The Contribution of Poultry to Development & Poverty Reduction

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  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Simon Mack, Dennis Hoffmanand Joachim Otte

    XXII Worlds Poultry Congress Istanbul, Turkey, 9 June 2004

    The Contribution of Poultryto Development & Poverty Reduction

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Outline

    Distribution and extent of poverty Rural livelihoods and the role of poultry Global trends in poultry sector growth Constraints to backyard poultry development and

    international initiatives

    Possible role of the commercial sector in support of backyard poultry

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Poverty Should Concern Us All

    25 - 50

    >7550 - 75

    10 -25< 10

    No data

    Proportion of people living in absolute poverty (

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Number of Poor (millions) by Region

    0

    200

    400

    600

    800

    1,000Ea

    st /

    Sout

    h A

    frica

    Cen

    tral /

    Wes

    t Afri

    ca

    Nor

    th A

    frica

    / N

    ear E

    ast

    Chi

    na

    East

    Asi

    a ex

    cl. C

    hina

    Indi

    a

    Sout

    h A

    sia

    excl

    . Ind

    ia

    Cen

    tral A

    sia

    Cen

    tral A

    mer

    ica

    Car

    ibbe

    an

    Sout

    h A

    mer

    ica

    People below US$1 a day People below US$2 a day

    Source: World Bank 2003

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Sources of Income for the Rural PoorN

    on-A

    gri

    -cul

    ture

    Agr

    icul

    ture

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Chicken Ownership Rural Viet Nam

    0

    20

    40

    60

    80lo

    w

    low

    -m

    ediu

    m

    med

    ium

    med

    - hi

    gh

    high

    Proportion (%) of householdsowning chicken

    Income quintile

    200

    USD

    /yea

    r

    430

    USD

    /yea

    r

    690

    USD

    /yea

    r

    1,12

    0 U

    SD/y

    ear

    3,20

    0 U

    SD/y

    ear

    Income quintile

    0

    5

    10

    15

    20

    25

    low

    low

    -m

    ediu

    m

    med

    ium

    med

    - hi

    gh

    high

    Average chicken flocksize

    Source: 1998 Viet Nam LSMS

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    The Roles of Poultry in Poor Households

    Chicken, ducks, geese, etc

    Savings Food Fertilizer

    Socialfunctions

    CropsPonds

    Socialnetworks

    Cash/barter

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Cash/income Benefits Rural Viet Nam

    Com

    mer

    cial

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100 Other agricincomeOther livestockincomeSaleschicks&ducksHome conschicks&ducks

    Sem

    i-co

    mm

    erci

    al

    Subs

    iste

    nce

    Percent of agricultural income

    Source:Viet Nam;1998 LSMSA

    gric

    ultu

    ral h

    ouse

    hold

    s

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Profitability of Backyard Chicken Viet Nam

    20.0Eggs consumed/sold (nr)

    4.25Birds consumed/sold (nr)

    390Return on investment (%)

    2.16Investment/hen

    8.45Gross revenue/hen

    0.20Depreciation of hen7.65Value of birds consumed/sold1.00Value of eggs consumed/sold

    Item

    Average return per hen and year(values in USD)

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Overall Sector GrowthAnnual growth (%) in poultry numbers 1998 - 2003

    -0.5 0.5

    >2.50.5-2.5

    -2.5 - 0.5< -2.5

    No data

    Source: FAO, GLiPHA 2004

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Growth of the Poultry Sector

    100

    105

    110

    115

    120

    125

    130

    135

    1998 1999 2000 2001 2002 2003

    DevelopingCountriesDevelopedCountries

    Development of poultrynumbers, 1998 = 100

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    1994

    1995

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    2003

    Developing countriesDeveloped countries

    Source: FAOSTAT 2004

    Poultry meat production,million metric tons

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Backyard Poultry Growth

    100

    110

    120

    130

    140

    150

    160

    170

    180

    1998 1999 2000 2001 2002 2003

    BrazilGuineaIvory CoastGhanaNepalMyanmarLaosCambodiaVietnam

    Development of poultrynumbers, 1998 = 100

    Source: FAOSTAT 2004

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Main Constraints to the Backyard Sector

    High loss of young stock Predation Disease Theft

    Poor yields of survivors Parasites & diseases Low-yield genotypes Poor nutrition

    Poor institutional support Extension services Health services Input supply

    Outbreaks of Avian Flu 2004

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Major International Poultry Initiatives

    Network for Poultry Production and Health in Developing Countries Institution building for poultry

    development ACIAR Effort on Newcastle

    Disease Control Research and delivery of ND

    vaccines International Network for

    Family Poultry Development (INFPD) Information exchange

    IFAD and other donors -projects Implementation: credit, health

    & extension services, some research

    FAO Pro-poor livestock policy initiative Awareness raising, policy and

    institutional framework

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    The Dichotomy of the Poultry Sector

    Input supply

    Marketing Production

    Tech support

    Industrial Sector

    LayersEggs

    BroilersMeat

    Backyard Sector

    Crops

    Otherlivestock

    Poultry

    Household

    Backyardchickens & eggs

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Potential Contributions of Industrial Sector

    Technical / Research Genetics:

    Birds that combine adaptive with productive traits

    Health management: Novel vaccines & drugs Adapted delivery

    mechanisms Nutrition

    Feeding strategies for optimal resource use

    Institutional / Services Producer organization

    Contract farming Specialization & co-

    ordination Knowledge transfer Input supply

    DOCs Feed Medication

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    Conclusions

    Poverty is still at unacceptably high levels, particularly in sub-Saharan Africa and Asia

    Poultry, both backyard and industrial, is the fastest growing livestock sub-sector

    Backyard poultry contributes to poverty alleviation/mitigation through integration into complex livelihoods strategies

    Industrial poultry is the most efficient response to the growing demand for affordable protein and offers (some) employment opportunities

    Little competition between the sectors but potential for support from industrial to backyard

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    References & Further Reading

    All documents can be dowloaded from the PPLPI Website:http://www.fao.org/ag/pplpi.html http://www.fao.org/ag/againfo/projects/en/pplpi/publications.html

    Links to PPLPI Working Papers

    #21 The Contribution of Livestock to Household Income in Vietnam: A Household Typology Based Analysis

    #6 A Review of Household Poultry Production as a Tool in Poverty Reduction with Focus on Bangladesh and India

    Links to AGA Livestock Sector Reports

    Cambodia, Lao PDR, Thailand, Vietnam: Review of the livestock sector in the Mekong countries

    Vietnam: Identifying barriers to entry to livestock input and output markets in South-East Asia

    http://www.fao.org/ag/againfo/projects/en/pplpi/docarc/wp21.pdfhttp://www.fao.org/ag/againfo/projects/en/pplpi/docarc/wp6.pdfhttp://www.fao.org/ag/againfo/resources/en/publications/sector_reports/lsr_mekong.pdfhttp://www.fao.org/ag/againfo/resources/en/publications/sector_reports/lsr_VNM.pdfhttp://www.fao.org/ag/againfo/projects/en/pplpi/home.htmlhttp://www.fao.org/ag/againfo/projects/en/pplpi/publications.html

  • A Living from LivestockPro-Poor Livestock Policy Initiative

    The Contribution of Poultry to Development & Poverty ReductionOutlinePoverty Should Concern Us AllNumber of Poor (millions) by RegionSources of Income for the Rural PoorChicken Ownership - Rural Viet NamThe Roles of Poultry in Poor HouseholdsCash/income Benefits - Rural Viet NamProfitability of Backyard Chicken - Viet NamOverall Sector GrowthGrowth of the Poultry SectorBackyard Poultry GrowthMain Constraints to the Backyard SectorMajor International Poultry InitiativesThe Dichotomy of the Poultry SectorPotential Contributions of Industrial SectorConclusionsReferences & Further Reading