**2.3 Rural commercial production system**

In 2006, dairy sector in Pakistan moved toward commercial side and this encouraged some progressive farmers to invest in milk production. A typical rural commercial dairy farm running on commercial basis consists of about 30 animals of which 70% are females, including some cows. Approximately 40% of these adult females are in milk during most of the year. Fodder crops provided 50% and straws about 35% of the feed requirements and concentrates made the rest of it. More than 90% of the milk produced at the farm is sold. Average milk yields per animal are 10 L/day. Potential channels for the marketing of milk in this system have changed from traditional system to selling to the commercial milk collection companies. This system presents the second largest source of milk collection by commercial dairy companies after large peri-urban commercial farming.

### **2.4 Peri-urban production system**

Peri-urban production occurs in commercial-scale units located on the peripheries of major urban centers. With growing demand for milk in urban areas, rural commercial dairy farming moved toward peri-urban areas. These maintain herd sizes ranging from 20 to 200 (small) and from 200 to 2000 (large) head, and averaging 50 animals; 90% buffaloes and 10 % cows with nearly 90% of adult females in production [6]. These units employ family and hired labor, the latter being paid at local urban rates. Milk is delivered to the market twice a day. Major overheads in this system include hired labor costs, animal shelter, veterinary care, feed, water

and electricity bills, and milk transport. Milk is usually sold through direct sale to retail shops in the city after decreaming with the target to sell almost total produced milk. Male calves are disposed off within first 2 weeks of birth. These animals are fed chopped green fodder and wheat straw and concentrate mixture with target to sell almost total milk produced. The current number of dairy farms falling into this category accounts for 200 units situated across the country.
