International scenario of livestock with respect to North East Region of India
International scenario of livestock with respect to North East Region of India Dr. Rameswar Deka Northeast Food Tech Summit, Guwahati, India, 21 March 2012
Smallholders Livestock: Pathway out of poverty??• There are 640 million smallholders and 190 million pastoralists raising livestock. They are the 70 % of the world’s poor.• They are playing a crucial role in conserving at least 13,000 breeds of 40 domesticated livestock species. These breeds are as fast disappearing as industrial production is spreading.• Smallholders are believed to be poorly educated, traditional, and not working along economic considerations.• They have developed strategies to survive and to make best use of their environment. They often keep mixed herds of sheep, goats and cattle, or of several breeds.• In some of the countries (especially in Africa) smallholders livestock provides up to 38% of the whole GDP.
Smallholders are at disadvantage• Large farms could operate more efficiently due to economies of scale and lower transaction cost.• Market regulations put smallholders at a disadvantage, like in Zimbabwe; where the carcass grading system discriminates against smaller cattle.• In the Philippines or in Brazil, pig smallholders are in disadvantaged.• Smallholders are targeting niche markets. eg. in Vietnam, local chicken fetch almost double the price of broilers.• Contract farming is sees as a crucial instrument to integrate smallholders into the market, an important means to achieve poverty reduction and economic growth but in reality it is opposite in many countries (eg. Thailand, Philippines etc).
Changing Trends......• With liberalization, global trade in livestock products has grown substantially over the past decade.• Market power of the mega food companies becomes the major driving force & determinants of the market.• Animal diseases (FMD, CBPP, CSF, BF etc.) and associated regulations (SPS) have become major contributing factors .• Effects of climate change and emerging diseases increasingly become important to determine the fate of livestock sector.• As the commercial sector becomes more and more industrialized, small farms are going out of business.
Industrial livestock system• Industrial livestock is dominating in production - 3/4th of the world’s chicken, - 2/3rd of milk, - 1/ 2 half of the eggs, - 1/3rd of pigs• Industrial livestock is growing 7 times faster than smallholder livestock.• Industrial livestock systems is a result of heavy govt. support.
Countries having biggest livestock population Rank Chicken Cattle Pig Sheep 1st China Brazil (189 m) China China 2nd USA India (187 m) USA Australia 3rd Indonesia USA Brazil India 4th Brazil China Vietnam Iran 5th India Ethiopia Germany Sudan
Booming livestock industry!!• China, is the world’s largest producer of meat (15 mill ton) while Brazil is the world’s largest exporter of meat ( 9 mill ton). India produce only 0.6 mill ton.• India has the highest buffalo population (meat is cheapest in the world)but failed to become major player in international market.• Poultry and pig industries are far developed in China, Brazil, Thailand and the Philippines.• China is producing half of the world’s pork.• China produces 70 mill ton of egg annually compared to 3 mill ton by India and 2 mill by Brazil.
Booming livestock!!• In India, poultry is the fastest growing livestock (10%) sub- sector in India but still far below the potential level.• India has the largest livestock population but has failed to position itself as major player (poor sanitary condition, higher incidence of diseases, poor slaughtering infrastructur).• India is the highest producer of milk (13% of the global product) but at the international market it is a minor player.• Dairy industry in China is growing at 17-18% per annum, (4-5% in India) & become the 3rd largest milk producing country in the world after India & US. Pakistan is the 4th largest dairy producer.
Subsidised livestock industry at the cost of smallholders!!• China has spent US$ 2.05 billion in 2007 to support pig production, including direct subsidies, insurance of fertile sows and vaccination of animals against major epidemic diseases. By November 2007, China had insured 21 million sows, or 45 percent of the herd nationwide.• Leading livestock (pig) industries are heavily investing in China.• In Vietnam and the Philippines, industrialisation of pig production is heavily subsidized at the expense of the small scale producer.• US & EU’s livestock system is already heavily subsidised
Challenges for the developing world• Tariff and non tariff barriers (import quotas, import licensing etc.) posing a challenge for the developing world.• Huge subsidies (export, production, consumption and storage subsidies) are enjoyed by the farmers of developed countries• Most of the developing countries traditionally do not provide subsidy & they are also not allowed to introduce or increased subsidies• SPS measures (eg. health risk arising from additives, toxins, pathogens etc.) & admin procedures (eg. inspection, certification) are limiting the scope of export market for developing countries.• Cheap imports & dumping lower the domestic product prices but negatively effect on incomes of million of rural
Consequences• In Mozambique, cheap import of low quality frozen chicken is threatening smallholders’ income and consumers’ health.• FAO had recommended to limit the dumping of US dairy products in order to protect Peru’s smallholders, but in vain• Export opportunities for smallholders is for many reasons usually a dead end.• Smallholders have not benefited but lost out in Brazil, and it is not likely that elsewhere they will benefit from export oriented policies.• With industrial livestock production systems, the consumption of concentrate feed is growing in developing countries and causing food shortage to human.
Smallholder system: is it relevant for NE India? Yes, because: • About 80% rural households in NE India rear livestock. • About 98% of livestock products (except broiler) comes from smallholders (herd size: 1-5). • Livestock plays important role in religious/ social customs, values and believes. • More than 90% livestock products are marketed by small traders/ butchers. • Consumers prefer local fresh & hot livestock products. • Indigenous livestock products always fetch premium prices over that of imported one (eg. local chicken, local egg, local pork) • There is ready market at the farm gate of smallholders. • Prices are increasing sharply. • Significant scope for productivity increase in most smallholder households.
Livestock sector in NE India’s context• NE India is largely deficit in egg, pork, milk and goat meat production. Far below the per national capita availability, which is again very low in global context.• Production practices are mainly traditional without much change over the years.• Poor extension & input delivery mechanism (about 7% household getting access to govt. extension services).• Poor disease control mechanism (about 25% farmers are getting access to govt. veterinary services).• Poor physical and bacteriological quality of livestock products marketed in NE India. Little/ no effort on ensuring food safety & controlling zoonosis.• Capacity building programs are weak and mainly lead by by text book- knowledge.• Large scale private investment on the livestock is little or negligible.
Glimpse of ILRI’s research findings 60.00% 50.00% 40.00%% share 30.00% 20.00% 10.00% 0.00% strongly agree Agree Disagree Strongly Undecided disagree Rural (n=440) Urban (n=1024) Consumer attitude “Procuring milk from the vendor/milk man is not safe" 60.00% 50.00% 40.00% % share 30.00% 20.00% 10.00% 0.00% strongly agree Agree Disagree Strongly Undecided disagree Rural (n=440) Urban (n=1024) Consumer attitude “I am happy to pay even the maximum/higher price if the quality and hygiene of milk can be guaranteed"
Hazard analysis in traditional milk value chain
Glimpse of Pig Appraisal Study findings Market Efficiency of Pork Marketing 5000 4500 4000Distribution of marketing cost in Rs. 3500 3000 Profit Tax & commissions Slaughter & selling costs 2500 Hidden expenses Transportation & lairage 2000 Farm gate price 1500 1000 500 0 Dhemaji Golaghat Kamrup Karbi Anglong Kokrajhar Project districts Efficiency of Pork Marketing Meat Type A: 5 yrs ago 2 yrs ago B: Current B/A % B/A % Adjusted for actual inflation* Pork 60-70 70-80 80-100 +38 +19 Chevon 100-120 120-140 140-160 +36 +15 Broiler (dressed) 60-70 70-80 80-90 +31 +13 Indigenous chicken 80-90 90-100 100-120 +29 +10 Changes in Meat Prices (Rs/kg) in Assam over the last five years (2003-2007
Way forward......“It is good to have an industry which can provide food to million of people but would be better if it at the same time can provide employment to million of people”• Policy suggestion: twin-track approach to livestock sector development: – support ‘industrial’ sector for volume & import substitution – support ‘smallholder’ sector for value, resource use optimization, & rural development / poverty alleviation – Investment on extension & input services, market infrastructures & stimulus package for investors. – Massive awareness & capacity building programmes (Right to Training Act??)
What ILRI is trying to do under this complex situation?ILRI’s priority areas for R4D:• Bring incremental change in the livestock value chain to transform subsistence production system to market oriented system.• Increasing the capacity & efficiency of the traditional milk and meat marketing system to make them competitive.• Ensure food safety & controlling zoonosis .• Demonstrate people centric approach for livestock development and motivate the policy makers to frame right policy for the people.On Dairy- in Assam:• Piloting the “Training, certification & monitoring scheme” for all the actors involved in the traditional dairy value chain.• Linking the licensing process of municipal corporation with the training & certification scheme.• Bringing Health Deptt, Vety Deptt , Dairy Deptt & Municipal Corp. together for collective & concerted effort.
ILRI’s initiatives in NE IndiaOn Piggery- in Nagaland & Mizoram• Piloting simple, location specific, integrated, community based approach for piggery (production & marketing)development.• Piloting Vety. First Aid services through a brigade of trained livestock F.A. Practitioners.• Piloting integrated livestock service delivery model through community based Livestock Service Provider• Piloting a model for improving pig nutrition .• Implementing rigorous customised capacity building programmes.On backyard poultry- in Nagaland• Promoting Vanaraja birds using the above principles/ practices.Others:• Comprehensive study on Assam’s dairy sector & Nagaland & Assam’s pig sub-sector• Developed various training manual for dairy and pig sub- sectors.• Policy advocacy (both for dairy & piggery)• Building linkages & coordination among different organisations.
ILRI’s intended plan for future .......• Work on smallholder dairy value chain in a 3/4 states of India under ILRI’s global Research Program on livestock and fish.• Provide technical support to govt. deptt/ other organisations in India for scaling out the training, certification & monitoring scheme for milk vendors and butchers• Replicate the simple, cost effective, integrated piggery development model in other parts of NE India with govt. support.• Work on the control of zoonotic and emerging diseases through prevalence survey, participatory disease surveillance, design & delivery of training to target group.• Extend helping hands to the govt. deptt/ other organisation on planning and monitoring development projects.