The overall objective of the project was to raise milk production among the beneficiaries, thereby increasing the availability of milk products for home consumption and improving household income through greater milk sales.


  • Development of a milk-marketing system
  • Adaptation of proven livestock and fodder-crop production technology to local conditions
  • Provision of credit packages for tube wells, inputs, equipment, transport and land rental
  • Establishment of farm-to-market roads
  • Development of satellite farming services, such as veterinary and animal breeding services and production input supply
  • Provision of technical assistance to non-governmental organizations (NGOs) for the promotion of participation and community action
  • Establishment of a development fund to enhance milk production and increase participation.


Buffalo being milked in the fields. FAD Photo by Giuseppe BizzarriThe project enhanced milk marketing through the establishment of a system of village milk collectors (VMCs) who supplied milk to collection centres linked to existing milk processing plants, assuring smallholders of a market for their products. The project provided about 78 km of farm-to-market roads, which helped to link remote areas with high milk production potential to organized marketing channels. Livestock feed research resulted in improvements in cropping patterns, hybrid seed and grass varieties and fodder practices. However, inadequate institutional arrangements and lack of capacity led to the effective cancellation of the proposed development fund.

Access to inputs and infrastructure

At appraisal, the appalling state of rural roads was identified as a factor contributing to low milk production in the project area. The poor condition of farm-to-market roads seriously constrained the delivery of agricultural inputs and market access.



To support the survey and improvement of farm-to-market roads in order to facilitate the regular collection of milk and milk products. At appraisal it was decided that 80 km of roads would be upgraded to bitumen or all-weather gravel roads.

To provide credit to target group livestock owners to fund all items necessary for the establishment of 1 200 tube wells, including pumps, motors, outlet pipes and electrical connections.


A total of 78 km of farm-to-market roads were upgraded.

Due to problems associated with loan access, only two farmers in Sialkot in the District of Gujrat were able to obtain loans to install tube wells.

Organizations and people

The project was expected to make use of the experience of pioneering NGOs that had undertaken similar activities or experimented with methodologies aimed at enhancing the participation of the rural poor in development. The Rural Development Foundation and Idara-I-Kissan were identified as suitable NGOs.



To support the NGOs in building community awareness and cooperation, establishing project activities, forming village-level producers' organizations and developing dairy plans.

To appoint a full-time monitoring and evaluation officer to organize an initial monitoring and evaluation workshop, administer and review the various sources of monitoring information and carry out a baseline survey and evaluation studies.


At the time of the mid-term review in 1993, it was found that there were no NGOs with proven capacity to operate a livestock extension service and that there was insufficient institutional capability to supervise the project-related activities and financial accountability of the NGOs. This project activity was therefore unsustainable.

The basic outline for the monitoring and evaluation system was only drawn up in February 1993 by a short-term consultant. The Punjab Economic Research Institute delayed carrying out the baseline study, which was only completed in August 1993, and the findings had not yet been issued by November 1993. Due to this delay, the recording of milk quantity and quality was being carried out by VMCs and collecting centres.

Risk management

Major obstacles to the development of smallholder dairy production in Pakistan include the lack of milk-marketing strategies and the low winter prices, aggravated by the lack of facilities for the preservation and transportation of milk, limited access to credit and poor infrastructure. These factors limit the bargaining power of the smallholder in the dairy market.



To establish a VMC system, train VMCs to establish a supply of good-quality milk and support the provision of credit facilities to finance village milk collection kits and transport units (motorcycles, horses and horses-and-carts).

To support the development of bulk milk outlets, with credit for eight chilling units, six bulk milk tankers, two units of cream separators and handling equipment.

To support NGOs in the formation of producer organizations and the establishment of a milk pasteurization plant owned and operated by a producers' organization. This was intended to increase sustainability and to give producers improved bargaining power, due to the availability of an alternative outlet for milk sales.

To fund a milk marketing strategy study in order to identify an appropriate marketing system and suitable methods of collection, transport, cooling and processing.


The VMC system has been established.

A model milk collecting and chilling centre, linked to existing milk processing plants, was established in Hafizabad. In addition to the everyday operations, it serves as a training centre for VMCs and the operators of milk collecting and chilling centres. Rehabilitation was carried out on the premises of the model milk collecting and chilling centre to cater for hygienic milk handling, and it was equipped to measure milk volume and determine fat content by the Gerber method.
The village milk producers' associations were not established due to confusion regarding their role, functions, benefits and sustainability.

Because of the failure of the Punjab Economic Research Institute to compile the necessary data in time, the milk marketing strategy studies were delayed. They were finally started in 1993 using basic information on milk production and marketing in four locations surveyed by project staff.

Livestock feed

The development of smallholder dairy production was constrained by inadequate livestock nutrition and poor quality feed. At appraisal, it was found that small farmers and the landless relied on crop residues, low-cost feed and grazing.



To provide credit facility packages to the target group. These were to fund all items necessary for improved fodder production, including land rental, tillage, fertilizer, water and seeds. In addition, loans were to be provided for the purchase of 500 pieces of cultivation equipment in order to facilitate deeper tillage and the use of appropriate systems for improved water penetration, soil moisture retention and soil tilth.

To develop non-traditional feed resources and midsummer forages and increase the use of improved seeds. The project would also establish an outreach centre, with three professional staff and 14 technical and farm support staff; and provide research facilities, with 20 hectares of land, 40 buffaloes, livestock-husbandry equipment, shelters and fodder, an office, accommodation and a minibus.

To fund 38 man-months of fellowship and study tour training for staff at the Punjab Livestock and Dairy Development Department.


Despite the delays, there were improvements in cropping patterns, and fodder practices started to show promising results. By 1993, trials of urea and molasses blocks with mineral supplements were being carried out, and demonstrations of urea treatments of rice straw and wheat straw were being conducted.

Improved seeds, including Sudan grass and hybrid varieties of forage sorghum, were distributed to farmers. Trials of improved forages, such as Napier grass and Mott grass, were conducted in the outreach centre and adaptive research villages. A total of 50 acres of demonstration plots were established at the outreach centre, and improved fodder-production systems were tested. Between 12 and 15 buffaloes were purchased.

In 1993, a group of 16 stock assistants participated in a one-week training course on fodder production, feed formulation and hay and silage-making. Eleven farmers from Hafizabad were trained in animal nutrition and husbandry.

Animal health

At appraisal, internal parasite infections and mastitis were both found to be serious constraints on milk production in Pakistan. Internal parasites were cited as a major cause of the high mortality rates among young stock, while mastitis affects milk production directly. At the time of the mid-term review, November 1993, it was discovered that target villages also had significant animal health and breeding problems, which had not been identified as major constraints at appraisal.



To support the parasite and mastitis control campaigns, providing anthelmintics and medicines.

To establish a field-based adaptive research and extension service and staff it with 24 livestock production officers (LPOs), 72 stock assistants (SAs) and two women veterinary officers (VOs), supervised by an assistant director (AD) in each of the three divisional districts. The adaptive research was intended to determine the most appropriate on-farm disease-control programme, based on the collection of detailed data regarding existing production systems, costs, the effects of new technology and farmers' attitudes.

To provide training in extension technology for SAs, LPOs, and VOs at the Animal Production Extension Centre.

To provide loans for the purchase of transport facilities. Each SA was to be eligible for a bicycle, each LPO for a motorcycle, each woman VO for one four-wheel vehicle, and each AD for four such vehicles.

To provide field equipment, consisting of milk and crop measuring equipment, mastitis testing kits, vaccination kits, drench, ecto-parasite-spraying equipment, data recording items and basic office facilities for LPOs. Each AD would receive two audio-visual units for group meetings, mass extension and disease-control campaigns.



Testing for mastitis and internal parasite incidence had started by 1993.

By November 1993, 17 LPOs had been recruited and the target number of SAs reduced from 72 to 48. Recruitment difficulties were associated with the unsatisfactory employment conditions, lack of incentives and requirement for staff to finance their own transport and office facilities. The woman VO programme had not yet been initiated due to lack of staff. A major element threatening the research and extension component was the limited access to credit.

Between 1992 and 1993, ADs, LPOs, SAs and assistant research officers attended in-house training courses organized by different national organizations on livestock production extension, parasite and mastitis control and milk production, processing and marketing.

No information is available on the provision of transport facilities and field equipment.

Lessons learned

  • Commitment at senior government level is a prerequisite for the implementation of planned project objectives and project sustainability.
  • Prior to implementation, donors should ensure that elements such as staff requirements and procurement procedures are streamlined and functional.
  • The target group should be properly identified, and this should be backed by an initial survey of socio-economic profiles. In the project, it was wrongly assumed that women played a major role in farm dairy work, whereas milk production in Pakistan is in fact predominately a male activity.
  • The existing institutional capacity should be assessed prior to project design.
  • Credit polices should be appropriate to the interests and conditions of the target group. Donors should ensure that financial institutions offer loans on favourable terms to poor farmers, with simplified loan procurement procedures and moderate requirements for collateral. This is particularly important when project implementation is dependent on loan availability.
  • The service conditions for project staff should provide them with motivation and incentives.
  • All significant production constraints should be identified at the project formulation stage, and relevant components incorporated into the project

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