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The study analyzed the profitability of milk production in district Peshawar. For this purpose 100 dairy farmers are selected from the two purposively selected villages namely Kalu Khel and Kala in district Peshawar. The sampled dairy farmers are divided into three categories on the basis of number of milk animals i.e. rural subsistence (1-3 adult milk animals), semi commercial (4- 10 adult milk animals) and commercial dairy farmers (10< adult milk animals). The study concluded that average fixed cost per animal per year is Rs.9485.76, Rs.17382.51 and Rs.19070.57 respectively. Whereas, the average variable cost was estimated as Rs.49741.07, Rs.70492.74 and Rs.76559.57 for all the three categories including rural subsistence, semi commercial and commercial dairy farmers respectively. The key finding of the study is that on average, a milk animal produced milk per lactation worth Rs.58220.63, Rs.91823.60 and Rs.107004.01 in the rural subsistence, semi commercial and commercial dairy farms. The results of the benefit-cost ratio for commercial dairy farmer was noted as 1.15 which was higher than those of semi commercial 1.09 and rural subsistence 1.04.The study suggested that provision of the microfinance loans on relax conditions can increase the milk productivity and profitability of the farmers.

Fazli Qadir, Muhammad Tariq, Shahid Jan, Kamil Zada. (2016) Profitability Analysis of Milk Production In District Peshawar, Journal of the Research Society of Pakistan, Volume 53, Issue 2.
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