Overwhelming demand for cheese manufacturing

Overwhelming demand for cheese manufacturing

Cheese manufacturing presents a great opportunity in Pakistan. Many Pakistani dairy companies are currently exploring venturing into cheese manufacturing, and are keen to work with high quality Dutch expertise, equipment and business partners.

With a growing urban middle class, some 60 millions consumers are shifting to more western, branded consumer preferences. Over the last few years the fast food industry has seen growth of 21% annually, the bulk of which comes from both international and local pizza brands. The main demand is for Cheddar, Mozzarella, Cottage and Pizza Cheese.

Yet the cheese industry in Pakistan has remained greatly underdeveloped, mainly due to a lack of cold storage supply chain networks and outdated small-scale techniques. The largest known cheese manufacturer in Pakistan produces only 20,000 tonnes annually which accounts for 31% of the local supply. Almost all high quality cheese is imported from Europe or the Middle East, despite a tariff of 35% charged for imported cheese.

With a population of 200 million that spends 42 cents per every dollar earned on food, this creates an opportunity for Dutch firms in the cheese manufacturing industry. Dutch cheese manufacturers can enter the market through various channels which includes the fast food industry, dairy producers, conglomerates or regular retail via grocery or convenience stores.

The Embassy is well-connected in this sector and is happy to help Dutch companies explore these options.