A Qualitative Study to Understand the Factors Influencing Competitiveness in the Dairy Sector

Abstract

Despite being one of the highest milk producer countries, Pakistan is still unable to manage an organized supply channel in the dairy sector. The analysis of competitiveness is of profound importance for any sector as it provides a base to understand certain underlying factors that can influence individual farms and industries in that sector. The main objective of the present study was to explore certain factors that limit the competitiveness in the dairy sector of Pakistan and to develop certain management and policy recommendations to boost this sector. A qualitative approach was used to uncover some of the factors that can influence the competitiveness of dairy farmers. The purposive sampling technique was used among the dairy farmers of Punjab. Four main themes were identified. These factors are human capital, production value, logistics cost, and investments. Traditional and outdated production mechanisms are the main obstacles to competitiveness in the dairy sector of Pakistan. The major structural changes and technological advancements are crucial for the improvement and growth of this sector. Institutions, particularly in Pakistan, are required to provide formal education, and training to the farmers to boost the competitiveness and ultimately the performance of this sector.