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Kiwi agricultural entrepreneurs say there is huge potential to cash in on Pakistan's large but primitive dairy industry, and are positioning themselves to reap the rewards of the south Asian nation's push to modernise the world's fourth largest milk supply.
Four New Zealand companies, Waikato Milking Systems, Veterinary Enterprises Group, Thermaflo and Interlact, took part in a trade mission to Pakistan last month. They identified opportunities in agronomy, farm management, animal health, farm automation and downstream processing.
The New Zealand Trade and Enterprise-organised trip came as the nation of 165 million ramps up efforts to re-engineer its dairy sector as part of what has been dubbed Pakistan's "White Revolution".
Eight million farming households produce 33 billion litres of milk annually from around 50 million animals in Pakistan, but the country has yet to solve logistical and hygiene problems - such as widespread hand milking and a lack of refrigeration.
But Waikato Milking Systems international projects manager Justin Thompson said that situation created opportunities for New Zealanders much more than in China where the competition was intense.
Thompson estimated that within three to five years the Pakistani market could be worth around $2 million a year to his company, whose annual turnover is currently between $30 and $40 million.
Waikato Milking Systems supplies milking equipment to South Africa, Australia, Europe and Russia.
"Being part of something that is growing, if you are prepared to put the legwork in you will obviously become a large part of the industry as a whole."
New Zealanders already occupy key positions in Pakistan's dairy industry, with a Kiwi, Geoff Walker, running the Pakistani Dairy Development Company, a public-private organisation set up in 2005 to drive dairy sector development.
Thompson said Waikato Milking Systems was due to finalise deals with several Pakistani customers. He was also confident about a tender to upgrade military farms to dairy farms.
"Because [the PDDC] is headed up by Kiwis and we met them they want to deal with us so that gives us a bit of a leg in. But obviously we have to be competitive - we have to be able to support the product."
However, Thompson said it was something of a backward step going from New Zealand to Pakistan in terms of animal treatment.
He said only 3 per cent of Pakistani milk production was processed, with the rest consumed internally. Thompson said the southern Pakistani city of Karachi had a four million litre shortage of milk per day, a situation echoed across the country.
"Every single farmer admitted to us adulterating the milk - putting water or caustic soda into that milk."
Despite its huge production, the industry was hampered by the fact that it had no "cool chain", he said. "If you were to do fresh milk there is no refrigerated transport and very little refrigeration in supermarkets."
Australia was ahead of New Zealand in exporting animals for Pakistan's dairy sector, but New Zealand had the advantage of being better able to supply expertise in milking machine manufacturing.
With 70 per cent of the national herd consisting of water buffalo, Thompson said he was also looking at specialised equipment.
"We can't just destroy what their wants are because this is how we do it in New Zealand - we have to fit into how they do it as well."
Thompson said the Pakistani dairy industry has the potential to produce the equivalent of four to five times the supply of New Zealand, which meant opportunities for business.
"There is room for a lot of different enterprises should they wish to take on board the difficulties you will encounter dealing with Pakistan."
Vet Enterprises' Steve Cranefield, who was also part of the trade delegation, agreed Pakistan had "enormous potential" for those wishing to supply animal health services.
The nation possessed plenty of veterinarians, but they did not have the same on-farm focus as their New Zealand counterparts, who might be able to offer training in modern systems or take up employment opportunities in the country itself.
"A vet's role in New Zealand is to make a farm profitable - that's not an aspect in Pakistan."
However, Cranefield said his primary reason for going to Pakistan had not been to look for commercial opportunities, but to assess the animal health issues facing its dairy sector.
The delegation followed a visit by Trade Minister Phil Goff in April.
