The International Dcvelopmenr Research Centre is a public corporation created by the Parliament of Canada in 1970 to support research designed to adapt science and technology to the needs of developing countries. The Centrc·s activity is concentrated in five sectors: agriculture. food and nutrition science~: hea lth sci­ ences: infom1ation sciences: social sciences: and communications. IDRC is fi ­ nanced solely by the Parliament of Canada: its policies. however, arc set by an international Board of Governors. The Centre's headquarters are in Onawa, Canada. Regional offices are located in Africa. Asia. Latin America. and the Middle East. © 1982 International Development Research Cenrrc Postal Address: Box 8500. Ottawa. Canada KIG 3H9 Head Office: 60 Queen Street. Ottawa Fine. J.C. Lattimore, R.G. International Dcvelopmenr Research Centre. Ottawa CA IDRC-202e Livestock in Asia : issues and policies. Ottawa. Ont.. IDRC. 1982. 192 p. : ill. /Livestock/, /animal production/. I Asia I - /production factors/, /cattle production/. /dai1)' industry/, /agricultural investments/. /feed/, /animal products/. /consumption/. /marketing/. /agricultural research/. /agricultural pol icy/. /economic aspects/. UDC: 636(5) ISBN: 0-88936-353-6 Microfiche edition available IDRC-202e Livestock in Asia: Issues and Policies Editors: Jeffrey C. Fine1 and Ralph G. Lattimore2 1Program Officer, Social Sciences Division, International Development Research Centre, Ottawa, Canada. 2Assistant Director, Commodity Markets Analysis Division, Agriculture Canada, Ottawa, Canada. The views expressed in this publication are those of the authors and do not necessarily represent those of the International Development Research Centre. Resume Cette publication contient une version revisee de documents de travail presentes a la conference de Singapour du 2 au 4 mars 1982. Cette conference, qui avait pour theme l'elevage du betail dans les pays asiatiques et les politiques suivies en la matiere, avait egalement pour but d'attirer !'attention des admi­ nistrateurs et des chercheurs de cette region du monde sur une serie d'importants problemes que Ieur reserve !'agriculture dans un proche avenir. L'objet general etait done de publier ce volume, qui dresse l'inventaire des recherches pertinentes et determine les priorites des recherches futures. On s'est attache particulierement aux politiques qui mettent !'accent sur les aspects sociologiques et economiques. Cet ouvrage traite d'un certain nombre de sujets de recherche sur le betail: production, marches domestiques et intemationaux, choix de politiques, methodologie, etc. II est possible de degager la tendance des decisions que les administrateurs regionaux seront probablement amenes a prendre en matiere d'agricul­ ture. Resumen Esta publicacion contiene una version editada de las ponencias presentadas en una conferencia cele­ brada en Singapur de! 2 al 4 marzo de 1982 sobre problemas y polfticas relacionadas con la ganaderfa en Asia. El proposito de esta conferencia fue Hamar la atencion a los que toman decisiones y a Ios investi­ gadores de la region hacia una serie de importantes problemas agrfcolas con que se enfrentanin en el futuro. El objetivo general era producir este volumen que evaliia la investigacion pertinente e identifica prioridades para la investigacion futura. El foco principal se encuentra en Ia polftica que hace enfasis en Ios aspectos economicos y de ciencias sociales. Este volumen trata de varios puntos de investigacion tales como pro­ duccion ganadera, comercializacion nacional e internacional, selecciones de polfticas, y problemas de investigacion ganadera. A su vez, estas reflejan los tipos de decisiones que probablemente deberan tomar los gestores de polfticas de Ia region. Contents Preface .................................................................................... 5 Foreword ................................................................................. 6 Participants . .. 9 Overview: Livestock development: the Asian experience A. John De Boer . 13 Livestock Production Issues To beef or not to beef? Portfolio choices of Asian smallholder cattle producers Lovell S. Jarvis . 29 Livestock in Bangladesh: present situation and future research Ekramul Ahsan . 42 Aspects of the cattle economy in South Sulawesi, Indonesia Kustiah Kristanto . 46 The economics of two major dairy systems in the Punjab, Pakistan D.F. Rendall and B.A. Lockwood ......................................... 54 Investment in livestock in Nepal Ramesh P. Sharma .. ..... ..... ....... ... 60 Microeconomics of rural livestock: the case of buffalo and cattle in Thailand Theodore Panayotou and Ruangrai Tokrisna . 65 Discussion summary C. MacCormac ........ ...... .... ...... ...... ...... ..... 75 Domestic and International Livestock Marketing Issues Low-cost feed rations: the prospect for substitution Sukanto Lebdosoekojo and Soedomo Reksohadiprodjo . 79 Changing consumption patterns for livestock products: Korea and Japan Suk-Jin Cho . 84 Livestock: policy issues in trade, pricing, and marketing Isabelle Girardot-Berg . 91 Factors affecting production, processing, and marketing of broilers and hogs in Thailand Nipon Poapongsakorn . 97 International markets for livestock and livestock feed: their role in livestock development in Asia Ralph G. Lattimore ..................... 105 Discussion summary Theodore Panayotou . 113 Policy Choices Livestock development in Korea: issues and policies Young Kun Shim ............................................................. 119 Livestock development policy in Indonesia Herman Soewardi and Didi Atmadilaga ............................................................... 125 3 4 LIVESTOCK IN ASIA An overview of the livestock sector in Thailand with special reference to buffalo and cattle Ruangrai Tokrisna and Theodore Panayotou . 130 Livestock policy choices: the Philippine experience Marilou Mosqueda-Velasco ................................................. 138 Discussion summary Lovell S. Jarvis . 147 Research on Livestock Methods and Issues Modeling livestock systems under tropical conditions with special reference to Indonesia Joel M. Levine ..................................... 153 Livestock development projects: the Nepalese experience Ram M. Upadhyay . 157 Small ruminant production in west Java: methodology and initial results N. Thomas, W. Mathius, and M. Sabrani ............................... 161 Technology changes and livestock development in Asia Hubert G. Zandstra and David J. King .................................. 167 Livestock and feed grain models: their use and drawbacks Brian Paddock . 175 Analytical approaches to farming systems research with an emphasis on animal production R.H. Bernsten . 180 Discussion summary A. John De Boer . 186 References . 187 Preface The complexity of the issues involved in the formulation of livestock policies first became apparent in discussions leading to support by the International Devel­ opment Research Centre (IDRC) of research on a livestock sector strategy for Korea. Two facts quickly emerged: first, that the tradeoffs confronting that country's poli­ cymakers are likely to be encountered in other Asian countries and, second, that there has been relatively little research by Asian economists and other social scientists in this field. Against this backdrop, the Social Sciences Division of IDRC encouraged the submission of papers by social scientists from within and outside the region. These papers were discussed at a conference held in Singapore from 2 to 4 March 1982. This monograph contains an edited version of these papers. The IDRC is grateful to the Winrock Foundation, Agriculture Canada, and the World Bank for their assistance in financing the attendance of a number of participants who contributed stimulating papers and otherwise assisted in the preparation of this volume. The success of the Singapore meeting was due, in large measure, to the enthu­ siasm and efficiency of the staff of the IDRC Asia Regional Office who did a superb job of arranging and running all of the conference facilities and services. Their efforts were capably reinforced by Division staff at the Ottawa end. I would like also to express my appreciation to the IDRC's Communications Division, and to Katherine Kealey-Valliere in particular, for editorial support in the preparation of this important monograph. David W. Steedman Director Social Sciences Division International Development Research Centre 5 Foreword The development of agriculture in Asia has been associated mainly with increas­ ing the production of cereals. This emphasis arises from the importance of cereals as part of people's diets and as a source of farmer income. Over the past 2 decades cereal production has increased in many Asian countries through major advances in seed varieties, farming techniques, farmer skills, improved fertilizer supply, and expanded irrigation. Many areas are no longer directly threatened by the spectre of widespread famine caused by a capricious nature. Far less attention has been given to livestock production, although animals have formed an integral part of the Asian farm economy for thousands of years. Animals are prized for theirdraft power, manure, dairy products, and, to a much lesser extent, their meat. Animal husbandry has also been part of an intricate and rich pattern of customs and religious beliefs. Economic development is accompanied by significant changes in consumption that affect the individual farming household. In the richer tier of Asian countries,