Impact of Formal Credit on Subsistence Farmers Dairy Production in Southern Punjab, Pakistan
Impact of Formal Credit on Subsistence Farmers Dairy Production in Southern Punjab, Pakistan
Dilshad Ahmad1*, Muhammad Afzal2 and Asif Ali Abro3
ABSTRACT
Livestock plays a significant role in promoting the financial status, assuring food security and reducing poverty specifically rural community of developing countries. The present study attempts to analyze the impact of formal credit on milk production of dairy animals and household income in district Vehari of southern Punjab, Pakistan. The study used simple random sampling approach for collecting primary data of 240 livestock household farmers and employed regression analysis model to estimate credit impact on household income and livestock production. An economic technique of log-linear regression model was applied to identify the factors influencing dairy production and estimate household income difference from dairy production due to formal credit from Zarai Taraqiati Bank Limited (ZTBL). Estimates of the study indicated that agricultural credit facilitated to enhance household income 23.58%, increases herd size 35.5% and raises the average number of milking animals 39.74%. The elasticity of milking animals (0.72%) and agricultural credit (0.139%) is relatively more comparative to education level (0.113%) and family size (0.076 %). In the scenario of findings of the study, it is suggested that policymakers and concerned institutional authorities focus priority to infusion and easy access of credit in formulating easy credit procedures for specifically subsistence farmers which will help in increasing livestock production, reducing poverty and unemployment in the region.
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