Wednesday, 6 October 2010

Small-Scale Dairying Can Be A Way Out Of Poverty

Poverty reduction, increased nutrition levels and an improvement in livelihoods could be the result of an increase in the competitiveness of small-scale dairy farms according to a study by the FAO's Animal Production and Health Division and the International Farm Comparison Network. It could help meet the demands of local and global markets and the Millenium Develoment Goal of eradicating hunger and poverty.

The study entitled 'The Status and Prospects for Smallholder Milk Production' estimates that there are about 150 million small dairy farming households equalling around 750 million people in milk production and the majority are in developing countries. The average dairy herd is about 2 cows yielding about 11 litres per farm per day. There are 6bn consumers of milk and milk products the majority in developing countries. The low production costs of the smaller dairies means they have the potential to compete with much larger capital intensive dairy systems even in the developed world. Opportunities exist where populations and wages are increasing and where there are higher market prices.

The report also said that better management practices with herd expansion and increased yields could improve productivity and poverty reduction. The opportunities will only be realised if the threats facing the sector are properly addressed. Enterprise, marketing and management skills are lacking in some places and credit is limited.

Trade liberalisation leaves small-scale dairy farmers open to competition from large-scale corporates able to resond to market changes more easily. Farmers in South Asia and Africa also leave a bigger carbon footprint than farmers in Europe and America. It could be reduced by better animal feeding systems.

Value creation at every stage in the production and marketing chain must be part of the every strategy if consumers are to get more for their money.

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