Livestock, livelihoods and thefuture of India’s smallholder farmers

12th Agricultural Science Congress

Sustainable Livelihood Security of Smallholder Farmers

National Dairy Research Institute, Karnal, India, 3–6 February 2015

Jimmy Smith Director General ILRI

Why livestock matter globally for livelihoods

Smallholder agriculture

• 1.5 billion people liveon smallholder farms

• India has 130m small-holder farms (<4ha)

• Smallholders produce 80% or more of the food in Asia & SS Africa

• 43% or more of small-holders are women

Smallholder livestock

Up to 1 billion people depend on livestock for:

• livelihoods

• food security

• income

• cropping nutrientsand traction

• insurance

• managing risk

Why this is a livestock‘moment’ for smallholders

Dramatic on-going changes open new opportunities fora more sustainable and equitablefuture for small food producers, processors, traders

With the right support, small-scalelivestock production systems can playa major part in creating a sustainable, healthy and equitable future for all

BIG livestock opportunity #1

Fast-rising global demand for livestock products

4 of 5 highest value global commodities are livestock

FAOSTAT 2014(values for 2012)

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net production value (Int $) billion production (MT)

Cow milk has overtaken rice

Eggs havedisplacedmaize

Production value: India and South Asia

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net production value India (Int $) billion net production value other S.Asia (int $) billion

Huge increases over 2005/7 amountsof cereals, dairy and meat will be needed by

2050From 2bn−3bntonnes cereals each year

From 664m−1bntonnes dairy each year

From 258m−460m tonnes meat each year

Rising demand for meat, milk and eggs is a global phenomenon . . .

. . . but demand is greatest in South Asia and Sub-Saharan Africa

Gains in meat consumption in developingcountries are outpacing those of developed

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1980 1990 2002 2015 2030 2050

Mill

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developing

developed

FAO 2006

Gains in meat consumption in developingcountries are outpacing those of developed

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1980 1990 2002 2015 2030 2050

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developed

developing at sameper cap. asdeveloped(hypothetical)

Developing- vs developed-countryannual production to 2050

MILK:expectedto grow by1.8%(2% in S Asia)vs.0.3%in developed countries

MEAT: expectedto grow by> 3%

vs.0.4%in developed countries

FAO, 2012Based on anticipated change in absolute tonnes of product comparing 2000 and 2030

Percentage growth in demandfor livestock products: 2000−2030

FAO, 2012Based on anticipated change in absolute tonnes of product comparing 2000 and 2030

Percentage growth in demandfor livestock products: 2000−2030

BIG livestock opportunity #2

Livestock and

cereal products

are produced

largely on

smallholder

mixed crop-and-

livestock farms

Smallholders still dominatelivestock production in many countries

Much of the world’s livestock food comes fromsmall mixed farms in developing countries

Herrero et al. 2009

Developing-country mixed crop-livestock systems, most of them smallholders, supplymuch of the world’s livestock products

What’s special about animal/smallholder food?

• 90% of animal products are produced and consumedin the same country or region

• Most are producedby smallholders

• More than 70% of livestockproducts are sold ‘informally’

• 500m smallholders produce 80% of developing-world food

• 43% of the agriculturalworkforce is female

BMGF, FAO, ILRI

Smallholders still dominatelivestock production in many countries

Region(definition of ‘smallholder’)

% production by smallholder livestock farms

Beef Chickenmeat

Sheep/goat meat

Milk Pork Eggs

East Africa(≤ 6 milking animals)

60-90

Bangladesh(< 3ha land)

65 77 78 65 77

India(< 2ha land)

75 92 92 69 71

Vietnam (small scale)

80

Philippines(backyard)

50 35

BMGF, FAO, ILRI

Smallholders still dominatelivestock production in many countries

Region(definition of ‘smallholder’)

% production by smallholder livestock farms

Beef Chickenmeat

Sheep/goat meat

Milk Pork Eggs

East Africa(≤ 6 milking animals)

60-90

Bangladesh(< 3ha land)

65 77 78 65 77

India(< 2ha land)

75 92 92 69 71

Vietnam (small scale)

80

Philippines(backyard)

50 35

Farm size and number of holdings: India

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Increasing farm size: USA(2.2 million holdings in 2007)

21

BIG livestock opportunity #3

In 2011 Indian livestock contributed:26% of agricultural GDP 4% of total GDP

valued at INR4,59,051 crore (US$74 billion today)

BIG livestock opportunity #4

This rising demand foranimal-source foodswill be met − one wayor another

We can meet thatdemand in sustainable,equitable and healthyways that also reducepoverty and hunger

This requiresproactive action

Demand for livestock commodities will be met –the only question is how

Scenario #1India meets livestock demand by

importing livestock products

Scenario #2India meets livestock demand by

importing livestock industrial production know-how

Scenario #3India meets livestock demand by

transforming smallholder livestock systems

Scenario #1: Bad news for India’seconomy, employment and livelihoods

Downsides of importations

• A huge import billstraining foreign exchange

• Little growth ofindigenous livestockenterprises

• Industrial-scale pollutionin developed countries

• Mass emigration of youth(and labour) fromdeveloping countries

Downsides of industrial production

• Know-how restrictedto few enterprises

• Employment opportunities,esp. for women and youth, lost

• Increased demand for feedand water degradesnatural resources

• Environment pollutedand large financial costs

• Synergies of mixed systems lost

Scenario #2: Bad news for India’sequity, environment and economy

Scenario #3: Good news for India’srural economic transformation

Upsides of smallholder transformation

• The coming livestock transitionsand consolidations can helpmillions improve their foodproduction as well as health,livelihoods and environments

• Of the world’s 1 billion smallholderlivestock producers, some:﹣1/3 will find alternate livelihoods﹣1/3 will succeed in the market﹣1/3 could go either way

India has shown it can be done

India

moves

from

dairy

importer

to the

world’s

top milk

producer

12th ASC technical sessions: Action to transform smallholder livestock agriculture

1 Livelihood security for smallholder farmers

2 Attracting and retaining youth in agriculture

3 Skill and human resource development for diversification in employment

4 Linking smallholder farmers with the market

5 Intensification of livestock production for smallholder and landless farmers

12th ASC technical sessions: Action to transform smallholder livestock agriculture (cont.)

6 Group dynamics of smallholder farmers, SHG, producer companies

7 Mechanization and post-harvest technologies for small farmers

8 Natural resource management and climate change: international perspective

9 Policy issues for the protection of smallholder farmers

10 Empowerment of women in agriculture

11 Credit flow and insurance support to smallholder farmers

Image credits

Slide #3: (left) Kolkata Trams, 2000s, by Bengali artist Rupban Chitrakar(via Kalarte) and (right) Cow Boy (IV) by Sekhar Roy (via US-India Art and Culture Exchange Center)

Slide #4: Cow and calf, by Jamini Roy (via MyArtTracker)

Slide #17: Sacred cows, by Vidushini (via Novica)

Slide #23: Untitled, by Kalam Patua (via Asia Art Archive)

Slide #25: Handcarved wood print block stamp of goat from India (via Etsy)

Slide #26: McDonalds ad for ‘chicken hamburgers’ in India

Slide #27: Kalighat painting (via Pinterest)

Slide #32: Gond painting, 2012, by Kaushal Prasad Tekam (via Pinterest)

The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is

given to ILRI.

better lives through livestock

ilri.org

Thank you!

The presentation has a Creative Commons licence. You are free to re-use or distribute this work, provided credit is

given to ILRI.

better lives through livestock

ilri.org