1.2. Livestock for Development 22/04/2017 1.2. Livestock for Development Simon Oosting, Animal Production Systems see article in reader: Impact of intensification .... smallholders

Future Livestock Systems Dev. Countries, NIC’s EU multifunct. landuse hobby pastoralism free-range p&p nature farming social care farming mixed farming smallholder dairy, p&p ranching organic farming sustainable conventional systems comm.p&p dairying high- tech intensification 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 22/04/2017 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 q u a l i t y maintenance maintenance milk traction gain Net Energy use:

Benefits of Livestock To understand decision making of the farmers allocation of resources decisions not at optimum biological moment production herd size total benefits meat 50 100 % feed use as % of total available feeds feed quality co-products biofuel production 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?

Smallholder dairying, Kenya 22/04/2017 Drivers: demands and the reduced land sizes Free-grazing Zero-grazing Intensification

Smallholder dairying and Markets 22/04/2017 Zambia extensive grazing system Sri Lanka cattle under coconuts Kenya zero-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 12 PPP$: purchasing power parity $ Moll et al., 2007 • Labour productivity higher than for crops or wage labour • Market major pull factor for dairy development in Kenya

Smallholder dairying, Kenya 22/04/2017 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 22/04/2017 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 22/04/2017 Sheep and goat farmers among the poorer groups in society Tool in poverty alleviation or Sign of poverty?

Small Ruminants, Indonesia 22/04/2017 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 22/04/2017 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 22/04/2017 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 GM’s of 80 hh’s Mekong Delta

Environmental Impact Food Production MD Environmental impact pigs per farm mainly due to off-farm feed production

Integrated systems

Village Poultry, Ethiopia 22/04/2017 ‘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? 22/04/2017 Economic results innovations for Tigray, Ethiopia

Bangladesh Poultry Model 22/04/2017 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: hatcheries rearers vaccinators feeds producers egg collectors Applicable 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 • production factors • life cycle hh • prices Hh decisions: • production factors • life cycle hh • prices

Access to Livestock Technologies 22/04/2017 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 22/04/2017 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? 22/04/2017 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? 22/04/2017 What can we do for development? Arguments for livestock development: • global food needs, wealthier consumers or • better livelihoods of the poor?