It is accepted globally that a “leaner” yet ‘bigger’ dairy industry is much more productive than small farm holdings. Contrary to this belief we suggest mechanization is not an alternative but can be a complement to smallholding farms. Mechanization is understood as loss of jobs for farmers. This may be true for the crop sector; however, in dairy farming this is not always the case. Given Pakistan’s spread of smallholdings and very low level of existing mechanization; job losses are unlikely to happen. Empirically, any job loss phase comes only after a degree of mechanization has been reached