Demand And Supply Analysis Of Milk Production: A Case Study Of District Sargodha

Abstract

 Milk is an important commodity. Milk supply and demand was studied in Sargodha
district. Stratified random samplings of 110 respondents were selected. Multiple regression log-log
models of demand and supply functions were estimated. In the estimated supply function, the most
influential variables were milk price, number of milking animals and variable cost. Similarly, in the
estimated milk demand function mainly significant variables were milk price and consumer’s income.
It is recommended that to overcome the shortage of milk supply, farmers may be provided motivation
to set up new dairy and livestock farms.