The authors discuss the relative importance of the livestock sector in Sout
h America, in developing countries and in countries world-wide. The develop
ment of animal health services is highlighted and the new challenges which
these services must meet, with respect to the restructuring of internationa
l trade, are described. The economic impact of animal diseases and of disea
se control is evaluated by taking a regional approach and by analysing prod
uction systems. A classification of production systems is accompanied by ca
se studies on the economics of animal health. Emphasis is placed on nationa
l control programmes, diseases which affect reproduction, parasitic disease
s and mastitis, with particular reference to the livestock sector of Colomb
ia. The authors suggest that integrated livestock development programmes in
clude the management of animal health and production information. A change
of attitude is also recommended with greater participation of those involve
d. The need to co-ordinate sustained research initiatives is stressed.