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ORIGINAL RESEARCH
Technical Efficiency, Economic Sustainability,
and Environmental Implications
of Dairy Farms in Pakistan
1
Business School, Huanggang Normal University No. 146 Xinggang 2nd Road, Huanggang (438000), Hubei, P.R. China
2
School of Tourism Management, Wuhan Business University, 300 Dongfeng Blvd,
Cai Dian District, Wuhan 430118, China
3
School of Economics, University of the Punjab, Lahore 54590, Pakistan
Submission date: 2024-02-18
Final revision date: 2024-03-20
Acceptance date: 2024-04-13
Online publication date: 2024-05-29
Publication date: 2025-01-09
Corresponding author
Shengze Qin
School of Tourism Management, Wuhan Business University, 300 Dongfeng Blvd, 430118, Wuhan, China
School of Tourism Management, Wuhan Business University, 300 Dongfeng Blvd, 430118, Wuhan, China
Pol. J. Environ. Stud. 2025;34(2):1285-1297
KEYWORDS
dairy productiontechnical efficiencyenvironmental sustainabilityeconomic sustainabilitydata envelopment analysis
TOPICS
ABSTRACT
Dairy production is a significant contributor to food security; however, it also causes environmental
problems such as greenhouse gas emissions, water pollution, and land degradation. Pakistan, a country
highly vulnerable to climate change, relies heavily on its dairy sector. This sector largely consists of small
farms where sustainability practices may be limited. Understanding the economic and environmental
impacts of these practices on Pakistan’s rural and peri-urban dairy farms is critical, yet research in this
area remains scarce. This study analyzes the economic and environmental sustainability of Pakistani
dairy production in rural and peri-urban areas, considering farm structure, market factors, technical
efficiency, and associated policy challenges. Data from 100 farms near Lahore were analyzed using farm
budgeting, Data Envelopment Analysis (DEA), and truncated regression. Results indicate that Pakistani
dairy production faces limited profitability, driven largely by feed costs. Rural farms showed higher
profit margins, often due to lower input costs, but were generally less technically efficient. This low
efficiency carries potential environmental consequences. Truncated regression revealed that education,
experience, and family size have a significant influence on technical efficiency. Findings suggest the
need for targeted interventions, such as extension services tailored to the needs of rural and peri-urban
farmers, promoting improved feed practices, and supporting the adoption of sustainable technologies, to
enhance the economic viability and environmental sustainability of Pakistan’s dairy sector.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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