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A Case Study of Milk Processing: The Idara-e-Kissan Cooperative


  • Khalid Riaz

    () (Professor of Economics, University of Sargodha, Sargodha, Pakistan.)


The paper focuses on Idara-e-Kissan, a vertically integrated cooperative in the dairy sector, which procures fresh milk, processes it and uses the profits earned in urban milk product markets to provide development services to member farmers. The analysis suggests that, compared to a control group of non-members, the cooperative’s members had 29% higher net returns per milk animal, 9% more milk buffaloes, 6% fewer dry buffaloes and they used three times more milk fat-enhancing cottonseed cake. The members had better access to animal vaccination, artificial insemination, and visits from livestock extension workers; they were able to secure more animal treatments per year, and reported greater satisfaction with service provision. The cooperative’s successes were more modest in areas where the benefits of inputs and services provided were more public, e.g. livestock breed improvement and enhancing fodder productivity, indicating that there is an important role for the government in supplying public goods such as livestock/agriculture R&D.

Suggested Citation

  • Khalid Riaz, 2008. "A Case Study of Milk Processing: The Idara-e-Kissan Cooperative," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(1), pages 81-128, Jan-Jun.
  • Handle: RePEc:lje:journl:v:13:y:2008:i:1:p:81-128

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    More about this item


    Milk; Dairy; Livestock; Cooperative; Pakistan;

    JEL classification:

    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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