6 HAFEEZ Analysis of Milk Production

6 HAFEEZ Analysis of Milk Production - 229 Pakistan...

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229 Pakistan Economic and Social Review Volume 47, No. 2 (Winter 2009), pp. 229-242 ANALYSIS OF MILK PRODUCTION SYSTEM IN PERI-URBAN AREAS OF LAHORE (PAKISTAN) A Case Study HAMID JALIL, HAFEEZ UR REHMAN, MAQBOOL H. SIAL and SYED SHAHID HUSSAIN* Abstract . This study is an attempt to investigate the market structure, sources of milk production and average unit of productivity in peri-urban 1 areas of Lahore. Using primary data of year 2007 from some selected peri-urban areas of Lahore, the results of this study reveal that the lack of training and dairy related education hinders opportunity of value addition with undue cost of poor transportation, low quality and mismanaged distribution. Lack of marketing and supply chain in dairy industry is another bottleneck of development. The results of this study call for the role of government in the development of dairy sector. The government needs to provide critical support for the promotion of smallholder producers in peri- urban areas. I. INTRODUCTION In Pakistan agriculture sector contributes more than 20 percent of the GDP and employs more than 40 percent of the total workforce. Pakistan has larger base of dairy sector allied with the agriculture. Dairy sector generates employment and business opportunities, particularly in the rural and peri- urban areas. A number of people in urban areas are also involved in dairy based business. The public sector departments hold primary responsibility to guide the farmers and play significant role in dairy sector development. *The authors are, respectively, Chief, Planning and Development Livestock, Government of Punjab; Associate Professor/Chairman, Department of Economics, University of the Punjab, Lahore; Dean, Management and Administrative Sciences, University of Sargodha; and Research Scholar, Department of Economics, University of the Punjab, Lahore (Pakistan). (For correspondence: drhrehmankhan@gmail.com) 1 Immediately adjoining an urban area; between the suburbs and countryside.
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230 Pakistan Economic and Social Review Dairy enterprise is dominated by the private sector and the role of government is regulatory. Although dairy enterprise was badly neglected by the Government, Pakistan is the 5 th largest milk producer in the world. According to livestock census 2006, approximately 80 percent of the milk is produced in the rural areas. Only 3-5 percent of total milk production of the country is marketed through formal channels. The remaining 97 percent is produced and marketed in raw form by informal agents in the marketing chain portion of milk producers. Presently, Pakistan’s dairy industry is facing a number of problems which include the lack of commercial dairy farm, lack of dairy related education and lack of financial and infrastructure facilities. Furthermore, lack of quality check is the most neglected aspect of the whole system. There is no test at any stage along the marketing chain. Many shops in urban areas are exposed to dust and flies. Very few shops have refrigeration facility. The
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6 HAFEEZ Analysis of Milk Production - 229 Pakistan...

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