Maize silage productivity – Pakistan & Gulf Economist

• A golden investment opportunity for Pakistan’s agriculture

Pakistan’s agriculture sector has always been the backbone of the economy, feeding millions and sustaining rural livelihoods. Today, one area is emerging as a true game-changer: maize silage production. With the rapid growth of the dairy industry, silage is no longer just an optional feed. It has become a lifeline for boosting milk productivity and farmer profitability. Unlike traditional feeds such as seasonal green fodder or wheat straw, which often lack adequate nutrition and lead to low yields, maize silage is nutrient-rich and scientifically proven to increase milk output by 15-20 per cent.

There are two prominent dairy farms in Mianwali: Dairy Farm A*, Piplan, and Dairy Farm B*, Mochh. The Nisar Aziz AgriTech Center (NAAC) at Namal University, which strives to uplift rural communities, recently visited both farms. Both farms use self-prepared maize silage to feed their Holstein (Friesian) cows. Silage not only sustains animal health but also reduces the risk of seasonal fodder shortages. Since maize is a short-duration crop (90-100 days), its silage can be stored for up to nine months, ensuring year-round feed availability.

On average, each cow produces 25 liters of milk per day, with a daily animal feeding cost of roughly Rs. 800 at both farms. However, their marketing approaches differ: Farm A supplies milk to Nestlé Pakistan at Rs. 135 per liter, while Farm B sells directly through its own retail outlet at Rs. 180 per liter. Despite identical production costs, the difference in selling price significantly impacts profitability. By using silage, both farms achieve stable yields of 25 liters per cow per day. However, Farm B’s decision to capture retail margins through direct sales delivers higher revenues and profits compared to Farm A’s contract-based model. This case highlights how on-farm silage and value-chain choices directly shape farmer incomes and rural economic resilience.

Importantly, the demand for fresh milk in metropolitan cities such as Lahore, Karachi, Peshawar, and Multan is constantly increasing due to urbanization and job-driven population growth. Nearly 95 per cent of Pakistan’s milk is sold in these urban retail markets, where consumers are willing to pay a premium for quality and consistency. This creates a massive opportunity for farmers and investors to connect silage-supported dairy production in rural areas with the high-demand urban milk markets, ensuring strong returns and reliable supply chains.

Beyond Mianwali, Pakistan has several regions ideally suited for silage production and processing. These include Punjab (Faisalabad, Multan, Sahiwal, Khanewal, Vehari, Arifwala), Sindh (Hyderabad, Badin, Tando Adam, Tando Jam), KPK (Charsadda, Mardan, Swabi, D.I. Khan), Balochistan (Jafferabad, Lasbela), and select parts of Gilgit-Baltistan. These areas combine abundant maize cultivation with the presence of large dairy clusters, ensuring both raw material supply and strong demand.

According to the statistics of Govt. of Pakistan, from an investment perspective, the economics of silage are highly promising. A processing unit with an installed capacity of 10.8 million kg/year can begin operations at 60 per cent capacity (6.48 million kg/year). With a total project cost of Rs. 6.6 million, an Internal Rate of Return (IRR) of 65%, a payback period of just 1.7 years, and a Net Present Value (NPV @ 17 per cent) of Rs. 19.4 million, maize silage stands out as a highly profitable agribusiness venture.

The success of such projects hinges on a few critical factors: the availability of at least 6,000-10,000 tons of maize nearby, basic infrastructure like three-phase electricity and tractors, and proximity to dairy markets where demand is guaranteed. When these conditions are met, silage becomes a win-win solution—farmers gain a steady, nutritious feed supply that ensures healthier animals and consistent milk yields, while investors secure strong financial returns in a short period.

As Pakistan seeks to modernize its agriculture and strengthen food security, maize silage offers a clear pathway to rural prosperity. It not only bridges the gap between farmers, dairy producers, and agribusiness investors but also creates a sustainable cycle of growth. Simply put, maize silage is more than just animal feed, it is a high-impact investment opportunity with the power to transform Pakistan’s rural economy.

The authors are serving as faculty members at Namal University, Mianwali (Punjab), Pakistan.

*The names of the farms are not disclosed to maintain confidentiality.

Dr. Azhar Rasool (azhar.rasool@namal.edu.pk) is an Assistant Professor in the Department of Business Studies and a member of the Nisar Aziz AgriTech Center (NAAC) at Namal University, Mianwali.

Dr. Muhammad Ashraf (muhammad.ashraf@namal.edu.pk) is a Professor in the Department of Business Studies and Head of the Nisar Aziz AgriTech Center (NAAC) at Namal University, Mianwali.