1. African livestock producers have been relatively successful with their traditional systems of low-input, low-output per head. Despite low per animal productivity, return to investments in livestock is not low in most traditional African livestock systems. Animals are held because they usually provide high and secure economic return relative to other investment options. Depending on the species, returns are realised in the form of milk, draught power, meat, dung for fuel and manure, hides and skins, and wool and hair. Livestock are often the most important and secure form of investment and savings available. Livestock do not necessarily require land ownership and as investments or savings, livestock provide security and can be drawn on for food purchases, family emergencies, school fees, ceremonies, and social events.
2. However, output of meat and milk in sub-Saharan Africa is low and growth has been disappointing, lagging behind population growth rates. As a consequence, the trend in per caput output of livestock products has been negative (Anteneh, 1984a; Anteneh et al 1988).
3. Livestock production can be increased by increasing numbers or by increasing output per animal. Increased productivity per animal usually involves increasing one or more inputs. Much is known about ways of increasing output per animal. However, in Africa, more often than not, it is found that the cost of increased inputs exceeds the value of the increased output per animal. Moreover, low input systems are usually low risk systems relative to high input systems especially where purchased feed or exotic animals are involved. Risk can pose a major constraint for low income, near subsistence producers who can ill afford to jeopardize their subsistence.
4. Finding technologies appropriate to African conditions will require more investment in adaptive research focusing on economical ways of increasing livestock output. Perhaps equally as important is the development of a more favourable economic environment to make some of the currently available technologies viable. This may require policy changes, and investments in facilitative institutions and marketing systems to provide the services necessary to support technological change.
5. ILCA (1987) has classified the main constraints to increased livestock production in two broad categories. The first is socio-economic and institutional which involves government policies on exchange rates, commodity prices, imports, land tenure, manpower (e.g. for extension and animal health services), and marketing infrastructure. The second category is technical which involves feed and nutrition, genetics, health and disease, and other constraints, including such things as water shortage, toxicity, and poor management. These technical constraints also involve economic considerations.
6. ILCA's economics program in the Cattle Milk and Meat Thrust (CMMT) focuses on both broad constraint categories and includes the following breakdown of major activities:
i. Identifying constraints to and opportunities for improved meat and milk production: specifically to examine commodity price policies, the supply of inputs and marketing systems.ii. Investigating marketing strategies, quantifying present and future demand for milk and meat products, and analysing credit policies for smallholder cattle producers.
iii. Assessing new technologies from an economic viewpoint. This will enable us to determine how much productivity needs to be increased, or what risks need to be reduced, to insure adoption. We will also need to determine the benefits of new technologies in terms of output, income stability and welfare and to whom such benefits accrue.
7. These considerations are addressed in two parts. Part I, which this network paper contains, discusses the considerations relating to economic policy, supporting institutions, and marketing and consumer demand. Economic considerations in production will be the subject of Part II and will be produced in a subsequent set of the ALPAN series.
