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Global climate change has started affecting virtually all forms of life. It is now a well acceptable truth all over the world. Pakistan being an agrarian economy depends largely on the prosperity of agriculture and livestock sector. A good chunk of GDP is springing from this sector. Livestock contributes about 11.11 percent in the GDP of Pakistan. This sector is either explicitly or implicitly affected by the changing tendencies of the climatic variables i.e. temperature, rainfall and relative humidity. This study was conducted with the aim at observing the impact of climate change on the dairy production in Pakistan during 2001-02 and 2015-2016. Research followed quantitative as well as qualitative analytical tools. Ricardian analysis is operated to quantify the likely impact on dairy production. Data is of secondary nature and collected from Household Integrated Economic Survey (HIES), Federal Bureau of Statistics, Government of Pakistan. On the other hand, climatic variable data is collected from Pakistan Meteorology Department. The quantitative phase is followed by a qualitative phase by conducting Key Informant Interviews (KII‘s) of key stakeholders. Ricardian analysis shows that warming is going to impact dairy animals in Pakistan creating heat stress on animal thus lowering feed intake, imbalance in feed intake and health issues. The situation is worse in 2015-16 as compare to 2001-02. However, interesting findings are obtained for maximum and minimum temperature values of temperature where minimum temperature value is playing a compensating role to compensate the losses from maximum temperature. This is an important finding and needs to explore more. On the other hand rainfall has shown positive impact on livestock; however the positive impacts are so small that they will be offset by increase in temperature. As far as provinces are concerned, the situation has worsened between 2001-02 and 2015-16. Being the home of over 70 percent livestock and food basket of Pakistan, Punjab needs special attention to address the dairy issue. Experts have suggested few adaptation options and mitigation is somewhat not applicable in case of dairy due to more than 80 percent of small farmers involved in dairy farming. Government needs to device and suggest practical and innovative business model to dairy farmer to cope with climate change. Feed security policy is dire need of time. Reviving pure breeds and stop random crossing of dairy animals are also recommended. Like agro-climatic zones, dairy-climatic zoning is also needed so that effective policy can be devised.
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