The rapid growth in consumer demand for livestock offers an opportunity to reduce poverty among smallholder livestock farmers in the developing world. These farmers' opportunity may be threatened, however, by competition from larger-scale farms. This report assesses the potential threat, examining various forms of livestock production in Brazil, India, the Philippines, and Thailand. Findings show that the competitiveness of smallholder farms depends on the opportunity cost of family labor and farmers' ability to overcome barriers to the acquisition of production- and market-related information and assets. Pro-poor livestock development depends, therefore, on the strengthening of institutions that will help smallholders overcome the disproportionately high transaction costs in securing quality inputs and obtaining market recognition for quality outputs. These and other findings make this report a useful guide for researchers and others concerned with the opportunities and risks of smallholder livestock farming.
A dramatic increase over the past fifteen years in domestic pork demand and production in the Philippines has created a potentially profitable opportunity for poor rural and agricultural households. In Southern and Central Luzon, the two biggest markets, however, smallholder pig producers hold only a minority share of total production compared to larger commercial farms. This report seeks to assess the scope for smallholders to remain in business by analyzing the relative profitability of small and large farms. Using field data from pig-producing households, the researchers assess the role of internal and external factors in determining a household's participation in production and marketing and examine the combination of technical and allocative efficiency exhibited by specific farms under particular circumstances. They conclude that the smallest-scale pig producers will not survive market competition and will require alternative occupations. Many others, however, could profit from pig production if policy and institutional changes ensure their access to inputs, to animal health services that can guarantee output quality, and to markets for higher quality output. These findings are a valuable contribution to poverty reduction efforts in the Philippines.
The rapid growth in consumer demand for livestock offers an opportunity to reduce poverty among smallholder livestock farmers in the developing world. These farmers' opportunity may be threatened, however, by competition from larger-scale farms. This report assesses the potential threat, examining various forms of livestock production in Brazil, India, the Philippines, and Thailand. Findings show that the competitiveness of smallholder farms depends on the opportunity cost of family labor and farmers' ability to overcome barriers to the acquisition of production- and market-related information and assets. Pro-poor livestock development depends, therefore, on the strengthening of institutions that will help smallholders overcome the disproportionately high transaction costs in securing quality inputs and obtaining market recognition for quality outputs. These and other findings make this report a useful guide for researchers and others concerned with the opportunities and risks of smallholder livestock farming.
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