sheep/buffalo milk)

Rank Country Production (106

kg/y)

European Union

(all 27 countries)153,033

1 Germany 28,691

2 France 24,218

3 United Kingdom 13,237

4 Italy 12,836

5 Poland 12,467

6 Netherlands 11,469

7 Spain 7,252

8 Romania 5,809

9 Ireland 5.373

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Dairy Farming in Pakistan

The Agriculture sector continues to play a central role in Pakistans economy. It is thesecond largest sector, accounting for over 21 percent of GDP, and remains by far the

largest employer, absorbing 45 percent of the countrys total labor force. Nearly 62 percent

of the countrys population resides in rural areas, and is directly or indirectly linked with

agriculture for their livelihood. The Agriculture sectors strong linkages with the rest of the

economy are not fully captured in the statistics. While on the one hand, the sector is a

primary supplier of raw materials to downstream industry, contributing substantially to

Pakistans exports, on the other, it is a large market for industrial products such as

fertilizer, pesticides, tractors and agricultural implements. Despite its critical importance

to growth, exports, incomes, and food security, the Agriculture sector has been suffering

from secular decline.

Over the past six years, Agriculture has grown at an average rate of 3.7 percent per

annum. However, volatility in the sector is high, with the range of growth varying between

6.5 percent and 1.0 percent. The fluctuation in overall agriculture has been largely

dependent on the contribution of major crops. During the outgoing year 200910, theoverall performance of agriculture sector has been weaker than target. Against a target of

3.8 percent, and previous years performance of 4.0 percent, agriculture is estimated to

have grown by 2.0 percent. Major crops, accounting for 32.8 percent of agricultural value

added, registered a negative growth of 0.2 percent as against robust growth of 7.3 percent

last year. Minor crops contributing 11.1 percent to overall agriculture posted negativegrowth of 1.2 percent. Production of Minor crops has declined for the three years since

200405, a worrying trend which is partially contributing to food price inflation.Crop Situation

There are two principal crop seasons in Pakistan, namely the "Kharif", the sowing season

of which begins in AprilJune and harvesting during OctoberDecember; and the "Rabi",which begins in OctoberDecember and ends in AprilMay. Rice, sugarcane, cotton, maize,mong, mash, bajra and jowar are Kharif" crops while wheat, gram, lentil (masoor),tobacco, rapeseed, barley and mustard are "Rabi" crops. Major crops, such as, wheat, rice,

cotton and sugarcane account for 82.0 percent of the value added in the major crops. The

value added in major crops accounts for 32.8 percent of the value added in overall

agriculture. Thus, the four major crops (wheat, rice, cotton, and sugarcane), on average,

contribute 33.1 percent to the value added in overall agriculture and 7.1 percent to GDP.

The minor crops account for 11.1 percent of the value added in overall agriculture.

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Livestock contributes 53.2 percent to agricultural value addedmuch more than the

combined contribution of major and minor crops (43.9%).

Improved Seed

Improved highquality seed or planting material is the most desirable input for improvingcrop yield. Seed is an important component in agriculture productivity system. Seed has

the basic position among various agricultural inputs because the effectiveness of all other

inputs mainly depends on the potential of seeds. Seed is a high technology product and is an

innovation most readily adapted. Improving access to good quality seed is a critical

requirement for sustainable agricultural growth and food security. Effective use of

improved seed can result in higher agricultural production and increase net incomes of

farming families, which has a positive impact on rural poverty. Hence, availability of

quality seed of improved varieties is essential to achieve the production target.

Mechanization:

A demographic change towards urbanization reduces the size of rural workforce,

agriculture will also need to adopt new forms of mechanization and shift to land use

intensification, with all of its connotations. High agricultural production assures food

security and agriculture surpluses for export at competitive prices require efficient

development and utilization of agricultural resources. Cost effectiveness in the production

of various crops brings builtin competitive edge to low productivity attributed farmers.Farm operations being time specific, demand precision to optimize the efficiencies ofagricultural input for higher productivity. The future changes of free market economy and

faster globalization have further necessitated modernization of agricultural machinery

through transfer of latest, efficient and cost effective technologies to the farming

community. Efficient use of scarce agriculture resources and accelerated agricultural

mechanization are, therefore, vital to meet the challenges of future scenario that need a

comprehensive strategic loaning for future.

Livestock

Livestock plays an important role in the economy of the country. Livestock sector

contributed approximately 53.2 percent of the agriculture value added and 11.4 percent to

national GDP during 200910.While other development sector experienced saturation anddecline there has been an increase in livestock sector in 200910. Gross value addition oflivestock at current factor cost has increased from Rs. 1304.6 billion (200809) to Rs. 1537.5billion (200910) showing an increase of 17.8 percent as compared to previous year.

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The performance of Livestockthe single largest contributor to overall agriculture (53.2

percent) however, grew by 4.1 percent in 200910 as against 3.5 percent last year.The Fishery sector expanded by 1.4 percent, against its previous years growth of 2.3

percent.

Facts

Fact is, if we could increase the yield from the present 1,300 liters annually to even one

third of the yield per animal per day of the United States (about 9,000 liters annually), we

will be able to not only meet the local demand but also have excess milk to export. In such a

scenario, according to conservative estimates, the dairy industry will be contributing about

US $41 billion to the national economy. Milk will be the countrys white gold.

So is this possible? Experts believe it is, if all stakeholders are willing to do what is required

to be done. And we really need to do it, because the countrys milk demand is growing at

4.5 per cent per year, whereas the production is growing at only 3 per cent per year. If we

take a close look, the average price of milk is Rs35 per liter, compared to the farm gate

price in USA or Europe, which is the equivalent of Rs28, whereas in New Zealand it is only

Rs20. This means that there are sizeable inefficiencies in the system which should be

addressed immediately.

To start with, the gap between the demand and supply of milk is giving incentive to the

middlemen to adulterate milk and bridge the gap. Out of the total milk production that is

sold commercially, about 95 per cent is sold as loose milk by the informal sector through

gawalas and only about 5 per cent is sold by the formal sector as processed and packaged

milk. In order to understand the state of the dairy industry and the perils of what is called

loose milk, it is imperative to understand what happens to milk when it leaves the farm

till it reaches the final consumer.

On an average, milk takes about 8 to 24 hours to reach consumers from farms. Due to

increasing urbanization, farms have shifted out of the city, thus making it difficult to

supply milk as soon as it is obtained from the animal. Karachi, for example, gets its milk

from as far away as Shikarpur which is almost a days journey, whereas milk is a

perishable item and should be kept in a cold chain i.e. under 4 degrees centigrade so that it

does not go sour. Most gawalas, in order to keep milk from going sour during

transportation, add adulterants like ice, formaldehyde, caustic soda and urea to preserve it,

or add water to increase its volume. According to a recent documentary that ran on a

television channel about the hazards of loose milk, the condition under which milk is kept

in cold storage is alarming. What is worse is that even when milk is boiled at home these

chemicals tend to remain in the milk and cause health problems.

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There are many challenges in getting good quality milk from the farms to consumers and if

the government is not able to provide the right infrastructure, market access and ample

quality controls, then the only thing to do is to follow in the footsteps of other countries:

most developed countries like Canada, US, some EU markets and Australia have either

banned loose milk or prohibited it, whereas most developing countries still have

fragmented laws or are in the process of realigning laws and standards to international

levels (e.g. through the Codex). Exceptions are countries like Turkey who have banned

loose milk altogether.

Clich?d as it may sound; Pakistan possesses tremendous potential in milk sector but lags

woefully behind compared to the developed countries because of lack of infrastructure and

strict enforcement of food quality laws. The country needs to take a quantum leap forward,

adopt latest technology, create infrastructure, put systems in place, build efficiencies,

harness the vast potential of natural resources, and create sustainable growth in this very

important sector of the economy.

Pakistans Livestock Sector Scenario

GDP $ 112 billion

GDP growth rate: 8.4 % (growing economy)

Share of Agriculture in GDP 23 %

Avg growth rate: 7.5 %

Employment: 42 % of work force

Major Crops: Cotton, Sugarcane, Rice, Maize, Wheat

Land Utilization:

Total: 79.61 m hectares

Cropped area: 22.94 m hectares (28.8 %)

Contribution of Livestock towards Agriculture GDP 49.6 %

Contribution of Livestock towards national GDP 11.5 %

Rural Population engaged in Livestock raising 30- 35 m

Income of the farmers derived from Livestock 35- 40 %

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Livestock Products

Products Production ( 000 tons)

Milk 38690.0

Meat 2,576.0

Wool 41.2

Hides (Million no.) 9.6

Skins(Million no.) 48.0

(Economic survey of Pakistan, 2006-07)

Milk trade is US $ 65 Billion: Pakistan is importing US $ 180 million milk

powder annually.

Meat trade is US $ 600 billion: Pakistan share in Exports is only US $ 100

Million

Pakistan Dairy & Livestock Sector Issue

Not Competitive: Why?

Low breeds efficiency: 1000 ltr/animal/lactation as

compare to 10000 ltr/animal/lactation in developed

countries

Shortage/ unavailability of Trained/ skilled workforce

Insufficient Milk marketing & processing system through

processors (Nestle, Haleeb etc) as compared to Dairy

Cooperatives in developed countries e.g. Fonterra New

Zealand, Dairy farmers of USA, LandO Lakes Inc. USA

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Inefficient breeds for meat: 600 gram and 150 grams Daily

Weight gain as compared to 1000 grams and 400 grams

Respectively for beef and mutton

Lack of Internationally certified slaughter houses and

Supply chains.

Establishment/Up gradation of Model

Dairy Projects

1. Farmers Dairy Lahore

2. Alrazi dairy

Gujranwala

3. Living dairy Chunian

4. Noble dairy Lahore

5. Hygienic dairy Chiniot

6. Eastern dairy Behra