MARKET DECISION PREFERENCES OF DAIRY FARMERS TOWARDS TRADITIONAL AND MODERN CHANNELS OF MILK MARKETING: AN EVIDENCE FROM PUNJAB PROVINCE OF PAKISTAN

• Main Authors: Mazhir Nadeem Ishaq, Li Cui Xia, Rukhsana Rasheed, Muhammad Abdullah
• Format: Article
• Language: English
• Published: International Journal of Food and Agricultural Economics 2017-07-01
• Series: International Journal of Food and Agricultural Economics
• Subjects: Milk marketing; traditional channel; modern channel; dairy farmers; multinomial logistic regression; Punjab
• Online Access: http://www.foodandagriculturejournal.com/Vol5.No3.pp59.pdf

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.