Choice between traditional and modern milk supply channels by farmers in punjab, pakistan: a logit regression approach

Considering the changing milk marketing structure in Pakistan, this study is aimed at investigating the factors influencing the farmers' choice of milk marketing channels in Punjab, Pakistan. The research has been carried by means of survey for data collection from farmers in upper and south Punjab. We interviewed 341 farmers in total, with 165 farmers from Upper Punjab and 156 farmers from South Punjab. The logit model was employed in this study to estimate the factors influencing the dairy farmers' decisions to participate in the modern and tradition milk supply channels. The empirical results indicate that the volume of milk sold, improved cattle breeds, milk prices, distance to milk collection unit and payment methods are significant factors that influence the choice of farmers between two market channels. Quantity of milk sold, and improved cattle breeds are important factors to select modern supply channels. However, milk prices, distance to the milk collection unit and long payment periods discourage farmers' participation in modern channels. The study suggests that provision of advance dairy technology, intuitional support, and investment in infrastructure could enhance farmers' capabilities of managing resources and hence could shift farmers towards commercialization.