Livestock Services and the Poor: A global initiative - IFAD

CHAPTER 3: POVERTY FOCUS OF LIVESTOCK SERVICES
In many areas, the process of liberalization has increased
access to inputs where private enterprises have started marketing
them. However, these enterprises have tended to focus on wellintegrated
areas, whereas livestock keepers in more remote areas
with poor infrastructure still face significant problems and high
costs in accessing inputs. Private-public partnerships, that is, the
subcontracting of private suppliers and producer or community
organizations, can be tools for enhancing access to inputs in rural
areas and also for reducing the unit costs of handling and
transportation.
Another issue is the affordability of inputs. Poor livestock
keepers normally cannot afford technologies that require
expensive inputs. Integrated services, which provide a reliable
supply of inputs, including microcredit, might create new
opportunities for livestock keepers.
Increase Access to Financial Services
and Markets
Access to financial services is a precondition for
livestock development
Appropriate savings and credit facilities that address the
particular needs and constraints of the poor are important tools
for increasing production among poor livestock keepers.
Nonetheless, secure savings facilities are often lacking in rural
areas; interest rates on deposits are often lower than livestock
yields, and poor people often have no access to loans through
conventional banks. Banks are oriented towards the bigger loans,
and they require collateral that the poor cannot offer. Livestock is
normally not accepted as collateral, and women are often at a
particular disadvantage.
People in rural areas frequently use livestock as a sort of
investment bank. Livestock is an easily tradable asset. It is an
investment, provides insurance, can be used to cover bigger
expenses, such as the cost of agricultural inputs, and serves as cash
Reliable supply of inputs
including credit creates
new opportunities
Poor people have
almost no access
to savings
and credit services
Rural people use livestock
as a bank, but the poor
have fewer livestock on
which to draw
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