Estimating Supply and Demand Functions for Dairy Cows Milk Production

The aim of this study was to estimate supply and demand functions for dairy cows milk production and to suggest recommendations to overcome problems related to the supply and demand of milk. A sample of 90 respondents was selected from Ad Dulay area. Multiple regression technique was used in this study Log-log demand and supply functions for raw milk production, milk price, and number of milking animals. The variable cost were considered to be the most influential variables in raw milk supply function, while milk price and consumer’s income were the variables to be considered in the demand function. Therefore, encouraging farmers to establish dairy industry is needed to accommodate surplus milk.