While diversification, as previously mentioned, can strengthen resilience, a certain level of specialisation within the different links of the food chain is often desirable from the perspective of economic efficiency. After all, maintaining and implementing a wide range of activities at a high level within a single enterprise is not always possible.
The foundations for sustainability in the livestock sector are built on high labour productivity, a meaningful production programme, continuous innovation, and the integration of up-to-date scientific knowledge and technology advancements. These elements are crucial for ensuring affordable food and the overall stability of the sector.
The capacity of farmers to unite under one organisation, such as a marketing cooperative, for example, is essential for defending their own interests. These organisations can empower farmers to negotiate better prices for their agricultural products and strengthen their market position. Rather than solely serving as the suppliers of primary products, farmers should actively participate throughout the entire value chain, including trade. Pooling resources can also lead to more cost-effective procurement of raw materials entering primary production, potentially resulting in significant savings. These economic aspects should be central to discussions when considering new strategies.
The development of innovative, value-added processed agricultural products presents a substantial opportunity for primary producers to enhance their economic standing and livelihoods. Innovation, in general, will undoubtedly play an important role in the future of the agricultural sector.
Biotechnology, innovative approaches to animal breeding, and modern data analysis techniques represent promising areas for advancing the agricultural sector. Crucially, creating new and effective economic models is necessary to ensure competitiveness and support agricultural policies. Guaranteeing food security and backing local producers in each country are essential topics for discussion.
Additionally, economic imbalances in foreign trade structures within countries must be acknowledged. For example, developing countries typically export raw materials to developed countries at low prices, whereas developed countries tend to export value-added products at high prices. Low wages in the agricultural sector frequently contribute to this disparity.
A pressing and highly relevant issue currently facing the livestock sector is generational change, which poses a significant challenge. Therefore, achieving a compromise on green demands, driven by new national and international policies, will be crucial. The situation varies from country to country, with differing needs and options in this area. Failure to strike a balance could negatively impact living standards in many countries.
Creating a supportive environment at both the national level and within commercial services is key. This includes providing quality banking services, advisory support, insurance options, and other essential resources. The absence of these services, particularly in developing countries, is a major cause for concern. Promoting high-quality facilities and innovative concepts in this area can significantly improve the situation for farmers.
In many countries, food producers are not on an equal footing with processors, traders, and suppliers. Producers are often at a disadvantage because of their smaller scale, which presents them with economic challenges when it comes to pricing their products. They are also more vulnerable to market turbulence, price volatility, and climate change risks.
Appropriate econometric models can be leveraged to assess the impacts of various measures, quantify changes, and predict future developments. They can also be used to analyse possible interventions and their potential outcomes. Indeed, targeted projects aimed at assisting the introduction of technological, commercial, breeding, and performance monitoring innovations have proven highly effective in developed countries. Similar initiatives can be instrumental in driving positive change within developing nations.
Resilience for primary livestock producers can be defined as achieving an economically sustainable business that respects environmental concerns, utilises natural resources responsibly, produces safe and high-quality food, respects consumer preferences, and ensures a decent standard of living for farmers. Ultimately, it boils down to establishing a viable and sustainable business model.
M. Pavel Bucek