Structural changes in the poultry sector: will there be smallholder poultry development in 2030?

The major structural changes that have occurred in poultry production and marketing in recent decades have been driven by the growing consumer demand for cheap animal protein. As a result, a strong and internationally integrated poultry industry has evolved that utilizes economies of scale and advanced technology. In developing countries, however, the majority of poultry are still kept by smallholders in less intensive systems. For these households, poultry has served as both a safety net and a means to acquire assets and move out of poverty. However, increasing external pressures on the poultry sector arising from social, economic and environmental factors are strengthening the trend towards intensification. It seems likely that poultry production will continue to serve two needs: supporting livelihoods of poor rural households and as a source of lean meat for growing populations in non-agricultural areas. It is less clear where and for how long small scale commercial poultry systems will serve as a tool for poverty reduction. This paper examines the evidence and proposes conditions that may support or discourage smallholder poultry development.