Livestock Services and the Poor: A global initiative - IFAD

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The level of
vulnerability
determines the
ease with which
households can
switch from one
activity to another
The risk involved
in the innovation must
be such as not to
increase the level of
vulnerability
Technologies that
build on existing
practices are the most
likely to succeed
LIVESTOCK SERVICES AND THE POOR
Minimize risk
Traditional small-scale farming systems are usually based on a
sound foundation that promotes long-term food security among
poor farmers. The level of vulnerability depends on external
forces such as macroeconomic policies, commodity prices and
climate change. Vulnerability is also affected by internal factors
such as resource access, endowments and the level of poverty.
Together, these factors determine the ease with which households
can switch from one activity to another, a key risk management
strategy of the poor.
Any risk can be hazardous to the fragile existence of the
poorest households. These households prefer to diversify their
activities in order to minimize the risks. They wish to minimize
variations in production, expenditure and income rather than
maximize the productivity of a particular activity (Zoomers,
1999). Thus, any proposal for improvement must first aim at
stabilizing the production system, while relying on existing lowrisk,
low-input technologies. Other households have access to
small reserves in labour, capital, or other resources that may be
used to raise productivity.These households are less vulnerable
and can withstand a higher level of risk.
An analysis of the risk factors involved in the introduction of
technologies must be combined with an assessment of whether
the level of vulnerability would also be increased. It is critical in
any technology adoption assessment to determine whether the
risk augments the level of vulnerability. Box 3.6 shows an
example of how the introduction of an inappropriate technology
raised the vulnerability of small-scale farmers in Togo.
Technologies that build on existing practices among poor
livestock keepers and that introduce moderate changes at low
cost are the most likely to succeed. On the other hand, in cases
where livestock development involves big investments such as
the purchase of dairy cattle or expensive sheds, an insurance
component must be included, as seen, for example, in the
Community Livestock and Dairy Development Project in
Bangladesh. The cost of insurance of the purchased animals was
included in the microcredit component of the project.