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Innovative Practice Pakistan: A case study of milk production and marketing by small and medium scale contract farmers

Tanvir Ali

Case study

Pakistan is the fourth largest milk producer in the world. About a third of the total milk produced by the rural families flows out to urban consumers and processing industries. In urban areas milk is available to common consumers in two ways: loose / unprocessed milk and packed / processed milk. Dairy companies such as Nestle and Haleeb are the main part of milk marketing structure. Haleeb Foods Limited (HFL) is a local company that is at the forefront of product and packaging innovation.

The main characteristic of the marketing innovation of HFL was the exclusion of big milk contractors from the supply chain in the late 1990s. Haleeb Foods works mainly with small-scale producers, directly (self-collection) or indirectly (contract collection). HFL has one of the largest nation-wide distribution networks delivering high quality products, even in the most remote areas. With a network of more than 1,100 distributors, the company ensures that product range is available in all the urban and semi urban areas of Pakistan.

This publication forms part of the Regoverning Markets project.

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