Improving both quality and quantity of food available is a pressing need especially when one eighth of the world’s population consumes less energy than is required for maintenance and is exposed to contaminated food, both of which lead to greater susceptibility to diseases. The Pakistani population depends heavily on milk for nutritional needs and 10% of household income is spent on milk. This commodity requires continuous monitoring and care from its site of production by smallholder dairy producers through to urban consumers along tradition milk marketing chains. Feed ingredients used as concentrate feed to enhance milk production are often contaminated with mycotoxins, which, after ingestion, are transferred into milk. Aflatoxins can contribute to the causation of liver cancers, immune system disorders, and growth-related issues in children. Moreover, deaths in both humans and animals have also been reported after ingestion of aflatoxin-contaminated food. Studies have shown contamination of food and feed ingredients with mycotoxins, especially aflatoxins. This review places the dairy industry into context, summarizes how milk and milk products are contaminated with aflatoxins, and discusses the present legislative regulation of milk quality implemented in Pakistan. There is a need to eliminate fungus-susceptible animal feed ingredients, which are the source of mycotoxins so prevalent in the milk marketed to the consumer in Pakistan.