In many developing countries, livestock product consumption and production are increasing rapidly. Most of the production, however, is not generated by traditional production systems that characterised the region for centuries, but from industrial, large scale production of pigs and poultry, and to a certain extent, dairy. Large-scale, industrial production accounts for roughly 80 percent of the total production increase. Production relies almost exclusively on concentrate feed, often imported from elsewhere in the country or from abroad.

Geographically, most large-scale industrial production takes place in and around major cities. This leads to massive pollution in these areas, particularly of surface and ground water. The emission of greenhouse (methane, nitrous oxide) and other gases (ammonia) are other important forms of pollution. Moreover, there are several public health risks associated with the close proximity of high human and animal densities . In addition, the rural areas that would have the resource potential to supply the growing urban markets, are deprived of a rapidly growing commodity market. The current policy framework often favours the development of large scale industrial production making the poor even more vulnerable.

The reasons for the geographic concentration of livestock production lie in the cost advantages for enterprises close to the consumer market, given that in most countries infrastructure (including roads, cold chain, marketing and handling facilities) is still not well developed. Regulations for livestock production and related waste management are either insufficiently sophisticated or not being enforced. Thus, large-scale industrial production causes significant environmental damage with local and global consequences. At the same time, rural small-scale producers are put at a disadvantage by the urban policy bias reflected in these trends.

While these trends are extremely worrying from a social, environmental and public health point of view, there are a number of countervailing tendencies. Firstly, environmental awareness is growing in countries that have reached a middle income level, raising the chances of stricter environmental regulations and enforcement. Secondly, infrastructure developments have started to allow the siting of new production units in rural areas, where much more land is available to absorb the waste. Thirdly, the urban and rural price differentials for land and labour in these countries are accentuated, providing incentives for the establishment and feasibility of productive units in rural areas.

Through a number of pilot schemes in China, Vietnam, Thailand and Mexico, LEAD has tested and validated tools and methodologies that assess the environmental impact of large-scale industrial production and that attempt to re-establish sound land-livestock balances from an environmental, public and animal health, and social point of view. In Thailand , the tools and results produced by the LEAD pilot scheme have instigated the development of a public capacity dedicated to the issue, and the formulation of regulations differentiated by size of production unit and region. In China , the provincial government has already adopted some of the policy options suggested by the pilot project and is testing these.

The objective is to implement policies that will produce an environmentally improved geographic distribution of livestock production over the territory. This will be achieved by providing functional tools and methodologies for use by the public and private sector that will effectively assist decision-makers in optimising the siting of animal production from an environmental, public health and social perspective. Through applying these tools and by creating a policy dialogue among the stakeholders concerned, the aim is to significantly reduce the impact of animal waste on the environment, in addition to addressing public hazards and more equitable distribution of benefits generated from a rapidly growing industry. In February 2002, LEAD initiated the formulation of a GEF project proposal entitled, “Protecting the Environment from the Impact of the Growing Industrialization of Livestock Production in East Asia” with the involvement of the governments of the countries bordering, or having tributaries flowing into, the South China Sea, i.e. China, the Philippines, Vietnam, Thailand, Laos and Cambodia.

As agreed in previous consultations, the geographical focus of this programme will be broadened in this second phase to include, where possible and relevant, African and Latin American countries, in collaboration with other environmental protection and livestock development programmes.

LEAD partner organisations: Vietnam National University of Agriculture and Forestry; Swiss College of Agriculture; Research Centre on Rural Economy, China ; Department of Livestock Division, Thailand ; Instituto Nacional de Investigaciones Forestales, Agricoles y Pecuarias (INIFAP), Mexico

1-Collection and provision of basic data: baseline data on the hotspot is collected and shared with partner organisations through the LEAD Virtual Research and Development Centre.

2- Analysis and assessment: the data is analysed and the causes and effects of the environmental degradation in each hotspot is assessed.

3- Design of policy and technology options: using this analysis, tools are developed to facilitate the design of policy and technology options for consideration by decision makers at national and local level.

4- Testing, validation and up scaling of options: the identified options are tested and validated. The project scales-up the approach from national level to regional level with the aim of impacting on eco-systems and exploit the benefits of cross-boundary interactions.

5- Provision of decision-support tools: tools are made available to decision-makers to assist them to analyse critical livestock-environment-poverty interactions and to perform an ex-ante analysis of considered policy and technology options.

6- Development of guidelines: facilitates the adoption of tools and their use within the wider context, taking into account, for example, equity and health as well as the environment.

7- Capacity building and uptake: LEAD raises awareness of detrimental livestock-environmental interactions and provides its partner organisations with the skills and knowledge to carry out relevant research. In addition, it establishes effective uptake pathways for the adoption and application of results at local, national and regional levels.