Livestock and smallholder farmers

Livestock and smallholder farmers

Livestock production in smallholder systems exists throughout the developing world in a great variety of forms. Farm animals contribute considerably to the livelihood strategies of the poor and can be an important source of income.

Livestock keeping can also make a vital contribution to household food and nutritional security. The value of production of different livestock species in different production systems varies considerably. Due to a range of constraints, most small-scale livestock keepers are operating at levels of productivity well below their potential. Livestock investment must consider the positioning of small-scale livestock producers within the whole value chain.

The following facts and figures, taken from a synthesis prepared by the International Livestock Research Institute (ILRI) for the Bill and Melinda Gates Foundation on livestock as instruments of poverty alleviation and well-being, draws on examples from sub-Saharan Africa and South Asia.
(Source: ILRI, Targeting strategic investment in livestock development as a vehicle for rural livelihoods: BMGF-ILRI project on Livestock Knowledge Generation, October 2009)

Key elements of livestock livelihoods in sub-Saharan Africa and South Asia

An ongoing ‘livestock revolution’ is characterized by accelerating demand for livestock products in developing countries due to increasing populations and incomes.

This livestock revolution is creating new opportunities for rural producers to participate in income-generating livestock enterprises.

Two regions that experts regard as the most critical for reaching the poorest are sub-Saharan Africa and South Asia.

Mixed humid systems contain relatively more poor livestock keepers than other systems, but livestock are of high relative importance in all rural systems.

Livestock production (dairy, small ruminants, poultry) accounted on average for close to 40% of total household income across all livestock production systems, species and regions.

Pastoral production systems showed the highest contribution of livestock to household incomes (55%).

Livestock production generates roughly half of the household income in the pastoral areas of Kenya.

Pastoral communities in Ethiopia, Niger and Burkina Faso derive over 80% of their incomes from livestock.

The average contribution of livestock to household incomes for mixed crop/livestock systems is 33%.

Among species, dairy in mixed crop-livestock systems contributed the highest share of household income at 70%, with an average income of US$958.

Poultry was the next highest proportion of income at 50%, but gave the highest household income (US$2,207-6,837).

Results of two case studies show the potential contribution that poultry can make to reducing rural poverty if a commercial system can be maintained.

Role of livestock in human nutrition

Per capita consumption of livestock products (dairy, beef, poultry meat and eggs, small ruminant meat) was least in Bangladesh and Central Africa and most in India and East and Southern Africa.

Beef and small ruminants provide most energy and protein per kilogram consumed, but, because of their longer production cycles, are generally less frequently available for consumption (from own production) than poultry meat and eggs and dairy products.

In Eastern Africa and South Asia dairy products alone account for most of the livestock products consumed.

In the other African subregions dairy products represent less than half the total consumed, and fall behind other products, such as pork and bush meat in Central Africa.

Small ruminant meat makes a minor contribution in all subregions.

Those countries in which consumption of livestock (especially dairy) products is high are often those with dry climates and less potential for crop production.

Undernutrition is widespread in sub-Saharan Africa and South Asia, with an estimated 461 million, or 25% of the population, undernourished in 2001–2003.

Animal-source foods are able to combat a range of nutritional deficiencies, particularly when consumed as a component of a diverse diet that includes plant- source foods.

Animal-source foods are energy dense and good sources of protein and micronutrients.

Moderate increases in consumption of animal-source foods in undernourished populations can provide critical nutritional benefits.

Animal-source foods are excellent sources of essential micronutrients such as iron, zinc, calcium, riboflavin, iodine, vitamin A and vitamin B12, and many nutrients are better absorbed from animal-source than from plant-source foods.

Addressing micronutrient deficiencies in children is particularly important, as the impact of undernutrition on physical capacity and cognitive development is established early in life, with substantial long-term effects on human capital development and productivity.

Productivity gaps in livestock production

Within sub-Saharan Africa and South Asia, livestock support the livelihoods of vast numbers of small-scale producers who face formidable challenges in improving the scale and efficiency of production and the quality of their products.

Three main factors account for the productivity gaps seen between livestock production in these regions vs developed countries: differences in animal husbandry practices, genotypes and production systems.

The genetic potential of most livestock genotypes is not being realized in smallholder settings, and there is considerable potential in all regions to increase yields with adoption of improved genotypes and better animal husbandry practices.

The highest potential to increase milk production was observed in East Africa in crossbred animals.

In West/Central Africa the genetic potential was greatest for purebred indigenous cattle and in Southern Africa for exotic cattle.

In South Asia, results indicate that it is possible to more than double milk production from indigenous and crossbred animals with targeted genetic interventions and due attention to animal nutrition and health.

Poultry is a promising sector for nutrition and poverty alleviation, as modest initial capital investment can act as the first step on the ladder of capital accumulation.

For indigenous poultry genotypes, selective breeding, improved management, supplementary feed and disease control can significantly improve both meat and egg productivity.

The commercial poultry sector, with its wealth of human, technical and financial resources, could be a catalyst in promoting backyard poultry production as a practical and viable option for poverty alleviation.

Small ruminants are highly suited to low-income households in marginal environments, given their low feed and capital requirements, their ability to utilize a wide range of feed resources and their adaptation to prevailing conditions.

With average landholding sizes decreasing due to increased human population and with increased competition for animal feed resources, small ruminants are expected to play a bigger role in sustaining livelihoods in the future.

Where environmental conditions and management standards are conducive, exotic and crossbred livestock genotypes can more than triple milk and meat productivity.

The climatic conditions in West Africa are not conducive to optimal performance by exotic and crossbred livestock but rather favour the best-adapted indigenous breeds, which offer a high potential for meat productivity.

Unlike crops, livestock not only produce products such as milk or egg, but also reproduce and grow in numbers and lead to herd growth, some of which can be sold.

The highest gains from livestock interventions are generally those that reduce mortality in calves and adults (but improving feed has a higher impact when milk yield only is considered).

Short-term gains in livestock productivity can be achieved relatively simply and quickly through feed improvement but over the long run, interventions in animal health have greater cumulative benefits.

Livestock value chains and market opportunities

Investment in livestock may provide a pathway out of poverty for millions of people in developing countries. Targeting such investment requires a careful appraisal of current value chains and identification of those areas where
investment might prove most beneficial. Central to returns on investment are
the market opportunities driving demand for the resulting products.

Levels of exportation relative to domestic production are low for all livestock products across all regions.

Market orientation (both export and domestic) is generally low among smallholder farmers, who account for most livestock production in sub-Saharan African and South Asia.

The low market orientation of livestock producers is due to lack of a reliable, profitable market and low levels of available surplus product (due to low production or high consumption levels within the family unit). Exceptions include milk marketing in Kenya and parts of India.

Five livestock value chains have the most pro-poor promise: South Asia dairy, East Africa dairy, West Africa small ruminant meat, West Africa beef, Southern Africa small ruminant meat.