1. International scenario of livestock with respect toNorth East Region of IndiaDr. Rameswar Deka Northeast Food Tech Summit, Guwahati, India, 21 March 2012

2. Smallholders Livestock: Pathway out of poverty?? There are 640 million smallholders and 190 millionpastoralists raising livestock. They are the 70 % of theworlds poor. They are playing a crucial role in conserving at least 13,000breeds of 40 domesticated livestock species. These breedsare 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 bestuse of their environment. They often keep mixed herds ofsheep, goats and cattle, or of several breeds. In some of the countries (especially in Africa) smallholderslivestock provides up to 38% of the whole GDP. 3. Smallholders are at disadvantage Large farms could operate more efficiently due to economiesof scale and lower transaction cost. Market regulations put smallholders at a disadvantage, likein Zimbabwe; where the carcass grading system discriminatesagainst smaller cattle. In the Philippines or in Brazil, pig smallholders are indisadvantaged. 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 integratesmallholders into the market, an important means to achievepoverty reduction and economic growth but in reality it isopposite in many countries (eg. Thailand, Philippines etc). 4. Changing Trends...... With liberalization, global trade in livestock products hasgrown substantially over the past decade. Market power of the mega food companies becomes themajor driving force & determinants of the market. Animal diseases (FMD, CBPP, CSF, BF etc.) and associatedregulations (SPS) have become major contributing factors . Effects of climate change and emerging diseases increasinglybecome important to determine the fate of livestock sector. As the commercial sector becomes more and moreindustrialized, small farms are going out of business. 5. Industrial livestock system Industrial livestock is dominating in production- 3/4th of the worlds chicken,- 2/3rd of milk,- 1/ 2 half of the eggs,- 1/3rd of pigs Industrial livestock is growing 7 times faster thansmallholder livestock. Industrial livestock systems is a result of heavy govt.support. 6. Countries having biggest livestock population Rank Chicken Cattle Pig Sheep 1stChina Brazil (189 m) China China 2ndUSA India (187 m)USA Australia 3rdIndonesia USABrazilIndia 4thBrazilChinaVietnam Iran 5thIndia Ethiopia Germany Sudan 7. Booming livestock industry!! China, is the worlds largest producer of meat (15 mill ton)while Brazil is the worlds largest exporter of meat ( 9 millton). India produce only 0.6 mill ton. India has the highest buffalo population (meat is cheapestin the world)but failed to become major player ininternational market. Poultry and pig industries are far developed in China,Brazil, Thailand and the Philippines. China is producing half of the worlds pork. China produces 70 mill ton of egg annually compared to 3mill ton by India and 2 mill by Brazil. 8. 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 toposition itself as major player (poor sanitary condition,higher incidence of diseases, poor slaughteringinfrastructur). India is the highest producer of milk (13% of the globalproduct) 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 producingcountry in the world after India & US. Pakistan is the 4thlargest dairy producer. 9. Subsidised livestock industry at the cost ofsmallholders!! China has spent US$ 2.05 billion in 2007 to support pigproduction, including direct subsidies, insurance of fertilesows and vaccination of animals against major epidemicdiseases. By November 2007, China had insured 21 millionsows, or 45 percent of the herd nationwide. Leading livestock (pig) industries are heavily investing inChina. In Vietnam and the Philippines, industrialisation of pigproduction is heavily subsidized at the expense of the smallscale producer. US & EUs livestock system is already heavily subsidised 10. Challenges for the developing world Tariff and non tariff barriers (import quotas, import licensingetc.) posing a challenge for the developing world. Huge subsidies (export, production, consumption andstorage subsidies) are enjoyed by the farmers of developedcountries Most of the developing countries traditionally do not providesubsidy & they are also not allowed to introduce or increasedsubsidies SPS measures (eg. health risk arising from additives, toxins,pathogens etc.) & admin procedures (eg. inspection,certification) are limiting the scope of export market fordeveloping countries. Cheap imports & dumping lower the domestic productprices but negatively effect on incomes of million of rural 11. Consequences In Mozambique, cheap import of low quality frozen chickenis threatening smallholders income and consumers health. FAO had recommended to limit the dumping of US dairyproducts in order to protect Perus smallholders, but in vain Export opportunities for smallholders is for many reasonsusually a dead end. Smallholders have not benefited but lost out in Brazil, and itis not likely that elsewhere they will benefit from exportoriented policies. With industrial livestock production systems, theconsumption of concentrate feed is growing in developingcountries and causing food shortage to human. 12. 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. 13. Livestock sector in NE Indias context NE India is largely deficit in egg, pork, milk and goat meatproduction. Far below the per national capita availability, which isagain very low in global context. Production practices are mainly traditional without much changeover the years. Poor extension & input delivery mechanism (about 7% householdgetting access to govt. extension services). Poor disease control mechanism (about 25% farmers are gettingaccess to govt. veterinary services). Poor physical and bacteriological quality of livestock productsmarketed in NE India. Little/ no effort on ensuring food safety &controlling zoonosis. Capacity building programs are weak and mainly lead by by textbook- knowledge. Large scale private investment on the livestock is little ornegligible. 14. Glimpse of ILRIs research findings60.00%50.00%40.00%% share30.00%20.00%10.00%0.00% strongly agree AgreeDisagreeStronglyUndecided 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 AgreeDisagree Strongly Undecided disagreeRural (n=440) Urban (n=1024) Consumer attitude I am happy to pay even the maximum/higher price if the quality andhygiene of milk can be guaranteed" 15. Hazard analysis in traditional milk value chain 16. Glimpse of Pig Appraisal Study findingsMarket Efficiency of Pork Marketing500045004000Distribution of marketing cost in Rs.35003000ProfitTax & commissionsSlaughter & selling costs2500Hidden expensesTransportation & lairage2000Farm gate price150010005000DhemajiGolaghatKamrupKarbi AnglongKokrajhar Project districts Efficiency of Pork MarketingMeat TypeA: 5 yrs ago 2 yrs agoB: Current B/A % B/A % Adjusted foractualinflation*Pork60-7070-80 80-100+38+19Chevon 100-120120-140 140-160+36+15Broiler (dressed) 60-7070-80 80-90 +31+13Indigenous chicken80-9090-100 100-120+29+10Changes in Meat Prices (Rs/kg) in Assam over the last five years (2003-2007 17. Way forward......It is good to have an industry which can provide food to millionof people but would be better if it at the same time canprovide employment to million of people Policy suggestion: twin-track approach to livestock sectordevelopment: 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??) 18. What ILRI is trying to do under this complexsituation?ILRIs 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. 19. ILRIs initiatives in NE IndiaOn Piggery- in Nagaland & Mizoram Piloting simple, location specific, integrated, community basedapproach for piggery (production & marketing)development. Piloting Vety. First Aid services through a brigade of trainedlivestock F.A. Practitioners. Piloting integrated livestock service delivery model throughcommunity 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 Assams dairy sector & Nagaland &Assams 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. 20. ILRIs intended plan for future ....... Work on smallholder dairy value chain in a 3/4 states of Indiaunder ILRIs global Research Program on livestock and fish. Provide technical support to govt. deptt/ other organisationsin India for scaling out the training, certification & monitoringscheme for milk vendors and butchers Replicate the simple, cost effective, integrated piggerydevelopment model in other parts of NE India with govt.support. Work on the control of zoonotic and emerging diseasesthrough prevalence survey, participatory diseasesurveillance, design & delivery of training to target group. Extend helping hands to the govt. deptt/ other organisationon planning and monitoring development projects.