Study of the features of livestock sector growth of the world market
Table of contents: The Kazakh-American Free University Academic Journal №4 - 2012
Konurbayeva Zhadyra, East Kazakhstan State Technical University in honor of D. Serikbayev, Kazakhstan
Zakimova Alfiya, East Kazakhstan State Technical University in honor of D. Serikbayev, Kazakhstan
Rakhimberdinova Madina, East Kazakhstan State Technical University in honor of D. Serikbayev, Kazakhstan
Agriculture is considered to be one of the major sectors of the
global economy. It is aimed to provide population with foodstuff and to supply
light and food processing industry with raw materials. That is the only sector
of material production which depends upon natural conditions.
However, its significance in the economy of different countries and
regions varies much. The geography of agriculture has an extraordinary
diversity of forms of production and agrarian relations. All of them can be united
in two groups:
- Commodity agriculture is characterized by high efficiency,
intensive development, a high level of differentiation;
- Consumer agriculture is characterized by low efficiency, extensive
development, and lack of differentiation.
Agriculture of developed countries is characterized by sharp
predominance of commercial agriculture based on mechanization, chemicals,
biotechnology, advanced selection methods. Agriculture in developing countries
is plural and includes a traditional sector (mainly crop area with small farms)
and a modern one (commodity agriculture with well-organized plantations and
Livestock is a most important branch of agriculture providing
population with high-protein and health food, and a number of industries with raw
materials. Livestock industry provides 45% of total production, accumulates 75%
of fixed production assets and 70% of manpower resources in agriculture,
livestock value is also determined by the fact that it produces the most
relevant and biologically valuable products in the human diet .
Livestock affords valuable raw materials for the industry: wool,
leather, lambskin, etc. The development of livestock sector can make productive
use of agricultural labor and material resources in the course of the year.
Crop sector waste is used in livestock, valuable organic fertilizer such as
manure and slurry are produced.
The main task in the livestock industry is to create proper
conditions for manufacturing of products whose volume and quality conform to
population size and nutritional standards and whose prices ensure profitability
of their production and commensurability with the size of most people’s income.
In the past the main objective was to get more products, however now the main
criterion of the industry is to achieve competitiveness and breakeven.
Livestock as a branch of agriculture is developing almost worldwide.
The deployment of its branches depends first of all on the food reserve.
The contrasts in the development of animal husbandry over the world
between developed and developing countries are even more than those in farming.
Animal husbandry comprises the following subsectors:
- livestock (cattle-breeding);
- poultry keeping;
- deer farming;
- fur animal breeding;
- bee keeping.
Cattle, pigs, sheep and poultry are the main subsectors among them.
The significance of cattle-breeding (1.3 billion animals per year)
is in providing almost all the milk and more than one third of meat. The
largest total number of livestock abroad is in Asia and Latin America.
There are three main areas in cattle-breeding:
- Dairy cattle (characteristic of densely populated areas of Europe
and North America);
- Meat and dairy cattle (characteristic of forest and forest-steppe
- Meat cattle (characteristic of dry areas of temperate and
subtropical zones). India, Argentina, Brazil, the USA, China, and Russia have the largest number of cattle.
Cattle-breeding is spread relatively evenly through the world but
its levels of productivity and differentiation vary in different zones. Meat
and dairy cattle are ranched in forest and steppe temperate zones. Dairy cattle
prevail with stalled and mixed keeping of cattle in suburban and other
highly-populated areas. In arid zones with migratory cattle-breeding meat
cattle predominate. Most of the livestock population (almost 60%) is in
Pig breeding is considered to be the most dynamic sector of the
livestock (more than 0.8 million head per year). Advance in the development of
this sector promoted the fact that pork became cheaper than beef. Pig breeding
is available everywhere. In Muslim countries there are practically no pigs for
religious reasons. This sector is close to densely populated areas and areas with
intensive potato and sugar beet growing. Chine is the first country in the
number of pigs (almost half of the world total) followed by the U.S., Russia, Germany, and Brazil.
Sheep farming is the third leading livestock industry, producing
wool, astrakhan fur, sheepskin, meat, fat, and milk. This is one of the most
traditional and extensive production in agriculture.
Sheep breeding (1.2 billion head per year) prevails in the countries
and areas with extensive pastures. While fine-wooled sheep breeding is most
often found in areas with an arid climate and in the steppe and semi-desert,
semi fine-wooled sheep breeding, meat and wool sheep breeding prevail in areas
with humid and mild climate. Steppe regions of Australia are the world's
largest area of sheep breeding.
Sheep farming predominates in the countries and areas with extensive
pastures. Several breeds of sheep are grown for different purposes. Australia and New Zealand have the largest number of sheep. Sheep breeding falls into meat and wool,
wooly and fat-rumped sheep. Wooly sheep farming is subdivided into fine-wooled,
semi fine-wooled and astrakhan. Fine-wooled farming developed in arid and
semiarid regions (China, Argentina, Iran, and Uzbekistan) provides the highest
quality fine-wool. Central and Western Asia are suppliers of valuable astrakhan
(newborn sheep skins).
Goat breeding is close to sheep breeding. Generally it has local
significance, except Angora goats breeding giving mohair.
Poultry farming is one of the most fast developing livestock
industries. Highly mechanized poultry farms for eggs and poultry are located
not far from cities and major grain producing areas.
Fishing is a very ancient craft of mankind. Currently it is an
important sector of the world economy. In freshwater 0.1 of the world fish
catch is fished out, the rest part is got in the oceans and seas.
Many countries develop fishery as a sector. But nearly half the
world's fish catch is produced by six countries such as Japan, China, Russia, the USA, Chile, and Peru. The disastrous decline in industrial fish reserves
in the ocean promotes fish farming development.
This means also fish farming and increasing and improving the
quality of fish stocks in natural waters (various species of sturgeon, salmon,
and herring), and in special artificial reservoirs (bream, carp, crucian carp,
etc.). Japan has the most significant advances in fish farming and growing
There are other narrow prominent sectors of livestock such as camel
breeding, horse breeding, reindeer breeding, bombycid growing, rabbit breeding,
bee keeping, and fur animal breeding.
The leaders of livestock production are economically developed
countries; the USA, China and Russia are leading producers of meat, Russia,
Germany, France are leading producers of butter, and the USA, India, Russia are
the leaders of dairy industry.
The main exporters of livestock products are:
- Poultry – France, the USA, the Netherlands;
- Mutton – New Zealand, Australia, Great Britain;
- Pork - the Netherlands, Belgium, Denmark, Canada;
- Beef – Australia, Germany, France;
- Butter - the Netherlands, Finland, and Germany;
- Wool – Australia, New Zealand, Argentine .
China has an average of 58.8 pounds of meat per person, which is high even for the world average. According to the Ministry
of Agriculture of China its livestock sector achieved a stable delivery of
milk, meat and eggs to the domestic market for five years from 2005 to 2010.
In 2010 meat production was 78.5 tons, milk production was more than
37 tons, and egg production reached 28 tons. For five years, the growth
performance of milk production was 31%, meat and eggs - 13%. China has 21 pounds of eggs per capita, which exceeds the relevant data of any developed country.
In 2010 the number of pig and dairy farms among agricultural
enterprises of this sector was 66% and 47% respectively. These figures
increased more than 20% in comparison with 2005.
Over the last five years from 2005 to 2010 no state has allocated so
much money to maintain and expand existing pastures as China. During this time the area of pastures increased by more than half. Expanding the
natural forage for livestock is a breakthrough .
Table 1 - Geographic segmentation by
livestock exporting countries 
|Livestock products and live cattle
||Main exporting countries
|Beef and veal
||Australia, Germany, Finland, New Zealand, Ireland, the Netherlands, the USA, Hungary
||The Netherlands, Belgium, Denmark, Canada, Hungary
||New Zealand, Australia, Great Britain
||France, the USA, the Netherlands, Brazil
||Australia, New Zealand, Argentina, Uruguay, the Republic of South Africa
||Brazil, Argentina, Mexico
||Ethiopia, China, the Netherlands, Canada
|Sheep and goats
||Australia, Turkey, Somalia, Ethiopia
The Table clearly characterizes the international trade of livestock
products. It describes the leading position of the mature economies in trade
and these are the first-rate exporters of meat and wool products. The
percentage of the developing countries is somewhat higher in live cattle trade.
Livestock is a secondary sector in the most developing countries
while it dominates over farming and is notable for intensive farming in the
most developed countries. Industrialization, food supply improvement and
progress in selection work in the developed countries promoted higher
productivity in their livestock sector. Because of the common problems of
livestock and farming in the developed countries e.g. economic glut, the governments
of these countries pursue the policy of containment and cutback in production.
Economically developed countries are far ahead in absolute
indicators of developing livestock production. This is due to the lower
productivity of livestock in Asia, Africa and Latin America. Suffice it to say
that they produce only 25% of the world beef and 14% of milk.
Figure 1 – World dynamics of production by
country for 2009 and 2010 (KZT million)
Per capita indicators of livestock products in the developed
countries tend to be many times higher. Especially there are small countries
with a highly intensive livestock sector (New Zealand, the Netherlands). But countries with smaller population such as Australia and with more extensive
livestock might also have high per capita indicators.
Livestock is as widespread as crops, and grasslands and pastures
occupy three times more land than agricultural land in the structure of land.
The bulk of the country's livestock production comes from the temperate zone.
The geography of the world livestock is characterized by cattle
Different countries have a diverse level of livestock sector
development. In advanced developed countries e.g. Europe, North America, Japan,
and former socialist countries with transition economy e.g. Central Europe and
CIS countries, the livestock sector is a highly intensive and mechanized
industry based on the same intensive and mechanized feed production. Its main
subsectors are dairy cattle breeding, stalled breeding of cattle for meat,
swine breeding, and highly mechanized poultry breeding.
The livestock in these countries is a highly marketable sector
closely related to processing and value chain of agriculture. However, in the
countries with large pastures, livestock combines features of extensive
production (but well technically equipped) associated with the other components
of the agricultural sector. Pastures are used to grow cattle for meat, and to
breed sheep. This is a characteristic of South-West of the USA, Australia, New Zealand, South Africa, and to the less extent the South of Ukraine and Russia, Kazakhstan, etc.
An extensive livestock using grazing and very little related to
other branches of the agriculture sector has been formed in developing
countries. There are the most developed subsectors such as meat cattle, meat
and dairy cattle breeding (with cattle less productive in comparison with
Europe or the U.S.), grazing sheep, horse breeding in some areas, camel
Among developing countries, the most total number of livestock for
meat is in Latin America (Brazil, Argentina, Mexico, Uruguay) and East Africa
(Ethiopia), of sheep and goats - in South West and South Asia (Iran, Turkey,
Developing countries are going to increase wool production volume in
the near future. Kazakhstan, India, Russia, China, and Turkey don’t process the whole amount of wool up to now. Only streamlining the collection and
classification of wool will promote the growth of the total production of wool.
Traditional leaders in wool production, however, will reduce the
production of wool, as the market is saturated and overstocked with the
products. Prices for the input wool are very low in the world market, and close
to the price of production. Traditional leaders will cut down livestock
population, and shift from wool to meat and dairy farming.
Land in Europe is constantly becoming more expensive, and requires
the maintenance of sheep grazing, so the number of sheep and wool production in
Europe will continue to decline.
2 - Forecast of production of pure wool, by country, 2009-2014 (KZT, thousand) Source: International Wool Textile
Production of pure wool will increase stably in developing
countries, where state supports its farmers and home processing of raw
Wool production is also influenced by weather conditions. Weather
affects more sheep than beef cattle. In recent years, unstable weather in Australia and South America also prompted breeders to reduce the number of sheep.
Large foreign buyers of wool, such as China and India, require large volumes of supply and prefer to work with traditional suppliers, New Zealand and Austr alia with established inexpensive marine logistics. European countries also
prefer to work with reliable suppliers who provide carefully selected and
The number of people in the world grows to
about 70-80 million people a year. Never have so many people lived at the same
time in the world. If you consider agriculture and food, everyone tends to
increase consuming, and therefore relative consuming increases together with
absolute consuming due to population upsurge.
3 - Forecast of pure wool exports, by country, 2009-2014 (KZT, thousand)
Source: United Nations Statistical Division
Accordingly, more food will need to be produced by the same amount
of land (or even by a smaller area) in the XXI century worldwide. Recent
studies of future demand indicate that the world will have needed 70-100% more
food by 2050.
When asked “What should be done to provide 10 billion food?” Ida
Kubiszewski, professor at the University of Portland, the editor of The
Solutions journal replied that there is absolutely enough food supply in the world
today but about 30 to 50% of food in both developed and developing countries is
wasted, though for very different reasons.
In developing countries, the loss is mainly due to the lack of
infrastructure in the production chain, such as storage technology of food
produced by farms, during transporting, storage prior to sale. Huge losses
during storage are typical for developing countries, such as India, where 35-40% of fresh produce is lost because neither wholesale stores nor retail outlets are
equipped with refrigerators.
Though rice can be stored without any special equipment there are
its losses in South East Asia. So after harvest about a third of the crop is
going to be lost due to pests and spoiling.
In developed countries, the food losses up to the retail stage are
much lower, but the losses during retail trade, public catering and individual
consumption are significant. For example, consumers are used to buying good
looking products and, consequently, retailers have to throw a lot of edible,
but slightly damaged products. For consumers in developed countries food is
relatively cheap, which also promotes producing waste.
The world faces a triple problem in the XXI century from the point
of view of world food security:
a) to satisfy growing demand for food;
b) to ensure sustainable food security in terms of the environment;
c) to cope with the problem of hunger.
1. http://be5. biz/ ekonomika1/ r2011/ 1298. htm
2. http://www. grandars. ru/
shkola/ geografiya/ zhivotnovodstvo. Html
Table of contents: The Kazakh-American Free University Academic Journal №4 - 2012