Analysis of agribusiness value chains servicing small-holder dairy farming communities in Punjab, Pakistan: three case studies

Godfrey, S.S., Ramsay, G.C., Behrendt, K., Wynn, P.C., Nordblom, T.L. and Aslam, N. (2018) Analysis of agribusiness value chains servicing small-holder dairy farming communities in Punjab, Pakistan: three case studies. International Food and Agribusiness Management Review. pp. 1-18.

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Abstract

The agriculture sector in Pakistan, as in most developing countries, is dominated by smallholder producers. Pakistan has the world’s third largest dairy industry, and milk is efficiently collected and distributed chiefly by informal value chains that market the raw product with minimal cool chain infrastructure. Formal processors have a small market share of 5%. Interview data from farmers, milk collectors and consumers from three rural-urban case study value chains were analysed to study opportunities and challenges faced by the dairy industry. Compositional analysis of milk samples (n=84) collected along these chains identified the fact that in Pakistan informal milk chains provide a cheaper source of calories for the final consumer than industrialised milk chains (USD 0.12 compared USD 0.15 per 100 calories). These three chains created an estimated 4,872 jobs from farm to market and provided access to interest-free credit for the farmers. The existing government price setting mechanism at the retail end and collusion by large processors to set farm gate prices provided significant limitations to the profitability of small-holder farms providing the product. The absence of quality and quantity standards, amid the exchange of huge numbers of small volumes of milk along these chains, are major impediments to industry growth.

Item Type: Article
Keywords: value chain, milk, nutrition, price, pro-poor policy
Divisions: Food, Land and Agribusiness Management
Depositing User: Ms Kath Osborn
Date Deposited: 22 Nov 2018 19:40
Last Modified: 12 Aug 2019 11:09
URI: https://hau.repository.guildhe.ac.uk/id/eprint/17361

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