Livestock, livelihoods and the
future 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 live
on 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 nutrients
and traction
• insurance
• managing risk
Why this is a livestock
‘moment’ for smallholders
Dramatic on-going
changes open new
opportunities for
a more sustainable
and equitable
future for small
food producers,
processors, traders
With the right support, small-scale
livestock production systems can play
a 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 valueglobal commodities arelivestock
FAOSTAT 2014
(values for 2012)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0
20
40
60
80
100
120
140
160
180
200
Production(MT)millions
Netproductionvalue(Int$)billion
net production value (Int $) billion production (MT)
Cow milk has
overtaken rice
Eggs have
displaced
maize
Production value: India and South Asia
FAOSTAT 2014
(values for 2012)
0
10
20
30
40
50
60
Netproductionvalue(Int$)billion
net production value India (Int $) billion net production value other S.Asia (int $) billion
Huge increases over 2005/7 amounts
of cereals, dairy and meat will be needed by
2050From 2bn−3bn
tonnes cereals each year
From 664m−1bn
tonnes 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 developing
countries are outpacing those of developed
0
50
100
150
200
250
300
350
1980 1990 2002 2015 2030 2050
Millionmetrictonnes
developing
developed
FAO 2006
Gains in meat consumption in developing
countries are outpacing those of developed
0
100
200
300
400
500
600
700
800
1980 1990 2002 2015 2030 2050
Millionmetrictonnes
developing
developed
developing at same
per cap. as
developed
(hypothetical)
Developing- vs developed-country
annual production to 2050
MILK:
expected
to grow by
1.8%
(2% in S Asia)
vs.
0.3%
in developed
countries
MEAT:
expected
to 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 demand
for livestock products: 2000−2030
FAO, 2012Based on anticipated change in absolute tonnes of product comparing 2000 and 2030
Percentage growth in demand
for livestock products: 2000−2030
BIG livestock opportunity #2
Livestock and
cereal products
are produced
largely on
smallholder
mixed crop-and-
livestock farms
Smallholders still dominate
livestock production in many countries
Much of the world’s livestock food comes from
small mixed farms in developing countries
Herrero et al. 2009
Developing-country
mixed crop-livestock
systems, most of them
smallholders, supply
much of the world’s
livestock products
What’s special about animal/smallholder food?
• 90% of animal products are
produced and consumed
in the same country or region
• Most are produced
by smallholders
• More than 70% of livestock
products are sold ‘informally’
• 500m smallholders produce
80% of developing-world food
• 43% of the agricultural
workforce is female
BMGF, FAO, ILRI
Smallholders still dominate
livestock production in many countries
Region
(definition of
‘smallholder’)
% production by smallholder livestock farms
Beef Chicken
meat
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 dominate
livestock production in many countries
Region
(definition of
‘smallholder’)
% production by smallholder livestock farms
Beef Chicken
meat
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
0
0.5
1
1.5
2
2.5
0
20
40
60
80
100
120
140
160
Averagesize(ha)
No.ofholdingsinmillions
no.holdings (million)
av size (ha)
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 for
animal-source foods
will be met − one way
or another
We can meet that
demand in sustainable,
equitable and healthy
ways that also reduce
poverty and hunger
This requires
proactive action
Demand for livestock commodities will be met –
the only question is how
Scenario #1
India meets livestock demand by
importing livestock products
Scenario #2
India meets livestock demand by
importing livestock industrial production know-how
Scenario #3
India meets livestock demand by
transforming smallholder livestock systems
Scenario #1: Bad news for India’s
economy, employment and livelihoods
Downsides of importations
• A huge import bill
straining foreign exchange
• Little growth of
indigenous livestock
enterprises
• Industrial-scale pollution
in developed countries
• Mass emigration of youth
(and labour) from
developing countries
Downsides of industrial production
• Know-how restricted
to few enterprises
• Employment opportunities,
esp. for women and youth, lost
• Increased demand for feed
and water degrades
natural resources
• Environment polluted
and large financial costs
• Synergies of mixed systems lost
Scenario #2: Bad news for India’s
equity, environment and economy
Scenario #3: Good news for India’s
rural economic transformation
Upsides of smallholder transformation
• The coming livestock transitions
and consolidations can help
millions improve their food
production as well as health,
livelihoods and environments
• Of the world’s 1 billion smallholder
livestock 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

Livestock, livelihoods and the future of India’s smallholder farmers

  • 1.
    Livestock, livelihoods andthe future 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
  • 2.
    Why livestock matterglobally for livelihoods  Smallholder agriculture • 1.5 billion people live on 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 nutrients and traction • insurance • managing risk
  • 3.
    Why this isa livestock ‘moment’ for smallholders Dramatic on-going changes open new opportunities for a more sustainable and equitable future for small food producers, processors, traders With the right support, small-scale livestock production systems can play a major part in creating a sustainable, healthy and equitable future for all
  • 4.
    BIG livestock opportunity#1 Fast-rising global demand for livestock products
  • 5.
    4 of 5highest valueglobal commodities arelivestock FAOSTAT 2014 (values for 2012) 0 200 400 600 800 1000 1200 1400 1600 1800 2000 0 20 40 60 80 100 120 140 160 180 200 Production(MT)millions Netproductionvalue(Int$)billion net production value (Int $) billion production (MT) Cow milk has overtaken rice Eggs have displaced maize
  • 6.
    Production value: Indiaand South Asia FAOSTAT 2014 (values for 2012) 0 10 20 30 40 50 60 Netproductionvalue(Int$)billion net production value India (Int $) billion net production value other S.Asia (int $) billion
  • 7.
    Huge increases over2005/7 amounts of cereals, dairy and meat will be needed by 2050From 2bn−3bn tonnes cereals each year From 664m−1bn tonnes dairy each year From 258m−460m tonnes meat each year
  • 8.
    Rising demand formeat, milk and eggs is a global phenomenon . . . . . . but demand is greatest in South Asia and Sub-Saharan Africa
  • 9.
    Gains in meatconsumption in developing countries are outpacing those of developed 0 50 100 150 200 250 300 350 1980 1990 2002 2015 2030 2050 Millionmetrictonnes developing developed FAO 2006
  • 10.
    Gains in meatconsumption in developing countries are outpacing those of developed 0 100 200 300 400 500 600 700 800 1980 1990 2002 2015 2030 2050 Millionmetrictonnes developing developed developing at same per cap. as developed (hypothetical)
  • 11.
    Developing- vs developed-country annualproduction to 2050 MILK: expected to grow by 1.8% (2% in S Asia) vs. 0.3% in developed countries MEAT: expected to grow by > 3% vs. 0.4% in developed countries
  • 12.
    FAO, 2012Based onanticipated change in absolute tonnes of product comparing 2000 and 2030 Percentage growth in demand for livestock products: 2000−2030
  • 13.
    FAO, 2012Based onanticipated change in absolute tonnes of product comparing 2000 and 2030 Percentage growth in demand for livestock products: 2000−2030
  • 14.
    BIG livestock opportunity#2 Livestock and cereal products are produced largely on smallholder mixed crop-and- livestock farms
  • 15.
    Smallholders still dominate livestockproduction in many countries
  • 16.
    Much of theworld’s livestock food comes from small mixed farms in developing countries Herrero et al. 2009 Developing-country mixed crop-livestock systems, most of them smallholders, supply much of the world’s livestock products
  • 17.
    What’s special aboutanimal/smallholder food? • 90% of animal products are produced and consumed in the same country or region • Most are produced by smallholders • More than 70% of livestock products are sold ‘informally’ • 500m smallholders produce 80% of developing-world food • 43% of the agricultural workforce is female
  • 18.
    BMGF, FAO, ILRI Smallholdersstill dominate livestock production in many countries Region (definition of ‘smallholder’) % production by smallholder livestock farms Beef Chicken meat 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
  • 19.
    BMGF, FAO, ILRI Smallholdersstill dominate livestock production in many countries Region (definition of ‘smallholder’) % production by smallholder livestock farms Beef Chicken meat 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
  • 20.
    Farm size andnumber of holdings: India 0 0.5 1 1.5 2 2.5 0 20 40 60 80 100 120 140 160 Averagesize(ha) No.ofholdingsinmillions no.holdings (million) av size (ha)
  • 21.
    Increasing farm size:USA (2.2 million holdings in 2007) 21
  • 22.
    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)
  • 23.
    BIG livestock opportunity#4 This rising demand for animal-source foods will be met − one way or another We can meet that demand in sustainable, equitable and healthy ways that also reduce poverty and hunger This requires proactive action
  • 24.
    Demand for livestockcommodities will be met – the only question is how Scenario #1 India meets livestock demand by importing livestock products Scenario #2 India meets livestock demand by importing livestock industrial production know-how Scenario #3 India meets livestock demand by transforming smallholder livestock systems
  • 25.
    Scenario #1: Badnews for India’s economy, employment and livelihoods Downsides of importations • A huge import bill straining foreign exchange • Little growth of indigenous livestock enterprises • Industrial-scale pollution in developed countries • Mass emigration of youth (and labour) from developing countries
  • 26.
    Downsides of industrialproduction • Know-how restricted to few enterprises • Employment opportunities, esp. for women and youth, lost • Increased demand for feed and water degrades natural resources • Environment polluted and large financial costs • Synergies of mixed systems lost Scenario #2: Bad news for India’s equity, environment and economy
  • 27.
    Scenario #3: Goodnews for India’s rural economic transformation Upsides of smallholder transformation • The coming livestock transitions and consolidations can help millions improve their food production as well as health, livelihoods and environments • Of the world’s 1 billion smallholder livestock producers, some: ﹣1/3 will find alternate livelihoods ﹣1/3 will succeed in the market ﹣1/3 could go either way
  • 28.
    India has shownit can be done India moves from dairy importer to the world’s top milk producer
  • 29.
    12th ASC technicalsessions: 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
  • 30.
    12th ASC technicalsessions: 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
  • 31.
    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)
  • 32.
    The presentation hasa 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!
  • 33.
    The presentation hasa 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

Editor's Notes

  • #2 There MUST be a CGIAR logo or a CRP logo. You can copy and paste the logo you need from the final slide of this presentation. Then you can delete that final slide   To replace a photo above, copy and paste this link in your browser: http://www.flickr.com/photos/ilri/sets/72157632057087650/detail/   Find a photo you like and the right size, copy and paste it in the block above.
  • #3 Smallholder is defined as having landholding less than 10ha FAO (2012) source: Smallholders and family farmers: http://www.fao.org/docrep/018/ar588e/ar588e.pdf India figure source: India basic animal husbandry statistics (2013): http://dahd.nic.in/dahd/statistics/animal-husbandry-statistics.aspx
  • #8 Figures from: Alexandratos N and Bruinsma J (2012) World Agriculture Towards 2030/2050. The 2012 revision. ESA Working paper No. 12-03. Agriculture Development Economics Division, FAO, Rome. All types of food are needed – diversity of food Specifically, the world will need: 1 billion tonnes more cereals to 2050 1 billion tonnes dairy products each year 460 million tonnes meat each year
  • #10 Figures from FAO’s Livestock’s Long Shadow.
  • #11 Figures from FAO’s Livestock’s Long Shadow (to 2030) updated to 2050 using population and per capita consumption estimates from Alexandratos and Bruinsma
  • #15  The changing organization of us farming. O donoghue et all 2011 http://www.ers.usda.gov/media/176816/eib88_1_.pdf
  • #16 Vietnam Small Scale Farming with Low Biosecurity                              1-2 sows, <20 pigs Small Scale Farming with Minimum Biosecurity                   50-20 sow, <100 pigs   Philippines Backyard  - any farm or household raising at least one head of animal and does not qualify as a commercial farm. Commercial - if it satisfies at least one of the following conditions: a) at least 21 heads of adults and zero young b) at least 41 heads of young animals c) at least 10 heads of adults and 22 heads of young.
  • #19 Vietnam Small Scale Farming with Low Biosecurity                              1-2 sows, <20 pigs Small Scale Farming with Minimum Biosecurity                   50-20 sow, <100 pigs   Philippines Backyard  - any farm or household raising at least one head of animal and does not qualify as a commercial farm. Commercial - if it satisfies at least one of the following conditions: a) at least 21 heads of adults and zero young b) at least 41 heads of young animals c) at least 10 heads of adults and 22 heads of young.
  • #20 Vietnam Small Scale Farming with Low Biosecurity                              1-2 sows, <20 pigs Small Scale Farming with Minimum Biosecurity                   50-20 sow, <100 pigs   Philippines Backyard  - any farm or household raising at least one head of animal and does not qualify as a commercial farm. Commercial - if it satisfies at least one of the following conditions: a) at least 21 heads of adults and zero young b) at least 41 heads of young animals c) at least 10 heads of adults and 22 heads of young.
  • #21 India basic animal husbandry statistics: http://dahd.nic.in/dahd/statistics/animal-husbandry-statistics.aspx Family farming in USA: James Macdonald, 2014: http://www.ers.usda.gov/amber-waves/2014-march/family-farming-in-the-united-states.aspx#.VLkKnXumvCc
  • #22 MacDonald, James M., Penni Korb, and Robert A. Hoppe. Farm Size and the Organization of U.S. Crop Farming, ERR-152. U.S. Department of Agriculture, Economic Research Service, August 2013.
  • #26 Downsides of importing milk, meat and eggs to meet rising demand
  • #27 The downsides of meeting the rising demand for animal-source foods mostly via private large-scale industrial production units
  • #28 Upsides of using the transition period for transformation But this will not happen without integrated and enabling technologies, policies, markets and institutions − all provided at sufficient scale
  • #29 Operation flood between 1970 and 1996 Technical advances Commercialized smallholder dairy Transformed policy environment 9 million direct beneficiaries 73% of these smallholder farmers whose incomes doubled