The economics of optimal health and productivity in smallholder livestock systems in developing countries

Livestock kept or produced in smallholder farming systems are an important component of the agricultural economy in the developing world. The role of livestock on smallholder farms varies widely providing draught power for cr op production or as a production activity for subsistence needs or market s ale under systems ranging from extensive pastoralist to intensive, peri-urb an feeder and dairy systems. A set of unique conditions and features charac terise smallholder systems, and these need to be appreciated when assessing the strategies that have evolved for managing animal health in smallholder systems, and evaluating opportunities for improving disease control strate gies. To provide, a framework for discussing animal health issues and analytical methodogies, a typology of smallholder livestock and crop/livestock systems is developed. The typology considers livestock systems both in terms of th e degree of intensification, as measured by market orientation and intensit y of factor use, and in terms of importance within the household economy, a s measured by contribution to household income. A number of characteristics are identified that distinguish smallholder systems from the commercialise d systems of developed countries, including the multiple functions livestoc k serve, the integrated nature of livestock activities, multiple objectives of producers and lower capacity to bear risk at the household level, as we ll as poor infrastructure, markets, and access to information at the commun ity level. Three representative smallholder livestock systems from Africa are describe d in detail, highlighting the relevant characteristics and the implications for analysing disease control strategies. Smallholder dairy systems in Ken ya demonstrate the role of individual producer decision-making for animal h ealth management in intensive, market-oriented systems, placing emphasis on farm-level risk and production management aspects of disease control. In e xtensive pastoralist systems where epidemic diseases are still important an d infrastructure is poor, disease control primarily involves managing commu nal natural resources, requiring a different analytical approach. Finally, in crop farming systems using draught cattle, the livestock activity is an integrated component of crop production and this must be reflected in the a pproach used to evaluate draught animal health management. Continued develo pment of analytical approaches and decision-support tools far disease contr ol strategies adapted to the special characteristics of these systems will be needed as smallholder systems continue to intensify in areas with good m arket access, and those in marginal areas face increasing pressures to opti mally manage the natural resource base.