Digital transformation of dairy farming

The dairy sector is crucial for both economic support and food security with an effective value chain that supports the livelihoods to millions. Despite its substantial contribution in Pakistan’s GDP, dairy producers, particularly small livestock holders, have been remained stuck in a cycle of inefficiencies, exploitation and limited market reach.

The integration of Information Communication Technologies (ICTs) offers a viable opportunity to improve the earnings of small livestock holder, straighten the dairy agribusiness value chain, and foster the value addition that uplifts the overall rural economy as the world becomes transformed into a digital agribusiness.

The long-term information gap in agrarian landscape is gradually being minimized by the initiation of ICTs, encompassing innovations like AI-driven livestock monitoring, farm management apps, web based platforms, and digital devices.

Most of the times, dairy farmers have depended on market intermediaries for accessing market and determining prices, a practice that has sometimes resulted in exploitation. Farmers may now access real-time market prices, veterinary advice, climate change advisory, weather forecasts, and digital training modules via ICTs-enabled tools.

Mobile-based applications facilitate livestock health alerts and help connect farmers with veterinarians and AI services. These instruments are necessary in the rural economy where formal veterinary care is not certainly accessible, especially in marginalized localities.

Digital solutions are promoting traceability and transparency throughout the dairy agribusiness value chain, from the dairy farm to consumer. Block-chain technology is being trialed in specific areas of South Asia to monitor milk quality and compliance with hygiene regulations, potentially leading to a higher level of adherence to international quality standards.

ICTs are assisting in the minimization of post-harvest losses by enabling timely payments, simplifying logistics, etc. These strategies add value to dairy products like cheese, butter, yogurt and ghee, resulting into reasonable market returns and increased income of the dairy farmers.

Despite recent advancements in the dairy sector, a large number of country’s dairy farmers are still digitally disconnected. A major obstacle is lack of digital literacy, especially among females, who constitute a large proportion of Pakistan’s informal livestock work force.

Consequently, it’s essential to integrate digital awareness with current agricultural extension services. Collaboration with public and private sectors might be essential in this regard.

ICTs-based training programmes in local languages may be provided as a part of corporate social responsibility (CSR) activities from agribusiness companies or development initiatives funded by international donors. Improving digital literacy has a positive impact on dairy productivity and enhances social capital and confidence, specifically among underrepresented communities.

As mentioned earlier, dairy value chain is covered by the market intermediaries rather than producers, leading to fragmentation and inefficiency. ICTs provide a strong tool for reshaping the dairy value chain so that farmers may receive a fair share of their earnings. Digital tools may also promote good working conditions, online labour marketplaces and traceability systems may minimize abusive labour practices on dairy farms and at milk collection sites, ensure compliance with occupational health standards, and formalize employment contracts, contributing directly to the Sustainable Development Goal (SGD) 8: “Decent Work and Economic Growth”.

ICTs-enabled value chain transformation may generate new employment opportunities. Although the economic gains of adopting ICTs are clear, their impact on subjective well-being of small livestock holders measured through self-reported happiness and life satisfaction is equally imperative. Dairy farmers who use ICTs often claim to be more optimistic about the future, less stressed, and more empowered. A sense of support and inclusion is inculcated by access to information and digital communities. In addition, by linking females and older farmers to marketplaces and peer groups, digital tools can also lessen social isolation, which may have a positive impact on emotional well-being and mental health.

Government measures should promote the growth of rural digital infrastructure, provide subsidies for farmers’ internet and mobile devices, and incorporate ICT modules into the agricultural curriculum at universities and training institutions. Furthermore, a multi-stakeholder strategy that includes farmers, service providers, industry actors, government agencies and NGOs is vital for creating economically resilient, digitally literate, and inclusive dairy farming communities. Enabling dairy farmers through ICTs can surface the way for economic viability as well as social justice, gender equality in all its forms, as Pakistan progresses in its mission for sustainable dairy development.

Copyright Business Recorder, 2025