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1 Innovation for sustainable livestock: Livelihoods and economic growth Shirley Tarawali, Vincent Amanor Boadu, Isabelle Baltenweck, Nicoline de Haan, Ilse Kohler-Rollefson Key messages ü Recognize and support sustainable livestock’s contribution to multiple development ambitions (and avoid unintended consequences) ü Harness diversity and growth for a sustainable livestock sector ü Support sustainable livestock enterprises through financing, business and trade innovations ü Invest and use the latest technologies at a faster pace ‘innovation expedited’ ü Undertake awareness and engagement actions to ensure livestock roles in livelihoods and economic growth are included in livestock-specific and wider development policies/agendas Introduction This paper explores the opportunities for innovations in the livestock sector to contribute to sustainable livelihoods and economic growth. ‘Livelihoods and economic growth’ are broad areas covering the sector’s multiple roles in poverty alleviation and contributions to national economic growth, notably for women and the younger generation. The paper considers the transformation of the sector as it adapts to meet the rapidly growing demand for milk, meat and eggs (especially in LMICs) and how there can be a sustainable transition for the billion or so people across the world whose livelihoods depend on livestock in one way or another. The livestock sector is highly heterogeneous within and across regions around the world. High degrees of heterogeneity are observed in the types of livestock, the production systems used, as well as in the structure of the various input-output value chains. For their part, production systems vary greatly because they need to be adapted to available resources, the cost of natural resources and resource constraints including markets. In capital-intensive systems (where natural resource costs are high), livestock are raised and kept at high stocking densities and fed high levels of concentrates to maximize production outputs. Poultry and swine are often produced under vertically integrated systems where a single large company controls all aspects all production stages, from breeding to production occasionally with the involvement of external growers for processing and retailing. Cattle and other ruminants are raised in a variety of extensive and labour-intensive systems across the world, often with lower resource costs. In labour-intensive systems there are, literally, hundreds of millions of small- and medium- scale production enterprises with varying degrees of management, inputs and market engagement. Much of the heterogeneity in these systems stems from variations in agro-climatic conditions, access to markets and services as well as socio-cultural norms, ranging from backyard chicken systems using minimal inputs to dairy systems that are well integrated into value chains. Fostering sustainable livelihood and economic growth opportunities for such a diverse sector requires a careful appreciation of the strategic objectives of all its varied actors at the production level, upstream (genetics, feed, health services suppliers, etc.), and downstream (aggregators, transporters, processors, distributors, retailers, etc.). It is also important to understand the public policy and institutional environments that confront the different actors across systems, regions and countries. Consumers, competitors and market conditions defined and framed by cultural and economic conditions all influence the sustainability of livestock sector contributions to the livelihood and economic growth of its stakeholders across the world. Understanding the production,

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Page 1: Innovation for sustainable livestock: Livelihoods and …...livestock farms, with 30 million employed (about 12% of the adult workforce) across the entire livestock sector, largely

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Innovation for sustainable l ivestock: L ivel ihoods and economic growth ShirleyTarawali,VincentAmanorBoadu,IsabelleBaltenweck,NicolinedeHaan,IlseKohler-Rollefson

Key messages ü Recognizeandsupportsustainablelivestock’scontributiontomultipledevelopment

ambitions(andavoidunintendedconsequences)ü Harnessdiversityandgrowthforasustainablelivestocksectorü Supportsustainablelivestockenterprisesthroughfinancing,businessandtrade

innovationsü Investandusethelatesttechnologiesatafasterpace‘innovationexpedited’ü Undertakeawarenessandengagementactionstoensurelivestockrolesinlivelihoodsand

economicgrowthareincludedinlivestock-specificandwiderdevelopmentpolicies/agendas

Introduction Thispaperexplorestheopportunitiesforinnovationsinthelivestocksectortocontributetosustainablelivelihoodsandeconomicgrowth.‘Livelihoodsandeconomicgrowth’arebroadareascoveringthesector’smultiplerolesinpovertyalleviationandcontributionstonationaleconomicgrowth,notablyforwomenandtheyoungergeneration.Thepaperconsidersthetransformationofthesectorasitadaptstomeettherapidlygrowingdemandformilk,meatandeggs(especiallyinLMICs)andhowtherecanbeasustainabletransitionforthebillionorsopeopleacrosstheworldwhoselivelihoodsdependonlivestockinonewayoranother.Thelivestocksectorishighlyheterogeneouswithinandacrossregionsaroundtheworld.Highdegreesofheterogeneityareobservedinthetypesoflivestock,theproductionsystemsused,aswellasinthestructureofthevariousinput-outputvaluechains.Fortheirpart,productionsystemsvarygreatlybecausetheyneedtobeadaptedtoavailableresources,thecostofnaturalresourcesandresourceconstraintsincludingmarkets.Incapital-intensivesystems(wherenaturalresourcecostsarehigh),livestockareraisedandkeptathighstockingdensitiesandfedhighlevelsofconcentratestomaximizeproductionoutputs.Poultryandswineareoftenproducedunderverticallyintegratedsystemswhereasinglelargecompanycontrolsallaspectsallproductionstages,frombreedingtoproductionoccasionallywiththeinvolvementofexternalgrowersforprocessingandretailing.Cattleandotherruminantsareraisedinavarietyofextensiveandlabour-intensivesystemsacrosstheworld,oftenwithlowerresourcecosts.Inlabour-intensivesystemsthereare,literally,hundredsofmillionsofsmall-andmedium-scaleproductionenterpriseswithvaryingdegreesofmanagement,inputsandmarketengagement.Muchoftheheterogeneityinthesesystemsstemsfromvariationsinagro-climaticconditions,accesstomarketsandservicesaswellassocio-culturalnorms,rangingfrombackyardchickensystemsusingminimalinputstodairysystemsthatarewellintegratedintovaluechains.Fosteringsustainablelivelihoodandeconomicgrowthopportunitiesforsuchadiversesectorrequiresacarefulappreciationofthestrategicobjectivesofallitsvariedactorsattheproductionlevel,upstream(genetics,feed,healthservicessuppliers,etc.),anddownstream(aggregators,transporters,processors,distributors,retailers,etc.).Itisalsoimportanttounderstandthepublicpolicyandinstitutionalenvironmentsthatconfrontthedifferentactorsacrosssystems,regionsandcountries.Consumers,competitorsandmarketconditionsdefinedandframedbyculturalandeconomicconditionsallinfluencethesustainabilityoflivestocksectorcontributionstothelivelihoodandeconomicgrowthofitsstakeholdersacrosstheworld.Understandingtheproduction,

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distributionandmarketingenvironmentinwhichthesectoroperatesinthedifferentregionsmustprecedethedevelopmentofinnovativesolutionsthatcansecuresustainablelivelihoodsforthevariousstakeholdersinthedifferentsegmentsofthesectorwhilecontinuingtocontributetotheirnationalorregionaleconomies.Issues, opportunities and risks Livelihoods;povertyandincomegrowthHistorically,increasingincomeshavecorrelatedwithincreasingdemandformeat,eggs,dairyandotherlivestockproducts.Recentreportssuggestthatdemandisprojectedtoincreaseby70%by2050(FAO,2019a).Globally,itisestimatedthatoverabillionpeopleareinvolvedinlivestock–frominputsupplyproduction,processingtosales,andmarketing;andatleasthalfofthesetotallydependonthesector,includingsomeoftheworld’spoorestpeoples(Robinsonetal.,2011).Morespecifically,thenumbersofpeopleengageddirectlyinlivestockproductiontendtobesmallerincapital-intensivethaninlabour-intensiveorextensivesystems.Capital-laboursubstitutionisevidentinthelivestocksectorglobally.InmanyHICs,wherelabourwagestendtobehigherthancapitalcostsgiventheirrelativeproductivityinthelivestocksector,productiontendstobecapitalintensive,resultinginalowerproportionofpeopledependingonthesectorfortheirlivelihoods.Contrarily,inmostLMICs,alargerproportionofpeopletendtobedependentonthelivestocksectorfortheirlivelihoodsbecausetherelativecostofcapitalmakeslabour-intensivesystemscompetitive.Forexample,theUK,wherejust0.5%ofthepopulation(19%ofwhomarewomen)areemployedinthelivestockproductionindustry(WarwickUniversity,2010),contrastssharplywithKenyawhere,atfarmlevel,morethan800,000peoplearedirectlyemployedindairyproduction,representingaboutathirdofthetotalagriculturallabourforce.Fiftythousandmorepeopleareinvolvedinmilktradingandprocessing,stressingtheimportantroledairyproductionhasincreatingemploymentacrossmanysegmentsofsociety(Staaletal.,2008).Itisnoteworthythatthesefiguresarenowmorethan10yearsoldandarelikelytounderestimatetheweightofthesectorintheKenyaneconomy;theKenyaDairyBoardcurrentlyestimatesabout3millionjobsindairyalone(smallholderfarmersplusotheremployment:http://www.kdb.go.ke/).AcrosstheEU,around4millionpeopleareemployedonlivestockfarms,with30millionemployed(about12%oftheadultworkforce)acrosstheentirelivestocksector,largelyinprocessing(TheAnimalTaskForce,2017a).IntheUSlivestocksectorproductionisestimatedtosupport0.4%oftheUSpopulation(USBureauofLabourStatistics,2018).Typically,inHICs,thesectoremployspeopleandpaysthemwages,andtheymaketheirlivingfromthesewages.InmanyLMICsbeyondthosewhohavesalariedjobs,livestockplaysmultiplerolesinthesocio-economicrealitiesofhouseholds:storeofwealth;sourceofincome;insuranceandsafetynet;symbolofsocialstatus;andnumerousothersdependingoncultureandsituation.EspeciallyinLMICsandlabour-intensivesystems,salesofmilk,meatandeggsareanessentialsourceofregularcashincome(FAO,2009)andlivestockareanassetthatallowshouseholdstomanagerisksandpreventtotalfinancialdisasterwhencropsfailorothershockshit(Moll,2005;Wade,2013).Forseveralhundredmillionpastoralistsinmarginalareas(WorldBank,2014;FAO,2019b),livestockaretheironlyassetandtheonlymeansofusingthemorethantwo-thirdsoftheworld’sagriculturallandthatisclassifiedaspermanentpasturestoproducefood.Thesesystemshaveevolvedovercenturiestocopewithspatialandtemporalclimatevariability.Herdsareintentionallymanagedtowithstanddrought(McPeak2005;McPeaketal2012)andanimalssoldtoprovidecashforschoolfeesortobuygrains.FromthedrylandsofAfrica,totheextensivedrylandsofAsia,thenorthofScandinavia,dryandmountainousareasofEuropeandtheAmericas,animalsinextensivesystemsareessentialforlivelihoodsandforecosystemstewardship.

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Regardlessofwheretheyareproduced,livestockhavestrongculturalroles:asgiftsanddowriesinsocialnetworksandmarriage;asdishesonspecialoccasions,suchasfestivalsandholidays;andinreligiousritualsandcelebrations.Insomecommunities,livestockareimportantforsportingeventsandentertainment,fromrodeosinnorthAmerica,totheNaadaminMongolia.Furthermore,livestockprovidenumerousbenefits,rangingfrommanureforfertilizer,andfuelforcookingandheating,andenergyforploughingandtransportationofhumansandgoods,manyofwhichsupportcropfarming,therebyimprovingoverallfarmproductivity.IntheEU,manureaccountedfor38%ofthenitrogeninputin2014(EuropeanCommission,2018)andislikelytobemoreincountrieswhereinorganicfertilizersarelessavailable.InKenya,non-monetarybenefits(includingstoreofwealthandprestige)amounttoalmost20%oftheanimals’totalvalueacrossdifferentlivestocksystems(Oumaetal.,2003).Insomecases,livestockplayimportantrolesinwealthcreationandmanagement,assetbuildingoraccesstocashwhereclassicalbankingisnotyetfullyfunctioning.Opportunities:Risingdemandforanimal-sourcefoodsmeanstherewillbenewandgrowingincomegeneratingopportunitiestobegraspedespeciallyinlabour-intensivesystems.Capital-intensivesystemsmayalsobepartofaddressingsuchdemand,notablythroughtradearrangements.Inextensivesystems,newincomestreamssuchaspaymentforgoodstewardshipofanimalsandthenaturalresourcesonwhichtheydepend(forexamplePappagallo,2018)alongwithriskmitigationstrategiessuchasinsurance(IndexBasedLivestockInsurance(IBLI);Jensenetal.,2017)canimproveresilienceifappropriatecombinationsofpublicandprivatepartnershipsandwell-designedproductscanbeachieved.Considerableinterestinindex-basedlivestockinsuranceproductshasledtoanewregionalinitiativebeingexploredbygovernmentsandinvestorsintheHornofAfrica(See:http://livestockinsurance-igad-conference.org/index.php).EspeciallyinLMICsthereare,therefore,realopportunitiestoutilizelivestockasameanstoescapepoverty(Dorwardetal.,2009;Kristjansonetal.2004),andthusimportantrolesforinternationalandnationalfinancinginstitutions.Acrosstheworld,richerconsumersareshowingapreferenceforbrandedlivestockproductsthatareproducedinmoresustainableways(withalowerenvironmentalfootprint)usinglessanti-microbialsandenhancedanimalwelfarestandards(Grandin,2014).Theseissuesarecreatingopportunitiesforsmallandlargeproducersalike.Risks:Witharoundonebillionpeopleacrosstheworlddependingonlivestockfortheirlivelihoods,rapidchangesinthesectortorespondtorisingdemandisapotentialthreat,ifdeliberateactionsandpoliciesthatsupportandenableeffectiveparticipationbyallactorsarenotconsidered.Thisappliesespeciallytomillionsofsmall-scaleproducersandotherlivestock-relatedplayerswhocouldfailtobenefitfromtheemergingopportunitiesandmayevenlosetheirexistinglivelihoodsasotherlarger-scaleplayerscometodominatethesector.Progressinsomepartsoftheworldislikelytobefurtherhamperedbylackofinvestmentinthesector,inadequatecredit,financeandlandtenuremodalities.Investmentinthesectorcouldalsobeimpactedbyincreasinganti-livestocksentimentswhichcouldalsoimpactnegativelyonmanyindividualswhoselivelihoodsrelatetolivestock.Currently,especiallyintheU.S.andEurope,thereisconsiderablediscourseaboutthedesirabilityofreducingpercapitaconsumptionoflivestockproducts.Onemanifestationofthisistheemergenceandrapidlyincreasingdemandforplantproteinsprocessedinwaystocloselymimicmeatandanimalproducts.TherecentverysuccessfulinitialpublicofferingofBeyondMeat,acompanyshiftingfromanimaltoplant-basedprotein,isjustoneexampleofthistrendthatisboundtoaccelerateinvestmentsinresearchsupportingthislineofproducts.Addressingsustainablelivelihoodsdemandsaconsiderationofinnovationsinproductsandprocessesthatcouldadverselyaffectlivestockproducersandtheirsupplychains;themostvulnerablearelikelytobethoseinlow

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incomecountrieswithsmallerdegreesofmaneuverability.Itisprudent,therefore,toexplorethemotivatorsofchangeinconsumerproteinpreferencesthataredefiningdemandinhighincomecountriesanddevelopsolutionstoamelioratetheimpactofanysuchshiftsinlowincomecountries,alongsidetheessentialfocusonsustainabilitydomains.EconomicgrowthGrowthrateestimatesreportedbytheWorldBank(WorldBank,2019)showthathigh-incomecountries’livestockproductiongrewat0.8%perannumbetween1990and2014,comparedto2.9%forlowincomecountries,3.3%forlowermiddle-incomecountriesand3.6%foruppermiddle-incomecountries.However,averageannualpercapitameatconsumptioninhigh-incomecountriesisover60kghigherthanlow-incomecountries(OECD,2019).Predictionsindicatethatdemandformeat,milkandeggswillcontinuetoriseinLMICsinthecomingdecadesdrivenpartlybypopulation(especiallyinAfrica)andpartlybyincomesrising(Asia,LatinAmerica)(WorldEconomicForum,2019).ThismakesitcrucialtoexploreinnovationsthatcouldenhancethesustainabilityoflivelihoodsofpeoplemakingtheirlivingfromlivestockproductionandprocessingespeciallyinLMICswherethegrowthindemandisgreatest.Globally,thelivestocksectorcontributesanaverageof40%ofagriculturalGDP(Salmon,2018).InLMICsthereisawidevariation,from15-80%andgrowingasrisingdemandformeat,milkandeggsisaddressed.ExtensivesystemsareespeciallyimportantcontributorstoGDPinsomeofthepoorercountries(Kratlietal.,2013)andacrosstheEUthelivestocksectorcontributesEuro168billionannually,45%ofthetotalagriculturalactivity(TheAnimalTaskForce,2017a).Formanynations,dataonlivestockisnotdisaggregatedfromawider‘agriculture’metric,makingitdifficulttoassessthesector’scontributions(Pica-Ciamarraetal.,2014a).Thislackofdataisfurthercompoundedwhenlivestock’smultiplerolesbeyonddirectproductionareoverlooked(egBehnke,2010;Pica-Ciamarraetal.,2014b).IntheUS,agriculturecontributesabout5.7%tothecountry’sGDP.Livestockaccountsforabout50%ofUSagricultureanditis,thus,estimatedthatthelivestocksector’scontributiontothenation’sGDPisabout2.8%.Aseconomiestransitionandlivestocksystemsevolvefromlabour-tocapital-intensive,theshareofagricultureasaproportionoftotalGDPtendstofall,buttheproportionoflivestockinagriculturalGDPrises(Salmon,2018).Opportunities:TakingadvantageofthepotentialforthelivestocksectortocontributetoGDPrequiresdeliberate,prioritizedandtargetedactions.Notalllivestockenterprisesorsystemshavethepotentialtogrowandmakesignificantnationalcontributionsineverysituation.So,whileinvestinginandsupportingsustainablegrowthinthecapital-intensivecattleindustryintheUS,thelabour-intensivedairysectorinKenyaandIndiaandextensivecashmereinMongoliamakeseconomicsense;otherswillbelesseconomicallyprofitableandenvironmentallysustainable.Forexample,inlabour-intensivesystems,cost-benefitratioslookverydifferentoncelabourcostsincrease,forexample,whenfamilylabourisreplacedwithpaidemployees–eventhoughsomeofthemarecurrentlyprofitable(Laparetal.,2012).Risks:Investingandsupportinglivestocksectorgrowthtorespondtodemandwithoutanappropriatepolicyenvironmentcouldresultinnegativeexternalities,particularlythoserelatedtoenvironmentandhealth.Respondingtogrowthalsorequiresacommensurateincreaseinproductionefficiency(notjustmoreanimals)andthatthediseaseconstraintstoproductionandsustainabilityaremitigated.GenderandyouthInmuchoftheworld,livestock,especiallysmall-stock,arealmosttheonlyassetswomencanownandbenefitfrom(Kristjansonetal.,2014).Inlabour-intensivesystems,someestimatesindicatethattwo-thirdsofthelivestockareraisedbywomen(Thorntonetal.,2002)whoarealsooften

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responsibleforprocessingcommodities,especiallydairy(NjukiandSanginga,2013).Inextensivesystems,womenalsotendtohavespecificroleswhichoftenrelatetotheirproximitytothehomestead,suchaslookingafteryoungorsickanimalsandprocessingandsellingmilkormanure(Kristjansonetal.,2014).Despitesuchkeyroles,targetedgender-specificinformation,technologiesandsupporttoimproveallaspectsofthelivestockenterpriseisgenerallylacking.Incapital-intensivesystems,femaleentrepreneursarebecomingincreasinglyprominent(seeforexample,Jamali,2009;Vossenberg,2013;Chozick,2019).Acrossallsystemsandregionsoftheworld,tovaryingdegrees,womenhaveparticularrolesinrelationtohouseholdnutrition,particularlyforyoungchildrenboththroughchoicesrelatedtotheprovisionofnutritiousanimal-sourcefoodsand(mainlyinextensiveandlabour-intensivesystems)usingproceedsfromlivestocksalestobuynutritiousfoods.Thisisakeyintersectionwiththedomainonfoodandnutritionsecuritydiscussedbelow.Forland-andlabour-intensivesystemswomenandyouthfacechallengesintermsofaccesstoresources,especiallylandandfinance.Youthandwomenarebothstronglyaffectedbyissuesaroundmigration(CGIARResearchProgramonLivestock,2019).Over60%ofAfrica’smorethan1.2billionpeoplearebelowtheageof35andwillneedmorethan315millionnewjobsby2035(FAO,2013).Atthesametime,therearegrowingconcernsthatacrosstheworldagriculture,includinglivestock,isbecomingincreasinglyreliantonanagingpopulationastheyoungergenerationexitasectoroftenperceivedtolackopportunitiesforanexcitingandprosperousfuture.InmanyHICsyoungpeoplearealreadydisconnectedfromagricultureandtherearespecificinitiativessuchasFFAand4-Hwhichthrougheducationandpracticaltrainingprogramsaimtoreinvigorateengagementofyoungpeopleinthesector.Opportunities:Animalagriculturehasauniqueroleinwomen’sempowerment.LivestockareassetsmanywomeninLMICsarealreadyfamiliarwithandprovidingopportunitiestoimprovelivestockproductivityenableswomentomoveupthe‘livestockandlivelihoodladder’(graduallyadoptinghigher-valueandmoreproductivespeciesorbreeds)therebyincreasingtheproductivityoftheentiresystem(Galièetal.,2015)andenhancinghouseholdnutrition(Priceetal.,2017).ThereareopportunitiesforyoungpeopleasthenewestITandothertransformativetechnologieswillplayimportantrolesinlivestocksectortransformation:increasingaddressingproductivityandefficiency,addressingenvironmentalchallengesorapplicationsthatprovideinnovativesolutionsforfoodsafetyandtraceability.Businessopportunitiesininputandserviceprovisioncouldbeverylucrativeforthelivestocksector,alreadyvaluedgloballyatoverUSD1trillion(FAOSTAT,2019).InHICs,nichemarketsmaypresentlimitednewopportunitiesforyoungpeopleincludeengaginginlandscaperestorationgrazingandurbanshepherding,or’ethical’dairying(SustainableFoodTrust,n.d.).Risks:Women’saccesstoland,finance,informationandmarketsisveryuneven,particularlyinextensiveandlabour-intensivesystems.Therearealsoinstanceswhere,aslabour-intensivesystemstransitiontobemorecapital-intensivesystems,andlivestockactivitiesbecomemorelucrativeorformalized,women’srolesandaccesstoincomebenefitscanbecomemarginalized(Galièetal.,2019).Insomeextensiveandlabour-intensivesystems,childlabourcanbeanissuethatneedstobetackled(Isenbergetal.,n.d.).SmallholdercompetitivenessandsectorexitParticularlyinLMICsinAfricaandAsia,labour-intensive,mixedsmallandmediumscalecrop-livestockfarmsoflessthan20hacurrentlyprovidearound70%ofbothlivestockandcerealcommodities(Herreroetal.,2017).Livestockareintegraltosuchproductionenterprises,whichsupportthelivelihoodsofatleasthalfabillionpeople(Robinsonetal.,2011).Forsomeenterprises,forexampledairyinKenyaandIndia,suchfarmshaveprovedtobecompetitivewithcapital-intensiveproductionlargelybecauseofaccesstofamilylabour(especiallywomen)andstrong

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synergiesbetweencropandlivestockproduction.Suchlabourdynamicsarelikelytochangeaseconomiesdevelopandthereareopportunitiesinothersectors.Forothercommodities,particularlymonogastrics,economiesofscalemeanthatlargerproductionunitssometimesevolverapidlyalongsideorreplacingsmallerenterprises.InHICs,smallandmediumcrop-livestockfarmsprovideasmallerpercentageoftotallivestockderivedfood,accountingfor30%inEuropeand10%orlessintheAmericas(WorldEconomicForum,2019).Smallscale,integratedfarmsarealsoincreasinglypromotedinHICsasenvironmentallyfriendly,addressing‘niche’markets(seebelow)andprovidingenvironmentalserviceslikelandscapemanagementandconservationofspecialtybreeds.Thecentralquestionstobeaddressedarewhatroleandatwhatscaledosuchfarmshaveinsupplyinglivestock-derivedfoodsinthefuture,anddoingsoinwaysthatareenvironmentallysound,economicallysustainable,healthyforpeopleandtheplanet.ForthoseinLMICs,thisdemandstransformation,especiallyintermsofproductionefficienciesandfoodsafetyissues,aswellasefficientconnectionstoinputandoutputmarkets,whilenotlosingsomeoftheirbenefits,suchasthebalancedintegrationofcropandlivestockproductionenterprises.Opportunities:Giventhemultiplerolesoflivestockinlivelihoodsandfoodprovision,especiallyinLMICs,thetransitionfrommanymillionsofsmallandmediumscalelivestockproductionsystemstofuturelivestockagri-foodsystemspresentsmultipleopportunities–bothmeetingdemandandaddressingdevelopment–tobegrasped.Inmanyinstances,withtherightpolicyandinstitutionalcontext,manyoftoday’ssmallholderscouldtransitiontooutofthesector,usingtheirpresentlivestockenterprisesasasteppingstonetomakeapositivesectorexit(Dorwardetal.,2009).Forthosethatremain,transformationofproductionefficiencies,foodsafety,environmentalfootprintandmarketengagementwillbeamongtheingredientsforthemtobecomemediumandlargerscale,morecapital-intensivelivestockagri-foodsystemsinfuture.IncorporationofthenewestsciencesolutionsandITapproacheswillbeimportantelementsofsuchtransformation.Risks:ForLMICs,whererapidlyrisinglivestockdemandpresentsopportunitiestobepartofsectortransformation,therearerisksthattoday’ssmallholderfarmersinextensiveandlabour-intensivesystemscouldbeexcludedaslargerscaleenterprisesstepintorespondtothemarket.Formany,theirexitfromlivestockcouldendupasatumbleintodisaster,andthemultipledevelopmentbenefitsofsmall-scaleintegratedfarmingcouldgetlostasfastgrowthandeconomicopportunitiesaregrasped.InHICs,anti-livestocksentimentsortradebarrierswithareasofgreatestdemandcouldthreatenfuturelivelihoods.Innovations to enhance sustainability Note:OurexamplesofinnovationsaredrawnfromacrosstheWorld,withsomenotableexceptions:LatinAmerica,China,middle-eastandpartsofAsiaarenotrepresented,andwhilemanyissueswillbecommon,examplesfromtheseregionscouldfurtherenrichthescopeofthecasespresented.ExtensivesystemsWeprovidehereexamplesofinnovationsinextensivesystemsthatrespondtoopportunitiesandmitigaterisksbyprovidingincentivesforlandandecosystemmanagement,newincomestreamsfromnicheproductsorpaymentforecosystemservicesandaddressingtheriskofassetlosses.InnovationsforlandandecosystemmanagementInmanytraditionalpastoralistareas,overrecentyearsdisputesoverlanduserightshaveescalatedassmallholdercropfarmersandlarge-scalecommercialfarminginvestorshaveincreasinglyencroachedintorangelandareasthathaveforhundredsofyearsservedasimportantseasonalgrazinglandforpastoralists.Therisingtensionsthiscausesoftenflaresupintoviolence:injustonedistrictofTanzania34liveswerelostinatwo-yearperiodandtheinsecurityalsohasseriousnegativeimpactsonproductivityandfoodsecurity.Toaddresstheseproblemsgovernmentand

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non-governmentalpartnershavecometogethertoimplementjointvillagelanduseplanning,aparticipatoryprocessthataimstosecuresharedresourcessuchasgrazingandwater;cruciallythisisdoneacrossvillageboundaries.Clustersofvillagesinthedistricthavebeenfacilitatedtodevelopvillagelanduseplans,ajointvillagelanduseplan,ajointvillagelanduseagreementandajointlivestockkeepers’association.Thishasledtoalmost150,000hectaresoflandbeingcoveredbyagreementsthatcoversecuregrazingrightsandthefairuseofothersharedresources.Itisanticipatedthatthiswillhelpensuresustainableuseofrangelandsandreduceconflictsbetweenpastoralistsandfarmers.ThelessonsfromthisSustainableRangelandManagementProject1,havebeensharedwithotherAfricangovernmentsandthejointvillagelanduseplanapproachhasnowbeenintegratedintotheTanzaniagovernment’sNationalLandUseFramework2013-2033(Kasyoka2018,2019a).AmongtheinnovationsforecosystemmanagementaretheconservanciesparticularlyintheeastAfricanrangelandsthatprovideopportunitiesfordiversificationbycombininglivestockraising,conservationandtourism(BedelianandOgutu,2017).Makingconservanciesworkisadelicatebalancebetweenthelivestockenterpriseandnewincomestreamsfromtourismthatmayhelpreduceriskfromsinglelivestockenterprises,becauseconservancypaymentsprovidereliable,year-roundincome.Ontheotherhand,conservanciessometimesleadtoreducedlivestockaccesstoextensivegrazingresourceswhiletheconserved‘grassbanks’retaingoodqualityforageforthedryseason.Incomefromconservancypaymentsmayalsoattimesbeinequitable,forwomenorforlandowners.InnovationsfornewincomestreamsfromnicheproductsorpaymentforecosystemservicesOverthepastfewdecades,becauseofchangingregulationsandlessrelianceondraughtpower,traditionalpastoralandnomadiccamelkeepers inRajasthan,Indiahavefounditincreasinglydifficulttosupportthemselvesthroughcamelherding.Thestatecamelherddecreasedfromaroundonemillioninthemid-1990stofewerthan200,000today.Respondingtothelossofcamelsandtheimportantecologicalandculturalrolestheyfulfilled,alocalwelfareorganizationforlivestockkeepers’organization,LokhitPashu-PalakSansthan(LPPS)wasestablished.Inearly2019amicro-dairyenterprise,focusedexclusivelyoncamelmilkwasopened.Themilkisprocessedintoawiderangeofproducts,fromfrozenpasteurizedmilktocreamcheese,nowbeingpromotedtosupermarketsandrestaurantsashealthyandnutritiousfoods.Thecamelkeepershavequicklyadaptedtosellingtheirmilktotheextentthatthepotentialsupplyofmilknowexceedsthecapacityofthemicro-dairy,soplansareinplaceforexpansion(AtlasObscura,2019).Agrowingproportionofmoreaffluentconsumersacrosstheglobearebecomingincreasinglyconcernedaboutwheretheirfoodcomesfrom,howitisproducedandtheimpactthishasoncommunities,livestockandtheenvironment:manyarewillingtopayapremiumforfood,especiallyanimal-sourcefoods,thatareproducedinwaysthataredemonstrablymoreeconomically,sociallyandenvironmentallysustainableandwithhigheranimalwelfarestandards.Thishascreatedanopportunityforlivestockproducerstomarkettheirproduceinawaythatemphasizesitsprovenance,oftenwiththird-partycertification.Marketinginnovationsbasedongeographicalareaoforigin,breedorproductionsystemhaveemerged,suchasCriollogoatmeatproducedunderaprotecteddesignationoforiginsealby1,500traditionaltranshumantgoatherding‘crianceros’familiesintheArgentineanAndes(Raggietal.,2010;Krishnaetal.,2010).

1SRMPhasnowentereditsthirdphase(2016–2020)withthefinancialsupportofInternationalFundforAgriculturalDevelopmentoftheUnitedNations,IrishAid,theInternationalLandCoalition(ILC),InternationalLivestockResearchInstitute(ILRI)andthegovernmentofTanzania.

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AsimilarinnovationistakingoffinSouthAfrica,MeatNaturallycombinesecologicalandeconomicempowerment,marketengagementandbenefitsforenvironmentalactionsandthetrainingtosupportthesetogetherwithfacilitatingconnectionsofallactorsinthemeatsector.BioculturalCommunityProtocols(BCPs)areatoolthatisformallyrecognizedbytheNagoyaProtocolonAccessandBenefit-SharingundertheConventiononBiologicalDiversity(CBD)http://www.community-protocols.org/.BCPs,whicharelegallybindingonallcountriesthataresignatoriestotheCBD,putonrecordtherolesofpastoralandothercommunitiesinmanagingbiologicaldiversityanditsrelatedcontributionstotheentireecosystem.Thiscanincludeforexamplecommunityanimalbreeds,traditionalknowledgeoftheanimalsandalifestylethatmaintainstheenvironment.BCPsthereforerepresentanewapproachtosupportingpastoralists’rightsandattimeschallengecounter-productiveperceptionsandpolicies.BCPshavebeendevelopedbyatleasttenpastoralistcommunitiesacrossIndia,PakistanandKenya;othersareunderdevelopmentinIran,LatinAmerica,andfortheFulanipastoralistsinWestAfrica(Köhler-Rollefson,2016;Köhler-Rollefsonetal.,2012).InnovationtoreducetheriskofassetlossOneoftheimpactsofclimatechangealreadyaffectingthelivesofpastoralistsinaridandsemi-aridareasistheincreasingfrequencywithwhichdroughtoccurs.Droughtsareamajorthreattopastoralists’flocksandherdsandcanleadtolarge-scalelossesasanimalsdieduetolackofgrazingandwater.Losinganimalswhicharetheonlyassetformanysuchcommunitiesalmostguaranteesadescentintopovertyandmayprecipitatedrought-relatedemergenciessuchaswitnessedintheHornofAfrica(IFRC,2011).Index-basedlivestockinsurance(IBLI)offersaninnovativesolutiontothisproblem.Inreturnforasmallannualpremium,pastoralistscaninsuretheiranimalsagainsttheriskofdrought.IBLIusessatelliteimagerytomeasuretheimpactofdroughtonrangelandvegetation:onceathresholdisreached,pastoralistsareautomaticallycompensatedwithcashthattheycanusetobuyfoodorfeed,waterandmedicinetohelpkeeptheiranimalsalive.Suchinsurancepaymentsaretriggeredearlierthantraditionalaid-basedresponses.Initialshort-termandcausalstudieshavedemonstratedthatIBLIadoptionincreasesproductivelivestockinvestmentsandhouseholdincome,reducesdistressanimalsales,improvesresilienceandfoodsecurity(Chantaratetal.,2017;CisséandBarrett,2018;JanzenandCarter,2013;Jensenetal.,2017;Matsudaetal.,2019.Sofararound18,000pastoralistsinKenyahavetakenoutIBLIpolicies,whicharesoldbylocalinsurancecompaniesandpartiallysubsidizedbythegovernmentbutthatisonlyasmallfractionofthemillionsofKenyanswhodependonlivestockfortheirlivelihoods.Efforts,suchastheuseoftrustedlocalradiostations,arethereforeunderwaytoincreaseawarenessoftheIBLIproductandovercomehinderancestouptake(ThompsonReutersFoundation,2019).Withincreasingclimatechangeandvariability,moreexplorationofinsurancesolutionsisrequired,evidencedforexamplebyrecentengagementofministers,publicandprivatesectornationalandregionalagenciestoaddressthischallengeintheHornofAfrica(see:http://livestockinsurance-igad-conference.org/index.php).Labour-intensivesystemsOurexamplesofinnovationsimpactingonsustainablelivelihoodsandeconomicgrowthforlabour-intensivesystemsdescribenewITapplicationsattractivetoyouth,atoolthatenablesbetterassessmentandtargetingofsolutionstoempowerwomen,anapproachthatenablesprioritizedinvestmentstosupportsectortransitionandcontributiontonationaleconomiesandwaysofengagingactorstopromotesustainabletransformationoflivestockvaluechains.InnovationtostrengthenITapplicationsAllaroundtheworlditisprovingtobeincreasinglydifficulttoattractyoungpeopletofollowfarmingandrelatedactivitiesasattractivecareeroptions.FarmersinbothLMICsandHICshaveanaverageageofabout60,eventhoughthepopulationoftheformerispredominantlyunder24years

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old(FAO,2014).Thesectoriswidelyregardedbyyoungpeopletobepoorlypaidandassociatedwithphysicallyhard,dirtyandmonotonouswork.Tomakethesectormorefinanciallyattractiveandsomehowcompensatethisnegativeimpression,effortsarebeingmadetopromotefarmingasarewarding,interestingandimportantcareerchoice.Onewayofdoingthisistotapintoyoungpeople’spassionfortechnologyasanapproachtomakingfarmingmoreefficientandprofitable.AnexampleofthisinthelivestocksectoristheuseofdigitalplatformstofacilitateherdperformancerecordingandfarmereducationinKenyaundertheauspicesoftheAfricanDairyGeneticGains(ADGG)project.ThisentailsestablishingNationalDairyPerformanceRecordingCenters(DPRCs)forherdandcowdatacollection,synthesisandgeneticevaluationlinkedtotimelyfarmer-feedbacktoenabledairyfarmerstomakethenecessaryadjustmentstoincreaseproductivityandprofitability.Sofar,morethan50,000farmersinEthiopiaandKenyaarebenefittingfromover6milliondigitaleducationmessagesviamobilephonesandbasedonperformancerecordingoftheirindividualcowsandherds.Thisisenablingthemtomakebetterinformeddecisions.Ultimately,thegoalistoclosethemilkyieldgapbetweenwhatiscurrentlybeingachievedbythemajorityofsmall-scaledairyfarmers,whatasmallminorityoffarmersachieveandtheyieldpotentialoftheanimals(Okeyoetal.,2017).ThisworkpartnerswithabroaderinnovationinKenya,iCowwhichprovidesinformationonproductionandconnectsfarmerstokeyplayersintheiragriculturalecosystem.InnovationthatenablesbetterassessmentandtargetingofsolutionstoempowerwomenEmpowermentofwomeninthelivestocksectorisfundamentaltoachievinggenderequalityaswellasessentialforincreasedproductivityandenhancedhouseholdhealthandnutrition.Livestockcanalsocontributetoempoweringwomen.Manydifferentstrategiesarebeingimplementedtoempowerwomenwithregardtolivestock,butitisdifficulttoassesstheirrelativeimpactorselectthebestoptionstoscaleup,withoutasuitablemeanstomeasurewomen’sempowerment.TheWomensEmpowermentinLivestock(WELI;Galièetal.,2019)isanewlydevelopedtooltoaddressthisissue.WELIfacilitatesmeaningfulassessmentsoftheeffectivenessofprojectinterventionstoenhanceempowermentofwomenasrelatedtolivestock.TheWELIincludessixdimensionsofempowerment:decisionsaboutagriculturalproduction;decisionsrelatedtonutrition;accesstoandcontroloverresources;controlanduseofincome;accesstoandcontrolofopportunities;andworkloadandcontroloverowntime.Italsomovesbeyondthedefaultapproachofusingtheheadofhouseholdasthegenderproxy.Innovationtoenablepolicymakersandprivatesectortoprioritiseinvestmentsandbalancetrade-offstoincreasesustainablelivestock’scontributiontonationaleconomiesAsstatedabove,thefirstdifficultyfacedbythelivestocksectorbothgloballyandnationallyistherecognitionthatthesectoroffersgoodopportunitiestosimultaneouslycontributetoeconomicgrowthandimprovelivelihoods.Oncethishurdleispassed,nationalstakeholdersfaceanotherchallenge:howtoprioritiseinvestmentsinthelivestocksector.OneinnovationappliedinthelastfiveyearsistheLivestockMasterPlans(LMPs),thatoffersaroadmaponthetypeandlevelofinvestmentsneededtoreachanagreedleveloflivestockimpactindicators.Workingwithvariousstakeholdersandactors,frombothpublicandprivatesectorspheres,theprocessstartsbyidentifyingthelong-termobjectivesofthelivestocksector,suchasincomegrowth,foodandnutritionsecurity,genderandsocialequityaswasrecentlythecaseofthestateofBiharIndia(Shapiroetal.,2018).The15-yearplansetsouttheinvestmentsthatwouldberequiredtoachievetheseobjectives,aswellasa5-year,moreprecise,investmentplan.Usingthisapproach,LMPsarenowavailableforEthiopia(Shapiroetal.,2015),Tanzania,RwandaandtheStateofBiharinIndiaandprocessesareunderwayforseveralothercountriesinAfricaandAsia.Whileitistooearlytoassesstheoutcomesoftheseplans,qualitativeevidencefromEthiopiawheretheprocesswasfollowedfirstindicatethatithaspositivelyinfluencedprivatesector(inthepoultryindustry)andpublicinvestment(WorldBank).TheLMPprocessestogetherwiththeLivestockSectorInvestmentPolicyToolkit(LSIPT)whichistheprimaryanalysismodeltogetherwithassociatedmodelsarebeing

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furtherdevelopedandimplementedbyaconsortiumofpartnersincludingCIRAD,ILRI,FAOandtheWorldBank.InnovationtostrengthenengagementofallvaluechainactorsInmanyLMICsandforvariousproducts,thecoordinationamonglivestockactorshasbeenweak,duetothelongdistancesbetweenproducersandendusers,alongwiththegeographicdispersionofproducers.Duetolackof,orpoor,marketpull,therearelimitedincentivesforproducerstoinvestmoreinlivestockproduction,meaningtheystayatalowinput-lowoutputlevel,eventhoughlivestockproductsarehighlyvaluedandinincreasingdemand.Duetothelowlevelofproductivity,providersofinputsandservices(e.g.feed,animalhealthandbreedingservices)donothavemarketsfortheirproducts,exacerbatingthelowlevelofproductionandproductivity.Thisinter-dependencyamongactorsalsomeansthatsolutionsmustbefoundthroughmulti-stakeholderengagementanddiscussions(alsocalledinnovationplatforms).SuchengagementmechanismshavebeenoperationalfordairyinTanzaniaandKenyaandthepigsectorinUganda.Researchhasshownthatmultistake-holderplatformsworkbestina‘nested’system,wherebyresultsofdiscussionsatlowerlevels,e.g.atdistrictlevel,arefedintonationalleveldiscussionswherepolicychangesandwideractionscanbeinfluenced(Cadilhonetal.,2016;Kileluetal.,2017).Whilesuchplatformsfordairyhaveshownimprovementsinhouseholdincomebecauseofbetterlinkagestoprocessors,therearestillopportunitiestoimprovethefarmlevelproductivity(Raoetal.,2016).InKenya,Uganda,TanzaniaandRwandaaprogramledbyHeiferInternationalbasedondairyhubs(EastAfricaDairyDevelopment),providedtrainingandstrengtheningofbusinessacumen.Theinitiativetrained179,000farmingfamilies,established37milkcollectionhubsandformed68farmerbusinessassociationsoveritsfirstfive-yearperiod.Althoughthemodelmaynothavebeenassuccessfulasinitiallyanticipated,thehubsarewellestablishedandfarmersareusingthemtoaccessinputsandselltheirmilk(Mutindietal.,2015;Omondietal.,2017).Capital-intensivesystemsInnovationsincapital-intensivesystemsincludeexamplesthatrespondtoconsumerconcerns,identifynewnicheproductopportunitiesandmitigateenvironmentalhazards.WealsohighlightarecentEUinitiativeonsustainablelivestock.InnovationsrespondingtoconsumerconcernsoverwelfareandAMRManylivestockenterprisesarerespondingtochangingconsumerpreferencessuchaswelfaresensibilities.However,therapidadoptionoftheseresponsessuggeststhatanypremiumsassociatedwiththemwilldissipaterapidlyandintheirsteadpenaltiesfornon-compliancewillemerge.Reducingtheadministrationofsub-therapeuticantibiotics,hormonesand/orsteroidsleadstolowergrowthrateswhicharebeingaddressedthroughinnovationinfeedandtheadministrationofnaturalfeedadditives.IntheUSA,forexample,companies,suchasPurinaandADM,arerespondingwithproductsthatsupportgutintegrityandimprovefeedintakeinswineandbeefanimals(Burgoon,n.d.;ADMAnimalNutrition,2018).Similarly,TysonFoods,PerdueFarms,FosterFarmsandsomeofthemajorpoultryproducershaveeliminatedtheuseofsub-therapeuticantibioticsfromtheirproductionatatimewhenpoultryfarmersindevelopingcountriesarediscoveringthebenefitsofthesetechnologies.Themajorfeedcompaniesareexploringcustomblendsthatfocusondecreaseddependencyonmedicatedfeed,improveddigestibilityandguthealth.Atthesametimethereisashiftfromtreatmentofdiseaseswhentheyoccur,forexamplewithantibiotics,topreventingdiseasethroughenhancedbiosecurityandrelianceonnewgenerationvaccines.Inhighincomecountries(HICs),emergingopportunitiesincludeproductsproducedwithouttheuseofsub-therapeuticantibiotics,hormonesandsteroids:majorintegratorsarevoluntarilyadoptingthesepoliciesandusingthemasadifferentiatorinthemarketplace(TysonFoods,2017)andameansofsecuringpremiumprices.Earlyadoptersofsuchinnovationsaremorelikelytobenefitfromthesepremiumsbecauseoncetheseapproachesbecomemainstreamed,thepremiumswill

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disappear(Carlson,2016).InLMICs,manyenterprisesarealreadyclosetomeetingsuchstandards,largelybecausetheycannotaffordoraccesstheinputs,butproductionlevels,marketorganization,sanitaryregulation(e.g.poultryinGhana(Amanor-Boaduetal.,2016))andothertradebarriershampertheirparticipationinpotentiallylucrativeopportunities,includingexporttohighvaluemarkets.InnovationsinnicheproductsandmarketsProducersarealsoexploringnicheproductionandmarketing.Forexample,withincreasingconsumerspreferenceformeatproductswithidentitypreservationandtraceability,cattleandswineproducershaveadopted(bychoiceinsomecountries,legislationinothers)eartagsandchiptechnologytoprovideconsumerswiththetraceabilitytheydemand.However,asitiswitheveryprofitablenicheactivity,itgoesmainstream.IntheUSorganizationssuchasWalmartandIBMhavepartneredtobringtherapidlydevelopingareaofblockchaintechnologiestomanagefoodsafety(asanadd-ontotheFoodSafetyModernizationActrequirements)forWalmart’supstreamsuppliersprovidetheseconsumerswithwhattheydesire(Sanderetal.,2018;Yiannas,2018).Othercompaniesareboundtojoin,andtheincreasingparticipationwillbringdowncostandmakethesetechnologiesmoremainstream.Theearlyadoptersofthesetechnologiesperceivethemasprovidingthemwithfirst-movers’advantages.Uruguayisconsideredamongtheleadersintraceabilityforitsmeatsector,andasaresultearnshigherpremiumsthanothermajorexportersandreachesover100markets.Salesin2012reachedUSD1.4billion(IICA,2019).InnovationstomitigateenvironmentalhazardsInnovationstotransformmanuremanagementintoanopportunityarebecomingareality.IntheUSarecentstudyofafeeder-to-finishalmost9,000headswineoperationwithinstalledanaerobicdigestersthatgeneratebiogasforgenerationofelectricitythroughamicroturbineshowedeconomicpromise(Adairetal.,2016).Asthesearchforrenewableenergybecomesintenseandthecostofinstallingmicroturbinepowergeneratorsfall,concentratedanimalfeedingoperationswillnotonlyhaveanopportunitytosolvetheirmanureproblembuttosimultaneouslytransformitintovaluethatcontributestoareductioningreenhousegases.AroadmapforasustainableEUlivestocksectorAnexampleofacomprehensiveinitiativeforsustainablelivestockintheEUresultedfromtheEU40,anetworkofyoungMembersoftheEuropeanParliamentbringingtogetherlivestockindustrystakeholderstodeveloparoadmapforasustainableEUlivestocksector(TheAnimalTaskForce,2017b).Theaimwastohelptheindustrytobecomemoreenvironmentallysound,sociallyresponsibleandeconomicallyviable.Theroadmapfocusesoninnovation,technologyandscience-basedsolutions.TheoverallgoalistoenabletheconditionstowardsastrongsustainableEUlivestocksector,andtomaximizeitscontributiontotheachievementoftheSustainableDevelopmentGoals.

Synergies and trade-offs Sustainableimprovementsthatbenefitlivelihoodsandeconomicgrowthcanhavemanyco-benefitswithotherdomains,aswellaspresentingtrade-offsthatthesectormustbecognizantofandaddress.Herewehighlightsomeofthekeyintersectionsinthisregard,manyofwhichrelatetochallengesthatmayariseifthesectorgrowthisnotaccompaniedbysuitableenablingenvironmentstomanageemerginghazardsandsupportthegrowingopportunities.Withfoodandnutritionsecurity

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Livelihoodandeconomicdimensionsofsustainabilityarecloselyintertwinedwithfoodandnutritionalsecurity,notleastbecauseoftherelationshipbetweenincomeanddecisionsonfoodandnutritionthateveryhouseholdmakes.Theessentialrolesofwomeninlivestockraising,commodityprocessingandtradingalongwiththeirrolesinhouseholdfoodchoicesmeanthatinnovationstoimproveengagementandempowermentofwomenarecanbesupportedtohaveco-benefitswithoverallhealthandnutritionoutcomes.Similarly,incomefromjobsinthelivestocksectororfromsellinglivestockproductscanbeusedtobuynutritiousfoods.Alongside,itisessentialtomitigateanyreductionintheattentionwomencangivetohouseholdnutritionbecauseofincreasedproductionpressure(Njukietal.,2015).Approachesthatprovidenutritionalguidanceforlivestock-derivedfoods(Kimani,2019),helpingpromotebalanceddietsthatincludemilk,meatandeggsareimportant–butlookverydifferent,worldwide(WHO,2018;Willettetal.,2019).Perhapsthisisoneoftheareaswherethecontrastsandtrade-offsacrossagloballivestocksectoraremostoftenoverlooked–fromthoseforwhomareductioninconsumptionofanimal-sourcefoodswouldbenefittheirhealthandtheplanet,tothoseforwhomanincreaseinconsumptionofanimal-sourcefoodswouldprovidesignificantnutritionalbenefitaswellasimmenselivelihoodpay-offs.Importantly,inextensiveandlabour-intensivesystemsinLMICs,therearearangeofissuestotackletoensurethatthesenutrient-richfoodsareaccessible,availableandaffordableforallthepopulation.Food-bornediseases,includingthosetransmittedbyanimal-sourcefoods,areamajorworldwidehumanhealthissue(Jaffeeetal.,2019).Whenthelivestocksectorgrowsinlabour-intensivesystemsthereisapotentialfornewriskstoemerge,orexistingonestobeexacerbatedifappropriateriskmanagementapproachesarenotinplace.Womeninfarmhouseholds,whoareoftencloselyassociatedwithprocessinganimalproducts,maybemoreexposedtofoodbornediseasesandatthesametimehaveakeyroleinpreventingsuch.WithanimalhealthandwelfareInLMICs,respondingtogrowthopportunities,ifnotwellmanagedwithgoodhealth,hygieneandhusbandryguidelines,couldresultinincreasedrisksfromzoonoses.Thismayespeciallybethecaseforwomenwhoareoftencloselyassociatedwithraisingandcaringforanimals,ensuringtheirwelfareinalldimensions–whichatthesametimeplacesincreasedlabourdemandsonwomen.Thisofcourse,equallypresentsopportunitiestosupportatransitionthatmitigatesthesechallenges,includingforexampleopportunitiesforwomenasserviceproviderofanimalhealth.Therearenewopportunitiesintheanimalhealthsectorforapplicationsofthelatesttechnologies,providingexcitingopportunitiesforyoungpeople–useofblockchainfortraceabilityormobileappstomonitor,gatherandadviseondiseasesforexample.Suchinnovationsmayalsocomealongwithnewchallenges,includingforexamplethelegalframeworksthatidentifywhoalongthe‘chain’bearstheliability.Animalwelfareisparamountinallproductionsystemsastransitionoccurstomoresustainableenterprisesthatalsomeetdemand.Excellentwelfareispartofatripleorquadruplewinbecauseitreinforcesinvestmentsinproductivityandthusincomes.Deliberateactionsarerequiredtoensurethatallsystemstransitionanimalwelfareissuesarenotoverlookedandareintegraltoeverylivestockproductionenterprise.MainlyinHICs,issuesofanimalwelfareareraisedtomakethecaseforreducinglivestockconsumptionandproduction.Welfareissuesincreasinglyinfluenceconsumerchoicesandthuspotentiallyaggregatedemandforlivestock-derivedfoodsandtherelatedlivelihoodopportunities.Thisissueisagoodexampleofmessagesaboutveryrealissuesthatpredominateincapital-intensive

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systemspotentiallyimpactingnegativelyonextensiveandlabour-intensivesystemsdevelopmentandbenefits,wheretheissueisverydifferent.InHICs,therearelivestockkeepersandfarmerswhoarespecificallyaddressingthisissueanddevelopingmoreanimal-friendlymodels,suchasfree-rangefarmingenterprises.Itisimportanttonotethatthesedevelopmentsaregenerallyinresponsetomarketopportunitiesandwillcontinueonlytothepointwherethemarginalbenefitfromtheirimplementationisnotlowerthanthemarginalcost.Whetherzoonosesorfood-bornediseases,mitigatinghazardswillalwaysneedtobeconsideredinrelationtopotentialeconomictrade-offswhichmaylookquitedifferentatindividualhouseholdlevelthantheydoatnationallevelsandbeyond.Informationandincentivesalongwithregulationswillallneedtobeharmonizedtoensurepositiveoutcomesinalldimensions.Similarly,thetopicalissueofAMRpresentspotentialsynergiesandtrade-offswithincomeandlivelihoodaspects.Theseincludeforexample,balancedrationaluseofanti-microbialsloweringthecostofproductionandthushavingapositiveincomeresult.WithclimateandnaturalresourceuseAsdescribedabove,forextensiveandlabour-intensivesystems,especiallyinLMICs,sustainableimprovementstolivelihoodsandeconomicgrowthmeansgraspingopportunitiestorespondtogrowingmarketdemandformeat,milkandeggs.Indoingso,therearepotentialtrade-offswiththenaturalresourcebasethatneedtobemanaged.Oneofthekeydimensionsofparticipationingrowingmarketsisimprovedproductionefficiency–meaningreducedGHGemissionperunitofoutput–areductioninemissionintensity,whichisoftenconsidereda‘doubleortriplewin’–addressingmarketopportunities,reducingGHGemissionsandsupportingbetterlivelihoods.Whetherthishasanimpactontotalemissionswillbeinfluencedbyotherfactors,includingincentivesforkeepingfewerbutmoreefficientandproductiveanimals.Reducinganimalnumbersisoftencounter-intuitivefromtheperspectiveofmillionswhocurrentlyrelyonlivestockformultiplelivelihoodfunctions.Thismeansthatbeyondincentives,appropriatesocialstructuresthataddressthosefunctionsmustbeinplace.Herethelivestocksectorintersectswithmultipleothers,frombanking,toinsurance,tohealthandeducationandsoon.Capital-intensivesystemsareamongthemostefficientintermsofemissionintensity,butbecauseofthenumbersandvolumeofproduction,aswellasitsconcentrationandseparationfromthelandbase,oftenrecordthehighesttotalemissionsandotherenvironmentalharms.Theanti-livestocklobbyisoftenfueledbysuchstatistics;ifitsucceedsandleadstoreducedinvestmentinthelivestocksectorthiswillimpactlivelihoodsworldwide.Itsnoteworthytoothatwithinthelivestocksector,wemustbecarefulnotto‘pointthefinger’betweenLMICsandHICsastowhoiscausingthemostenvironmentalharm.Acrossallsystemstherearerealopportunitiesforimprovedresourceuseefficiencyandbettergrasslandandmanuremanagementthatmakenotonlyforenvironmentalsustainability,butensurethesectorcontinuestosupportmillionsoflivelihoods.Acrosstheworld,alllivestocksystemsareimpactedbyclimatechange,nonemoresothantheextensivesystemsdespitetheirincredibleabilitytocopewithshocks.Approachessuchaslivestockinsurance(describedabove)isoneofseveralapproachesthatcanhelptomitigatethelivelihooddevastationthatoftenresultsfromclimaticorothershocks.Extensivesystemsarealsoimportantfortheirrolesinsupportingecosystemservicessuchasbiodiversityandcarbonsequestration,andsuchaimsneedtobebalancedwiththeirlivelihoodandgenderimplicationsinparticular.Schemesthatsupportpaymentsforecosystemservices(andattimesrelatedco-benefits)maybeexploredwithregardtosupportingbothincomestreamsandnaturalresourcemanagement.Accesstoandmanagementofnaturalresources,particularlylandisveryvariedandinmanyLMICswomenandyoungpeopleinparticulararedisadvantaged.Insomecases,womencannotownland,

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inotherstheyaretheprimelandmanagers–oftenthroughtheirlivestockenterprises.Supportingwomeningoodnaturalresourcestewardshipanddecision-makingforlivestockmanagementcouldhavegoodenvironmentalandlivelihoodpay-offs.Implications for policy Ourdiscourseabovehashighlightedmultipleopportunitiesacrossseveraldimensionsoflivelihoodsandeconomicgrowth,illustratingtheessentialrolesoflivestockinrelationtoincomes,resilience,economicgrowthandequity.Wehavehighlightedthediverseanduniquerolesthatthesectorcanplaythatareintegraltoaddressingmultipledevelopmentambitions.Suchunparalleled,butoftenoverlookedpotentialrequiresdeliberateandtargetedpolicyactionstoensurethatlivestock’spresentandfuturecontributionstoSDGsarenotmissedandtherearenounintendedconsequences.Here,weframepolicyissuesinthecontextofkeymessages.Withtheexceptionofpoliciesthatimpactdirectlyonfinancial,businessandtradeoperations,themajorityofpolicyactionsthatcanimpactlivelihoodsandeconomicgrowtharenotdirect,‘commandandcontrol’topicssuchaslegalinstruments,sanctionsormandatorystandards.Such‘hardlaws’however,enactedinrelationtootherdomains(suchasfoodtaxes,environmentalregulationsorpublichealthsanctions)couldhavesignificantimplicationsforlivelihoodsandeconomicgrowth,thusstressingneedtobeintegratedintoabiggerwholethattakesaccountofallfourdomainsofsustainablelivestock(foodandnutritionsecurity,livelihoodsandeconomicgrowth,animalhealthandwelfareandclimateandnaturalresourceuse)andtheirinterdependencies.Apolicyenvironmentthatsupportssustainablelivelihoodsandeconomicgrowthincludessupportingthesortsofinnovationsdescribedabove(andmanymore)andtheiradaptationatscaletodiverselivestocksystems,commoditiesandlocations.Inmanycasesthisalsoincludesstrengtheningthecapabilitiesofmanyactorstoaccessanduseinnovations.Itisonewherepoliciestakeaccountofmultipletrade-offsandsynergies.Recognizeandsupportsustainablelivestock’scontributiontomultipledevelopmentambitions(andavoidunintendedconsequences)Opportunitiesforlivestocktocontributetolivelihoodandeconomicgrowthdimensionscanbeeasilyoverlooked.Aspectssuchasfoodproduction,environmentalimpacts,healthimplicationsandsoonmaybeeasiertobothmeasureandmonitor.Herewehighlightimplicationsrelatedtogrowth,resilienceandequitythattoalargeextentframethecontextforotherpolicydimensions.Growth:GrowlivelihoodsandeconomiesNewopportunitiesforstableincomestreamsinthelivestocksectorasproducersandothervaluechainactorscanbesupportedthroughactionsthatengenderinclusive,safe,sustainablevaluechains.Theyspantechnologies,businessandinfrastructureissues,manyofwhicharehighlightedbelow.Newincomestreamssuchaspaymentsforecosystemservices(PES),nicheproductsandproductdifferentiationallneedtoberecognizedandsupportedforlivestockfarmersacrosstheworld.AmongthebestknownexamplesisthesilvopastoralisminitiativeinColombia:https://www.worldbank.org/en/news/feature/2019/07/08/trees-and-cows-offer-path-to-recovery-in-colombiaSupportandguidenewtradeopportunitiesforbothcommoditiesandservicesandbecognizantoftrade-offsthatmayhavesignificantlivelihoodimplications.Resilience:Protectassets

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Protectinglivestockassetsincludessupportinglivestockvaccinationcampaigns(exemplifiedbytheOIEPPRvaccinebankforAfricatargetingsixcountriesinwestandcentralAfricathroughtheRegionalSahelPastoralismSupportProject(PRAPS))andinsuringagainstrisksacrossthesector.Insuranceagainstriskinthelivestocksectorvariesacrossproductionsystemsandreflectsthedifferentriskprofilesencountered.Insurancebasedonrisksuchasdroughtorforageindex(suchastheKenyaLivestockInsuranceProgramme(Kasyoka,2019b)),oninsuringanimalsthemselves(asinIndiahttps://general.futuregenerali.in/rural-insurance/cattle-and-livestock-insurance),governmentsupportedprogramsasinBrazilhttps://thebrazilbusiness.com/article/rural-insurance-in-brazilandtheUSDArecommendationsthecovermainlymarketandfinancialriskshttps://legacy.rma.usda.gov/livestock/.Bothpublicandprivatesectorhaveessentialrolesinprovidinginsurancetostrengthentheresilienceprofilesofthemanywhoselivelihoodsdependonlivestock.Suchrolesareasvariedastheinsuranceproductsthemselvesandmayrangefrompublicsectorsupportformobilephoneinfrastructurethatallowssalesandpayoutstofunctioninremoteareas,throughtonationalregulationsthatensureafairmarketprice.Privatesectorinsurersmayneedtotailortheirproductsfortheclientele,suchastheTakafulinsuranceproductineastAfricawhichisSharia-compliant.Otherexamplesincludeprovidingincentivesforresilience-buildingenvironmentalstewardship(suchaspaymentsforecosystemservices,andtheirco-benefits)accompaniedbysupportforwiderinfrastructuresuchasfinancialandmobileserviceswhichmaybeaprerequisiteforsuchincentivestofunctioneffectively.Equity:BroadenthebenefitsBedeliberateaboutapproachesthatarecognizantoftheneedtoinvestinwomenandyouthtoenabletheireffectiveparticipationinandcontributionstothelivestocksector.Thesemayspanpoliciesthatensureland(tenureandtitles),financing(credit,insurance)andinformationaccessareequitableformen,women,youngandold,largeandsmallenterprises.Toaccomplishthesemultipledevelopmentdimensions,fourareasforactionarehighlightedbelow.HarnessdiversityandgrowthforasustainablelivestocksectorPrioritize,targeted,smartinvestment:Formanysystemswherechange,andthusopportunityarearisingrapidly,beingabletotargetbothpublicandprivateinvestmentsinthesectortocontributetosubstantialeconomicreturns,whilstminimizinganynegativetrade-offswillbeimportant.SystematicprioritizationofinvestmentsusingtoolssuchasLivestockMasterPlanscanfacilitatesuchandensurethatthelivestocksectorfulfilsitspotentialtocontribute(orcontinueto)tonationaleconomies.Recognizethediversityofthelivestocksectorsothatthereareno‘blanketpolicies’;andbecognizantoflong-andshort-termsynergiesandtrade-offsamongthevariousdimensions,asconsideredabove.Supportatransitionfromlivestockdependentlivelihoods.Whetherthesearejobsinproduction,processing,trading(globallyorinatraditionalmarket);whetherincomecomesdirectlyfromraisingorsellinganimalsorbeingpaidtodoso;whetheranimalsareasourceofcashorofmultiplebenefits,livelihoodswillchange.Smartpoliciesneedtosupportchangeinthelivestocksector,withoutcausingalossoflivelihood.AllovertheWorld,thatincludeshelpingpeopletransitiontootherenterprisesorsectors,itincludesprovidingarangeofservices,marketsupportandinformationthathelpsmall-scalesubsistencefarmingtobecomeeconomicallyviable,oftenmediumandlargerscaleenterprises.Examplesincludesupportingfarmers’collectiveaction,establishing

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agrovetshops,supportingprivatesectorsalesofinputssuchasvaccines,providingnecessarybutstraightforwardregistrationfornewfoddervarieties,andstandardstoensuresafefeedsupplies.Considertrade-offsandsynergies.Policymakerswillneedtoconsiderlivelihooddimensionspriortoinvestingin,orinstitutinglegislationthatsupportsorfavoursparticularproductionsystemsortraderegulations.Forexample,inmanyLMICs,favouringindustrialscalelivestockproduction,orimportationoflivestockproductscouldimpactlivelihoodsofmanymillions.Instigatingcertainexportrequirementsortaxesonfeedoranimalhealthproductswillimpactsmallandlargeenterprisesworldwide.Supportsustainablelivestockenterprisesthroughfinancing,businessandtradeinnovationsIn2017,theWorldBank’sEnablingtheBusinessofAgriculturehttps://eba.worldbank.org/includedforfirsttimelivestockrelatedparameters,particularlythoserelatedtoregulationsaroundanimalhealthproducts.Suchstudies,especiallyastheyexpandtoaddressawiderrangeofissuescanhelpinformnationallevelfinanceandbuisinessapproachestosupportasustainablelivestocksector.De-risknewinvestment.InmanyLMICs,investinginlivestockorrelatedservicesisperceivedasriskyfromabusinessperspective.Theissueofinsuranceismentionedabove,otherinputexamplesmaybenewfodderseedenterprises,salesofanimalhealthproductsorITbasedmarketinformationsolutions.Smallandmediumscaleenterprisestart-upsareoftenfragileventuresespeciallyatthebeginning.Innovativefinancingthathelpstode-risktheinitialinvestmentmayhelpsuchenterprisestogetoffthegroundandbepartoftransformingthelivestocksector.Multilateralloanstogovernmentsmaybesuccessfullydeployedinthiscontext(eghttps://www.worldbank.org/en/topic/agriculture/brief/moving-towards-sustainability-the-livestock-sector-and-the-world-bank).Tailorfinancingoptions.Nationalpoliciesthatdon’tdisadvantagewomenonlandinheritanceorrequirementsforaccessingcredit,goodsandservicesmayincludefinanceproductsthatdonotnecessitatecollateralintheformoftitledeeds,orallowingrepaymentsbasedonproductioncycles.Addresswiderinfrastructureissues–power,water,roads,mobilenetworksthatimpactonthelivestocksectoranditsrolesinlivelihoods.Inadditiontopublicinvestment,governmentscouldattractprivatesectorinvestment,throughforexampleprovidingsupportthatincentivizesmobileoperatorstoreachareasthatarescarcelypopulated.Investandusethelatesttechnologiesatafasterpace‘innovationexpedited’Investment in science and technology and ensuring such research is connected to the needs ofactors across the sector needs to continue, and to develop new linkages that bring the mostadvancedtechnologiestobearonallsystemsacrosstheworld.Atpresent,thereisahugedisparitybetween where demand is growing fastest and where the most advanced livestock sectortechnologiesareavailedanddeployed.Supportforinnovativeresearchandtechnologicalsolutionsthat can be applied not only in capital-intensive systems in LMICs but globally – covering newinnovationsin‘traditional’livestockscience–feeds,health,geneticsthroughtonewapplicationsofIT, traceability, etc. In some cases, smart application of the latest IT and other disruptivetechnologiescouldeven leadtosomeof these labour-intensivesystems ‘leap-frogging’ tobecomethenew,sustainablelivestocksystemsofthefuture.Policiesthatsupportsustainableintensification–movingtowardsmoreefficient,lessenvironmentallyharmfulproductionwithgoodhealthoutcomeswhilesupportingmanylivelihoodsmustbeencouraged.Inmanyinstances,suchpolicieswillsupportlargeandsmall-scaleprivatesectorinvestmentthroughincentivesandrisk-basedsolutions,financingandcreditmechanismsasmentionedabove.Connectingandadaptingthelatestscienceandtechnologysolutionsgloballywillunderpinsuchsolutions.

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Undertakeawarenessandengagementactionstoensurelivestockrolesinlivelihoodsandeconomicgrowthareincludedinlivestock-specificandwiderdevelopmentpolicies/agendasFortheessentialrolesoflivestockinlivelihoodsandeconomicgrowthnottobejeopardized,dialogue,educationandengagementwithinandoutsideofthesectorneedstobestrengthened.Local,national,regionalandglobalpolicyenvironmentsthatfacilitatetheengagementofallactors,includingstakeholderplatformsasdescribedaboveandtheGlobalAgendaforSustainableLivestock,canservetoenhanceglobalengagementandmessagingabouttheactionsthesectorisundertakingtosupportsustainabledevelopment.Re-connecting the livestock sector with consumers is important. Encouraging consumers torecognize and support niche products can be also be enhanced by labelling and education. Theagendamay also consider the fast-developingworld of alternative protein sources and how suchinitiativesmay complement animal-basedproteins across theworld; thiswill require a lot of newanalysesandengagement.Supportingforaforconsumers,producersandinputsupplierstoengagehelpsfindjointsolutionstosectorchallenges.Suchinitiativescouldincludeforexample,betterlinkingofnutritiousfoodandbalanceddietsto‘well-produced’animalproductsandtheroleofmilk,meatandeggsinbalancednutrition,especiallyusingafoodsystemsapproach.Livestockinsurprisingplaces:atagloballevel,incorporatingevidenceaboutasustainablelivestocksectorindiscoursesthatfocusonwiderdevelopmentwillstrengthentherecognitionandthusinvestmentinsolutionsincludinglivestock.

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