Message

Contributions to the economy

Abstract

Although livestock contribute 40% of agricultural GDP globally, livestock receive only 2.5% of total agricultural official development assistance.

The livestock sector contributes on average 40% of agricultural GDP globally. In developing countries this ranges from 15 – 80% and is growing rapidly because that is where demand for livestock-source foods is rising fastest. Across the EU the livestock sector contributes Euro 168 billion annually, 45% of the total agricultural activity; in the United States, livestock is about 50% of agricultural GDP.

Although livestock’s share of agricultural GDP is generally lower in poor countries than in rich, it will grow. Livestock producers will face risks as well as benefits.

One risk is that small- and medium-scale producers will be confined to local and informal markets, while commercial producers benefit from larger, more integrated markets.

Another risk is that environmental hazards and resource degradation may occur, depending on how livestock farming develops.

While the private sector can capitalize by investing in this livestock growth, market infrastructure and public-private-partnership mechanisms need public investment.

In addition, policy support and investments can increase livestock resource efficiency and mitigate environmental threats.