English

Abstract

Milk is a vital constituent of the human diet. It is a rich source of high biological value protein and essential minerals like calcium, phosphorus and potassium. It has protective effects against many acute and chronic diseases. Milk gives comparatively rapid returns to small scale livestock keepers. Huge quantity of milk is produced by small farmers in developing countries like Pakistan and it is expected that demand for milk will increase by 25 percent by 2025. Pakistan is the world's fifth- largest producer of milk and produces about 60 million metric ton of milk in a year. Only 6 percent of milk is being pasteurized. Livestock sector in Pakistan contributes 11.10 percent to Gross Domestic Product (GDP). Approximately 35 million households in rural areas are associated with the profession of dairy industry in Pakistan. Pasteurized milk is much better than raw milk because pasteurization is a preventive measure of public health significance as it makes the milk safe for human use. The main objective of this study was to find out the willingness to pay by consumers for the purchase of pasteurized milk. In this regard, interviews were conducted from 150 households during May, 2020 from 3 localities namely Ghulam Muhammad Abad, Muhammad Pura and Marzi Pura in Jinnah town District Faisalabad. Binary logistic model was applied to explore variation in various measures of the respondents’ willingness to pay. The results of the model revealed that factors like income, education, expenses on milk, number of children and milk source were found significant for willingness to pay. Further, household is spending on an average 11% of his income on milk consumption and is willing to pay Rs. 7.5 per liter for pasteurized milk. These findings have essential implications for policy makers.