Economics of animal rearing

  • July 26, 2020
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Economics of animal rearing

INTRODUCTION

The objective of animal rearing is to make the livestock useful for human beings for a variety of purposes, many of which have an economic value and is contributing to the economy of India.

Therefore, Economics of Animal rearing is all about

  • Improvement in Livelihood of Individual
  • Upliftment of the Society
  • Ultimately Improvement in Economy of India

Agricultural communities developed approximately 10,000 years ago when humans began to domesticate plants and animals. By establishing domesticity, families and larger groups were able to build communities and transition from a nomadic hunter-gatherer lifestyle dependent on foraging and hunting for survival.

  • The National Policy for Farmers, 2007, which aims to improve viability of farming through sustainable development of agriculture sector with the main goal to improve welfare of farmers and farm income, also provides for sustained development of the livestock and fisheries sectors.
  • Compound annual growth rate of nearly 8 per cent over the last five years, it assumes an important role in income, employment and nutritional security.
  • Contribution of Livestock Sector in GVA as per Economic survey 2019-20, is an around 5%
  • Livestock sector contributes to around 25% of Agricultural GDP
  • In just two per cent of the world’s geographical area, India accounts for 15 per cent of the world’s livestock population

20th Livestock Census Highlight

What is Live Stock Census ?

  • The Livestock Census has been conducted in the country periodically since 1919-20.Since then it has been conducted once every 5 years.
  • It covers all domesticated animals and their headcounts.
  • So far 19 such censuses have been conducted by the Ministry of Fisheries, Animal Husbandry and Dairying,in participation with State Governments and UT Administrations.

What is its Use?

  • Accurate, reliable data therefore become the sine qua non for planning and development of the sector
  • The census is beneficial not just for policymakers but also for agriculturists, traders, entrepreneurs, dairying industry and masses in general.

Highlights 20th Livestock Census

  • Total – The total Livestock population is 535.78 million in the country showing an increase of 6% over Livestock Census-2012. [Highest Increase in West Bengal]
  • Cattle – The total number of cattle in the country has shown an increase of 0.8 %. [West Bengal Highest Increase, Uttar Pradesh Maximum decline though state has taken several steps to save cattle]
    • Total Bovine population (Cattle, Buffalo, Mithun and Yak) Increase by 1%
    • The Female Cattle (Cows population) increased by 18 %
    • The Indigenous/Non-descript female cattle population has increased by 10%
    • There is a decline of 6 % in the total Indigenous/ Non-descript cattle population over the previous census. However, the pace of decline of Indigenous/ Non-descript cattle population during 2012-2019 is much lesser than as compared to the 2007-12 which was about 9%.
    • The population of the total Exotic/Crossbred Cattle has increased by 27 %
  • Poultry – The backyard poultryhas increased by around 46% and commercial poultry by 4.5%
  • Goat – The Goat population in the country in 2019 is 88 million showing an increase of 10.1%over the previous census.
  • Pig – The total Pigs in the country is 06 Million in the current Census, declined by 12.03%over the previous Census.

What Conclusion Do You Draw?

Conclusion 1

Eastwardshift of cattle –West Bengal has emerged as the state with the largest number of cattle in 2019 followed by Uttar Pradesh, and Madhya Pradesh. In 2012, Uttar Pradesh had the largest number of cattle but this population has come down by almost 4 per cent. States that registered the maximum increases between 2012 and 2019 were West Bengal (15.18%), Bihar (25.18%) and Jharkhand (28.16%).

Conclusion 2

Decline in Indigenous cattle-Due to continuous fall in productivity, indigenous breeds of cattle have become liabilities for farmers, forcing them to desert the unproductive cows. Farmers find other animals such as buffaloes, goats and sheep much more productive. Unlike cows, if these animals become unproductive, they can be sold and slaughtered for further processing.

Experts believe this could have long term health and environmental impacts because the milk of indigenous breed has higher nutritional value than that of crossbreeds. Moreover, there is a danger of losing these indigenous breeds, which have been developed and sustained by generations from time immemorial.

Conclusion 4

Increase in Exotic and Cross Breed cow / Buffalo- A clear sign of dairy farmers’ preferences for milk-producing cattle. This also gained momentum in the past couple of years due to the government’s assistance in terms of providing sex-sorted artificial insemination (AI), with semen of high-yielding bulls, free of cost at farmers’ doorstep.

The more the number of animals that produce milk, the more would be pressure on land and fiercer would be competition between man and animals for survival

Conclusion 5

Decline in Bull Population – However, the number of milch animals have increased but number of bulls have decreased which used for ploughing purpose, Farm mechanization market in India has been growing at a CAGR of 7.53 per cent during 2016-2018. The increasing Farm mechanization may have reduced the need of Draught animals.

Conclusion 6

Backyard Poultry –Backyard poultry production comprises rearing of indigenous birds with poor production performances. The sharp increase in backyard poultry is a significant change in the rural landscape which shows a sign of poverty alleviation.

Conclusion 7

Goat population Increased – Goats are capable of adapting to various agro-climatic conditions ranging from arid dry to cold arid to hot humid. They can be raised in plains, hilly tracts, sandy zones and at high altitudes. Goat has been described as a poor man’s cow (or mini-cow) because of its immense contribution to the poor man’s economy, it is also a sign of poverty alleviation

Conclusion 8

Decline in Pig Population–Maximum Pig Population in India is from Eastern and North Eastern part; the decline may be due to alternative means of livelihood as many government schemes related to horticulture have well penetrated in NE India which has feasible agro climatic conditions for exotic fruit, vegetable and flower cultivation.Changing taste and preference of people may also be the cause

 

Q. Consider the following Statements:

1.  A2 Milk is obtained mainly from Indian Breeds
2. A2 Milk is easily digestible

which of the statements given above is/are correct.

(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 or 2

Q. Consider the following Statements:

1.  20th livestock census shows a trend of Eastward shift of Cattle Population
2. Uttar Pradesh has highest Increase in Cattle population as per 20th livestock census

which of the statements given above is/are correct.

(a) 1 only
(b) 2 only
(c) both 1 and 2
(d) neither 1 or 2

Significance of Livestock Rearing

Livestock is an integral part of India’s agricultural economy and plays a multifaceted role in providing livelihood support to the rural population. Livestock sector apart from contributing to national economy in general and to agricultural economy in particular, also provides employment generation opportunities, asset creation, coping mechanism against crop failure and social and financial security.

  1. Natural Capital – Animal husbandry is an integral component of Indian agriculture supporting livelihood of more than two-thirds of the rural population. Animals provide nutrient-rich food products, draught power, dung as organic manure and domestic fuel, hides & skin, and are a regular source of cash income for rural households. They are a natural capital, which can be easily reproduced to act as a living bank with offspring as interest, and an insurance against income shocks of crop failure and natural calamities.
  2. Cry of Distress: The NABARD All India Rural Financial Inclusion Survey (NAFIS) shows that average agriculture household income was a mere Rs 8,931 per month in 2016-17. Apart from a paltry income, farmers are facing rising indebtedness, lesser financial inclusion, and absence of insurance facility, according to the report. The distress is mainly due to lack of compensation during drought and disasters, the failures of the crop insurance scheme, and the deficit due to prices falling below the announced Minimum Support Prices. Diversification of sources of income for farmers is one of the few suggested solutions. Here, livestock plays an important role for a distress farmer.
  3. Women Empowerment: Women constitute about 69% of workforce engaged in livestock sector, development of livestock sector means development of Women and rural India.
  4. Solution to Vagaries of Monsoon – Rain-fed agriculture occupies 67 percent net sown area, so if in any season rainfall is not up-to mark then Livestock can provide them with necessary income.
  5. Crop Diversification and Risk Mitigation – Crop–livestock diversification is the best potential livelihood strategy for farm households. If one enterprise fails, other can give desired result
  6. Source of Farm Power – Small and marginal farmers with less than two hectares of land account for 2% of all farmers in India, but own just 47.3% of the crop area, according to provisional numbers from the 10th agriculture census 2015-16 and also as per census the average size of the Indian farmland shrank to 1.08 hectares. In this scenario with less handholding and minimal source of income Animal, power still plays an important role in different agricultural operations from Ploughing to post-harvest threshing.
  7. Nutritional Security – Apart from basic food what a Rural population has, the variety of livestock from Poultry to Piggery has a potential to fulfill the nutritional requirements of masses. They are good source of Protein
  8. Waste Conversion Ratio: The organic waste generated are converted to useful product, best example for this is piggery, which has high conversion ratio.

Some Example, which will helped in povertyalleviation

Enterprise – Goat Farming(Poor Man’s Cow)

Suitable for Dry and Semi-Arid Regionregion, peculiar adaptability to hot and dry climate and low quality roughage of hill tracts. Can survive without grass fodder also by means of browsing (Browsing is a type of herbivory in which a feeds on leaves, soft shoots, or fruits of high-growing, generally woody plants such as shrubs)

Enterprise – Pig Farming – (Waste to Best)

Pigs are efficient convertors of Waste products into body weight known as Feed conversion ratio. They can change organic waste which is of no use into money

Enterprise– Dairy (Game Changer)

The best example for this is Co-operatives under AMUL how dairy sector have changed their destiny and how it pulled out lot of people out of poverty and helped in women empowerment.

Issues Related to Indian Livestock Sector

  1. Herd / Breed inventory– Though the percentage of cross breed cattle, Commercial Poultry etc. have increased as per livestock census but we have to traverse a long distance if we compare productivity of India Cattle and poultry with the average productivity of China or advanced countries like Japan and European Union. Very large number of indigenous animals with low productivity and a small portion of cross-breeds
  2. Yield of desi cow is only 6-8 ltr per day, whereas yield of Exotic breeds are 20 litre per day.
  3. Stagnant Pasteur land – Only 4% of total cultivable land in India is used for fodder production, a proportion that has remained stagnant for the last four decades.
  4. Veterinary Infrastructure– Farmer wants productivity but does not wants to invest in after care and maintenance of breeds, due to this different breeds in different sector either poultry or dairy suffer from different diseases. Like Foot & Mouth Disease (FMD) and Brucellosis. Ratio between cattle population and veterinary institution is wide.Limited Artificial Insemination services owing to a deficiency in quality germplasm, infrastructure and technical manpower coupled with poor conception rate following artificial insemination have been the major impediments. Therefore, the spread of Veterinary reach in villages need to be increased and farmers needs to be educated through extension services for proper veterinary maintenance of livestock.So skilled Human resource is needed in this sector too.
  5. Livestock Health– A large number of infectious and metabolic diseases prevalent in Indian livestock have serious implication for animal productivity, export potential and safety/ quality of livestock products, and many of these diseases have zoonotic implications. The current efforts of prevention and control of livestock diseases needs to be strengthened. There is a shortage of veterinary and para-veterinary manpower and facilities including mechanisms for diagnosis, treatment, tracking and prevention of the diseases. Adequate infrastructure for ensuring bio-security, proper quarantinesystems and services to prevent the ingress of diseases across the states and national borders is not available.
  6. Obsolete Technology, lower productivity& Knowledge gap – Shortage of Male Germplasm/Breeding Bulls, Assisted reproductive Techniques (ARTs) need to be improved which are outdated. Livestock production systems in India are mostly based on traditional knowledge,low cost agricultural residues and agro-byproducts leading to lower productivity.Most of the livestock producers being small and marginal farmers, their capacity to mobilize resources required to absorb the latest technologies developed by research institutions are limited. Absence of an effective extension machinery for this purpose compounds the problem. Lack of access to institutional finance is a major constraint in attracting investment required for improving productivity by adopting latest technology.
  7. Climate Change – Climate change and global warming may have serious implications to the livestock sector. These may be manifested in the form of heat stress, loss of animal habitat especially in coastal areas, scarcity of quality feed and fodder, and changes in epidemiological pattern of vector borne diseases, etc., ultimately leading to reduction in production and therefore, economic losses. Mitigating the impact of climate change, calls for critical appraisal of the situation on continuous basis and advance planning.
  8. Inadequate Marketing, transportation Channel& Value addition – The livestock sector is handicapped due to inadequate marketing and processing infrastructure as a result of which the primary producers do not get remunerative prices most of the times. Although various initiatives for dairy development have resulted in vibrant dairy cooperatives in many states, but still large number of dairy farmers are not covered by cooperatives. The dairy cooperatives handle only about 8% of milk production. Still major share of marketable surplus of milk and other livestock products are not handled by organized processing industry, resulting in reduced price realization by farmers and post production losses and wastages.
  9. Sanitary standards – Sanitary standards needs are very high for milk and meat sector. The FSSAI norms are quite stringent if a person wants to export these products.
  10. Finance support – Government has come out with many schemes for supporting poor farmers to start a dairy unit but still due to poor penetration of banking and finance sector, financial support still today is weak.
  11. Green House Gas Emission – India is the third highest greenhouse gas emitter behind China and the United States and agriculture and livestock accounts for 18% of gross national emissions – the third-highest sector after energy and industry. A balance in this respect also has to be maintained.
  12. Lack of Innovation & Entrepreneurship – This sector too requires innovation in many fields, the entrepreneurship in livestock sector can change the face of all enterprise associated with it.
  13. Exploring Opportunities – India has a diverse base of cattle and other domesticated livestock, more opportunities should be explored such as camel milk which is also referred as European Union and other western countries have high demand of Camel milk due to its high nutritional properties.

Other factors being Lack of R & D, Export Policy, Training and Extension etc.

What is the Solution?

1. Augmenting Research and Development

To improve the productivity and health of various species of livestock in a sustainable manner while reducing the negative effects on environment, there is need for greater focus on research and development particularly to address problems faced by farmers. The efforts for basic and applied research to generate new knowledge, technology, strategies and application procedures related to the various problems of the livestock sector and farmers would be strengthened.

2. Strengthening Infrastructure & Services

A fairly large infrastructure of veterinary institutions, vaccine and diagnostic production units, semen stations and artificial insemination breeding farms, feed and fodder production units etc. are owned by government. Some of these are not used optimally. These facilities would be restructured and strengthened for effective utilization and for ensuring optimal services. The cooperatives, NGOs, farmers’ organizations and other private organizations will be associated to assist in this endeavor. The Government will create enabling environment at the national level and inclusive planning at regional and community level for generation and delivery of these services in the rural and urban areas on the principle of cost recovery basis in a phased manner.

3. Dissemination of Technology/Extension

Extension and technology transfer have played a crucial role in green revolution. The extension infrastructure for livestock sector, however, is grossly inadequate and needs revamping. Very often, the livestock related technologies developed or modified in the research institutes do not reach the end-users for want of efficient and effective extension mechanisms and procedures. This remains one of the biggest stumbling blocks in the transformation of innovations into practice. Institutional, infrastructural and strategic reorientation will be made to ensure effective percolation and adoption of the various newer, useful technologies in the field. The mode of transfer of technology will be reoriented to ensure that the livestock farmers reap the benefit of investment in livestock research and for this purpose, use of Information and Communication Technology will be encouraged. The efforts of Government will be augmented through involvement of private sector, NGOs and progressive farmers and their organizations.

4. Re-orientation of Breeding Policy for Livestock

States would be encouraged to review their respective breeding policies for different livestock species. Species-wise breeding programmes will be fine-tuned and implemented for faster growth in production.

5. New Technologies for Livestock Breeding

Newer breeding and reproductive technologies, including those involving biotechnology and genetic engineering/genetic marker technology developed from time to time, will be adopted for faster implementation of various breed improvement programmes and for increasing production. Efforts will be made to develop semen sexing technology to provide greater choice regarding breeding to farmers. The delivery of breeding services would be regulated by fixing standards with periodic evaluation of service providers.

6. Strengthening Dairy Cooperatives

Greatest strength of the cooperatives has been their primary milk producers and the rural procurement structure. There is need to strengthen their rural base. Since cooperatives carry major share of the organized dairy business in India, effective steps would be taken to make them financially viable and resurgent business organizations. The dairy cooperatives would be assisted to expand their milk routes, procurement infrastructure and processing capability and would be encouraged to provide breeding and veterinary services to farmers.

7. Diversification and Value Addition

With improving standards of living, the consumers are becoming discerning for a variety of products. Diversification of dairy products including probiotics would be promoted to meet local demands and for exports. Public Private Partnership initiatives would be supported to ensure better marketing opportunities and remunerative returns to the dairy farmers.

8. Feed and Fodder

Production, quality, area and alternatives should be increased.

9. Institutional Credit and Livestock Insurance

The livestock sector’s ability to fully achieve its growth potential in productivity and output is directly influenced by timely availability and accessibility of institutional credit and insurance coverage.

10. Human Resource and Training

It is recognized that for faster growth of the livestock sector, there is growing need for qualified and trained human resource. Human resource development would be given a high priority in livestock development to meet the qualitative and quantitative shortage of manpower.

Government Initiatives in Animal Husbandry

Rashtriya Pashudhan Vikas Yojna (White Revolution)

This umbrella includes

  • National Diary Plan/National Programme for Dairy Development,
  • Dairy Entrepreneurship,
  • Rastriya Gokul Mission
  • National Livestock Mission

National Dairy Plan: This scheme is running since 2012 and was launched to increase productivity of the milch animals and increase milk production and to help rural milk producers achieve greater access to the organized milk processing sector by NDDB

Phase two of NDP (2020-25), which is being promoted as ‘Mission Milk’, will be spread over a period of five years with financial outlay of Rs 8,000 crore for which NDDB is holding consultation with the World Bank.

It was in April 2012 that the Anand-headquartered dairy board had launched first phase of NDP with financial outlay of Rs 2,200 crore. NDP-1 was aimed to increase productivity of milch animals through a scientifically planned multi-state initiative.

Dairy Entrepreneurship – The Dairy Entrepreneurship Development Scheme (DEDS) is a credit linked subsidy scheme of government of India to promote the setting up of modern dairy farms. This scheme is a modified version of an earlier 2004 scheme called Dairy/Poultry Venture Capital Fund. NABARD is Nodal agency for its implementation.

Rastriya Gokul Mission

Rashtriya Gokul Mission comprises of two components namely:

  • The national program for bovine breeding and
  • National mission for bovine productivity

Objectives:

  • Development and conservation of indigenous breeds in a focused and scientific manner.
  • Undertake breed improvement program for indigenous cattle breeds so as to improve the genetic makeup and increase the stock.
  • Enhance milk production and productivity.
  • Distribute disease free high genetic merit bulls for natural service.

Significant initiatives under RashtriyaGokul Mission:

Awards for encouraging farmers/breeder societies to rear Indigenous breeds of bovines:

  • Gopal Ratna awards: for farmers maintaining the best herd of Indigenous Breed and practicing best management practices.
  • Kamdhenu awards: for best managed Indigenous herd by Institutions/Trusts/ NGOs/ Gaushalas or best-managed Breeders’ societies.
  • Gokul Gram: The RashtriyaGokul Mission envisages the establishment of integrated cattle development centers, ‘Gokul Grams’ to develop indigenous breeds including up to 40% nondescript breeds (belonging or appearing to belong to no particular class or kind) with objectives to:
  • Promote indigenous cattle rearing and conservation in a scientific manner.
  • Propagate high genetic merit bulls of indigenous breeds.
  • Optimize modern Farm Management practices and promote Common Resource Management.
  • Utilize animal waste in an economical way i.e. Cow Dung, Cow Urine
  • National Kamdhenu Breeding Centre: (NKBC) is being established as a Centre of Excellence to develop and conserve Indigenous Breeds in a holistic and scientific manner.
  • “E-PashuHaat”- NakulPrajnan Bazaar: An e-market portal connecting breeders and farmers, for quality- disease-free bovine germplasm.
  • PashuSanjivni: An animal wellness program encompassing the provision of animal health cards (‘NakulSwasthyaPatra’) along with UID identification and uploading data on National DataBase.
  • Advanced Reproductive Technology: Including Assisted Reproductive Technique- In-vitro Fertilization (IVF)/ Multiple Ovulation Embryo Transfer (MOET) and sex-sorted semen technique to improve the availability of disease-free female bovines.
  • National Bovine Genomic Center for Indigenous Breeds (NBGC-IB) will be established for selection of breeding bulls of high genetic merit at a young age using highly precise gene-based technology.

Implementing Agency

  • RashtriyaGokul Mission will be implemented through the “State Implementing Agency (SIA viz Livestock Development Boards).
  • State GausevaAyogs will be given the mandate to sponsor proposals to the SIA’s (LDB’s) and monitor implementation of the sponsored proposal.
  • All Agencies having a role in indigenous cattle development will be the “Participating Agencies” like ICAR, Universities, Colleges, NGO’s, Cooperative Societies and Gaushalas.

Why conservation of Indigenous breeds is the need of the hour?

  • Indigenous bovines are robust and resilient and are particularly suited to the climate and environment of their respective breeding tracts and productivity of indigenous breeds is less likely to be impacted by the adversities of climate change.
  • The milk of indigenous animals is high in fat and SNF content (The substances in milk other than butterfat and water in the form of casein, lactose, vitamins, and minerals which contribute significantly to the nutritive value of milk)

National Livestock Mission

National Livestock Mission (NLM) launched in financial year 2014-15 seeks to ensure quantitative and qualitative improvement in livestock production systems and capacity building of all stakeholders. The scheme is being implemented as a sub scheme of White Revolution – RashtriyaPashudhanVikasYojana since April 2019.

Objectives: Sustainable growth, Fulfilling Fodder need, synergy of ongoing plan, Promoting Skill Training, genetic upgradation and conservation, risk management and community participation.

The National livestock Mission is organised into the following four sub-Missions:

Sub -Mission on Livestock Development – The sub-mission on Livestock Development includes activities to address the concerns for overall development of livestock species including poultry, other than cattle and buffalo, with a holistic approach. Risk Management component of the sub –mission will, however, also cover cattle and buffalo along with other major and minor livestock.

Sub – Mission on Pig Development in North-Eastern Region – The sub -mission will strive to forge synergies of research and development organizations through appropriate interventions, as may be required for holistic development of pigs in the North Eastern Region including genetic improvement, health cover and post-harvest operations.

Sub – Mission on Feed and Fodder Development– The Sub –Mission is designed to address the problems of scarcity of animal feed and fodder resources, to give a push to the livestock sector making it a competitive enterprise for India, and also to harness its export potential. The sub- mission will especially focus on increasing both production and productivity of fodder and feed through adoption of improved and appropriate technologies best suited to specific agro –climatic region in both arable and non –arable areas.

Sub -Mission on Skill Development, Technology Transfer and Extension –  The sub – mission will provide a platform to develop, adopt or adapt the technologies including frontline field demonstrations in collaboration with farmers, researchers and extension workers, etc. wherever it is not possible to achieve this through existing arrangements.

National Animal Disease Control Programme for Foot and Mouth Disease and Brucellosis is a 100% centrally funded programme, with a total outlay of Rs. 12,652 crore from 2019 to 2024. It aims to control Foot and Mouth Disease and Brucellosis by 2025 with vaccination and eventual eradication by 2030.

Objectives of National Live stock Policy 2013

Aims and Objective

  • To support the existing low input production systems for improving productivity and income so as to improve socio-economic status of a vast majority of our livestock producers, most of which are women and small farmers.
  • To support research and development initiatives on issues pertaining to livestock sector for improving production and productivity, bio-security and profitability.
  • To encourage establishment and growth of self-supporting financially viable, medium and large commercial livestock production units capable of adopting latest technology including facility for processing and value addition.
  • To improve the productivity of livestock and poultry by promoting and disseminating the technologies developed by the research system.
  • To promote conservation of animal bio-diversity; conservation and genetic improvement of important indigenous breeds of livestock and poultry in the country.
  • To increase availability of feed and fodder resources to meet the requirement of livestock to attain optimal productivity.
  • To strengthen overall animal health cover through prevention, control and eradication of various disease conditions and encourage/enable the dairy cooperatives to extend veterinary services to farmers.
  • To focus on production of quality livestock products as per the international standards for food safety.
  • To encourage value addition of livestock products like milk and milk products, eggs, wool and meat & meat products etc.

Way Forward

With Highest livestock population in world, India has a potential to use this opportunity in not only doubling farmers income in coming year but to pull multiple segments of society who do not own land, Women Entrepreneurs etc. out of poverty.

Practice Question

  1. Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable examples. [UPSC- 2015]
  2. Livestock Census should focus on Breed Count rather than just Head count. Comment

Inputs by

Sangeet Sir (Gold Medalist in BSc and MSc Agri Science)

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