Partners signing the agreement. Credit: Market Development Facility

Market Development Facility (MDF) has signed a partnership agreement with Fauji Foods, a Pakistan-based food processing company.

The agreement will see the installation of 20 milk collection centres in the Layyah and Muzaffargarh areas of Pakistan.

These centres will educate farmers on best practices in milking, vaccination and animal husbandry.

The agreement was signed at the Fauji Foods factory in the city of Bhalwal by Australia’s High Commissioner to Pakistan Margaret Adamson and Fauji Foods Company secretary Brig Rizwan Rafi SI.

“By connecting smallholders with commercial markets, the milk collection centres will attract better quality milk and provide a better rate for farmers for their product.”

The joint investment agreed by the parties is expected to expand Pakistan’s formal milk procurement network, which will help the nation to fill the annual milk supply-demand gap of 3.5 billion litres.

Adamson said:  “Australia is pleased to be working with Pakistan’s progressive private sector to drive economic growth and assist Pakistan’s efforts to alleviate poverty.

“By connecting smallholders with commercial markets, the milk collection centres will attract better quality milk and provide a better rate for farmers for their product.”

With private sector investment, nutrition and gender equality as key priorities, the collaboration further focuses to reduce poverty through economic growth and human development.

Fauji Foods chief operating officer Aamir Khwas said:  “Farmers can significantly benefit from an extension service, which will educate them about the best husbandry practices and benefits of pro-active vaccination and de-worming.”

MDF is an Australian Government-funded private sector development programme. It has partnered with 46 Pakistani business entities in the sectors of dairy, meat, leather and horticulture since 2013.

Fauji Foods was established in 1966 in Pakistan.