Economics of Animal Rearing Some Facts on Livestock diagram REPORT OF THE WORKING GROUP ON ANIMAL HUSBANDRY & DAIRYING 12TH FIVE YEAR PLAN

  • India has a broad spectrum of native breeds of cattle, buffalo, goats, sheep, swine, equine, camel and poultry with merits of adaptability to climate and nutrition, and resistance to diseases and stress. Populations of most of these breeds have alarmingly gone down due to comparative preferences for high producing exotic breeds. This calls for immediate action for systematic conservation, genetic improvement and sustainable utilization of indigenous livestock breeds.
  • India’s livestock sector is one of the largest in the world. It has 56.7% of world’s buffaloes, 12.5% cattle, 20.4% small ruminants, 2.4% camel, 1.4% equine, 1.5% pigs and 3.1% poultry. In 2010-11, livestock generated outputs worth Rs 2075 billion (at 2004-05 prices) which comprised 4% of the GDP and 26% of the agricultural GDP. The total output worth was higher than the value of food grains.
  • Livestock sector grew at an annual rate of 5.3% during the 1980s, 3.9% during 1990s and 3.6% during 2000s. Despite the deceleration, growth in livestock sector remained about 1.5 times larger than in the crop sector which implies its critical role in cushioning agricultural growth.
  • Livestock contributed 16% to the income of small farm households as against an average of 14% for all rural households.
  • Distribution of livestock is more equitable compared to that of land. In 2003, marginal farm households (≤1.0h hectare of land) who comprised 48% of the rural households controlled more than half of country’s cattle and buffalo, two-thirds of small ruminants (goat, sheep) and pigs as well as poultry as against their share of 24% in the land.
  • The growth in the livestock sector is demand-driven, inclusive and pro-poor. Incidence of rural poverty is less in states like Punjab, Haryana, Jammu & 3 Kashmir, Himachal Pradesh, Kerala, Gujarat, and Rajasthan where livestock accounts for a sizeable share of agricultural income as well as employment. The average yield of milk and meat in our animals is 20-60% lower than the global average.
  • Further, their production potential is not realized fully because of constraints related to feeding, breeding, health, and management. Deficiency of feed and fodder accounts for half of the total loss, followed by the problems of breeding and reproduction (21%) and diseases (18%).
  • Frequent outbreaks of diseases like FMD, BQ, PPR, Brucellosis, Swine fever and Avian Influenza continue to reduce productivity and production. However, the available veterinary support in terms of infrastructure (for hospitals and diagnostic labs), technical manpower, is insufficient.
  • Livestock sector receives only about 12% of the total public expenditure on agriculture and allied sectors and about 4-5% of the total institutional credit flowing to agriculture and allied sectors.
  • Only 6% of the animal heads (excluding poultry) are provided insurance cover.
  • Livestock extension remains grossly neglected. Only about 5% of the farm households in India do access information on livestock. Organized slaughtering facilities are too inadequate.
  • Lack of access to organized markets and meager profits distract farmers from investing in improved technologies and quality inputs. Informal market intermediaries often exploit the producers.
  • Milk production increased from around 20 million tons in the 1960s to 115 million tons in 2010-11. It grew at an annual rate of 4.4% during the 1990s and 3.8% during 2000s. Although per capita availability of milk has increased from 128 g/day in 1980-81 to 267 g/day in 2010-11, it is far below the requirement of 280 g.
  • In an effort to increase milk production, the Government of India has been implementing the “National Project for Cattle and Buffalo Breeding (NPCBB)” since 2000 with focus on genetic up-gradation of cattle and streamlining AI services and support system. The progress in the area of bull production and evaluation has been slow because of constraints of small herd size, lack of interest on the part of states, little or no initiative to support/ form breed societies, and absence of effective extension network.
  • Most government AI centers are still stationary due to deficiency of manpower and transport facility. Its component on the propagation of indigenous milk breeds also did not make much mark. The “National Dairy Plan(NDP)”, a world Bank Funded project, due to start in early 2012 envisages increasing productivity of milch animals through provision of good quality semen, doorstep AI services and scientific feeding.
  • Small ruminants provide much-needed livelihood support to the landless and weaker sections and hold considerable potential for commercialization.
  • A stable sheep population in the last two decades produced around 40 million kg wool annually, of which only 4 million kg is of fine quality. Goat population grew faster than any other species of livestock and has been a major source of meat.
  • Although the major concentration of pigs is in NE and eastern states, it is not able to meet the pork requirement of NE states. Predominantly non-descript pig populations there have poor productivity. The high cost of concentrate feed, non-availability of swine fever vaccine and quality germplasm, lack of organized slaughter and market facilities have been the major constraints. A scheme on Piggery Development was started in XI plan with the allocation of 150.0 Crores. However, no expenditure has been made.
  • The Indian poultry industry is well equipped and organized to achieve a target growth rate of 11% for commercial broilers and 7% for layers although it failed to diversify in favor of duck, quail, turkey and emu production.
  • Rural poultry sector, however, needs financial, infrastructure and technological support to raise the present 2% growth rate to 3%. Need-based import of grandparent stock of reputed international brands may be continued with strict enforcement of biosecurity measures.
  • Shrinking and degrading pastures coupled with limitations of fodder, lack of sufficient veterinary care and apathy to assisted reproductive technologies have been the major constraints. The potential of raising Pashmina goats’ viz. Changthangi in Ladakh and Chegu in Himachal Pradesh remains underexploited. Interventions by the DAHD&F have hardly addressed any of the above issues.
  • Yaks are spread over J&K, Arunachal Pradesh, and Himachal Pradesh while Mithun is distributed in Arunachal Pradesh, Nagaland, Manipur, and Mizoram. They provide meat, milk, wool, leather, and transport. Major rearing constraints included fewer profits, poor productivity due to inbreeding because of lack of exotic germplasm, non-availability of feed, health services and lack of support services. Camel and equine population have shown a decline. The population of Mewari and Kutchhi camel as dromedaries and double-humped camel-Bactrians and all the six registered Indian breeds of equines need special attention as these may be threatened in numbers. There is a need to have a national equine breeding policy.
  • The livestock provides food and non-food items to the people. 1. Food: The livestock provides food items such as Milk, Meat and Eggs for human consumption. India is the number one milk producer in the world. It is producing about 137.7 m. tones of milk in a year. Similarly, it is producing about 74.75 billion eggs, 8.89 million tonnes of meat in a year.
  • Livestock production activities are largely in the hands of women. The rapidly increasing demand for livestock products creates opportunities for their empowerment. Harnessing these, however, would require addressing constraints that women face. Appropriate policy and institutional arrangements such as the establishment of “Women Livestock Producer Associations” would facilitate availing credit, insurance, and other inputs and marketing services. Training women would reduce drudgery to women and improve animal productivity and enhance their economic returns. 26.
Contribution of Livestock Sector to Indian Economy Livestock plays an important role in the Indian economy. About 20.5 million people depend upon livestock for their livelihood. Livestock contributed 16% to the income of small farm households as against an average of 14% for all rural households. Livestock provides a livelihood to two-third of the rural community. It also provides employment to about 8.8 % of the population in India. India has vast livestock resources. The livestock sector contributes 4.11% GDP and 25.6% of total Agriculture GDP. Together with its allied activities like livestock which provide milk and milk products, meat and meat products, it constitutes a major supplier of food and food articles, raw materials, and finished product. diagram 2 diagram 3 diagram 4 Importance of animals as an efficient and economical means of food production has been challenged on the following grounds: diagram 5 What needs to be done?
  • Political support for fair commodity prices and proposed strategies;
  • A better definition of the target recipient’s needs;
  • increased efficiency of use and management of natural resources;
  • linking of production and post-production components to efficient infrastructure, services, and marketing schemes;
  • more appropriate policies for the use of common land and rangelands;
  • Improved capacity and commitment of national and international agricultural centers and non-governmental organizations (NGOs) to implement strategies that contribute to the development of livestock production within specific agro-ecosystems/Ecoregions.
Way Forward: In livestock production, the overriding considerations are the availability and efficient use of local natural resources. A successful livestock development strategy requires the formulation of resource management plans that complement the wider economic, ecological and sociological objectives. Particular attention needs to be given to land-use systems and to the natural resources required for improved livestock production. The strategy will also need to consider the social, cultural, political and institutional elements that affect the management of natural resources. On the policy side, issues relating to land use, common property, legislation, price policies, subsidies, levies, national priorities for livestock development and research capacity have to be addressed. Finally, the implementation of action programs requires both technical and institutional support and, equally important, government commitment. Source: REPORT OF THE WORKING GROUP ON ANIMAL HUSBANDRY & DAIRYING 12TH FIVE YEAR PLAN\FAO