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A Review of Milk Production in Pakistan with Particular Emphasis on Small-scale Producers

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  • Garcia, Otto
  • Mahmood, Kalid
  • Hemme, Torsten

Abstract

The purpose of the study is to assess the economics of dairy farming in Pakistan and the prospects for improving the dairy income for small-scale producers, which currently form the backbone of the dairy industry. The document begins with a general overview of milk production in the country, followed by a detailed study of dairy farming in the province of Punjab, with a particular focus on the small-scale producers. Preliminary estimates of the margins in the formal and informal market for liquid milk are provided. The study applies a method of economic analysis developed by the International Farm Comparison Network (IFCN) which is based on the concept of 'typical farms'. Four farm types were selected to represent 'typical farms' in the province of Punjab: one farm with one and three, and two farms with ten dairy animals respectively, one of the latter located near the city of Lahore. Each farm is described in detail with assets, production costs, profits and other economic information presented both graphically and in the text. The study concludes that a sound intervention strategy to strengthen the position of the small scale dairy farms would focus simultaneously on at least three fronts: (1) lowering farm production costs, (2) increasing productivity and (3) promoting a "higher" farmers' share in the consumer milk prices. A more competitive milk marketing system designed to cater for the needs of small-scale dairy farmers would send strong positive signals for small farmers to mobilise their own resources and develop their operations.

Suggested Citation

  • Garcia, Otto & Mahmood, Kalid & Hemme, Torsten, 2003. "A Review of Milk Production in Pakistan with Particular Emphasis on Small-scale Producers," PPLPI Working Papers 23782, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
  • Handle: RePEc:ags:faopwp:23782
    DOI: 10.22004/ag.econ.23782
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    Cited by:

    1. Joyce Muthoni Mbaya & Samuel Maina & Mary Namusonge, 2021. "Strategic Learning and Performance of Small and Medium Sized Dairy Processing Firms in Kenya," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(5), pages 249-262, October.
    2. Amarasinghe, Upali A. & Shah, Tushaar & Anand, B. K., 2008. "India’s water supply and demand from 2025-2050: business-as-usual scenario and issues," IWMI Conference Proceedings 235165, International Water Management Institute.
    3. Abid A. Burki & Mushtaq A. Khan & Faisal Bari, 2004. "The State of Pakistan’s Dairy Sector: An Assessment," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(2), pages 149-174.
    4. Cain, Philip & Anwar, Muhammad & Rowlinson, Peter, 2007. "Assessing the critical factors affecting the viability of small-scale dairy farms in the Punjab region of Pakistan to inform agricultural extension programmes," Agricultural Systems, Elsevier, vol. 94(2), pages 320-330, May.
    5. Rizwan Shabbir, 2014. "Institutional Development and Sustainable Growth for Livestock Sector in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(10), pages 394-404, October.
    6. Liying Mu & Milind Dawande & Xianjun Geng & Vijay Mookerjee, 2016. "Milking the Quality Test: Improving the Milk Supply Chain Under Competing Collection Intermediaries," Management Science, INFORMS, vol. 62(5), pages 1259-1277, May.
    7. Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
    8. Garcia, Otto & Hemme, Torsten & Nho, Luong Tat & Tra, Hoang Thi Huong, 2006. "The Economics of Milk Production in Hanoi, Viet Nam, with Particular Emphasis on Small-scale Producers," PPLPI Working Papers 23766, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    9. Muhammad Younas, 2013. "The Dairy Value Chain: A promoter of development and employment in Pakistan," ICDD Working Papers 9, University of Kassel, Fachbereich Gesellschaftswissenschaften (Social Sciences), Internatioanl Center for Development and Decent Work (ICDD).
    10. Jesse, Edward V. & Dobson, William D. & Armentano, Louis E. & Olson, Norman F. & Sharma, Vijay Paul, 2006. "The Dairy Sector of India: a Country Study," Discussion Papers 37353, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    11. Abid A. Burki & Mushtaq A. Khan & Faisal Bari, 2005. "The State of Pakistan’s Dairy Sector : An Assessment," Microeconomics Working Papers 22247, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    Livestock Production/Industries;

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