Summary: | This study was specifically conducted in the four districts of Punjab province of Pakistan.
The principal objective was to identify major explanatory variables that might influence dairy
farmers’ market participation decisions regarding the selection of traditional and modern
channels of milk marketing. Data was collected from field survey and the sample size
comprised of 320 dairy farmers, randomly selected from study area. Multinomial logit model
was used an econometric tool to estimate the impacts of fourteen independent variables on the
dependent variable (selection of milk marketing channel). Model results showed that eight
factors like gender, old aged farmers, long distance between dairy farm and urban market,
easy milk selling at door step, advance cash payment, lack of quality inspection, strong social
relationship with milk collectors, and better milk price were important predictors influencing
milk producers to choose traditional channels for the sale of their milk produce. Impacts of
these variables were significant at 5% of significance level except long distance which was
significant at 1%. Conversely to this, fourfactors such as high education level of dairy farmers,
large herd size, provision of extension services, and purchase of evening milk were motivating
dairy farmers to sell milk through modern channels. Traditional milk channels were preferred
by majority of milk producers but these channels were lacking in delivering the quality milk to
consumers. Policy implication for sustainable milk marketing might be the provision of dairy
advisory services, advance payment framework, improving logistic infrastructure, and
enforcement of milk quality inspection could ensure milk safety along sustainable milk supply.
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