The global livestock agenda
 Opportunities and challenges

                   Jimmy Smith

15th AAAP Animal Science Congress, Bangkok,Thailand
              26-30 November 2012
Overview
   The global livestock sector
    •   Magnitude
    •   Diversity
    •   Dynamic
    •   Important for global development challenges

   Trends in the global livestock sector
    • Consumption
    • Food production
    • Trade

    Livestock and the environment

    Livestock and livelihoods

    Livestock and health/nutrition
The global
livestock sector
The global livestock sector


 17 billion domestic
  animals
 Asset value $1.4
  trillion
 Employs 1.3 billion
  people
 Uses one third of the
  earth’s ice free
  surface
                                       4
Four out of the five highest value global
commodities are livestock
Livestock contribution to AgGDP
                                                Livestock
                                                   GDP




     5.6%             3.8%    2.4%     2.4%




     4.0%    4.3%     2.9%    2.8%     2.8%




                                                  6
    (Figures in bars are annual growth rates)
                                                 FAO, 2012
Diversity in the livestock sector




   From…..                       To…..
   Few animals                   00,000s of animals
   Multiple functions            Rapid, regular turn over
   Sales – at times of need      Only for income
   Risk mitigation
                                                              7
Growth scenarios for livestock systems
 ‘Strong growth’
   – Where good market access and
      increasing productivity provide
      opportunities for continued
      smallholder participation.
 ‘Fragile growth’
   – Where remoteness, marginal land
      resources or agro-climatic
      vulnerability restrict intensification.
 ‘High growth with externalities’
   – Fast changing livestock systems
      potentially damaging the
      environment and human health
 Different research and development
  challenges for poverty, food security,
  health and nutrition, environment
Livestock and global development challenges
 Feeding the World
   – Livestock provide 58 million tonnes of protein annually and 17% of the
     global kilocalories.
 Removing poverty
   – Almost 1 billion people rely on livestock for livelihoods
 Managing the environment
   – Livestock contribute 14 -18% anthropogenic greenhouse gas emissions;
     use 30% of the freshwater used for agriculture and 30% of the ice free
     land
   – Transition of livestock systems – huge opportunity to impact on future
     environment
 Improving human health
   – Zoonoses and contaminated animal source foods
   – Malnutrition and obesity
                                                                        9
Animal source foods and global diets




                                        10
                                       FAO, 2012
Livestock growth and GDP




                           11
Consumption and production
% growth in demand for livestock products
              2000 - 2030




                                              13

                                            FAO, 2012
Consumption - drivers
 Population: Rising to 9-10 billion     Incomes
 Urbanization
    – Since 2008 more people in urban    Supermarkets
      than rural areas
                                         Trade
    – Two thirds urban anticipated by
      2050




                                                         14
Supermarkets or informal sector?
 ‘Supermarket revolution’
  took off in 1990s
 Increases in market share
  vary around the world
 General features
   • Impacts the rich first
   • Vertical integration of food markets
   • Threat to smallholder participation

 Effects not same
  for all products
   • First in processed foods
     (flour, oil, condiments)
   • Last in fresh foods
     (meat, dairy, fruits and veg)
       Informal milk market                ILRI/Mann
        80% in India
Growing trade in livestock commodities–
    with impacts also at local level




                                FAO: SOFA 2009
Food production: From where?




                          Herrero et al. 2009
Food production: By whom?
 Today: 50 – 75% of livestock production in Africa and Asia
  from small farms (less than 2ha; 2 TLU)
 Future: Small or large farms?
 Large commercial farms pro-efficiency
  (foreign capital investment)
 Smallholder development possibly more pro-poor
 Smallholders: Low opportunity cost of labour
 Do diversified smallholder farms promote biodiversity and
  better management of ecosystems services?
 Smallholder sector fragmented:
  What actors are needed to support it?
 Trajectory of change?
Livestock and
the environment


                  19
Climate change
What will happen to feed resources? diseases? productivity?




  Average projected % change in suitability for 50 crops to 2050

                                                  Courtesy of Andy Jarvis
Global greenhouse gas efficiency
       per kg of animal protein produced




Large inefficiencies in the developing world–
an opportunity?
                                   Herrero et al PNAS (forthcoming)
Production efficiency – developed countries




                  Feed, breed,
                    health =
                   4 fold milk
                    increase




                                             22
                                   Capper et al., 2009
Estimated GHG emissions per kg of FPCM at farm gate,
                 averaged by main
               regions and the world




                                                        23
                                                       FAO, 2010
Trade-offs:
               Environment−livelihoods
   Use of biomass–
    for soil or feed (or fuel)
   Reduction of
    animal numbers–
    implications for
    livelihoods
   Producing
    with smaller
    environmental
    footprint
Livestock and livelihoods


 Livestock production and
  marketing are essential
  for the livelihoods of
  almost 1 billion
 Two-thirds are women
 1.3 billion people
  employed in livestock
  value chains globally

                                       25
Role of animals
Multiple
 Comparing cattle systems in Kenya, Zambia and Sri Lanka:
    – Up to 40% of benefits from livestock keeping came from non-market,
      intangible benefits, mostly insurance and financing
    – Insurance:
    – Financing:
 Livestock - an inflation-proof savings/investment
 Manure, traction, social




                                                                           26
                                                       ILRI/Mann
Livestock and human health




                             27
Livestock and human disease
                                                                                                                                 # ##
                                                                                                                                    #            ##    #              #
                                                                                                  #                  #
                                                                                                                     #
                                                                                                                     #
                                                                                                                     #                                      #
                                                                                                                     #
                                                                                                                     #
                                                                                                                # ##                 #
                                                                                          #       #                                                               #




•    Animal-source foods are the
                                                                                              #                                                                                                                #
                                                                                      #                                                                                                                                                                     ######
                                                                                                                                                                                                                                                             # ###
                                                                                                                                                                                                                                                                ###
                                                                                                                                                                                                                                                            ###### #                                                                    Disease s
                                                                                                                                                                                                                                                             # ### #
                                                                                                                                                                                                                                                                # ##
                                                                                                                                                                                                                                                                ###
                                                                                                                                                                                                                                                                # #
                                                                                                                                                                                                                                                                # #
                                                                                                                                                                                                                                           #                   ##
                                                                                                                                                                                                                                                             ###     # #                                                                  #  Anthrax
                                                 ##                                                                                                                                                                                                           ##       #
                                                  #                                                                              #                                                                                                                             #
                                                                                                                                                                                                                                                                     #
                                                                                                                                                                                                                                                                       #                                                                  #  Av ian Influe nza
                                                                 #                                                                                                                                 #                                                        # #
                                                                                                                                                                                                                                                            # ## # #
                                                                                                                                                                                                                                                                 # #                                                                      #  Botulis m
                                                                                                                                                                                                                                                                  ##



     biggest contributor to food-                                            #
                                                                                                                                                                                                                                                                                                                                          #
                                                                                                                                                                                                                                                                                                                                          #
                                                                                                                                                                                                                                                                                                                                          #
                                                                                                                                                                                                                                                                                                                                          #
                                                                                                                                                                                                                                                                                                                                             Bovine TB
                                                                                                                                                                                                                                                                                                                                             Brucellosis
                                                                                                                                                                                                                                                                                                                                             C. difficile
                                                                                                                                                                                                                                                                                                                                             Cryptos por idium


     borne diseases.                                     #                                                 #                                                      #
                                                                                                                                                                                                                                                                                                                                          #  Diarrhea
                                    #                                                                                                                                                                                                                                   #
                                                                                                                                                                                                                                                                                                                                          #  Dysentery
                                                                                                                                                                                                       #                                                                              #
                                                 #       #                                                 #                                                                                                                                                                                                                              #  Foodborne Illness
                                                     #                                                                                                                                                                                                      #
                                                                                                                                          #
                                                                                                                                                 #     #                                                                       #                                                                                                          #  Gastr oenteritis
                                                         #
                                                         #           #                                              #                                  # #
                                                                                                                                                         #            #
                                                                                                                                                                     # #                                                                                                                   # #
                                                                                                                                         #               #
                                                                                                                                                                                       #                                                                                             #                                                    #  Le ptospirosis


•
                                                                         #                                                                             #          #
                                                                                                                                                                  # #                                                                                                                                                                        Salm one lla

     Diseases transmitted from
                                                             #                                                                   #                          #
                                                                                                                                                            #                                                                                                                                                                             #
                                                                                          #                    ##                #                                      #                                                                                                            # #
                                                                                                                                                                                                                                                                                     #
                                                                     #                                                                                 #                                                                                       ##                                                          #
                                                                                                      #                 #
                                                                                                                            #                #
                                                                                                                                                 # #
                                                                                                                                                              #                                                                                                                                                                           #  Trichinosis
                                                                                 #                                           #           #                 #
                                                                                  #                   ##
                                                                                                       #
                                                                                                                            #
                                                                                                                             #
                                                                                                                                                            #                                                  #
                                                                                                                                                                                                                                                                                                                   #
                                                                                                                                                                                                                                                                                                                   #
                                                                                                                                                                                                                                                                                                                                          #  Waterborne Illne ss
                                                                                              #        #
                                                                                                       #                                                                       #
                                                                                      #                             #                                                                                                                                                                                      #
                                                                                                                                                                  #



     livestock and livestock
                                                                                                                                                                                                                                                            # # ## #
                                                                                                                                                                                                                                                                  #                                  # #
                                                                                                                                                                      #                                                                                               #                               #
                                                                                                                                                                                                                                                            ## # ## #        #
                                                                                                                                                                           #                               #                                             #      ## ##
                                                                                                                                                                                                                                                               # ##
                                                                                                                                                                                                                                                                #        # #
                                                                                                                                                                                                                                                                         # #
                                                                                                                                                                                                                                                         ##
                                                                                                                                                                                                                                                         ##              # #
                                                                                                                                                                          #                                                                         # # ###
                                                                                                                                                                                                                                                               #
                                                                                                                                                                                                                                                                 # # # ###
                                                                                                                                                                                                                                   #                     #
                                                                                                                                                                                                                                                     # #
                                                                                                                                                                                                                                                       # ##                   # #
                                                                                                                                                                                                                                                                                ##



     products                           Population D ens ity (person per sq km)
                                             0-5
                                             5 - 10                                                                                                                                #
                                                                                                                                                                                                                                                       #
                                                                                                                                                                                                                                                                       #
                                                                                                                                                                                                                                                                             #
                                                                                                                                                                                                                                                                               #
                                                                                                                                                                                                                                                                              # #



                                             10 - 25

     kill more people each year
                                                                                                                                                                                                                                                                        #
                                             25 - 50                                                                                                                                       #   # #                                                                                               #
                                                                                                                                                                                                                                                       #                    #
                                             50 - 100                                                                                                                          #
                                                                                                                                                                                       #                                                           #

                                             100 - 250                                                                                                                                                                                             #                            #
                                                                                                                                                                                                                                                     #
                                             250 - 500                                                                                                                                                                     #                    #      # ## #
                                                                                                                                                                                                                                                                                 #
                                                                                                                                                                                                                                       #               # ## # #


     than HIV or malaria.                    500 - 1000
                                             1000 - 2500
                                             2500 - 5000
                                                                                                                                                                                           #


                                                                                                                                                                                               #                               #
                                                                                                                                                                                                                                       #
                                                                                                                                                                                                                                                ## # #
                                                                                                                                                                                                                                                #

                                                                                                                                                                                                                                                #
                                                                                                                                                                                                                                                  #
                                                                                                                                                                                                                                                  #       # #
                                                                                                                                                                                                                                                          #
                                                                                                                                                                                                                                                          #

                                                                                                                                                                                                                                                           ##
                                                                                                                                                                                                                                                              #




                                                                                                                                                                                                                                                                    #
                                                                                                                                                                                                                                                                                                           ##

                                                                                                                                                                                                                                                                                                               #
                                                                                                                                                                                                                                                                                                                       #

                                                                                                                                                                                                                                                                                                                               #
                                                                                                                                                                                                                                                                                                                                   ##




                                             5000 - 10000                                                                                                                                                                          #                            #                                                                                          N

•
                                                                                                                                                                                                                                           #
                                             100000 - 250000                                                                                                                                                                                       #
                                                                                                                                                                                                                                                   #        #



     One new human disease
                                                                                                                                                                                                                                                                    #
                                                                                                                                                                                                                                                                #
                                                                                                                                                                                                                                               #
                                                                                                                                                                                                                                               #
                                             25000 - 50000                                                                                                                                                                                          #
                                                                                                                                                                                                                       #           #
                                             50000 - 100000                                                                                                                                                                                     #
                                                                                                                                                                                                                                                    #           #
                                                                                                                                                                                                                                                        #
                                                                                                                                                                                                                   #



     emerges every 2 months and
                                                                                                                                                                                                   ##




                                                                                                                    2000                                                                       0                                                                            2000                                           4000 Kilometers


     20% of these come from
     livestock.
To eat or not to eat . . .
            meat, milk and fish

1 billion                   2 billion
undernourished              overweight
Research challenges
and opportunities
Informing the global research agenda
Biophysical research
   •   Addressing productivity (feed-breed-health)
   •   Enhancing efficient animal production – environmental issues
   •   Addressing and informing livestock-human nutrition
   •   Disease challenges
   •   Practical environmental solutions

Institutional
   • Incentives and institutional arrangements for environmental
     stewardship – payment for ecosystem services
   • Market and service provision models
   • Business enterprise models
   • Evidence to guide public and private sector roles and investments in
     livestock

Livestock systems transition
   • An opportunity to address future food needs
   • Diversity of starting points and solutions
   • Research-for-development to address transition:
         – Environmentally, socially, economically equitable and sustainable -
           INCLUSIVE
….research that enhances understanding and targeting options
and provides biophysical and institutional solutions must be
combined to enhance the transition of today’s smallholder
livestock farms through inclusive growth to be a vibrant part of
the food, poverty alleviation, environmental and health
solutions for the future………….
                                                             32
better lives through livestock
             ilri.org




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

The global livestock agenda: Opportunities and challenges

  • 1.
    The global livestockagenda Opportunities and challenges Jimmy Smith 15th AAAP Animal Science Congress, Bangkok,Thailand 26-30 November 2012
  • 2.
    Overview  The global livestock sector • Magnitude • Diversity • Dynamic • Important for global development challenges  Trends in the global livestock sector • Consumption • Food production • Trade Livestock and the environment Livestock and livelihoods Livestock and health/nutrition
  • 3.
  • 4.
    The global livestocksector  17 billion domestic animals  Asset value $1.4 trillion  Employs 1.3 billion people  Uses one third of the earth’s ice free surface 4
  • 5.
    Four out ofthe five highest value global commodities are livestock
  • 6.
    Livestock contribution toAgGDP Livestock GDP 5.6% 3.8% 2.4% 2.4% 4.0% 4.3% 2.9% 2.8% 2.8% 6 (Figures in bars are annual growth rates) FAO, 2012
  • 7.
    Diversity in thelivestock sector  From…..  To…..  Few animals  00,000s of animals  Multiple functions  Rapid, regular turn over  Sales – at times of need  Only for income  Risk mitigation 7
  • 8.
    Growth scenarios forlivestock systems  ‘Strong growth’ – Where good market access and increasing productivity provide opportunities for continued smallholder participation.  ‘Fragile growth’ – Where remoteness, marginal land resources or agro-climatic vulnerability restrict intensification.  ‘High growth with externalities’ – Fast changing livestock systems potentially damaging the environment and human health  Different research and development challenges for poverty, food security, health and nutrition, environment
  • 9.
    Livestock and globaldevelopment challenges  Feeding the World – Livestock provide 58 million tonnes of protein annually and 17% of the global kilocalories.  Removing poverty – Almost 1 billion people rely on livestock for livelihoods  Managing the environment – Livestock contribute 14 -18% anthropogenic greenhouse gas emissions; use 30% of the freshwater used for agriculture and 30% of the ice free land – Transition of livestock systems – huge opportunity to impact on future environment  Improving human health – Zoonoses and contaminated animal source foods – Malnutrition and obesity 9
  • 10.
    Animal source foodsand global diets 10 FAO, 2012
  • 11.
  • 12.
  • 13.
    % growth indemand for livestock products 2000 - 2030 13 FAO, 2012
  • 14.
    Consumption - drivers Population: Rising to 9-10 billion  Incomes  Urbanization – Since 2008 more people in urban  Supermarkets than rural areas  Trade – Two thirds urban anticipated by 2050 14
  • 15.
    Supermarkets or informalsector?  ‘Supermarket revolution’ took off in 1990s  Increases in market share vary around the world  General features • Impacts the rich first • Vertical integration of food markets • Threat to smallholder participation  Effects not same for all products • First in processed foods (flour, oil, condiments) • Last in fresh foods (meat, dairy, fruits and veg) Informal milk market ILRI/Mann 80% in India
  • 16.
    Growing trade inlivestock commodities– with impacts also at local level FAO: SOFA 2009
  • 17.
    Food production: Fromwhere? Herrero et al. 2009
  • 18.
    Food production: Bywhom?  Today: 50 – 75% of livestock production in Africa and Asia from small farms (less than 2ha; 2 TLU)  Future: Small or large farms?  Large commercial farms pro-efficiency (foreign capital investment)  Smallholder development possibly more pro-poor  Smallholders: Low opportunity cost of labour  Do diversified smallholder farms promote biodiversity and better management of ecosystems services?  Smallholder sector fragmented: What actors are needed to support it?  Trajectory of change?
  • 19.
  • 20.
    Climate change What willhappen to feed resources? diseases? productivity? Average projected % change in suitability for 50 crops to 2050 Courtesy of Andy Jarvis
  • 21.
    Global greenhouse gasefficiency per kg of animal protein produced Large inefficiencies in the developing world– an opportunity? Herrero et al PNAS (forthcoming)
  • 22.
    Production efficiency –developed countries Feed, breed, health = 4 fold milk increase 22 Capper et al., 2009
  • 23.
    Estimated GHG emissionsper kg of FPCM at farm gate, averaged by main regions and the world 23 FAO, 2010
  • 24.
    Trade-offs: Environment−livelihoods  Use of biomass– for soil or feed (or fuel)  Reduction of animal numbers– implications for livelihoods  Producing with smaller environmental footprint
  • 25.
    Livestock and livelihoods Livestock production and marketing are essential for the livelihoods of almost 1 billion  Two-thirds are women  1.3 billion people employed in livestock value chains globally 25
  • 26.
    Role of animals Multiple Comparing cattle systems in Kenya, Zambia and Sri Lanka: – Up to 40% of benefits from livestock keeping came from non-market, intangible benefits, mostly insurance and financing – Insurance: – Financing:  Livestock - an inflation-proof savings/investment  Manure, traction, social 26 ILRI/Mann
  • 27.
  • 28.
    Livestock and humandisease # ## # ## # # # # # # # # # # # ## # # # # • Animal-source foods are the # # # ###### # ### ### ###### # Disease s # ### # # ## ### # # # # # ## ### # # # Anthrax ## ## # # # # # # # Av ian Influe nza # # # # # ## # # # # # Botulis m ## biggest contributor to food- # # # # # Bovine TB Brucellosis C. difficile Cryptos por idium borne diseases. # # # # Diarrhea # # # Dysentery # # # # # # Foodborne Illness # # # # # # # Gastr oenteritis # # # # # # # # # # # # # # # # # Le ptospirosis • # # # # # Salm one lla Diseases transmitted from # # # # # # ## # # # # # # # ## # # # # # # # # # Trichinosis # # # # # ## # # # # # # # # Waterborne Illne ss # # # # # # # # livestock and livestock # # ## # # # # # # # ## # ## # # # # # ## ## # ## # # # # # ## ## # # # # # ### # # # # ### # # # # # ## # # ## products Population D ens ity (person per sq km) 0-5 5 - 10 # # # # # # # 10 - 25 kill more people each year # 25 - 50 # # # # # # 50 - 100 # # # 100 - 250 # # # 250 - 500 # # # ## # # # # ## # # than HIV or malaria. 500 - 1000 1000 - 2500 2500 - 5000 # # # # ## # # # # # # # # # # ## # # ## # # # ## 5000 - 10000 # # N • # 100000 - 250000 # # # One new human disease # # # # 25000 - 50000 # # # 50000 - 100000 # # # # # emerges every 2 months and ## 2000 0 2000 4000 Kilometers 20% of these come from livestock.
  • 29.
    To eat ornot to eat . . . meat, milk and fish 1 billion 2 billion undernourished overweight
  • 30.
  • 31.
    Informing the globalresearch agenda Biophysical research • Addressing productivity (feed-breed-health) • Enhancing efficient animal production – environmental issues • Addressing and informing livestock-human nutrition • Disease challenges • Practical environmental solutions Institutional • Incentives and institutional arrangements for environmental stewardship – payment for ecosystem services • Market and service provision models • Business enterprise models • Evidence to guide public and private sector roles and investments in livestock Livestock systems transition • An opportunity to address future food needs • Diversity of starting points and solutions • Research-for-development to address transition: – Environmentally, socially, economically equitable and sustainable - INCLUSIVE
  • 32.
    ….research that enhancesunderstanding and targeting options and provides biophysical and institutional solutions must be combined to enhance the transition of today’s smallholder livestock farms through inclusive growth to be a vibrant part of the food, poverty alleviation, environmental and health solutions for the future…………. 32
  • 33.
    better lives throughlivestock ilri.org The presentation has a Creative Commons license. You are free to re-use or distribute this work, provided credit is given to ILRI.