Milk chilling in pre-processing stage is not only critical in maintaining the desired high quality of dairy products but also its impacts on energy security and climate change. This research brings into play the concepts of Eco-efficiency, Cleaner Production and Integrated Energy and Waste Management. It employs a scenario technique, a streamlined, gate-to-gate, attributional and consequential LCA and capital budgeting decision making, to make environmental and economic assessment of energy resource substitution in the prevailing energy system of the company. The analysis focuses on environmental impacts associated with power and energy management at milk chilling centers spatially distributed across Pakistan. This study estimates the potential reductions in Carbon Footprint if the prevailing system of expensive, GHG intensive fossil derived energy is substituted by a distributed system of energy generation through Anaerobic Digestion of cattle/buffalo manure. The study also focuses on calculation of carbon credits. This research was conducted under the kind supervision of Prof. Dr. Muhammad Nawaz Chaudhry and Dr. Syeda Adila Batool.