February 19, 2010

Global livestock sector needs investment for growth

World demand for livestock products is set to increase strongly from now to 2050 due to anticipated population increases, and substantial investments in the sector are needed to support output expansion.

The livestock sector, which contributes 40% of the global value of farming production and has been rapidly growing, is set to expand thanks to rising demand in developing countries as people get wealthier and move to cities, according to the

Annual meat production worldwide is projected to rise to 463 million tonnes by 2050 from the current 228 million tonnes, while cattle population is estimated to grow to 2.6 billion from 1.5 billion, FAO said in a report.

As a result, demand for coarse grains for animal feed would be boosted by 553 million tonnes over the period, which would account for about a half of total demand increase, said the FAO.

The Rome-based agency said massive investments and strong governance are needed for livestock production to meet growing demand and ensure food security, environmental sustainability and human health.

The livestock sector both contributes to and suffers from climate change and should be developed in an environmentally friendly way, otherwise it would increase pressure on the use of land, water, air and on biodiversity, FAO said.

Some countries have made progress in reducing pollution and deforestation linked to livestock production, but many more need to adopt appropriate policies and market-based mechanisms, such as taxes and fees for natural-resource use or payments for environmental services, the agency said.