1.2. Livestock for Development

Simon Oosting, Animal Production Systems

see article in reader: Impact of intensification .... smallholders

Future Livestock Systems

high-tech

multifunct.landuse

intensification

comm.p&p

dairying

smallholder

dairy, p&p

ranching

mixed farming

pastoralism

free-range p&p

EUDev. Countries, NIC’s

sustainable

conventional systems

organic

farming

social care farming

nature

farming

hobby

intensification

What can livestock do for development?

Arguments for livestock development:

global food needs, wealthier consumers or

better livelihoods of the poor?

Both?

Benefits of livestock for a household

Cattle on mixed farms, East Java

Progeny

Manure

Draught

Weight increase

Insurance

finance

• labour productivity comparable to crops and off-farm work

• functions can be exclusive and conflicting

Feed use in mixed farms, East Java

Sugarcane & annuals Agroforestry & annuals

Feeds fed: cassava leaves legumes sugarcane forage - native grasses elephant grass straws

maintenance

quality

maintenance

milktraction

gain

Net Energy use:

Benefits of Livestock

feed use as % of total available feeds

production

total benefits

meat

100 %50

feed quality

herd size

co-products biofuel production

To understand decision making of the farmers allocation of resources decisions not at optimum biological moment

Smallholders more productive than often assumed

Livestock and Development

Cows or chickens?

How does intensification work out?

Livestock Revolution helps or hinders smallholder mixed farmers?

Free-grazing Zero-grazing

Drivers: demands and the reduced land sizes

Smallholder dairying, Kenya

Intensification

Smallholder dairying and Markets

Zambiaextensive grazing system

Sri Lankacattle under coconuts

Kenyazero-grazing intensive dairying

Total annual income PPP$

1345 1456 2973

Cash income % 22 75 59

Income in kind % 41 16 33

Intangible benefits % 37 9 8

Labour productivity d-1 15 15 12PPP$: purchasing power parity $

• Labour productivity higher than for crops or wage labour

• Market major pull factor for dairy development in Kenya

Moll et al., 2007

Smallholder dairying, Kenya

600 000 households in dairying

Cattle major income source, 1073 $ y-1 total benefits

Smallholders 75% of the milk market

Kenya exports milk products

Smallholder dairying is competitive, family labour, less investments

compared with large commercial farms

Hh with cattle own twice as much land as hh without cattle

Some other hh specialise in selling forages

Cattle in developing countries

Dairying gives substantial income improvement

Dairying most successful in countries with strong dairy traditions

Not for the really poor households

Feed the main on-farm constraint

Milk production 5-6 kg d-1

Calving rates (25-50%) are too low to maintain herds

Frequent buying and selling in smallholder herds

Major reason for selling is urgent cash need

Small Ruminants

Sheep and goat farmers among the poorer groups in society

Tool in poverty alleviation or

Sign of poverty?

Small Ruminants, Indonesia

Intensification:

change in management system, other breeds, increase in numbers

Drivers: National level: government policies, crises Regional and agro-ecosystem level: intensification land use Household level: family labour available, capital

Small Ruminants, Indonesia

Total benefits: 125-160 $ per hh y-1

3.5-4.2 h d-1 for 4-6 animals

Labour productivity below minimum wage level

Important for urgent cash needs: start school year, preparation paddy

fields

Religious festivities, manure

Ground water pollution

Sheep just as productive as goats; development focus on goats

Small Ruminants, Indonesia

Improvement scenario’s:

fattening for religious festivities

breeding goats for sale of breeding stock

economic results improve considerably, but labour productivity still below

minimum wage level

Farmers do not consider the family labour as real costs

An appreciated secondary activity

Pigs

Renewed interest in pigs

Intensification

Pigs

Intensification in Asia due to increasing demands

Intensification through compound feeds and hybrids

Vietnam; income 80-220 $ y-1 hh

Not for all households: resources available

other options

distance to markets

-10

0

10

20

30

40

50

2002 2004

Perc

enta

geRice

Fish

Orchard

Pigs

Cash crops

Poultry

GM’s of 80 hh’s Mekong Delta

Environmental Impact Food Production MD

0

5

10

15

20

25

30

35

40

45

Rice Fruits Vegetables Pigs Poultry Fish

%

Land-use

Energy use

GWP

EP

AP

Environmental impact pigs per farm mainly

due to off-farm feed production

Integrated systems

Village Poultry, Ethiopia

‘Poultry are the first and last resource of the

poor’

Poor, in particular women headed hh’s own

poultry only

Benefits from poultry about 70 $ y-1

Village poultry important for poor women

Village poultry: the problem and some solutions

Intensification

Village poultry innovations; does it work?

-2000

-1000

0

1000

2000

3000

4000

base NCD house feed cr br brood

birr

benefits costs returns

Economic results innovations for Tigray, Ethiopia

Bangladesh Poultry Model

The prominent example of credit for the poor Commercial poultry principles Women, 10 laying commercial hens: 100 $ y-1

2 million women 28% hh’s moved above poverty line Poultry 23% of income, egg consumption increased Package:

producers

hatcheries rearers

feeds

vaccinators

egg collectorsApplicable in other countries?

Commercial poultry units

Large- or small-scale?

Need cash inputs, labour

Market-oriented

Competition with other farmers

Competition with imports

Markets easily collapse

due to economic crises or imports

Livestock ladder

Hh decisions:

• production factors

• life cycle hh

• prices

Access to Livestock Technologies

Own resources

Sharing: cattle to chickens

Micro-credit, 20% to 60-80% on livestock

‘Passing on the Gift’

Example: Heifer International (www.heifer.nl)

128 countries

• Heifer @ € 450

• Goat € 115

• Chicken flock € 22.50

Micro-credit and Passing-on-the-gift

Repayment with heifer(s) is (too) difficult

Tanzania: after 7 years only 20% of the hh had returned a heifer

Vietnam: cows often sold before giving a calf due to urgent cash

needs

Easy to return goat kids or weaner pigs

Poultry fit very well in passing-on-the-gift programmes

Livestock Development: cows or chickens?

dairy cattle

local cattle

pigs, sheep, goats

comm. poultry village poultry

small-scale

- Returns

- Paying back

animals/loans

- Helping the

poor

Livestock and Development

Livestock revolution helps or hinders smallholders?

Industrial systems are growing twice as fast as mixed farming

Asia: industrial systems account for 80% of the production increases

Smallholders need support to enter the market

• Credit

• Services

• Farmers’ groups

• Knowledge, farmers, development workers, policy makers

• Household resources: cash, family labour, land, feeds

Livestock and Development

Pro-poor policies Household the focal point, not a specific sector

Small animals as starter in the development process

Dairying a good income generator

Livestock and Development

Intensification: increase in production for the market

Increased use of purchased inputs

less attention to other livelihood functions, resilience?

competition with other smallholders and large-scale producers

globalisation

environmental impact

part of the smallholders will be excluded: ‘moving out’

others can ‘step up’ or will ‘hang in’

What can we do for development?

Arguments for livestock development:

• global food needs, wealthier consumers or

• better livelihoods of the poor?