DCFA warn of rising milk, meat prices due to feed tax

President of the Dairy and Cattle Farmers Association of Pakistan (DCFA), Chaudhry Shakir Umar Gujjar, has called for the immediate withdrawal of the recently imposed tax on animal feed. He warned that failure to do so could push milk prices to Rs. 300 per liter and beef to Rs. 2000 per kg, with mutton potentially reaching Rs. 3500 per kg.

During an urgent press conference at the Karachi Press Club on Wednesday, the association denounced the new tax, stating that it severely impacts the dairy and poultry sectors. Gujjar emphasized that the tax on animal feed ingredients, including palm kernel cake, canola meal, mustard meal, and sunflower meal, is driving up production costs, which will ultimately burden consumers. “The current economic conditions cannot sustain such price hikes.”

Livestock sector on brink of collapse amid financial crisis

“We cannot produce milk, poultry, and eggs at higher costs and sell them at low prices,” Gujjar remarked. He highlighted that the 10 percent tax on feed has increased the prices of feed bags to Rs. 3600, and the cost of cattle has skyrocketed, deterring investment in the sector.

Pakistan already faces a milk shortage, and this tax exacerbates the problem, affecting millions who rely on dairy for nutrition.

Gujjar pointed out that corporate dairy farmers, who have imported high-yielding cows, are particularly hit hard, risking further decline in milk, meat, poultry, and egg production. He urged the government to reduce production costs for essential items like milk, meat, poultry, and eggs to avoid severe nutritional deficiencies, especially among children, the elderly, and women.

“Approximately 8 million households are linked to the dairy sector, and this tax threatens their livelihoods, leading to increased unemployment and higher prices for essential goods,” he warned.

Gujjar also stressed the urgent need to control milk prices, suggesting either market-driven pricing or a government-mandated price increase of Rs. 80 per liter to sustain dairy farmers. He noted that climate change has already caused significant livestock losses, further straining the sector.

Shakir Umer Gujjar called on the government and relevant ministries to revoke the tax on animal feed to protect Pakistan’s food security and support the dairy and livestock sectors