Nestlé to double dairy output in Pakistan

By Helen Glaberson

- Last updated on GMT

Related tags: Milk, Pakistan

Food giant Nestlé has announced plans to double its dairy output in Pakistan, where there is growing consumer demand for branded milk, according to Mintel.

Nestlé said the investment would be used to build new milk factories in the region.

It will also help to boost Nestlé’s yoghurt, juice, and noodle businesses, said the firm.

Opportunity to grow

“The opportunity to grow in Pakistan is still enormous,”​ Ian Donald, managing director at told Bloomberg.

“We’ve a very bullish view on Pakistan, and will invest quite aggressively in production capabilities in the next three to four years.”

Mintel analyst Caroline Roux told DairyReporter.com growth for dairy products in the region was being driven by urbanisation and increasing purchasing power.

According to Mintel, Pakistan is the 4th largest milk producer in the world after India, the US and China, with overall milk production growth of 38 per cent over the last 10 years due to an increase in cow milk production.

Roux said fortified milk products had the most growth potential in the country.

“Nestle can play a strong role in combating child and maternal malnutrition and micro-nutrient deficiencies,”​ she said.

Emerging markets growth

Packaging giant Tetra Pak has also announced plans to open a packaging site in the country, said Mintel.

In its recently released Dairy Index Tetra Pak claimed the world is set for a decade-long boom in milk consumption, with demand for Liquid Dairy Products (LDP) set to surge by around 30 per cent from 2010 to 2020, boosted by growth in Asia.

Asia-Pacific, Latin America and Africa are all forecast to record double-digit growth in demand for LDP in 2010-2020.

Asia-Pacific LDP consumption will climb by almost 45 per cent from slightly below 140bn litres in 2010 to almost 200bn litres by 2020, according to the packaging supplier.

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