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Animal contribution to

the economy of farmer

Indias livestock sector is one of the largest in the world.
Sl.N Species Population % share in worlds
o. livestock

1. Cattle 190.9 million 12.5% (2nd)

2. Buffalo 108.7 million 56.7% (1st)
3. Sheep 65 million 2.4%
4. Goat 135.1 million
5. Pig 10.29 million 1.5%
6. Poultry 729.2 million 3.1%
Total livestock 512.05 million -------
Transformation in the utility of
Influenced by changes in agriculture and food consumption
The non-food functions of livestock are becoming weaker
Importance of livestock as source of draught power has
Use of dung manure is increasingly being replaced by chemical

On the other hand, their importance as a source of quality

food has increased.
Distribution of livestock
Scope for growth in livestock
Sustained income and economic growth
Fast-growing urban population
Burgeoning middle income class
Changing lifestyles
Increasing proportion of women in workforce
Improvements in transportation and storage
practices and rise
Increase in consumption of animal food products
Economic contribution of livestock
Livestock has been an important source of livelihood for small
Livestock contributed about 16% to small farmers income,
more so in states like
Gujarat :24.4%
Haryana 24.2%
Punjab 20.2% and
Bihar 18.7%.
Livestock market
Access to markets is critical to speed up commercialization of
livestock production.

Lack of access to markets may act as a disincentive to farmers

to adopt improved technologies and quality inputs.

Except for poultry products and to some extent for milk,

markets for livestock and livestock products are
underdeveloped, irregular, uncertain and lack transparency.

Further these are often dominated by informal market

intermediaries who exploit the producers
In India,70-80% of the total livestock produce is contributed by
landless, marginal farmers and small land holders, who are under
Livestock are important assets for rural people and play a ctitical
role in building their livelihood.

Livestock rearing can provide a pathway out of poverty through

improvements to household children, cash income, asset building
and employment to womenfolk.

More than 73% rural folk keep animals, which hold secutity and
income from livestock accounts for 30-40% of tatal farm income.
Budget spending on livestock
Livestock sector did not receive the policy and financial
attention it deserved.
The sector received only about 12% of the total public
expenditure on agriculture and allied sectors
It is disproportionately lesser than its contribution to
agricultural GDP.
The sector too has been neglected by the financial institutions.
The share of livestock in the total agricultural credit has hardly
ever exceeded 4% in the total (short-term, medium-term and
Milk and its products and marketing
Milk is an important source of nutrition as well as earning from livestock
for rural people. There are two main ways of selling or marketing milk -
through co-operatives and informal way. Operation flood has had
significant impact on the Dairy Cooperative Network. As on March 2007 it:

includes 170 milk unions

operates in over 346 districts

covers around 1,22,534 village level societies

has around 12.96 million farmer-members of which 3.4 million are women
The other method of marketing or selling milk is the informal way. A large
number of villages around cities, town, and semi urban areas use
this method for marketing milk. The inherent problem with this method is
that the farmers do not get proper price of their product

Goat milk

Buffalo milk Cow milk

49% 47%
Production potential and

The growth in milk production decelerated from 4.4% during
1990s to 3.9% during 2000s.

There remains a huge gap between the potential and the

realized yields in Indian livestock.

Only 27-75% of the dairy animal potential yield is realized in

different regions of the country because of constraints related to
Goat marketing
Goat meat is the most heavily consumed meat in rural areas as
poultry development is still limited to urban areas.

There are two types of markets for goats: rural haats close to
villages and large markets close to city area.

Middlemen often bring goats from farmer households to rural and

urban markets. There are four types of middlemen involved in goat
chain: (a) collector/primary trader;

secondary trader; (c) commission agents (who bring buyers and

sellers together in large markets); and (d) big traders. In Bihar, 75%
of livestock owners sold their goats to traders/primary collectors
at their doorstep for cash at what they regarded to be a low price.
In Bihar, average animals sold per farmer is only
about two. There is scope to introduce semi
intensive scale of operations, up to 10 animals
per household. Also, if goats are reared for up to
18 months instead of usual practice of selling
goats at below 10 months, farmer returns can
be much higher, up to ` 10,000 per year from
goat rearing.

Beef and Veal 1.41

Buffalo meat 1.410
Mutton and lamb 0.228
Goat meat (Chevon) 0.466
Pig meat (pork) 0.409
Other meats 0.406
Total 4.400
Intake of meat 1.30 Kg/head/annum

Requirement 6.57 m. MT as against availability

of 4.4 m.MT at present

Similarly carcass weight of sheep and goats is

around 10kg each, as against 25Kg in the
developed countries which is also very low. This is
mainly because most of the animals are not
exclusively reared for meat purposes.
Case Study
We can take an example of Raman Lal, a villager who
had made up his mind to migrate to other areas, in
spite of having livestock, land and house. Because was
unable to manage a decent income for his sustenance.
However, after getting training on livestock mainly on
improved cow variety, from Bharatiya Agro Industries
Foundation , Pune, a national level NGO, he was able
to earn his livelihood and gave up the idea of
migration. Like this there are hundreds of examples
available with different NGOs and different Govt.
departments. But there is a need to move further
ahead in an integrative approach
Livestock is a source of subsidiary income for many families in India
especially the resource poor who maintain few heads of animals.

Cows and buffaloes if in milk will provide regular income to the

livestock farmers through sale of milk.

Animals like sheep and goat serve as sources of income during

emergencies to meet exigencies like marriages, treatment of sick
persons, children education, repair of houses etc.

The animals also serve as moving banks and assets which provide
economic security to the owners.
A large number of people in India being less
literate and unskilled depend upon agriculture for
their livelihoods.

But agriculture being seasonal in nature could

provide employment for a maximum of 180 days
in a year.

The land less and less land people depend upon

livestock for utilizing their labour during lean
agricultural season.
The livestock products such as milk, meat and
eggs are an important source of animal protein
to the members of the livestock owners.
Social security
The animals offer social security to the owners in terms of their status in
the society.

The families especially the landless which own animals are better placed
than those who do not.

Gifting of animals during marriages is a very common phenomenon in

different parts of the country.

Rearing of animals is a part of the Indian culture.

Animals are used for various socio religious functions. Cows for house
warming ceremonies; rams, bucks and chicken for sacrifice during festive
seasons; Bulls and Cows are worshipped during various religious
functions. Many owners develop attachment to their animals.
The bullocks are the back bone of Indian
agriculture. The farmers especially the marginal
and small depend upon bullocks for ploughing,
carting and transport of both inputs and outputs.

In rural areas dung is used for several purposes
which include fuel (dung cakes), fertilizer (farm yard
manure), and plastering material (poor mans

First livestock census was conducted in the year 1919
So far, 19 such censuses have been conducted
Last livestock census: 19th Livestock Census (2012)
Forthcoming: 20th livestock census (2017)
Funding agency: 100% funding from Department of Animal
Husbandry, Dairying and Fisheries (DAHD&F), Ministry of
Agriculture, GOI
Census conducting agency: State Department of Animal

Contribution to Gross Domestic Product (GDP):

25.6% of Agricultural GDP and 4.11% of National GDP is from
livestock sector (in 2012).
Pro-poor livestock
The extent to which the pro-poor potential of livestock can be
harnessed would depend on how technology, institutions,
policies and financial support address the constraints of the
The number-driven growth in livestock production may not
sustain in the long run due to its increasing stress on the
limited natural resources.
The future growth has to come from improvements in
technology and service delivery systems leading to accelerated
productivity, processing and marketing.
Livestock and poverty
The distribution patterns of income and employment show that
small farm households hold more opportunities in livestock
The growth in livestock sector is demand-driven, inclusive and
Incidence of rural poverty is less in states like Punjab,
Haryana, Jammu & Kashmir, Himachal Pradesh, Kerala,
Gujarat, and Rajasthan where livestock accounts for a sizeable
share of agricultural income as well as employment.
Empirical evidence from India as well as from many other
developing countries suggests that livestock development has
been an important route for the poor households to escape
Contribution of single hen in poverty alleviation

If a farmer keeps one Non-descript hen: in a year, he can

earn net income of Rs. 565.3 under scavenging system.
Hence, single hen is helping to alleviate 5.7% of poverty
in an individual
If a farmer keeping one Kadaknath Hen: in a year, he can
earn net income of Rs. 2240 under scavenging system
(Kadaknath: Egg and Black meat fetches higher market
value because of medicinal value).
Hence, single hen is helping to alleviate 18.59% of
poverty in an individual.
Livestock in general and cattle and buffalo in particular are
an important source of livelihood for rural people. Where
the available land is unevenly distributed, the fact that the
livestock resources are equitably distributed is a unique
feature of rural India. If these resources are managed
properly with special emphasis on value addition and
integrated market approach, it can bring change in rural

We must be careful about the PPP mode i.e. entry of

corporate, by ensuring the stake of the small dairy farmers.
Then the replication of AMUL in different rural areas may
be useful in future.
Thanking you