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


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


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. 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.
    2. 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.
    3. 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.
    4. 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.

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    Livestock Production/Industries;


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