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
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.
A four page executive summary is also available in addition to this
PPLPI, FAO, Rome, Italy, ii+41pp.