Sharaqpur Dairy Farmers Association is a cluster of 5 dairy farmer enterprise groups (FEGs) consisting of  total 50 farmer members, organized by Rural Community Development Society (RCDS) under an MOU signed with ASF for FEGs formation.

ASF, after analyzing the existing mechanism of milk marketing system in the region, designed a project for establishment of milk collection, chilling & distribution system, which would ensure a premium price to the farmers by sale of better quality milk in the city of Lahore. ASF grant funding of PKR. 0.847 M was provided for this association of farmers for setting up a milk collection, chilling & distribution unit with daily milk chilling & distribution capacity of 2000 Litres. ASF matching grant support covered all the expenses of setting up and operating the unit for a period of 6 months after which the system is expected to be sustainable, and the farmers will be able to run this commercial activity on their own without any support. Major costs supported by ASF under this project include: Fees of dairy & marketing consultants; transportation and installation of milk chilling unit & generator; equipments for milk quality checking; milk collection expenses; transportation expenses; salaries of workers; utilities & communication; milk pots & other relevant expenses.

The project has the following salient features & deliverables:

• “Sharaqpur Dairy Farmers Association has established a milk chiller unit of capacity 2000 litres in front of Gill Petroleum (CNG Station) in Sharaqpur on the Lahore-Jarranwala road.  Selected persons from Dairy Farmers Association collect the milk in the morning and evening daily and ensure its timely delivery to the chilling unit. Milk collected in this way is transported to the market in Lahore (directly to the customers).
• The farmers get technical advice & veterinary services from a qualified dairy expert at their farm gate to increase their milk production.
• The farmers’ milk is immediately transferred to the nearby chiller unit and preserved. This way the chances of milk spoilage will be reduced from almost 30% to less than 5%.
• The member farmers get employment for different tasks to be carried out under this project.
• The farmers get a better price for their fresh milk in the Lahore market as compared to the local market price offered by middlemen.
• The customers get pure milk at a price which is comparatively lower than the market price.
• It is mandatory for the deliveryman to demonstrate (through the use of gravity meter) to customers that the milk being delivered to them is pure.
• It is expected that more farmers / FEGs will join this, or similar groups, after streamlining of the business.
• The Association receives the sale proceeds and pays the individual farmers after deduction of necessary expenses. It also deducts PKR. 1-2/litre for building up the reserves. These reserves will later be utilized for establishment of other value addition facilities such as production of dried milk at times when there is less demand of fresh milk.